ASSESSING THE FEASIBILITY OF CV. BATANGHARI ELAEIS SHELL IN DEVELOPING JANGKAT ROBUSTA COFFEE POST-HARVEST PROCESSING FACTORY THROUGH SWOT, PESTLE AND FINANCIAL ANALYSIS

• Main Author: Wira Alanda, Dhio
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71109
• Institution: Institut Teknologi Bandung

Jangkat coffee or Merangin Robusta coffee is a Robusta coffee variety which is one of the leading commodities from the highlands of Merangin district, Jambi province. Jangkat robusta coffee has high potential because it already has its own geographical indication area and has a very good taste score if proper post-harvest processing is carried out. It has been proven that Jangkat coffee has won the SCAI EXPO 2018 event in Bali. So far, the post-harvest processing of coffee carried out by the Jangkat coffee farming community is not good, so the quality of the coffee produced is very low. CV. BATANGHARI ELAEIS SHELL (BES) is a company located in Jambi province which has been engaged in oil palm, coffee and other horticulture plantations as well as in logistics transportation. CV. BES sees huge potential to develop business by investing in post-harvest production of Robusta coffee greenbeans due to the large availability of raw materials there and also very few other companies engaged in the post-harvest coffee production processing industry in the area. This final project will plan a business strategy that will be used for CV.BES business development in Robusta Coffee Post-harvest Processing Production to identify external opportunities and threats to the organization, determine internal opportunities and weaknesses, generate alternative methods and choose a particular approach for the company. This study uses management tools to analyze external and internal factors that affect the company, such as Srength Weakness Opportunity Threat (SWOT), Porter’s Five Force and Political Economic Social Technology Legal Environment (PESTLE) analysis and also the level of economic feasibility of a business using a collaboration between the Net present value (NPV), Internal Rate of Return (IRR), Payback period and Profitability Index (PI) methods. The result was that the investment planned by CV. BES can be considered feasible. Jangkat, East Jangkat, and the Lembah Masurai are important centers for Robusta coffee production in jambi, and the political situation in these areas supports the industry. Social and technological factors, as well as economic and legal factors, also played a role in coffee farming in the area. CV. BES is expected to create value and profit by adhering to certification and traceability standards and selling to business-to-business customers. Obtained at a 10.52% WACC discount, this investment feasibility test is an NPV of Rp. 21,541,664,722, IRR is 20%, and PI is 2.37. This investment will have a payback period of approximately 4 years and 4 months. The sensitivity analysis shows that changes in Capex and COGS will affect output, while changes in Revenues will have a significant impact on project profitability.