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Analysis of economic feasibility of assisted tractors in Banten province, Indonesia
V Siagian (a*) , and I Hidayah (b)

Assessment Institute for Agricultural Technology (AIAT) of Banten, Indonesia Ministry of Agriculture, Jln. Ciptayasa Km 01 Ciruas, Serang, Banten province.42182.


Abstract

Banten province has received hand tractors assistance since 2012 - 2016 as many as 2,734 units hand tractor, and four-wheel or 4W-TR was 64 units. The objectives of this study were: 1) Knowing the performance and effectiveness of tractors in Banten province, 2) Knowing the economic feasibility of tractors business, 3) Knowing the business problems of tractors. The method of analysis used B/C ratio, IRR, NPV, PP and descriptive. The results are: 1) The potential capacity of hand tractors is 32.6 ha/year while the actual capacity only 23.9 ha/year, so the effectiveness is 73.3%, while the effectiveness of 4-WT is 22.8%, 2) For hand tractor the value of B/C ratio based on economic price is 0.66, NPV discounted factor 45% is IDR 8,953,415, and IRR is 78%, and PP is 1.73 years, for 4-WT the value of B/C ratio is 0.89, NPV is IDR. 16,693,824 and IRR is 11%, and PP is 11.7 years. 3) The problem of tractors business namely if there is an engine failure, the owner has not been able to fix it and the availability of spare parts is relatively difficult.

Keywords: Effectiveness- tractors business- economics feasibility- problems.

Topic: Sustainable Agriculture and Rural Development

Plain Format | Corresponding Author (Viktor Siagian Siagian)

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