THE BUSINESS DEVELOPMENT OF SWALLOW BIRD NEST’S HOUSE IN KAPUAS DISTRICT, CENTRAL BORNEO

Abstract

The purpose of this study is to determine the feasibility of thebusiness development of swallow bird nest‟s house in Kapuas, Central Borneo. In this research will be discussed through 6 aspects of the feasibility study. They are legal, environmental, market, technical and technological, management, and financial aspects. Based on the legal, environmental, market, technical and technological, and management aspects are declared feasible to be developed. In the financial analysis, the total investment required is Rp 1,913,180,000.00. To analyze the feasibility of this business, the calculation methods that used are Payback Period (PP), Net Present Value (NPV), Internal Rate of Return (IRR), and Profitability Index (PI), with 3 scenarios analysis, which are pessimistic, moderate, and optimistic scenario. In the pessimistic scenario, the result of PP is 6 years and 9 months, NPV is Rp 1,876,257,363.00, IRR is 19%, and PI is 4.2. In the moderate scenario, the result of PP is 5 years and 9 months, NPV is Rp 9,276,885,204.00, IRR is 38%, and PI is 13.18. In the optimistic scenario, the result of PP is 5 years and 5 months, NPV is Rp 16,954,432,217.00, IRR is 49%, and PI is 22.16. Based on the feasibility assessment on the financial aspect, this business is declared feasible to be developed on all three scenarios analysis.