Financial Analysis of Desa Pelangi Sentul Private Commercial Hunting Area

Abstract

When properly managed, hunting tourism business can be a form of sustainable use of wildlife and contribute to the regional and national economy. Indonesia has 11 public hunting areas but so far none are properly managed. Indonesia has both public and private hunting areas. One such private area Desa Pelangi Sentul Private Hunting Area, which is located in Babakan Madang Sub-Districts of Bogor District, West Java. The objective of this study was to examine the financial benefits of the private hunting area through the calculation of its Net Present Value (NPV), Benefit Cost Ratio (BCR), and Internal Rate of Return (IRR). The financial analysis showed that Desa Pelangi Sentul Private Hunting Area exertion gained NPV Rp 13 413 719 092, BCR 1.563, and IRR 18% .This means that the exertion is acceptable. Sensitivity analysis also showed that the exertion could be held until the benefit decreased 10% with the investation cost fixed, and the investatioin cost increased until 180% with the fixed benefit.