Feasibility Analysis Of Palm Cooking Oil Industry In West Kalimantan Province

Abstract

Palm oil (olein) is one of the primary finished products produced from palm fruits in West Kalimantan Province. Olein or known as cooking oil was one of the primary downstream products produced from crude palm oil through refinery and fractionation process. The number of palm oil processing industries in West Kalimantan is still small, which is only 0.64% of the national palm oil processing industry population. This condition shows the need for encouragement from various parties to increase the growth of the palm oil processing industry in West Kalimantan Province, by providing industrial profile facilities that are able to attract new investors. This research aims to a feasibility study of investment in the palm oil industry, to encourage the growth of investment in the crude palm oil / CPO’s downstream industries in West Kalimantan Province. It was expected to help decision makers include policy makers (central government and local oil palm producers), investors, traders, farmers, exporters and other interested parties in the development of Oil Palm industry in West Kalimantan Province. This research uses primary and secondary data. Feasibility analysis consist of raw material, production, market, environtment, and financial aspects. Result of this research shown that oil palm industry in West Kalimantan Province was feasible with investment cost Rp. 365,384,209,972, NPV with discount factor of 20% of Rp. Rp. 383,563,088,150, IRR 47.70%, Net B / C Ratio 1,0424, Pay back period in 5,1085Years.