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IMPROVING FEEDLOT EFFICIENCY AND PROFITABILITY THROUGH STRATEGIC INVESTMENT EVALUATION OF JAKARTA'S STATE-OWNED FEEDLOT Afan Wahyu Syafii; Sylviana Maya Damayanti
International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) Vol. 6 No. 5 (2026): October
Publisher : CV. Radja Publika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.5281/zenodo.21884551

Abstract

Indonesia meets only 55–60% of national beef demand through domestic production, with the remainder sourced from live feeder cattle imports. This paper assesses the financial viability of an integrated investment program to upgrade the physical and management capabilities of the Serang Feedlot of Perumda Dharma Jaya. As part of its role as a Regional State-Owned Enterprise of the DKI Jakarta Provincial Government, this feedlot is responsible for processing the majority of live feeder cattle imported into Indonesia. Due to high costs associated with importing live animals, it has become imperative for Indonesia to develop greater efficiency in utilizing these resources domestically. Despite being the first point of contact for all imported cattle prior to their entry into the human food chain, Indonesian feedlots have historically performed poorly compared to global averages when measured by such performance metrics as average daily weight gain (ADG), percent feed cost per head and space usage per head. The proposed combined investment program includes upgrading pens (pen expansion); total mixed ration (TMR) feeding systems (mechanizing TMR); and a feed inventory system (bulk feed storage). It is based on a 10 year financial projection of cash flows using historical operating data provided by the facility over a 3-year period. In addition to performing a traditional cost benefit analysis and Monte Carlo risk analysis of projected returns on investment (ROI), this research also performs PESTLE analyses and SWOT/TOWS strategic analyses. A total of 13 sensitivity analyses were conducted to test the impact of potential future changes in input prices and/or facility operating conditions. Under the base-case assumptions (including 60% equity and 40% loan financing structure; weighted average cost of capital 12.0%) the total investment outlay will generate a net present value of IDR 349.9 Billion and an internal rate of return (IRR) of approximately 83.97% over the 10 year planning period. Based upon the Monte Carlo simulation results there is 100% confidence level that the expected net present value will be positive. With respect to the sensitivity analyses, all thirteen possible combinations of either increased or decreased costs or reduced or enhanced operation efficiencies resulted in both positive expected values for ROI and rates of return on investment above the respective costs of capital. These results provide evidence that poor performance in this facility is due to a combination of avoidable internal factors rather than non-controllable external factors and that the application of a formalized process-based evaluation model can provide a basis for identifying feasible solutions, justifying those solutions and implementing them.
CREDIT ASSET QUALITY ANALYSIS AND FINANCIAL PERFORMANCE RECOVERY RECOMMENDATIONS FOR AN INDONESIAN GOVERNMENT-OWNED RURAL BANK: A CASE STUDY OF PT BPR SERANG (PERSERODA), 2020–2025 Barelvi Ghazy Daffa; Sylviana Maya Damayanti
International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) Vol. 6 No. 5 (2026): October
Publisher : CV. Radja Publika

