Financial Feasibility Analysis of Salted Anchovy Processing
on Pasaran Island, Bandar Lampung
ERLINA RUFAIDAH1, MAYA RIANTINI1, YULIANA SALEH1, LESTARI GITA NUR'AINI1,
ARYAN DANIL MIRZA. BR2
1Agribusiness Department, Universitas Lampung, Bandar Lampung, INDONESIA
2Accounting Department, Universitas Lampung, Bandar Lampung, INDONESIA
Abstract: - The purpose of this study was to determine the financial feasib anchoviesility, and sensitivity of
salted anchovy processing business on Pasaran Island, Bandar Lampung City. Data collection was carried out
from November to December 2021. The research method used was a survey and the selection of research sites
was carried out purposefully (deliberately). Sources of data are obtained from the interview process using
questionnaires. The analytical method used is investment criteria and descriptive-quantitative analysis. The
results showed that the financial analysis carried out on the processing of salted anchovy on Pasaran Island,
Karang City Village, Teluk Betung Timur District, Bandar Lampung City was profitable and feasible to
continue, with investment criteria indicators: NPV is IDR 12,450,776,125.40, Net B /C is 11.82, Gross B/C is
1.18, IRR is 125.16% and PP is 2.84 years. The sensitivity analysis of salted anchovy processing on Pasaran
Island, Karang City Village, Teluk Betung Timur District, Bandar Lampung City shows that the business is
sensitive to changes in certain conditions. At a 4.8% increase in production costs, the business is still feasible to
continue, while when there is a 10% decrease in the amount of production, a 14.45% decrease in selling price,
the business is not feasible to continue. Owners should increase the number of production equipment to achieve
maximum production capacity and expand the market to increase target consumers.
KeyWords: Financial Feasibility, Salted Anchovy, Production Cost, Sensitivity Analysis.
Received: July 22, 2022. Revised: October 19, 2022. Accepted: November 21, 2022. Published: January 30, 2023.
1 Introduction
Indonesia's fishery potential is very large, this
condition is supported by Indonesia's total area of
7.81 million km2 with 74.26% being waters, with the
existing marine area, Indonesia has enormous
marine and fishery potential, [1]. Fisheries and
marine products are widely used by the Indonesian
people as an economic source, as can be seen from
the number of people who work in the fisheries and
marine sector such as fishermen and marine and
fishery product processors. The fisheries sub-sector
contributes significantly to GDP of IDR 431 468.90
billion in 2020, [2]. Fisheries resources that have
great potential are small pelagic fish, especially
anchovies.
Anchovy is one type of fish that is widely
consumed by the public and produced. The
production volume of anchovy in Lampung
Province is 22,101.95 tons, with this amount,
Lampung Province is ranked 5th as the province
with the largest anchovy production volume in
Indonesia. Conditions that support this, one of
which is:
Bandar Lampung as the capital city of Lampung
Province, is synonymous with industrialization and
has quite a lot of fishery households. Fishery
households are households whose livelihoods and
types of business activities are engaged in the
fisheries sub-sector, [3]. Lampung Province has a
wide coastline. in 2020. The large production
volume is offset by the large number of Fish
Processing Units owned by Bandar Lampung City is
824 units, [3].
The purpose of this study is to analyze the
income of salted anchovy processors on Pasar
Island, analyze the financial feasibility and business
sensitivity (what-if analysis). Pasaran Island is one
of the centers for making salted anchovy which is
located in Teluk Betung Timur District, Karang City
Village, Bandar Lampung City. Pasaran Island is
one of the fish processing centers, namely the
processing of anchovies into salted anchovies.
Determination of the market island as a center for
salted anchovy processing, through the Decree of
the Mayor of Bandar Lampung No.258/23/HK/2010
concerning the determination of the location of the
Minapolitan Area of Bandar Lampung City which
includes Pasaran and Lempasing islands. and also
stipulated in the RTRW (Regional Spatial Plan) of
Bandar Lampung City in 2011-2030 as a strategic
minapolitan area in driving the regional economy
and the use of appropriate technology.
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
70
Volume 19, 2023
Anchovies that have been caught by fishermen
using a tool called a floating chart are then
purchased by the processor and immediately boiled
using sea water to become salted anchovies on the
boat in the condition that the anchovies are still
fresh and alive. This process is what distinguishes
salted anchovies from Pasaran Island from other
salted anchovies. Salted anchovy from Pasaran
Island has a more delicious and savory taste when
compared to other anchovies.
Salted anchovy processing on Pasaran Island
should be a superior business, judging from the
quality of the products that have been produced.
Salted anchovy processing business on Pasar Island
has several problems, one of which is uncertain
income. This is because anchovy is one of the
commodities that will experience a decline in prices
in 2021, [4]. In addition, the availability of raw
materials also depends on fishermen who go to sea,
if fishermen do not go to sea, then there is no raw
material that can be processed into salted anchovies.
The factors that affect traditional fish processing are
the availability of raw materials and the availability
of raw fish, [5], [6]. Fisherman's capture fisheries
production is also influenced by other natural factors
such as the tsunami. Tsunami has a negative impact
on the number of fish caught by fishermen, [7].
