Financial Analysis of a Small Scale Cajuput Plantation: A Case Study of A Pilot Project for A Farmer Group in Rimbajaya Village, East Biak District

Abstract

Production of cajuput oil from the Moluccas and Java Island is currently far below the domestic demand for the oil. Extensification of small-scale cajuput plantations managed by community using improved seeds is expected to increase cajuput oil production in Indonesia. This study investigates the financial feasibility of a 5 ha-cajuput plantation using data collected from a pilot project for a farmer group in Rimbajaya Village, East Biak District. Financial feasibility was assessed by calculating four investment criteria: net present value (NPV), internal rate of return (IRR), benefit-cost ratio (BCR) and payback period. The analysis showed that a small-scale cajuput plantation was financially feasible with NPV (25 years) at a 9.2% discount rate was IDR 757,171,972.00 (IDR 151,434,394.32 per hectare), IRR of 72.74%, BCR of 1.77 and payback period after 2 years and 3 months. Investation in a cajuput plantation planted with improved seeds is more feasible than that in bamboo, sengon, palm oil and coffee plantations.

Keywords

• kehutanan
• lingkungan