Financial Feasibility and Sensitivity of Banana Chips Agroindustry in South Sulawesi
DOI:
https://doi.org/10.18343/jipi.31.2.335Keywords:
agroindustry, banana chips, financial feasibility, MSMEs, sensitivityAbstract
The purpose of this study was to assess the financial feasibility and sensitivity of the banana chips agroindustry at Mappadeceng MSME in Bone Regency, South Sulawesi. The research was conducted in June 2024 using a case study approach based on primary and secondary data. Financial feasibility was analyzed using Net Present Value (NPV), Internal Rate of Return (IRR), Gross Benefit-Cost Ratio (B/C), Net Benefit-Cost Ratio (Net B/C), and Payback Period (PP), followed by sensitivity analysis under adverse business scenarios. The results show that the enterprise is financially feasible, with an NPV of IDR 178,750,000, IRR of 37%, Gross B/C of 1.21, Net B/C of 2.85, and a Payback Period of 6 years and 8 months. The IRR exceeds the prevailing bank interest rate of 10%, indicating strong investment attractiveness. Sensitivity analysis reveals that the business remains feasible under a 15% decrease in sales volume and a 20% increase in raw material prices. However, a 10% reduction in selling price causes the IRR to fall below the benchmark and the B/C ratio to drop below 1, indicating financial vulnerability to price competition. These findings demonstrate that the banana chips agroindustry has solid financial potential but requires effective pricing strategies to maintain long-term sustainability.
Keywords: agroindustry, banana chips, financial feasibility, MSMEs, sensitivity
Downloads
References
Adeyonu AG, Oni OA, Yusuf BA. 2022. Does farmers’ entrepreneurial competencies explain their household poverty status? Evidence from rural areas of Kwara State, Nigeria. Cogent Economics & Finance. 10(1): 2071384. https://doi.org/10.1080/23322039.2022.2071384.
Chen S. 2025. Net present value (NPV) sensitivity analysis: Understanding risk in investment projects. Advances in Economics, Management and Political Sciences. 150(1): 186–194. https://doi.org/10.54254/2754-1169/2024.19301.
Exzan RN, Alhidayat SA, Najamuddin A, Ardani B. 2024. Financial feasibility analysis of the mackerel fish cake MSME in Palangka Raya City, Central Kalimantan. Journal of Tropical Fisheries. 19(1): 7–14. https://doi.org/10.36873/jtf.v19i1.12873.
Feni R, Edi E, Kesumawati N, Raney ES. 2024. Financial feasibility of traditional cake home industry in Tanjung Ganti 1 Village, Kaur Regency. Jurnal Agribis. 17(1): 2266–2279. https://doi.org/10.36085/agribis.v17i1.6031.
Haras H, Olaniyi AA, Hossain MI. 2023. Input price volatility and strategic risk mitigation for MSMEs in agro-based sectors. Asian Economic and Financial Review. 13(2): 135–149.
Memon MA, Ramayah T, Ting H, Cheah JH. 2025. Purposive sampling: A review and guidelines for quantitative research. Journal of Applied Structural Equation Modeling. 9(1): 1–23. https://doi.org/10.47263/JASEM.9(1)01.
Moyo EH, Carstens S, Walters J. 2024. Simulation model for a sustainable food supply chain in a developing country: A case study of the banana supply chain in Malawi. Logistics. 8(3): 85. https://doi.org/10.3390/logistics8030085.
Mustafa M, Yousaf M, Habib N. 2024. Supply chain risk and investment feasibility of small food enterprises in South Asia. International Journal of Supply Chain Management. 13(1): 98–107.
Mwalupaso F, Sinyolo S, Chisanga B. 2025. Access to financial services and resilience of rural MSMEs in developing countries. Sustainability. 17(2): 984.
Nikolopoulou K. 2023. What is purposive sampling? Definition & examples. Scribbr. https://www.scribbr.com/methodology/purposive-sampling/.
Polukhin AA, Panarina VI. 2022. Financial risk management for sustainable agricultural development based on corporate social responsibility in the interests of food security. Risks. 10(1): 17. https://doi.org/10.3390/risks10010017.
Rahman S, Khan R, Uddin MN. 2022. Triangulation in qualitative research: A methodological review. International Journal of Social Research Methodology. 25(3): 321–334.
Ribeiro GBDD, De Loreto MDDS, Miranda EL, Bastos RC, Aleman CC, Da Cunha FF, Rodrigues PD. 2024. The use of financial tools in small-scale irrigated crops to assess socioeconomic sustainability: A case study in Tocantins Araguaia Basin, Brazil. Sustainability. 16(5): 1835.
Rosminah M, Rahim S, Taufik A. 2024. Agroindustry Management: Strategy and Implementation. Yogyakarta (ID): Yayasan Kita Menulis.
Statistics Indonesia of South Sulawesi Province. 2024. Fruit production by district/city in South Sulawesi, 2023. https://sulsel.bps.go.id.
Vilani L, Zanin A, Lizot M, Trentin MG, Afonso P, Lima JDD. 2024. A framework for investment and risk assessment of agricultural projects. Journal of Risk and Financial Management. 17(9): 378. https://doi.org/10.3390/jrfm17090378.
Wulandari A, Arifin B. 2023. Agribusiness data integration: Field practices and analytical techniques. Jurnal Agribisnis Indonesia. 11(2): 123–136.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Zulkifli -, -
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This journal is published under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License. Authors who publish with this journal agree to the following terms: Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. NonCommercial — You may not use the material for commercial purposes.
How to Cite
View JIPI StatsCounter