Under these conditions, whether the business
provides benefits that are greater than the costs to be
incurred is the next problem, so it is necessary to
analyze the feasibility of the salted anchovy
processing business on Pasaran Island. Considering
the competition between salted fish entrepreneurs
and the acquisition of raw materials can affect
income and business development, the researchers
tried to see how much investment and profit and the
financial feasibility of salted fish processing
business on Pasaran Island. This study does not only
focus on investment ratios but also adds what-if
analysis in which this modeling is useful for
knowing the effects of changes in production
parameters (i.e. inflation, increases in raw material
prices) on changes in production system
performance in generating profits.
2 Research Method
2.1 Research Time and Location
This research was conducted on Pasaran Island,
precisely in Karang City Village, Teluk Betung
Timur District, Bandar Lampung City. Bandar
Lampung City was chosen purposively, with the
consideration that Pasaran Island is one of the
production centers for processing salted anchovy
with superior quality in Lampung Province. Data
collection was carried out from November to
December 2021.
2.2 Data Collection
The population in this study were salted anchovy
processing producers on Pasaran Island, Karang
Village Village, Teluk Betung Timur District,
Bandar Lampung City with sales ranging from Rp.
2,000,000,000.00 to Rp. 15,000,000,000.00. The
sample in this study was 35 respondents who were
determined based on the slovin formula.
Respondents in this study all fit into the criteria for
micro-enterprises with sales results ranging from
IDR 2,000,000,000.00 up to IDR
15,000,000,000.00, [8]. The sampling technique
used a purposive sampling method with the criteria
for sales results ranging from Rp. 2,000,000,000.00
to Rp. 15,000,000,000.00. The data collection
method used a survey method in the form of a
questionnaire. The types of data used in this study
are primary data and secondary data. Primary data is
data obtained directly through interviews using
questionnaires to salted anchovy processing
producers on Pasaran Island, Karang City Village,
Teluk Betung Timur District, Bandar Lampung
City. Secondary data were obtained through
literature study related to this research.
2.3 Data Analysis
2.3.1 Income Analysis
The income of anchovy processors is the difference
between the revenue and the costs incurred by the
processor. Income is calculated using the following
formula, [9]:
π (1)
Description : Income
Y : Production quantity
Py : Price per unit of production
Xi : Factors of production
Pxi :Price per unit factor of
production
BTT :Total fixed costs
2.3.2 Financial Feasibility Analysis
A business feasibility study basically aims to
determine the feasibility of a business based on
investment criteria. Some of these criteria include
net present value (Net Present Value = NPV),
internal rate of return (Internal Rate of Return =
IRR), cost benefit ratio ( Gross Benefit Cost Ratio =
Gross B/C; Net Benefit Cost Ratio = Net B/C ) and
the investment return period ( Payback Period =
PP), [10].
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
71
Volume 19, 2023
a. Net Present Value (NPV)
NPV is the difference between the Present
Value of the total benefit and the Present
Value of the total cost expressed in units of
money (IDR). If the NPV value is greater
than zero (NPV > 0) then the business is
feasible to carry out, otherwise if the NPV
value is less than zero (NPV < 0) then the
business is not feasible to continue. NPV is
mathematically formulated as follows:
Information:
B t = Benefits in year t.
C t
= Cost in year t.
i = Discount rate (%).
t = Year.
b. Net Benefit Cost Ratio (Net B/C)
Net Benefit Cost Ratio (Net B/C) is the ratio
between positive net benefits and negative net
benefits. Net B/C assessment criteria are if it
is greater than one ( Net B/C >1) then it is
feasible and if it is less than one ( Net B/C <1)
then it is not feasible. Net Benefit Cost Ratio
(Net B/C), is mathematically formulated as
follows.
Information:
B t = Benefits in year t.
C t = Cost in year t.
i = Discount rate (%).
t = Year.
c. Gross Benefit Cost Ratio (Gross B/C)
Gross B/C is a comparison both benefits and
costs are gross (gross). The Gross B/C
assessment criteria are the same as the Net
B/C assessment criteria. Mathematically, Net
B/C is formulated as follows:
Information:
B t = Benefits in year t.
C t = Cost in year t.
n = Age of business.
i = Discount rate (%).
d. Internal Rate of Return (IRR)
IRR) is the discount rate (DR) which results
in an NPV equal to 0. The magnitude
resulting from this calculation is in percentage
units (%). A business is said to be feasible if
its IRR is greater than its opportunity cost of
capital (DR).
Mathematically, IRR is formulated as follows
Information:
i 1 = Discount rate that produces
positive NPV.
i 2 = Discount rate that produces
negative NPV.
NPV 1 = positive NPV.
NPV 2 = negative NPV.
e. Payback Period (PP)
Payback Period (PP) measures how fast the
payback period is. Businesses that have a
small or fast payback period are more likely
to be selected. The Payback Period method is
mathematically formulated as follows.
Payback Period =
Information:
I = The amount of investment required.
Ab = Net benefit that can be obtained each
year.
2.3.3 Sensitivity Analysis
Sensitivity analysis aims to assess what will
happen with the results of the feasibility analysis
of an investment or business activity, if there is a
change in the calculation of costs or benefits.
