AGROLAND: The Agricultural Sciences Journal
Vol 12 No 2 (2025): December

Analysis of Cost Structure Allocation Against Financial Feasibility in the Bumi Mutiara Industry in Palu City

Adam, Adinda Elfara Rizki Adam Fara (Unknown)



Article Info

Publish Date
11 Dec 2025

Abstract

Ground coffee, as a processed product of coffee beans, stands as an agricultural commodity with significant market prospects, driven by the proliferation of cafes, coffee stalls, and modern coffee beverage trends. The sales potential of this processed coffee offers attractive profitability, fostering the growth of the coffee processing sector, one example being the Bumi Mutiara Industry. This research focuses on evaluating the financial feasibility of the Bumi Mutiara Ground Coffee Industry in Palu City. The aspects reviewed include capital structure, financing composition, production techniques, raw material procurement strategy, and product marketing. The financial analysis results indicate a very promising outlook for this venture. The calculated Net Present Value (NPV) is a positive Rp187,500,267.00. The Internal Rate of Return (IRR) of 24% significantly exceeds the benchmark interest rate (24% > 12%). Furthermore, the Net Benefit-Cost Ratio (Net B/C) is 1.41, which is greater than 1. Concurrently, the Payback Period (PP) for the business is recorded at 3 years and 3 months. Based on all these financial feasibility indicators, it is concluded that the Bumi Mutiara Ground Coffee Industry in Palu City is financially viable for both continuation and future development.

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Journal Info

Abbrev

agroland

Publisher

Subject

Agriculture, Biological Sciences & Forestry

Description

Agroland: The Agricultural Sciences Journal (Agroland: The Agr. Sci. J.) is an Open Journal System published by Tadulako University and Indonesian Society for Major in Agriculture (PISPI), is published twice a year in June and December. This journal provides a multi-disciplinary and international ...