Analysis of Added Value and Economic Feasibility in Mangosteen
Derivative Products and Alternative Products in Leuwiliang
Agropolitan Area
Dwi Wahyu Nugroho
1,2
, Muthia Kamila
1
, Parwa Oryzanti
3
, Andis Priswantoro
4
,
Karunia Mita Sekar Cahyani
1
, Dwi Maya
1
, Radyum Ikono
1,5
, Ernan Rustiadi
6
, Eriyatno
7
and Nurul Taufiqu Rochman
8
1
Center of Research and Development Product, Nano Center Indonesia, South Tangerang, Banten, Indonesia
2
Department of Industrial Engineering, Nahdlatul Ulama Indonesia University, Jakarta, Indonesia
3
Department of Environmental and Natural Resources Management, Bogor Agriculture University, West Java, Indonesia
4
Bureau For Planning And Finance, Indonesian Institute of Sciences, West Java, Indonesia
5
Department of Strategic Management, Bogor Agricultural University, West Java, Indonesia
6
Assessment Center for Planning and Regional Development (P4W), Bogor Agricultural University, West Java, Indonesia
7
Center of Agricultural and Rural Development Studies (PSP3), Bogor Agricultural University, West Java, Indonesia
8
Center for Physics, Indonesian Institute of Sciences, South Tangerang, Banten, Indonesia
ernan@indo.net.id
Keywords: Mangosteen, Deritative Product, Added Value, Economic Feasibility, Agropolitan.
Abstract: Mangosteen (Garcinia mangostana L) is a superior commodity in the Leuwiliang agropolitan area, Bogor.
However, currently mangosteen is only sold for export and local markets. This study aims (1) to analyze
economic feasibility and changes in economic sensitivity and (2) analyze the value added of existing
mangosteen derivative products and alternative derivative products that can be applied in the agropolitan
area. The method used is the method of evaluating investment feasibility along with its sensitivity analysis
and Hayami's method for analyzing the added value of each product. The results of the analysis of the added
value of mangosteen derivative products and alternative products have higher added value than other
products and better economic viability. Mangosteen Dodol Product, Mangosteen Peel Extract, and Tea
Nano Mangosteen Peel Mangosteen Powder Drink and Mangosteen Syrup products are feasible to be
carried out under normal conditions and sensitivity 1 and 2. Nano mangosteen tea and mangosteen syrup are
mangosteen derivative products that have considerable added value than other products with added value of
Rp. 106.791.000 and Rp. 227.916.000 per kilogram. The economic feasibility results indicate that nano
mangosteen tea and mangosteen peel extract have feasibility criteria with a PBP value of less than 1 year;
NPV amount Rp. 66.829.633 and Rp. 68.369.956 ; B/ C ratio of 1,61 and 2,13.
1 INTRODUCTION
Mangosteen fruit contains an antioxidant complex
that is good for health, especially antioxidants in the
xanthone, anthocyanin, epicatechin and phenol
groups. Mangosteen is very beneficial for body
health because it is known to contain xanthones as
an antioxidant, antiproliferative, anti-inflammatory
and antimicrobial. Its antioxidant properties exceed
vitamin E and vitamin C. Xanthones are not found in
other fruits except in the mangosteen fruit, therefore
mangosteen in the world is given the nickname
"Queen of Fruit" or the queen of fruit (Iswari and
Sudaryono, 2007).
Bogor Regency especially in Leuwiliang sub-
district, Karacak is the largest mangosteen producing
area in Jabodetabek. Seasonal harvesting of
mangosteen fruit causes ineffectiveness in post-
harvest management. Then an increase in the
development of mangosteen fruit derivatives is
needed along with an analysis of the value added of
each product.
Agropolitan area development is one of the
efforts in increasing human resource capacity,
network development, rural agro-industry
Nugroho, D., Kamila, M., Oryzanti, P., Pr iswantoro, A., Cahyani, K., Maya, D., Ikono, R., Rustiadi, E., Eriyatno, . and Rochman, N.
Analysis of Added Value and Economic Feasibility in Mangosteen Derivative Products and Alternative Products in Leuwiliang Agropolitan Area.
DOI: 10.5220/0009991900002964
In Proceedings of the 16th ASEAN Food Conference (16th AFC 2019) - Outlook and Opportunities of Food Technology and Culinary for Tourism Industry, pages 31-36
ISBN: 978-989-758-467-1
Copyright
c
2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
31
development so as to create complementary and
sustainable physical, social and economic linkages.
