An analysis of the feasibility of the copra business in the village of Pendowo Harjo, sub-district of Sungsang, Banyuasin Regency

Abstract

Copra is used as raw material of coconut oil and exported commodity. This study was conducted in the Tidal Land of Pendowo Harjo Village, Subdistrict of Sungsang, Banyuasin Regency, which aims to calculate the production costs incurred, the income earned, and to analyze the feasibility of the business of producing copra. In this research, sampling was conducted by simple random sampling method. The number of samples taken in this study was 10 individuals who were the copra business people out of 117 people of population. The results of analysis show that the productioncost incurred is Rp 1,198,076.12, and the income earned is Rp 414,598.88 per unit of the production process. Financially, the value of NPV obtained is Rp 19,668,343.86, the value of the IRR is 60.75 percent and the value of the Net B/C is 1.74. Therefore, economically, the copra business is feasible to be developed.