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Jul 24, 2025
Accepted
May 6, 2026
Published
Sep 17, 2026
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Financial Feasibility of Cajuput Plantation Forest Business in the Yogyakarta Forest Management Unit, Indonesia
Jurnal Ilmu Kehutanan,
Vol 20 No 2 (2026): September
Abstract
The forestry sector makes a significant contribution to Indonesia's national economy, including through non-timber forest products (NTFPs), such as Cajuput oil. The Yogyakarta Forest Management Unit (FMU) manages the Sendang Mole Cajuput
plantation forest and the oil factory. This research aimed to analyze the production costs, business feasibility, and sensitivity to changes in market conditions that may affect the company's viability. Data were collected through interviews, observations, and financial documents from 2018 to 2022. Financial feasibility indicators include profit, Cost-to-Income Ratio (CIR), Return on Investment (ROI), and sensitivity to changes in yields and raw material prices. The results showed an average annual profit of IDR 610,863,515, an Income Ratio of 88.36%, and an ROI of 13.18%. These indicated the business was financially viable and profitable. Sensitivity analysis demonstrated that the business was highly sensitive to cajuput oil selling price reductions, becoming unfeasible at IDR 190,100/L and reaching break-even at IDR 212,408/L, while remaining feasible under a 10% decline in the yield and a 20% increase in raw material costs.
Keywords
Financial feasibility
sensitivity analysis
forest economics
forest business
cajuput plantation forest
Azmi, A. T., Affianto, A., & Permadi, D. B. . (2026). Financial Feasibility of Cajuput Plantation Forest Business in the Yogyakarta Forest Management Unit, Indonesia. Jurnal Ilmu Kehutanan, 20(2), 187–198. https://doi.org/10.22146/jik.v20i2.23198
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