Feasibility Study Of Mucuna bracteata Compost Business As An Umkm Product In Karo DistrictFeasibility Study, Compost, Mucuna bracteata, MSMEs, Karo.
DOI:
https://doi.org/10.30737/agrinika.v10i2.7280Keywords:
Compost, Feasibility Study, Karo, MSMEs, Mucuna BracteataAbstract
Mucuna bracteata is a ground cover plant that can increase nitrogen availability in plantations. However, the biomass from pruning is often left to pile up or burned, potentially causing air pollution and increasing the risk of land fires. Utilizing this biomass as a raw material for compost is considered more productive because it not only supports sustainable environmental management but also opens economic opportunities for Micro, Small, and Medium Enterprises (MSMEs). This study aims to assess the financial feasibility of a Mucuna bracteata-based compost business in Karo Regency through an analysis of initial investment, operational costs, and revenue projections. Business feasibility is measured using the Net Present Value (NPV), Gross Benefit–Cost Ratio (Gross B/C), Internal Rate of Return (IRR), and Payback Period (PBP) indicators. The costs analyzed include raw materials, operational costs, marketing, and investment in processing facilities, with the selling price of compost ranging from IDR 2,000–IDR 4,500 per kilogram. The results of the study indicate that the Mucuna bracteata compost business provides a positive NPV value of Rp85,154,866, a Gross B/C of 1.66, an annual IRR of 151.88%, and a Payback Period of 3.6 months at a discount rate of 6%. All of these indicators confirm that this compost business is financially feasible and profitable, with a relatively low investment risk and a very fast return on investment. In addition to providing added economic value to the community, the use of Mucuna bracteata also has the potential to reduce biomass burning practices and support the implementation of sustainable agriculture and a circular economy in Karo Regency.
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