Feasibility Analysis Of Rice Milling Business (In Selopuro Village, Selopuro Subdistrict, Blitar District

Abstract

This study analyzes the financial feasibility of the "UD. Abadi" rice milling business in Selopuro Village,
Selopuro Subdistrict, Blitar District, considering an economic life of more than 10 years. The agricultural
sector, especially rice, plays a crucial role in food security in Indonesia, with Blitar Regency being one
of the significant rice-producing areas. Post-harvest problems, including high yield losses, are a major
focus, making financial feasibility analysis essential to avoid large investment losses. The analytical
methods used include Net Present Value (NPV), Net Benefit Cost Ratio (Net B/C ratio), and Internal Rate
of Return (IRR). The cash flow analysis results show a total benefit of Rp 46,800,000 and a total cost of
Rp 34,187,300, with a Net Benefit of Rp 12,073,476. NPV calculation for 10 years with a 10% interest
rate yields a positive value of Rp 8,014,059,685. The Net B/C ratio of 1.19 indicates that this rice milling
business is feasible. The Payback Period for this business is 2 years and 11 months.