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

Non-performing loans (NPL) among Indonesian Bank Perekonomian Rakyat (BPR, rural banks) rose nationally from 7.89% in 2022 to 11.75% in 2025, well above the 5% prudential guideline. PT BPR Serang (Perseroda), a rural bank wholly owned by the Serang Regency government, experienced a more severe deterioration: Net NPL rose from 3.86% in 2020 to 18.39% in 2025, Gross NPL reached 22.21%, Return on Assets (ROA) fell to 1.48%, and net profit declined from IDR 13.66 billion in 2022 to IDR 6.49 billion in 2025. This study examines the bank's credit asset quality over 2020–2025, investigates the internal and external factors driving its deterioration, evaluates the resulting impact on financial performance, and develops empirically grounded recovery recommendations. A single-case, sequential explanatory mixed-methods design was used, combining CAMEL-based gap analysis of secondary financial data against SEOJK No. 11/SEOJK.03/2022 thresholds and national industry averages with qualitative content analysis of semi-structured interviews with three key informants (Direktur Bisnis, Manajer Kredit, and Kepala Manajemen Risiko/Kepatuhan), and a supplementary Pearson correlation analysis of internal financial indicators. Findings indicate that structural deterioration in credit asset quality reduced both profitability and capital adequacy through four internal factors — high portfolio concentration in ASN (civil servant) payroll-deduction loans, underwriting that relies on payroll-deduction collection rather than fully verified repayment capacity, insufficient oversight of broker-mediated financing, and an early-warning system that functions as a monitoring dashboard rather than a triggered escalation mechanism — compounded by intensifying competition from larger payroll banks and volatility in ASN allowance disbursement. A supplementary correlation analysis (n=6 annual observations, descriptive only) found the loan-to-deposit ratio to be the most robust internal correlate of Net NPL. Six recovery recommendations are proposed using the Robbins and Pearce (1992) retrenchment/recovery turnaround model, mapped to the four rencana tindak categories of SEOJK No. 11/SEOJK.03/2022: credit risk reduction, governance improvement, capital reinforcement, and financial performance improvement. Credit policy is one operational instrument within this broader recovery package rather than a substitute for it.
Co-Authors Aaron Kevin Sammy Tatengkeng Adrian Satrioutomo Afan Wahyu Syafii Anrizal Arinda Mentari Putri Arry Akhmad Arman Arry Akhmad Arman Astari, Yen Syifa Aulia Rinald Muhammad, Aulia Rinald Barelvi Ghazy Daffa Bayu Indra Wibiksana Bo, Liu Danial David Anwar Dini Lestari Dini Lestari, Dini Dwiarso, Adhi Priyo Edward Veldman Erman Arif Sumirat Erman Arif Sumirat Erman Sumirat Fahmmy Herdiansyah Heryadi Fakhru Umam Firmansyah Arifin, Firmansyah Gatot Yudoko Gerry Julian Agusty, Gerry Julian Gina Dwi Jayanthi, Gina Dwi Handayani, Fanty Haris Santoso Herlien Dwiarti Soemari Hidavat, Agustini Hidayat Ihsan Abditama, Hidayat Ihsan Indra Wibiksana, Bayu Irma Damajanti Isrochmani Murtaqi Isrochmani Murtaqi Jagat Prirayani Jagat Prirayani Jane Julia Mulyono Jonathan, Filbert Jota, Astrid Laregan Karenina, Melita Jenar Kevin Hanafi Kinanta Syahriannanda Kinsenary Tjendrasa Lubis, Khayruna Maryadi, Martya Putri Mico Suryo Atmahadi Muhaimin Hasbi Muhammad Yusuf Ali Mulya Amri Mulyono, Jane Julia Nadhila Dzikrina Yusuf Nugraha Yanureza Raeputranto Nugroho, Edwin Adi Octaviani Ratna Sari Santoso Oeshya Lubis, Rizki Padmodipoero, Faya Daffani Awinatama Pratama, Aditya Firza Purwaningrum, Rr Diah Asih Putranto Wicaksono, Adhi Putri, Arinda Mentari Putri, Gaitsa Farah Zahira Ralang Argi Barus Richlah Nia Rico Wanardijaya Rifqi, Audi Rizaldi Zakarias Rizky Andri Ulaan, Aldi Rohmat Agung Sholehuddin, Rohmat Agung Rupiani, Dewi Salsabilla, Zahra Samsu Wibowo, Putri Maharani Santoso, Octaviani Ratna Sari Saraya, Getha Senator Kramadibrata, Senator Siahaan, Uke Marius Subiakto Soekarno Subiakto Soekarno Sudarso Kaderi Wiryono Sumirat, Erman Arif Syaputra, Arifa Rizki Theodorus Tio Wibowo Tinton S, Bonifacius Perdana Turas Hari Mukti, Turas Hari Uke Marius Siahaan Umam, Fakhru Vinsensius Willson Limantoro Wicaksana, Pramudya Wikaningtyas, Pratiwi Yehuda Bayu Kristiawan Yudha Nugraha Wibisana, Yudha Nugraha Yudi Abdillah Sobrizal Yunika Adiyono Zico Andrea Aripratama