Financial Study of Coffee Commodities

Abstract

The financial feasibility analysis is conducted by observing the financial aspects of coffee farming regarding investment costs, financial capital, operational costs, and maintenance as well as the income received by farmers. The financial analysis of coffee is aimed to determine whether coffee in Indonesia is financially profitable or not. The financial feasibility analysis of coffee farming in Indonesia can be seen from the investment criteria of a farm. Several investment criteria to assess the feasibility of coffee farming include the NPV (Net Present Value), B/C (Benefit/Cost) ratio, IRR (Internal Rate of Return), and PP (Payback Period). The method used in this study was a review journal. A review journal is a study carried out by collecting several journals that are in accordance with the problems and objectives in this study. The purpose of this study is to find out the financial feasibility of coffee commodities in Indonesia. The result of this study showed that coffee commodities are financially feasible to cultivate. Based on this study, it is expected that coffee farmers in Indonesia will continue to preserve a financially decent coffee commodity. Coffee is also a commodity that can support the Indonesian economy.