Analysis of economic feasibility of assisted tractors in Banten province, Indonesia

¹ Research Center for Macro Economic and Finance, Research Organization for Governance, Economy, and Community Welfare, National Research and Innovation Agency, Jakarta 12710, Indonesia
² Assessment Institute for Agricultural Technology of Banten, Indonesia Ministry of Agriculture, 42182 Serang, Indonesia
³ Research Center for Horticultural and Estate Crops, Research Organization for Agriculture and Food, National Research and Innovation Agency, Cibinong-Bogor 16911, Indonesia
⁴ Research Center for Cooperative, Corporation, and People's Economy, Research Organization for Governance, Economy, and Community Welfare, National Research and Innovation Agency, Jakarta 12710, Indonesia

^* Corresponding author: siagianvicsi@gmail.com

Abstract

The objectives of this study were: 1) Knowing the performance and efficiency of tractors using in Banten province, 2) Knowing the economic feasibility of tractors business, 3) Knowing the business problems of tractors. The sampling method uses purposive simple random sampling with 123 respondents. The method of analysis uses B/C ratio, IRR, NPV, PP, and descriptive. The results are: 1) The potential capacity of hand tractors per year is 32.6 ha while the actual capacity only 23.9 ha/year, so the efficiency is 73.3%, while the efficiency of 4-WT is 22.8%, 2) For hand tractor the value of B/C ratio based on economic price is 0.66, NPV disc factor 45% is IDR 8,953,415, and IRR is 78%, and PP is 1.73 years; for 4- WT the value of B/C ratio is 0.89, NPV disc factor is IDR. 16,693,824 and IRR is 11%, and PP is 11.7 years. 3) The problem of the tractors business, if there is an engine failure, the owner has not been able to fix it and the availability of spare parts is relatively difficult. Suggestions, the central and regional governments need to provide training to improve the 4-WT machines.