Study of the types and feasibility of the rattan industry for the sustainability of non-timber forest products in North Sumatra

Abstract

Rattan has significant value in the craft creative industry because of the various benefits associated with its use as a raw material for various handicraft products. This research was conducted to determine the types and sources of raw materials, the types of processed products produced, and the types of processed products, and to determine the business feasibility and income of the rattan industry. The results showed that five types of rattan were used, namely Calamus manau, Calamus scipionum, Calamus caesius, Daemonorops angustifolia, and baliong rattan. The results of the study show that the average income in 2022 obtained by Small and Medium Enterprises (UKM) Mulia Rattan, Sibayak Rattan, Pancur Simalem Rattan, Sejahtera Rattan, and Rattan Aat respectively was 197,990,800, IDR; 13,510,789, IDR; 141,029,989 IDR; 134,029,989 IDR and 228,294,200 IDR. Based on the feasibility analysis, the Internal Rate of Return (IRR) of each UKM was 78%, 47%, 69%, 84%, and 95%, respectively. All IRR values are greater than interest rates, which means that UKM activities are feasible to carry out. BCR for each business is 1.23; 1.29; 1.64; 1.31. All Small and Medium Enterprises are said to be feasible because of BCR>1.