Financial Feasibility Study of Hydroponic Vegetables Business (A Case Study on Serua Farm, Kota Depok)

Abstract

Hydroponic, an agricultural cultivation technology, enabling farmers to plant more plants in a limited area. Therefore, it can be used to increase production, then gaining more profit. This study aimed to analyse production costs, incomes, break-even point , business efficiency, and financial feasibility of a hydroponic vegetable business. The method used in this study is direct interviews with the business owner, the head of the garden, the person in charge of the greenhouse and production and the person in charge of seeding. Serua Farm produces red spinach, green spinach, gai lan, and bok choy. The results show that the total production cost was Rp319,420,734 per hectare. Its profit was Rp. 688,579,266 or 68,31% from gross incomes. R/C  was 3.16 meant that the business efficiency was good. B/C  was 2.16 meant that the business is profitable and financially feasible. NPV was Rp552,162,558 and IRR 107,5%. PP value is five months six days.