The variables used in the sensitivity calculation
are an increase in the purchase price of raw
materials by 4.80%, a decrease in production by
10%, and a decrease in the selling price of
14.45%. The sensitivity rate criterion is if the
sensitivity rate is greater than one (sensitivity
rate > 1) then the effort is sensitive to changes,
on the contrary if the sensitivity rate value is less
than one (sensitivity rate < 1) then the effort is
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
72
Volume 19, 2023
not sensitive to changes. Sensitivity analysis can
be mathematically defined as follows, [11]:
Information:
X i = Gross B/C/ Net B/C/NPV/PP after the
change.
X 0 = Gross B/C/ Net B/C/NPV/PP before the
change.
X = Average change in Gross B/C/ Net
B/C/NPV/PP.
Y i = Production cost/selling price/production
quantity after change.
Y 0 = Production cost/selling price/production
quantity before change.
Y = Average change in production
costs/selling price/quantity of production.
3 Results and Discussion
3.1 Characteristics of Salted Anchovy
Processing
Respondents in this study were salted anchovy
processors on Pasaran Island, Karang Barat Urban
Village, amounting to 35 people. Characteristics of
respondents in this study can be seen from the age,
amount of capital, capital status, and business
experience and education level. The characteristics
of the respondents can be seen in Figure 1 below.
Age affects a person's ability to carry out
activities and do work. Productive age is in the age
range of 15-64 years, [12]. The majority of salted
anchovy processors in Pasar Island who are
respondents in this study are in the productive age
group. At productive age, processors tend to have
the ability to properly process and develop salted
anchovy processing business. Business experience
also affects the processor's ability to process fish,
the longer the business experience, the better the
business skills because they have learned from
previous mistakes that have been made. Work
experience has a positive and significant effect on
fishermen's business income, [13]. The initial capital
status of the majority of respondents came from
borrowing. Capital has a significant effect on
income, meaning that the higher the amount of
venture capital will have a positive effect on income
[13], [14], [15], [16]. Education will significantly
affect an individual's income level, the higher the
level of education, the income level will also
increase, [17]. Education affects the income of cattle
farmers through a mindset in developing and
managing their business, [18].
Fig. 1: Characteristics of Respondents processing
salted anchovy in Pasaran Island
3.2 Income Analysis of Salted Anchovy
Processors in Pasaran Island
The income of salted anchovy processors in Pasaran
Island is analyzed by calculating the difference
between revenue and production costs incurred. The
income obtained by fishermen if it is not balanced
with daily expenses will increase the poverty gap,
[19]. The income of salted anchovy processors on
Pasaran Island is calculated in units (IDR/month).
The production costs consist of direct raw material
costs, direct labor costs and overhead costs .
Revenue from salted anchovy processing on Pasaran
Island, Bandar Lampung City can be seen in Table
1. Anchovy processors on Pasaran Island produce
3 types of salted anchovies, which are Nasi - salted
anchovies, Buntiau - salted anchovies, and Jengki -
salted anchovies. The cost of buying the three direct
raw materials is also different, Nasi anchovy has the
highest purchase cost among other types of
anchovy, this is in line with prior research where
Nasi anchovy has the most expensive purchase price
among other raw materials, [20]. The income
obtained from the sale of salted anchovy is also the
largest among the other three types of anchovy, this
is because the selling price of salted anchovy is
high.
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
73
Volume 19, 2023
Table 1. Income of salted anchovy processors on
Pasaran Island
No
Information
Value (IDR/Month)
I
Reception
Nasi - Salted anchovy
237,319,062.50
Buntiau - Salted anchovy
125,466,830,36
Jengki - Salted anchovy
98,691,357.14
Total receipts
461.477.250.00
II
Production cost
Direct material cost
351.511.306.25
Direct labor costs
41,409,047.62
Overhead costs
47,262,066.00
Total cost
440,182,419.87
III
Income
21,294,830,13
Source: Primary data, 2021 (processed data)
The selling price of Nasi-salted anchovy is
higher, due to high consumer demand for salted
anchovy. The taste of Nasi-salted anchovy is better,
the texture is softer and has a cleaner and more
attractive color than the Jengki - salted anchovy and
Buntiau salted anchovy. The high price of anchovy
rice is in accordance with the prior research that
price and taste affect consumer demand, [21]. The
income earned by salted anchovy processors on
Pasaran Island is IDR 21,294,830.13 every one
month. This is in line with the prior research that the
anchovy processing business also experienced a
profit IDR 5,444,237.00/week, [20]. The results of
this study are also in line with the prior research that
capture fishermen also experience a profit of IDR
7,473,852 every three months, [14]. The income
earned by salted anchovy processors on Pasaran
Island is quite large every month. The large income
obtained by the processor is also offset by the large
costs incurred in the production process and the
resulting product also has a high selling price in the
market.
3.3 Financial Feasibility Analysis of Salted
Anchovy Processing Business on Pasaran
Island Analysis
Financial analysis was used to determine the
feasibility of anchovy processing business on
Pasaran Island, Bandar Lampung City. Indicators of
the magnitude of the benefits obtained by anchovy
processors whether they are feasible to be developed
can be seen from the net present value ( Net Present
Value = NPV), the internal rate of return ( Internal
Rate of Return = IRR), the cost benefit ratio ( Gross
Benefit Cost Ratio = Gross B /C; Net Benefit Cost
Ratio = Net B/C) and the investment return period (
Payback Period = PP).
