Economic feasibility and development strategy of jabon (Anthocephalus cadamba) cultivation in urban areas to meet the needs of timber and green open space

Abstract

Rapid population growth causes the demand for wood to increase. On the other hand, the city’s need for a minimum of 30% green open space is still far from enough. One of the solutions to meet the demand for wood and the lack of good green open space is the development of plantation forest cultivation. One of the fast-growing species to be developed in urban areas is jabon (Anthocephalus cadamba). This study aims to determine the value and economic feasibility as well as strategies for developing sustainable jabon cultivation businesses in urban areas. The analytical method used is quantitative descriptive analysis in the form of economic value assessment, business feasibility analysis, and SWOT analysis. The results showed that the economic value of Jabon plantations aged 3-5 years was IDR 40,083,106/ha (USD 2,626.7/ha). The business feasibility test resulted in an NPV value of IDR -38,474,957 (USD -2,520), an IRR value of 0.8%, and a BCR of 0.262, and all three were included in the “not feasible” category. Based on the SWOT analysis, the business position is in quadrant I. An offensive development strategy is suggested by optimizing the strengths and opportunities that are owned so that the cultivation of jabon plants can be attractive as a financially viable business and increase green open spaces in urban areas.