Business feasibility analysis of agricultural equipment and machinery rental services unit (UPJA) in Rogojampi sub-district of banyuwangi regency

Abstract

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 Alsintan Service Unit (UPJA) 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), and Internal Rate of Return (IRR). 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 (APBN) as well as three-wheeled and four-wheeled transportation equipment that come from UPJA self-funding. Based on the financial feasibility analysis result included Net Present Value (NPV), Net Benefit Cost Ratio (Net B / C), and Internal Rate of Return (IRR) indicators, UPJA Tani Makmur Gapoktan Surangganti is feasible to be implemented.