The costs used in the salted anchovy processing
business on Pasaran Island consist of investment
costs and operational costs. The costs incurred when
the business is started, the investment costs for
anchovy processing can be seen in Table 2. It is
known that the total investment cost incurred by
anchovy processors on Pasaran Island is IDR
538,525,285.71. The largest investment cost issued
by anchovy processors on Pasaran Island is a boat
with a cost of IDR 230,600,000.00 this is different
from that stated by the Department of Investment
and One-Stop Integrated Services, Muara Enim
Regency that the largest cost incurred is drums of
IDR 5,000,000.00, [22].
Table 2. Investment costs for salted anchovy
processing on Pasaran Island
No
Investment
Type
Economic
life (Years)
Investment Value (IDR)
1
Land
-
200,000,000.00
2
Building
10
80,000,000,00
3
Boat
10
232,600,000.00
4
Stew
5
8,500,000.00
5
Frame
3
14,714,285.71
6
Receptacle
3
769,571.43
7
Scales
8
3,000,000.00
8
Gas
4
1.095.000,00
Total
540,678,857.14
Source: Primary data, 2021 (processed data)
The income of salted anchovy processors on
Pasaran Island is seen from the revenue minus the
costs incurred. The revenue obtained is the result of
the sale of three types of teriasisin fish obtained by
the processor. Operational costs incurred in the form
of direct material costs, direct labor costs, overhead
costs. The direct material cost is the cost to buy
anchovy rice, anchovy buntiau and anchovy jengki.
Direct labor costs consist of two activities, boiling
activities and sorting & drying activities. Overhead
costs consist of salt, gas, cardboard, duct tape, diesel
fuel, transportation costs, consumption, and PBB.
The income of salted anchovy processors on
Pasaran Island for the last ten years can be seen in
Table 3. It can be seen that in year 5 had the largest
income value, because in that year the selling price
of anchovy was the highest, this is in line with prior
research which states that the selling price has a
significant effect on fishermen's income, [15].
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
74
Volume 19, 2023
Table 3. Income of 10 years salted anchovy
processor
year
Reception
Cost
Income
1
0.00
540,678,857.14
-540,678,857.14
2
5,365,855,393
5,230,047,574.11
135,807,818.75
3
5,662,113,321
5,230,047,574.11
432,065,747.32
4
5,824,409,036
5,245,531,431.25
578,877,604.46
5
6,260,224,286
5,231,017,574.11
1,029,206,711.61
6
6,399,781,607
5,238,547,574.11
1,161,234,033.04
7
6,399,781,607
5,245,531,431.25
1,154,250,175,89
8
6,260,224,286
5,230,047,574.11
1,030,176,711.61
9
5,559,029.914
5,234.142,574.11
324,887.340.18
10
5,572,149,986
5,245,531,431.25
326,618,554.46
Source: Primary data, 2021 (processed data)
Calculation of the feasibility of salted anchovy
processing business on Pasaran Island, Teluk
Betung Timur District, Kota Karang Village, Bandar
Lampung City using the economic life of the boat
used (10 years) which is calculated by performing
Compounding Factor (cf) is used to increase the
benefits obtained from the business. salted anchovy
processing on Pasaran Island in the past and the
current cost becomes the current value. The interest
rate used is based on the average discount rate since
KUR was launched on November 5, 2007 until
2021, which is 8.8%, [23]. The results of the
calculation of the financial feasibility of anchovy
processing business on Pasaran Island can be seen in
Table 4.
Table 4. The results of the calculation of the
financial feasibility analysis of salted anchovy
processors on Pasaran Island
Criteria
Unit
Mark
Assessment
criteria
Information
NPV
IDR
7,433.955.071.72
> 0
Worthy
Net B/C
-
7.44
>1
Worthy
Gross B/C
-
1.11
>1
Worthy
IRR
%
78.17%
>8.8
Worthy
PP
Year
3.89
<10
Worthy
Source: Primary data, 2021 (processed data)
Based on Table 4, it is known that the results of
the assessment of investment criteria indicators are
Net Present Value (NPV), Internal Rate of Return
(IRR), Gross Benefit Cost Ratio ( Gross B/C), Net
Benefit Cost Ratio ( Net B/C) and Payback Period
(PP) as follows.
a. Net Present Value (NPV)
Net Present Value is obtained from the
difference between the total present value of
benefits and the total present value of costs or,
the NPV value is expressed in units of money
(IDR). The result of the NPV calculation is IDR
7,433,955,071.72. The NPV value of the
business is positive or more than 0, so the salted
anchovy processing business on Pasaran Island is
profitable and deserves to be continued. This
study is in line with prior research that the
Payang Jabur fishery business at the
Asemdoyong Beach Fishing Port, Pemalang
Regency is feasible to continue with an NPV
value of IDR 134,865,778 [24].
b. Net Benefit Cost Ratio ( Net B/C
Net Benefit Cost Ratio ( Net B/C) is the ratio
between positive net benefits and negative net
benefits. Based on the Net B/C value obtained
from the calculation of the salted anchovy
processing business on Pasaran Island, it is 7.44.