In the Karacak agropolitan area, there are already
several mangosteen processed products, namely
dodol mangosteen, mangosteen peel extract. Both
products are carried out on the scale of regional
women's MSME businesses. While the other
processed mangosteen peel products that have been
produced on an industrial scale are extracts of garcia
mangosteen peel and products that are still in the
development stage of the research are the
mangosteen skin nano tea.
In a previous study, the results of mangosteen-
based agropolitan sustainability analysis in the
agropolitan area of Karacak, which was viewed from
the economic, social, environmental, technological
and infrastructure aspects and policies, were less
sustainable on economic and social, environmental
and technological and infrastructure aspects and did
not influence policy aspects. (Oryzanti, 2019). In
this study, each of the products will be analyzed for
financial feasibility including PBP, NPV, B/C Ratio,
IRR and also value added analysis on processed
mangosteen products and what alternative products
will be developed in leuiwiliang, mangosteen-based
agropolitan area.
2 METHODS
2.1 The Types and Data Source
The types and sources of data collected in this study
consist of primary data and secondary data. The
primary data used in this study was obtained from
observations and directly on the object in the field.
Data collection is also carried out by conducting
interviews and discussions with experts both
individually and in the form of Focus Group
Discussion, experts interviewed included experts in
rural development, agropolitan areas, mangosteen
cultivation, mangosteen processing industries,
development planners, academics and other related
sources.
2.2 Data Analysis Method
The analytical method used is using a method for
evaluating investment feasibility. Financial
eligibility criteria include Net Present Value (NPV),
Internal Rate of Return (IRR), B/ C Ratio, Break
Even Point (BEP), Pay Back Period (PBP). Financial
analysis is carried out to evaluate the feasibility of a
project based on existing investment criteria.
Whether the current and ongoing project is feasible
or not if it continues. This analysis was also
conducted to calculate the estimated funds needed,
both for the provision of fixed assets and the need
for initial working capital funds (Oryzanti, 2019).
The products that will be measured are investment
mangosteen dodol, mangosteen peel extract
cleansing soap, garcia capsulated mangosteen peel
extract and mangosteen skin nano tea. The data
obtained is obtained from the results of literature
studies and direct observations with interviews with
SMEs in the agropolitan area. Karacak and industrial
scale mangosteen processing industries. The
following is a formula for calculating the investment
financial feasibility analysis.
2.3 Net Present Value (NPV)
Net Present Value (NPV) is a method used to
determine the difference in present value with the
present value of net cash receipts. This is formula
for calculating the Net Present Value.
NPV = (total PV inflow) – (total PV
outflow)
(1)
NPV =
(2)
Description:
Bt = Gross social benefits year t
Ct = Gross social costs related to project year t
i = Applicable bank interest rates
T = Investment period (t = 0,1,2, ..., n)
NPV > 0, then the project is profitable and can be
implemented;
NPV = 0, then the project is not profitable but also
does not lose so it depends on the subjective
judgment of the decision maker;
NPV < 0, then this project is detrimental because the
profit is smaller than the cost, so it is better not to do
it.
2.4 Internal Rate of Return
The internal rate of return is the interest rate which
will make the present value of the proceeds to be
expected to be received (PV of future proceeds)
equal to the sum of the present value of capital
expenditure (Riyanto, 2001). Mathematical
formulations according to Gray et al. 1993, are:
(3)
16th AFC 2019 - ASEAN Food Conference
32
or
(4)
Then according to Gittinger (1986), IRR can be
mathematically written as follows:
IRR= i
1
+ (i
2
-i
1
) NPV
1
/(NPV
1
-NPV
2
)
(5)
Description:
i
1
= Discount rate (DR) level when NPV is positive
i
2
= Discount rate (DR) when NPV is negative
NPV
1
= Positive NPV value
NPV
2
= Negative NPV value
2.5 Net Benefit Cost Ratio (Net B/C)
Net B / C value is a comparison number between the
number of positive present values and the negative
number of present values. Net B / C ratio is greater
than one is a requirement so that the project can be
said to be financially feasible so that it can be
continued, on the contrary if the value is smaller
than one is a sign that the project is not feasible to
implement (Oryzanti, 2019). In general, Net B / C is
formulated as follows (Oryzanti, 2019) :
(6)
2.6 Pay Back Period (PBP)
PBP shows how long the capital invested in the
investment will return, the return of this capital is
seen from the cash in flow (cash in flow). An
investment is accepted / feasible if the payback
period is lower than the time required. If an
alternative cash flow is obtained from the proposed
business again, the alternative business proposal that
provides the shortest period is best (Harahap, 2002).
