FEASIBILITY STUDY OF DEVELOPMENT PROJECT OF SMALLHOLDER OIL PALM ESTATE IN DISTRICT OF TANAH LAUT SOUTH KALIMANTAN

Abstract

The research aimed to identify cash inflow and cash outflow generated from the development project of smallholder oil palm estate in District of Tanah Laut, as well as to count the worth of finansial investment such as NPV, FRR, and net B/C to analyze the feasibility of the project. The research was done in 2008 and, therefore, it used parameters prevailed in that year. The unit of analyze was 2 ha land carried out by farmer household in the scheme of nucleus – plasma. The result of research showed that cos t incurred to develop oil palm estate of 2 ha
was Rp 62.096.327,- The cost was distributed in four first-years. The required cost was dealt with by bank credit which was available in the frame of Estate Revitalized Program. The interest of credit during co nstruction (IDC) of project was 10% p.a. which was accumulated as principal of credit. The project had grace period until it was able to to pay credit including interest which happened in the fifth year, second quarter. The interest after grace period was 15% p.a. The installment of credit was calculated end in the thirdteenth year, second quarter. In additon, the calculation of financial feasibility at rate of 15% showed that NPV = Rp 69.180.976,64, FRR = 28,43% and Net B/C = 2,73. By NPV > 0, FRR > 15%, and Net B/C > 1, it concluded that the project was feasible to go.