This means that for every IDR 1.00 in net costs
that have been incurred, it will generate a net
income of IDR 7.44. The Net B/C value is more
than 1, then the salted anchovy processing
business on Pasaran Island is feasible to
continue. The catfish processing agroindustry is
feasible to continue with a Net B/C value of 1.23,
[25].
c. Gross Benefit Cost Ratio ( Gross B/C)
Gross B/C in salted anchovy processing business
on Pasaran Island is 1.11. The Gross B/C value
means that every IDR 1.00 of expenses incurred
generates income of IDR 1.11. The Gross B/C
value of the salted anchovy processing business
on Pasaran Island is greater than one, it shows
that the business is feasible to continue. The
catfish processing agroindustry is feasible to
continue with a Gross B/C value of 1.90, [26].
d. Internal Rate of Return (IRR)
IRR is the interest rate that produces the NPV
value equal to zero. The results of the calculation
of the IRR value at an interest rate of 8.8% using
a discount factor of 78.17%. The IRR value is
greater than the current interest rate, so the salted
anchovy processing business on Pasaran Island is
feasible to continue. Business of shredded fish
agroindustry is feasible to do with an IRR value
of 45.43%, [26].
f. Payback Period (PP)
Payback Period (PP) measures how fast the
payback period is. The results of the PP
calculation on the analysis of the financial
feasibility of anchovy processing business on
Pasaran Island are 3.89 years. The PP value is
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
75
Volume 19, 2023
less than the economic life of the boat, which is
10 years, so the salted anchovy processing
business on Pasaran Island is feasible to
continue. The agroindustry of processed products
made from tilapia is feasible to be carried out
with a PP value for 3 months 16 days, [27].
3.4 Sensitivity Level Analysis
Sensitivity analysis is used to see the impact of a
changing situation on the results of NPV, IRR, Net
B/C, Gross B/C, and payback period. Changes that
occurred in this study were 10% salted anchovy
production, 14.45% change in the selling price of
salted anchovy and 4.8% increase in direct raw
material costs. The results of the sensitivity analysis
of these changes can be seen in Tables 5, 6 and 7.
Table 5. Changes in the investment criteria for
salted anchovy processing business on Pasaran
Island (10% decrease in production)
Criteria
Change Value
Sensitivity
Rate
Information
NPV
IDR -193,283,018,42
20.01
sensitive
Net B/C
0.93
14.78
sensitive
Gross B/C
1.00
1.00
sensitive
IRR
6.32%
16,16
sensitive
PP
6.44 years old
4.69
sensitive
Source: Primary data, 2021 (processed data)
Investment criteria after a 10% decrease in salted
anchovy production in Pasaran Island. Shows that
based on the Gross B/C, IRR, and PP and Gross B/C
values, the salted anchovy processing business on
Pasaran Island is still feasible to continue, while the
NPV and Net B/C values indicate that the business
is not feasible to continue and is sensitive to
changes. This is not in line with prior research that
the nursery business is still viable at a 16.25%
decline in seedling production, [28].
Table 6. Changes in the value of the investment
criteria for salted anchovy processing business on
Pasaran Island (price reduction of 14.45%)
Criteria
Change Value
Sensitivity
Rate
Information
NPV
IDR -
3,588,213,478,21
36,80
sensitive
Net B/C
0.21
12.13
sensitive
Gross
B/C
0.95
1.00
sensitive
IRR
0.10%
12.13
sensitive
PP
12.75 years
6.84
sensitive
Source: Primary data, 2021 (processed data)
Based on sensitivity analysis, it shows that a
decrease in selling price of 14.45% causes changes
in the value of NPV, Net B/C, Gross B/C, and IRR.
This value indicates that the business is not feasible
to continue and based on the value of the sensitivity
rate, the investment criteria are sensitive to changes.
This result is not in line with the prior research that
when there is a 10% decrease in the selling price of
salted anchovy, the business is still feasible to
continue, [29].
Table 7. Changes in the value of the investment
criteria for anchovy processing business in Pasaran
Island (cost increase of 4.8%)
Criteria
Change Value
Sensitivity
Rate
Information
NPV
IDR 4,819,579,278,05
9.10
sensitive
Net B/C
4.75
9.41
sensitive
Gross B/C
1.07
0.80
Not sensitive
IRR
53.46%
8.01
sensitive
PP
4.66 years
3.84
sensitive
Source: Primary data, 2021 (processed data)
Based on the sensitivity analysis of the 4.8%
increase in costs, it shows that the value of NPV,
Net B/C, Gross B/C, IRR, and PP is feasible to
continue. This research is in line with previous
research that showed an increase in the price of
fresh flat fish raw materials by 10%, 15%, and 20%
[30]. Gross B/C shows that it is not sensitive to
changes, this can happen because the calculation of
the income of anchovy processors compared to the
costs incurred in production is still in the gross
calculation and has not become a net profit.