yearx
cashnet
investmentinitialofvalue
PBP 1=
(7)
2.7 Break Event Point (BEP)
This analysis is used to determine the production
volume or minimum sales volume so that the costs
incurred are equal to the profits obtained. The
equation used is (Oryzanti, 2019) :
(8)
Description:
FC = Fixed costs (Rupiah or other currencies)
TC = Total costs (Rupiah or other currencies)
TR = Total receipts (Rupiah or other currencies)
Uncertainty in future conditions results in the
need for a sensitivity analysis, there is an estimated
risk of cash flows in the future. According to Husein
(2007), sensitivity analysis is done by changing the
value of a parameter at a time to further see how it
affects the acceptability of an alternative investment.
Parameters that usually change and changes can
affect decisions are investment costs, cash flow,
residual value, interest rate, tax rate, economic
conditions and so on. In this study a sensitivity
analysis of changes in interest rates, raw material
costs and a decrease in product prices was carried
out. By taking 2 (two) scenarios, namely (1) fixed
product prices, but raw material prices and interest
rates rise and (2) product prices drop, raw material
prices rise and interest rates rise. Next, the
calculation of the economic value added of each
product using the Hayami method.
3 RESULT AND DISCUSSION
Financial feasibility analysis in this study includes
the analysis of the feasibility of investment criteria,
sensitivity analysis and value added analysis of each
mangosteen derivative product in the agropolitan
area. The results of the financial feasibility analysis
of investments in the agropolitan area can be seen in
Table 2 with information:
1) = Mangosteen Dodol Product
2) = Mangosteen Peel Extract Floor Soap
3) = Mangosteen Peel Extract
4) = Tea Nano Mangosteen Peel
5) = Mangosteen Powder Ready to Drink
6) = Mangosteen Syrup
1. Normal Condition
Under normal conditions of each product with a
corporate loan interest rate of 9.95%, it refers to PT
Bank Negara Indonesia (Persero) Tbk (BNI).
Assumed normal conditions include fixed raw
material prices, fixed selling prices and fixed
production prices.
To measure the sensitivity of the project, a
sensitivity analysis of the increase in bank interest
rates for each product was carried out at 18% under
sensitivity conditions. The results of the sensitivity
analysis one can be seen in Table 3. The assumption
of the project life used is 10 (ten) years. Sensitivity
Analysis of Added Value and Economic Feasibility in Mangosteen Derivative Products and Alternative Products in Leuwiliang Agropolitan
Area
33
Table 1: Financial Investment in Normal Condition.
No
Investment
Criteria
Value
(1)
(2)
(3)
(4)
(5)
(6)
1
PBP (year)
1,03
2,12
0,46
0,75
1,83
2,35
2
NPV(in
thousand rupiah)
4.914.291
2.968.910
68.369.956
66.829.633
24,970,427
18,348,703
3
B/C Ratio
1,18
1,11
2,13
1,61
1,50
1,34
4
IRR (%)
111
47,9
223,4
147,9
151,4
149,1
5
BEP(in thousand
rupiah)
42.967.849
44.310.168
60.914.477
128.024.404.
69,485,104
75,129,281
6
BEP(product)
1.432.262
2.954.011
870.207
1.828.920
992.644
1,073,275
7
Net provit (in
thousand rupiah)
8.595.277
5.772.787
114.569.200
114.385.720
45,093,820
33,513,520
Table 2: Financial Investment in Sensitivitas Condition 1.
No
Investment Criteria
Value
(1)
(2)
(3)
(4)
(5)
(6)
1
PBP (year)
1,15
16,74
0,48
1,167
2,37
4.15
2
NPV(in thousand rupiah)
2.867.421
-963.575
46.222.422
48.344.048
20.313.317
14.565.675
3
B/C Ratio
1,14
0,96
1,97
1,44
1,31
1.24
4
IRR (%)
94,1
-15,9
214,2
124,4
75,7
50,1
5
BEP(in thousand rupiah)
44.965.824
55.758.063
63.166.164
135.038.842
92.188.530
88.873.459
6
BEP (product)
1.498.861
4.289.082
902.374
1.929.126
1.316.979
1.269.621
7
Net provit (in thousand
rupiah)
7.587.277
-619.522
109.769.200
84.135.880
36.891.720
28.196.920
Table 3: Financial Investment in Sensitivitas Condition 2.
