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Financial Feasibility of Cajuput Plantation Forest Business in the Yogyakarta Forest Management Unit, Indonesia

Sep 2026 · Jurnal Ilmu Kehutanan · 0 citations

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 Cajuputplantation 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. 

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