So, the sensitivity analysis of salted anchovy
processing on Pasaran Island, Bandar Lampung City
shows that the business is sensitive to changes in
certain conditions. At a 4.8% increase in production
costs, the business is still feasible to continue, while
when there is a 10% decrease in the amount of
production, a 14.45% decrease in selling price, the
business is not feasible to continue. Owners should
increase the number of production equipment to
achieve maximum production capacity and expand
the market to increase target consumers.
4 Conclusion
Based on the research that has been done, it can be
concluded that the salted anchovy processing
business on Pasaran Island, Bandarlampung City has
profit of IDR 21,294,830,13 every month and
deserves to be developed. The results showed that
the financial analysis carried out on the processing
of salted anchovy on Pasaran Island, Karang City
Village, Teluk Betung Timur District, Bandar
Lampung City was profitable and feasible to
continue, with investment criteria indicators: NPV is
IDR 12,450,776,125.40, Net B /C is 11.82, Gross
B/C is 1.18, IRR is 125.16% and PP is 2.84 years.
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
76
Volume 19, 2023
The sensitivity analysis of salted anchovy
processing on Pasaran Island, Karang City Village,
Teluk Betung Timur District, Bandar Lampung City
shows that the business is sensitive to changes in
certain conditions. At a 4.8% increase in production
costs, the business is still feasible to continue, while
when there is a 10% decrease in the amount of
production, a 14.45% decrease in selling price, the
business is not feasible to continue. Based on the
results of this study, suggestions that can be made
by the owner of anchovy processing are as follows:
1. Owners should increase the number of
production equipment to achieve maximum
production capacity and expand the market to
increase target consumers. By expanding the
market, the owner's business can last longer if
there is a decrease in the selling price or an
increase in the price of anchovy raw materials.
This is because expanding market share can
increase the number of consumers which can
reduce fixed costs per unit, [31].
2. Owners should make production cost efficiency
to be able to optimize profit in the following
ways:
a. Strengthening upstream (suppliers) to obtain
quality anchovy raw materials at a more
affordable price.
b. Overhead costs should be separated into
variable overhead costs and fixed factory
overhead costs. The overhead costs used in
this production consist of the cost of salt,
gas, cardboard, duct tape, diesel fuel,
transportation costs, consumption and
property tax. So, the variable overhead costs
consist of the cost of salt, gas, cardboard,
duct tape, diesel fuel, transportation costs,
consumption, while the fixed overhead costs
are property tax. This separation method is
necessary because changes in production
quantities will affect variable overhead
costs.
c. Implementing Activity Based Costing
(ABC) and Activity Based Management
(ABM) to optimize production processes
and cost calculations, so as to avoid under
costing and overcosting in determining
selling prices.
Based on the suggestions above, it is expected that
the profit received is in accordance with the costs
incurred and the time required to return the
investment is not too long.
The results of this study have theoretical and
practical implications. Theoretically, this research
does not only focus on investment ratios but also
adds what-if analysis in which this modeling is
useful for knowing the effects of changes in
production parameters (i.e. inflation, increases in
raw material prices) on changes in production
system performance in generating profits.
Practically, this research provides knowledge to
micro entrepreneurs, especially salted anchovy
processing producers on Pasaran Island, Karang
City Village, Teluk Betung Timur District, Bandar
Lampung City related to the feasibility of salted
anchovy business and can be an analytical tool for
anchovy processing producers. salt to determine the
strategy used in developing its business. This study
emphasizes the investment ratio, so that future
research can develop other aspects related to the
feasibility study, such as social, economic, and
political aspects, industrial environmental aspects,
and market aspects. Future research also can
compare for financial feasibility analysis between
two regions and further identify the factors that
cause business excellence in both regions.
References:
[1] Pratama, O. 2020. Konservasi Perairan
Sebagai Upaya Menjaga Potensi Kelautan
dan Perikanan Indonesia. Direktorat Jenderal
Pengelolaan Ruang Laut.
https://kkp.go.id/djprl/artikel/21045-
konservasi-perairan-sebagai-upaya-menjaga-
potensi-kelautan-dan-perikanan-indonesia.
[2] Central Bureau of Statistics. 2020. [Seri 2010]
PDB Seri 2010 (Milyar Rupiah), 2020.
https://www.bps.go.id/indicator/11/65/1/-seri-
2010-pdb-seri-2010.html. Accessed on 22
April 2021.
[3] Department of Marine Affairs and Fisheries,
Lampung Province. 2019. Rencana Strategis
Dinas Kelautan dan Perikanan Provinsi
Lampung. Bandar Lampung. https://dkp.
lampungprov.go.id/uploads/renstra_2019-
2024_dkp.pdf. Accessed on 19 Oktober 2021.
[4] Central Bureau of Statistics. 2021.
Perkembangan Indeks Harga Perdagangan
Besar.
https://www.bps.go.id/pressrelease/2021/10/0
1/1780/pada-september-2021--indeks-harga-
perdagangan-besar--ihpb--umum-nasional-
turun-0-01-persen.html. Accessed on 20
Oktober 2021
[5] Fatchiya, A. Amanah, S., dan Sadewo, A.