No
Investment Criteria
Value
(1)
(2)
(3)
(4)
(5)
(6)
1
PBP (year)
-134,9
1,025
2,33
2.95
1.51
-134,9
2
NPV(in thousand
rupiah)
-1.013.423
17.690.067
28.518.601
18.933.110
31.096.616
-1.013.423
3
B/C Ratio
0,95
1,39
1,29
1,31
1,52
0,95
4
IRR (%)
-116,6
102,1
79,8
59,25
91,18
-116,6
5
BEP(in thousand
rupiah)
58.763.377
77.685.494
132.142.628
86.791.704
78.941.860
58.763.377
6
BEP (product)
2.350.535
1.553.710
1.887.752
1.239.881
1.127.741
2.350.535
7
Net provit (in
thousand rupiah)
-1.052.722
49.889.200
51.526.168
35.511.160
55.239.640
-1.052.722
Table 4: Feasibility Status Mangosteen Derivative Product.
Product
(Normal
Condition)
(Sensitivitas 1
Condition)
(Sensitivitas 2
Condition)
Mangosteen Dodol Product
Feasible
Feasible
Feasible
Mangosteen Peel Extract
Feasible
Feasible
Feasible
Tea Nano Mangosteen Peel
Feasible
Feasible
Feasible
Mangosteen Peel Extract Floor Soap
Feasible
Not Feasible
Not Feasible
Mangosteen Powder Drink
Feasible
Feasible
Feasible
Mangosteen Syrup
Feasible
Feasible
Feasible
16th AFC 2019 - ASEAN Food Conference
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Table 5: The result of value added analysis mangosteen derivative product.
No.
Variabel
M. Dodol
M.Peel
Extract
MPE
Extract
floor soap
Tea Nano
Powder
Drink
M.Syrup
I. Input, Output and Price
1.
Output produced (kg/ production process )
6
25
15
98
100
437.5
2.
Raw material used (kg/production process)
7
833
25
500
300
200
3.
Labor (HOK/ production process)
2
10
2
5
10
5
4.
Conversion Factor (kg output/kg raw
material)
0,86
0,03
0,60
0,20
0,33
2,19
5.
Labor coefficient
(HOK/kg raw material)
0,29
0,01
0,08
0,01
0,03
0,03
6.
Output Price (Rp x000/kg)
120
2.916
60
1.250
500
150
7.
Average wages of labor
(Rp x000/production process)
100
100
100
100
100
200
II. Added Value and Benefits
8.
Price of raw materials (Rp x000 /kg)
13
13
14,255
13
13
13
9.
Other input contributions (Rp x000/kg output)
36.179
13
8.580
125,208
120
87,208
10.
Output Value (Rp x000/kg)
102.857
87,535
36
245
166,67
328,125.
11.
Added Value (Rp x000/kg)
53,677
60,601
13,164
106,791
33,67
227,916
Value added ratio (%)
52,19
69,23
36,57
43,59
20.20
69.46
12.
Labor income (Rp x000/kg)
28,571
1,248
8
1
3,33
5
Labor portion (%)
53,23
1,98
60,77
0,94
9.90
2.19
13.
Benefits (Rp x000/kg)
25,106
59,401
5,164
105,791
30,33
222,916
Profit section (%)
24,41
67,86
14,35
43,18
18.20
67.94
III. Reply to Production Factor Services
14.
Marjin (Rp x000./kg)
89,857
74,535
21,745
232
153,67
315,125
a. Labor income (%)
31,80
1,61
36,79
0,43
2.17
1.59
b. Other input contributions (%)
40,26
18,69
39,46
53,97
78.09
27.67
c. Profit (%)
27,94
79,70
23,75
45,60
19.74
70.74
analysis of condition 2 for an increase in bank
interest rates on each product by 20%. The project
life assumption used is 10 (ten) years. the results of
the sensitivity analysis one can be seen in Table 4.
In the mangosteen peel extract floor cleaning
products, the price of the product is Rp. 15,000 /
bottle at the level of agro-industry and the project
life is 10 years, then a total receipt value of Rp.
