Financial Feasibility Analysis of Coconut Shell Briquette Plant for Export Using Systematic Layout Planning
Keywords:
coconut shell briquette, financial feasibility, payback period, net present value, internal rate of returnAbstract
This study investigates the financial feasibility of establishing a coconut shell briquette manufacturing plant in Indonesia, aimed at serving both domestic and export markets. Utilizing quantitative methods, the research evaluates investment prospects through comprehensive financial analyses, including profit and loss projections, balance sheet assessments, payback period calculations, Net Present Value (NPV), and Internal Rate of Return (IRR) over a ten-year horizon. The results indicate that the project is economically viable, with a payback period of approximately 2 years and 7 months, a positive NPV at a 10% discount rate, and an IRR exceeding the minimum acceptable threshold. The analysis demonstrates robust cash flow, prudent debt management, and solid equity growth, in line with findings from recent studies on biomass energy enterprises. These results highlight the attractiveness and sustainability of coconut shell briquette production as a value-added strategy for local agricultural resources, supporting Indonesia’s renewable energy goals and contributing to rural economic development. The study recommends continued monitoring of financial performance and adaptive management to ensure long-term profitability and resilience in a competitive global market.
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