2019. Faktor-Faktor yang Mempengaruhi
kemampuan Pengolah Ikan Tradisional di
Kabupaten Cirebon. J. SOSEK. 14(2):239-
247.
http://dx.doi.org/10.15578/jsekp.v14i2.7086
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
77
Volume 19, 2023
[6] Sutarni. 2013. Faktor-Faktor Yang
Mempengaruhi Produksi Pengawetan Ikan
Asin Teri di Kecamatan Labuhan Maringgai
Kabupaten Lampung Timur. ESAI. 7(1):1-14.
https://jurnal.polinela.ac.id/ESAI/article/view/
996/682.
[7] Riantini, M., Zakaria, W. A., Listiana, I., Ulfa,
P. N., Mutolib, A., & Widyastuti, R. A. D.
2021. Impact of the Sunda Strait tsunami on
fish production and environment in South
Lampung Regency, Lampung Impact of the
Sunda Strait tsunami on fish production and
environment in South Lampung Regency ,
Lampung. ULICoSTE 2020. 1–6.
https://doi.org/10.1088/1755-
1315/739/1/012021.
[8] Legal Documentation and Information
Network, Supreme Audit Agency, Republic of
Indonesia. 2021. Peraturan Pemerintah (PP)
Nomor 7 Tahun 2021 Kemudahan,
Perlindungan, dan Pemberdayaan Koperasi
dan Usaha Mikro, Kecil, dan Menengah.
https://peraturan.bpk.go.id/Home/Details
/161837/pp-no-7-tahun-2021.
[9] Adityas, M.R., Hasyim A.I., dan Affandi, M.I.
2018. Analisis Pendapatan Usaha tani Dan
Pemasaran Sayuran Unggulan Di Kawasan
Agropolitan Kabupaten Tanggamus. JIIA.
6(1):41-48.
https://jurnal.fp.unila.ac.id/index.php/JIA/artic
le/view/2497/2181.
[10] Nurmalina, R., Sarianti, T., dan Karyadi, A.
2014. Studi Kelayakan Bisnis. IPB Press.
Bogor.
[11] Pahlevi, R., Zakaria W.A., dan Kalsum, U.
2014. Analisis Kelayakan Usaha Agroindustri
Kopi Luwak di Kecamatan Balik Bukit
Kabupaten Lampung Barat. JIIA. 2 (1) : 48-
55.
https://jurnal.fp.unila.ac.id/index.php/JIA/artic
le /view/560.
[12] Central Bureau of Statistics. 2020. Istilah.
https://www.bps.go.id/istilah/index.html?Istila
h_page=4. Accessed on 05 Februari 2022.
[13] Lamia, K.A. 2013. Faktor-Faktor yang
Mempengaruhi Tingkat Pendapatan Nelayan
Kecamatan Tumpaan, Kabupaten Minahasa
Selatan. Jurnal EMBA. 1 (4) : 1748-1759.
https://ejournal.unsrat.ac.id/index.php/emba/ar
ticle /view/3371.
[14] Indara S. R., Bempah I., dan Boekoesoe, I.
2017. Faktor-Faktor Yang Mempengaruhi
Pendapatan Nelayan Tangkap di Desa Bongo
Kecamatan Batudaa Pantai Kabupaten
Gorontalo. AGRINESIA. 2 (1) : 91-97.
https://ejurnal.ung.ac.id/index.php/AGR/articl
e/view/2443.
[15] Ridha, A. 2017. Analisis Faktor-Faktor yang
Mempengaruhi Pendapatan Nelayan di
Kecamatan Idi Rayeuk. Jurnal Samudra
Ekonomi Dan Bisnis. 8 (1) : 646-652.
https://ejurnalunsam.id/index.php/jseb/article/
download/205/153.
[16] Yuroh, F., dan Maesaroh I. 2018. Faktor-
Faktor Yang Berpengaruh Terhadap
Pendapatan dan Produktivitas Agroindustri
Gula Kelapa di Kabupaten Pangandaran.
Jurnal Pemikiran Masyarakat Ilmiah
Berwawasan Agribisnis. 4(2):254-273.
https://jurnal.unigal.ac.id/index.php/mimbarag
ribisnis/article /view/1451.
[17] Julianto, D., dan Utari, P.A. 2018. Analisa
Pengaruh Tingkat Pendidikan Terhadap
Pendapatan Individu Di Sumatera Barat.
Jurnal Penelitian dan Kajian Ilmiah Menara
Ilmu. 12 (10):24-34.
https://jurnal.umsb.ac.id/index.php/menarailm
u/article/view/1009.
[18] Hartati. Putro, S., dan Sutardji. 2013.
Pengaruh Tingkat Pendidikan Terhadap
Tingkat Pendapatan Masyarakat Peternak Sapi
Perah Di Desa Sukorame Kecamatan Musuk
Kabupaten Boyolali. Journal Edu
Geography. 1(2):33-38.
https://journal.unnes.ac.id/sju/index.php/edug
eo/article /view/1453.
[19] Riantini, M., Yazid, M., Husin, L., Adriany,
D., & Listiana, I. 2019. The Factors Affecting
The Vulnerability Indicators Of Fishermen
Household In Tanggamus Regency Of
Lampung Province, Indonesia. International
Journal of Social Science and Economic
Research. 4(9). 5984–5997.