44.310.168.200,- will be obtained. Based on the
Table 2, the results of the calculation of financial
investment feasibility criteria, this agro-industry can
be declared feasible to be implemented. With a
return on capital of 2.12 years, the NPV value is Rp.
2,968,910,412,- and the B / C ratio is 1.11. However,
at the level of product prices falling to Rp. 13,000 /
bottle, then during the life of the project a total
revenue value of Rp. 41,550,013,440,- will be
obtained. Based on the table of results of the
calculation of financial investment eligibility criteria
sensitivity 1 scenario, this agroindustry is declared
not feasible to be implemented. With a capital return
rate of 16.74 years which means exceeding the
project age limit, the NPV value is minus Rp.
963,575,379,- and the B / C Ratio value is 0.96 or
less than 1. If the Net BCR is less than one or BCR
is less from zero, then the business is detrimental
then not feasible, and vice versa (Kadariah et.al.,
2001). Therefore, it is not followed by sensitivity
calculation 2.
If analyzed from the results of the investment
feasibility calculations above, it can be concluded
that the Mangosteen Dodol Product, Mangosteen
Peel Extract, Tea Nano Mangosteen Peel,
Mangosteen Powder Drink and Mangosteen Syrup
products are feasible to be carried out under normal
conditions and under sensitivity 1 and 2. However,
the Extract Floor Soap product is said feasible only
under normal conditions. On sensitivity conditions 1
product Mangosteen Peel Extract Floor Soap is
declared not feasible because no return on capital
(PBP) is not appropriate and the NPV value gets a
minus value which means the business is
detrimental.
Analysis of Added Value and Economic Feasibility in Mangosteen Derivative Products and Alternative Products in Leuwiliang Agropolitan
Area
35
Whereas the results of the value added analysis
using the Hayami method on each product can be
seen in the Table 5. From the data in the table above,
it provides information that the product of dodol
manggis is required to contribute another input of
40.26% or Rp. 36,179.17/kg of output from the
margin of Rp. 89,857.14/ kg. While the added value
of Rp. 53,677.98/ kg, obtained from the output value
of Rp. 102,857.14 / kg which was reduced by the
price of raw materials of Rp. 13,000 / kg and the
contribution of other inputs was Rp. 36,179.17/ kg of
output. For mangosteen peel extract cleansing
products, another input contribution of 39.46% or
IDR 8,580.73/ L of output is needed from the margin
of IDR 21,745 / L Added value of Rp. 13,164.27 / L.
In contrast to mangosteen skin extract products, a
significant contribution of other inputs is needed
around 18.69% or Rp. 13,933.33 / kg of output from
a margin of Rp. 74,535.01/ kg. While the added
value of Rp. 60,601.68/ kg. Whereas the mangosteen
skin nano tea product needed another input
contribution of 53.97% or Rp 125,208.33/kg output
from a margin of Rp. 232,000/ kg Added value of
Rp. 106,791.67/L. In the mangosteen powder drink
product, to make the mangosteen juice powder is
required another significant input contribution which
is around 78% or Rp 120,000 / kg. While the added
value of Rp 33,666/Kg. Whereas to make
mangosteen syrup needed another input contribution
of 27% or Rp 87,208 / L and an added value of Rp
227,916/ L. Based on the results of the analysis of
value added for some mangosteen derivative
products, it shows that mangosteen syrup products
have a greater chance. the value added of the product
is Rp. 227,916/L of mangosteen raw material.
4 CONCLUSIONS
The agropolitan area of Karacak, Bogor Regency has
the potential to become a mangosteen-based
agropolitan area. The results of the analysis of the
added value of nano mangosteen tea have higher
added value than other products and better economic
feasibility. Nano mangosteen tea and mangosteen
syrup are mangosteen derivative products that have
considerable added value than other products with
added value of Rp. 106.791.000 and Rp.
227.916.000 per kilogram. While the economic
feasibility results indicate that nano mangosteen tea
and mangosteen peel extract have feasibility criteria
with a PBP value of less than 1 year; NPV amount
Rp. 66.829.633 and Rp. 68.369.956 ; B/ C ratio of
1,61 and 2,13.
ACKNOWLEDGEMENTS
This research was partly supported by The National
Innovation System Research Incentive program, The
Ministry of Research, Technology, & Higher
Education, Indonesia, 2018.
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