Financial feasibility analysis of Shorea balangeran as a paludiculture species for peatland restoration in Central Kalimantan

Abstract

Shorea balangeran is a potential paludicultural commodity for industry and a medicinal commodity for malaria, diabetes, and diarrhea. This type of plant has proven to be very good for peatland restoration, but it takes a long time to take advantage of the timber. This study aims to analyze the financial feasibility of the S. balangeran plant cultivation business in Tanjung Taruna village. Primary data were gathered through interviews with farmers who grow S. balangeran, while secondary data for some of the assumptions used were gathered from a variety of related literature. The analysis showed that the cultivation was quite feasible, with a positive NPV of IDR. 13,131,668. However, from the calculation of IRR 12%, BCR 1.01, and PP 20 years, it was clear that the business was feasible with a high risk if planted in monoculture. Therefore, the cultivation of S. balangeran needs to be done through intercropping or agroforestry.