The analysis of the influence of running cost, shore cost and labor cost, towards profitability at the purse seine capture fisheries business units in the District of Seram Bagian Barat

Abstract

Maluku is one of the provinces which has extensive fishery potential. However, the utilization of fishery potency in the District of Seram Bagian Barat’s maritime territory as one of the fishery management areas in Maluku, only reaches 40%. It shows that there is a huge opportunity for the development of capture fisheries business in the District of Seram Bagian Barat. The output determinants of the purse seine capture fisheries business are running cost, shore cost, and labor cost. The number of samples in this research is 60. Using the purposive sampling method, the samples are collected from the data of 20 business units for 3 consecutive years (2016-2018). This research is a Descriptive research with quantitative approach, which profitability is measured by ROI (Return On Investments) and the data analysis technique applied is the multiple linear regression with the smart PLS 3.0 program. The research is resulted in several conclusions. First, running cost variable has a positive and significant influence towards profitability (ROI), which proves that the District of Seram Bagian Barat’s maritime territory is still in the state of under exploited for small pelagic fish. Second, shore cost variable has a negative and significant influence towards profitability (ROI) which describes that the distance between fishing based to the target market is considerable obstacle. Third, the labor cost variable has a positive influence towards profitability (ROI), which shows that the amount of catch is not only determined by the number of crews and the size of the net but also by the skills and abilities of each crew to perform their respective duty correctly.