Financial, Economic and Environmental Feasibility Analysis of Palm Sugar Domestic Industry in Kolaka Indonesia

Abstract: One of the household agro-industries that have been run for a long time by the people in Southeast Sulawesi is palm sugar agroindustry. Production activities often led to externality or external impact. Benefit externality in palm sugar industry is that the palm trees producing saps used to make palm sugar have ecological value. The existence of these plants can absorb carbon emissions and supports land and water conservation. The palm sugar production can also generate negative externalities because the needs for fuel are met by forest firewood. The environmental feasibility of an industry is now an important and strategic issue that must be addressed properly and the industrial performance should be improved continuously, so does the palm sugar domestic industry. Therefore, this study aims at determining the financial, economic, and environmental feasibility of the palm sugar domestic industry. The analytical method used was the Extended Benefit-Cost Ratio. The results of the study indicate that the palm sugar domestic industry was financially feasible (BCR 1.63) with Net Present Value (NPV) of IDR 79,108,459.75, economically feasible (SBCR 8.69) with NPV of IDR 613,547,754.74 and environmentally feasible (EBCR 9.48) with NPV of IDR 636,521,858.41.