INVESTMENT ANALYSIS ON THE DEVELOPMENT OF WATU ULO FISHING PORT BASED ON FINANCIAL ASPECTS AND SENSITIVITY ASPECTS

Ratuinsani, Tati Mushalihati
Muhammadun, Haris
Nugroho, Laksono Djoko

International Journal on Advanced Technology, Engineering, and Information System (IJATEIS)
Vol. 3 No. 1 (2024): FEBRUARY

Watu Ulo Beach serves as a vital hub for fishing communities, supplying resources for sea fishing and serving as a landing point for catches. The local government plans to construct a fishing port at Watu Ulo to enhance facilities for fishermen. This study assesses the financial feasibility and sensitivity of investing in the port's construction, considering three income scenarios: pessimistic, moderate, and optimistic. Financial analysis using NPV, IRR, BCR, and PP methods deems the project feasible for moderate and optimistic scenarios, but not for the pessimistic scenario due to IRR (6.15%) < MARR (7.72%). Sensitivity analysis reveals that revenue sensitivity is critical for all scenarios, with the investment becoming unfeasible if revenue falls below certain thresholds: -13.67% for pessimistic, -39.96% for moderate, and -40.75% for optimistic scenarios. Operating cost sensitivity is also crucial, rendering the investment unfeasible if costs deviate beyond specific thresholds: -15.96% for pessimistic, +22.67% for moderate, and 25.59% for optimistic scenarios.