A Feasibility Analysis of P.I.R. Swadaya Oil Palm Plantations in East Kalimantan

Abstract

In the framework of East Kalimantan's regional economic development, one of the important development sectors, apart from oil and gas, is agriculture, especially the oil palm plantation subsector, among others in the scheme of the People's Nucleus Plantation (PIR) Swadaya  scheme. This study aims to analysis the PIR Swadaya oil palm development program in East Kalimantan, mainly in terms of financial feasibility through financial analysis. Study used primary and secondary data. To find those data, methods of interviews and list of questionnaires are used. The financial potential projection is carried out during the economic life of the plant for 25 years, and to identify the state of the business against the possibility of fluctuations in the discount value, calculated the condition of the oil palm plantation venture independently with a discount of 10%, through Sensitivity analysis shows that NPV, IRR, PP and B / C ratio at varying interest rates of 8%, 12%, 15% and 20% investment is still safe.