[20] Sirait, M.D., dan Purwoko A. 2012. Kajian
Risiko Usaha Pengolahan Ikan Teri di Desa
Pagurawan, Kecamatan Medang Deras,
Kabubapaten Batubara, Provinsi Sumatera
Utara. AGRISEP. 11 (2) : 187-196.
https://ejournal.unib
.ac.id/index.php/agrisep/article/view/508.
[21] Imtihan dan Irwandi. 2020. Analisis Faktor-
Faktor yang Mempengaruhi Permintaan Ikan
Asin Laut di Kota Padang. Jurnal Penelitian
dan Kajian Ilmiah Menara Ilmu. 14(1):63-71.
https://doi.org/10.31869/mi.v14i1.1763.
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
78
Volume 19, 2023
[22] Department of Investment and One-Stop
Integrated Services, Muara Enim Regency.
2020. Analisis Kelayakan Investasi
Pengolahan Ikan Asap & Ikan Asin. Sumatera
Selatan. http://www.dpm-
ptsp.muaraenimkab.go.id/bedahinvestasi_v51/
upload/dokumen/
PENGOLAHANIKANASAPDANIKANASI
N.pdf. Accessed on 05 Februari 2022.
[23] Kredit Usaha Rakyat (KUR). 2021. Evolusi
KUR. https://kur.ekon.go.id/evolusi-kur.
Accessed on 10 Januari 2022.
[24] Ningsih, R.S., Mudzakir, A.K., dan Rosyid,
A. 2013. Analisis Kelayakan Finansial Usaha
Perikanan Payang Jabur (Boat Seine) di
Pelabuhan Perikanan Pantai Asemdoyong
Kabupaten Pemalang. Journal of Fisheries
Resources Utilization Management and
Technology. 2(3): 223-232.
https://ejournal3.undip.ac.id/index.php/jfrumt/
article/view/3852.
[25] Kusumastuti, A.N., Darsono., dan Riptanti,
E.W. 2016. Analisis Kelayakan Finansial dan
Sensitivitas Agroindustri Pengolahan Ikan
Lele (Studi Kasus di Kub Karmina,
Kecamatan Sawit, Kabupaten Boyolali).
AGRISTA. 4(3):59-69.
[26] Hidayat, A.F., Baskara, Z.W., Wediningsih,
W., dan Sulastri Y. 2018. Analisa Kelayakan
Finansial Usaha Agroindustri Abon Ikan di
Tanjung Karang, Kota Mataram. Jurnal
Ilmiah Rekayasa Pertanian dan Biosistem.
6(1):69-75.
https://doi.org/10.29303/jrpb.v6i1.77.
[27] Yudaswara, R.A., Rizal A., Pratama, R.I., dan
Suryana, A.A.H. 2018. Analisis Kelayakan
Usaha Produk Olahan Berbahan Baku Ikan
Nila (Oreochromis Niloticus) (Studi Kasus di
CV Sakana Indo Prima Kota Depok). Jurnal
Perikanan dan Kelautan. 9(1):104-111.
http://jurnal.unpad.ac.id/jpk/article/
view/18229.
[28] Anwar, M.S., Hasyim, A.I., dan Affandi, M.I.
2018. Analisis Kelayakan Finansial Usaha
Pembibitan Lada di Desa Sukadana Baru
Kecamatan Marga Tiga Kabupaten Lampung
Timur. JIIA. 6(2):110-116.
http://jurnal.fp.unila.ac.id/index.php/JIA/articl
e/view/2775.
[29] Winarti, L. 2016. Kelayakan Finansial Usaha
Pengolahan Ikan Asin di Kecamatan Seruyan
Hilir Kabupaten Seruyan, Kalimantan Tengah.
ZMIP. 41(3):304-309. https://ojs.uniska-
bjm.ac.id/index.php/ziraah/article/view/524.
[30] Winarti, L. 2016. Analisis Sensitivitas Usaha
Pengolahan Kerupuk Ikan Pipih di
Kecamatan Seruyan Hilir Kabupaten Seruyan.
ZMIP. 41(2):177-182. https://ojs.uniska-
[31] Rosenfeld, S. A. (2003). Expanding
Opportunities: Cluster Strategies That Reach
More People and More Places 1. European
Planning Studies, 11(4), 359–377.
doi:10.1080/09654310303643
Contribution of Individual Authors to the
Creation of a Scientific Article
(Ghostwriting Policy)
Erlina Rufaidah responsible for reviewing the
literature. Maya Riantini collected data.
Yuliana Saleh completed the write up of this
research. Lestari Gita Nur'aini, did the
empirical analysis of this study. Aryan Danil
Mirza. BR provided policy recommendation
and suggestion.
Sources of Funding for Research Presented in
a Scientific Article or Scientific Article Itself
The research in this manuscript is supported by
Faculty of Agriculture, Universitas Lampung.
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.6
Erlina Rufaidah, Maya Riantini,
Yuliana Saleh, Lestari Gita Nur'aini,
Aryan Danil Mirza. Br
E-ISSN: 2224-3496
79
Volume 19, 2023
Conflict of Interest
The authors have no conflicts of interest to declare
that are relevant to the content of this article.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
_US
