Copra processing issue of migrant farmers in tidal land of South Sumatra

Abstract

The study was carried out in the tidal land region of Pendowo Harjo Village, Sungsang District, Banyuasin District, South Sumatra Province, with the goal of calculating the production costs and income gained, as well as determining the financial feasibility of the copra processing business. Simple random selection was used to choose sample farmers, with 45 sample farmers managing the copra processing business chosen from a total of 235 population members. All sample farmers were Bugis ethnic migrant farmers. The analysis results showed that with an average area of 1.15 hectares, an income of IDR 2,530,886.98 was obtained. The production costs incurred were IDR 1,756,328.15 resulting in an income of IDR 774,558.83 per arable area per production process (for a period of 3 months). The NPV value was IDR 102,638,789.00, with the IRR value was 49.92 per cent, and the Net B/C value was 2.28. These figures show that a copra processing business can be developed in the area financially.