AN ANALYSIS OF FINANCIAL FEASIBILITY OF EMPING JAGUNG BUSINESS AT A SMALL MEDIUM-SCALE INDUSTRY (LM3 IKM) OF PONDOK PESANTREN SALAFIYAH SYAFI’IYAH IN BANUROJA RANDANGAN POHUWATO

Abstract

This research aims to analyze (1) the production trend of emping jagung in IKM of Pondok Pesantren Salafiah Safiiah Banuroja Randangan Pohuwato before and during the COVID-19 pandemic and (2) financial feasibility of emping jagung business in IKM of Pondok Pesantren Salafiah Safiiah in Banroja Randangan Pohuwato. This is quantitative research. Data sources are observation, interviews, and documentation. The data analysis deployed is quantitative descriptive. Results demonstrate that (1) According to the annual trend in 2010-2020, emping jagung production in IKM LKM3 of Pondok Pesantren Salafiah Safiiah in Banroja Randangan Pohuwato is not stable and experienced a decreasing trend by 52.719% in 2020. Meanwhile, from the monthly data, in 2019 (before the COVID-19 pandemic), the production increased but turned to be unprogressive in 2020 (during the COVID-19 pandemic, specifically in March-September), and (2) The Net Present Value (NPV) of emping jagung business in IKM of Pondok Pesantren Salafiah Safiiah Banuroja Randangan Pohuwato was IDR275,010,089, which is higher than 1 and hence attests to the business feasibility. The Net B/C Ration is higher than 1, indicating that the business is progressive. Additionally, the Internal Rate of Return (IRR) is higher than the applicable interest rate, and thus the business is feasible to develop. The Pay Back Period (PBP) is only in the fifth year so returns on investment can be returned in the medium term. Finally, the Break-Even Point of emping jagung business can be fulfilled at a product sale of 44.37% of the average production/year.