Financial feasibility analysis of ponyfish (Photopectoralis bindus) cracker in Gempolsewu village, Rowosari District, Kendal Regency

Kendal Regency is located on the northern coast of Java Island. Ponyfish (Photopectoralis bindus) is one of the important caught fish species in the coastal area of the Kendal Regency. To survive in an unfavorable economic situation, business in Indonesia must innovate to combat the economic negative effects of a Covid-19 pandemic. Making ponyfish into fish crackers will increase its selling price that increases people's income. Therefore, it is crucial to analyze the financial feasibility of the ponyfish cracker business. A quantitative descriptive method with purposive sampling was employed in this study. Respondent of this study is Dasri, she is actor of "UKM Mandiri" in Gempolsewu village. The raw ingredients for fish crackers include ponyfish, tapioca flour, flavoring, sugar, salt, and garlic. The initial investment required for the ponyfish cracker business is IDR 50,000,000 with a total cost of IDR 31,036,014 per year. Its yearly income is IDR 62,118,000 with an annual profit of IDR 31,081,986. The production of break even point (BEP) is 3,651 packs/year and the price of BEP is IDR 4,247/pack. The net present value (NPV) is IDR 85,946,066, the internal rate of return (IRR) is 57%, the benefit/cost ratio is 2.24, and the payback period (PP) is about 2 years, 7 months, 6 days. Based on the financial feasibility analysis, the ponyfish cracker business was declared feasible and profitable with a profit forecast in 2022 of IDR 37,019,291, in 2023 of IDR 39,186,758, and in 2024 of IDR 41,455,228.