Financial Analysis of Purse Seine Fishery Business at the Kasiwa Landing and Fish Management Base (PPI), Mamuju Regency, West Sulawesi Province

Abstract

Purse seine fishing is a capital-intensive business that is developing in the Kasiwa Landing and Fish Management Base (PPI), Mamuju Regency, so its feasibility needs to be assessed financially. This study aims to analyze the amount of investment and operational costs, revenue and profits, business feasibility, and financial feasibility of the purse seine fishing business in the Kasiwa PPI. The study uses a descriptive quantitative approach with a survey method and case studies of 3 active purse seine business units that were determined purposively. Data were analyzed using business analysis (costs, revenues, profits, R/C Ratio, Return on Investment, Break Even Point, and Payback Period) and investment criteria analysis (Net Present Value, Net Benefit Cost Ratio, and Internal Rate of Return) at an economic life of 10 years with a discount rate of 12%. The results of the study showed a total investment cost of Rp822,600,000, total operational costs of Rp1,735,875,000 per year, revenue of Rp2,250,000,000 per year, and profit of Rp514,125,000 per year. The business analysis obtained an R/C Ratio of 1.30; ROI of 62.5%; Payback Period of 1.6 years; BEP production of 36,132 kg; and BEP price of Rp19,288/kg. The investment criteria analysis obtained a positive NPV of Rp2,654,990,000; Net B/C of 4.23; and an IRR of 74.5% which is much greater than the discount rate of 12%. Based on all these criteria, the purse seine fishing business at PPI Kasiwa is declared profitable and feasible to develop. It is recommended to strengthen access to capital, fuel cost efficiency, and improve the quality of catches to maintain business sustainability.