Sensitivity Analysis of Swiftlet Farming in Kota Bangun, District Kutai Kartanegara Regency, Indonesia

Abstract

Swiftlet farming is a high-risk business. However, given the level of income (as measured by financial viability), most swiftlet farmers take the risk. Swiftlet farming is a business that lasts for a long time. During this period there are several changes that occur, which will affect the viability of the business. These changes include costs, selling prices and production. This research aimed to analyze the sensitivity of swiftlet farming in Kota Bangun Subdistrict, East Kalimantan, Indonesia. This research used quantitative analysis method. Data were collected using purposive sampling to determine the location and sample of swiftlet houses, as well as in-depth interviews with respondents. The sensitivity analysis of Swiftlet farming was analyzed using the net Benefit-Cost Ratio (net B/C), Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period (PP) methods, assuming an increase in operating costs of 15 % and a 30% reduction in benefits. The results showed that Swiftlet farming in Kota Bangun District is still financially feasible if there is an increased in operational costs by 15% or a decreased in benefits by 30%, as well as an increased in operational costs and a decreased in benefits occured simultaneously