Business Feasibility Analysis of Agricultural Equipment and Machinery Rental Services Unit (UPJA) in Rogojampi Sub-district of Banyuwangi Regency
Linda Ekadewi Widyatami (a*), Cholyubi Yusuf (b), Ardhitya Alam Wiguna (b)
a) Agribusiness Management Department, State Polytechnic of Jember
Mastrip Street Po Box 164 Jember
* lindaeka[at]polije.ac.id
b) Agribusiness Management Department, State Polytechnic of Jember
Mastrip Street Po Box 164 Jember
Abstract
Agricultural Equipment and Machinery Rental Services Unit/Unit Pelayanan Jasa Alat dan Mesin Pertanian (UPJA) Tani Makmur Gapoktan Surangganti in Rogojampi Sub-district of Banyuwangi classified as the developing UPJA. One of the superiority that they have is a newly developed agricultural machine in Indonesia, it is a grain seeder that comes from government assistance in 2018. This study aims to analyze the business feasibility of Agricultural Equipment and Machinery Rental Service Unit in terms of technical aspects, management aspects, and financial aspects. Financial feasibility analysis included the analysis of Net Present Value (NPV), Net Benefit Cost Ratio (Net B/C ratio), Internal Rate of Return (IRR), and Payback Period (PP). Technical aspects study shows that the agricultural equipment and machinery owned by UPJA Tani Makmur consist of: combine harvester, hand tractor, grain seeder, and transplanter that comes from the government assistance. Management aspect shows that UPJA Tani Makmur have an organizational structure, lead by Manager of UPJA, who have some staffs consist of administrative staff, technicians, and operators staff. Based on the financial feasibility analysis result included NPV, Net B/C ratio, IRR, and PP indicators, UPJA Tani Makmur is unfeasible to be implemented.
Keywords: Feasibility Analysis, UPJA
Topic: Agroindustry and Agribusiness