Financial Analysis and Sustainability of the Food Estate Program in Pulang Pisau Regency, Central Kalimantan

Abstract

The government implemented the food estate program to maintain food crop productivity. The optimal and sustainable management of the food estate program played a vital role, especially in avoiding the risks of failure and addressing challenges in agricultural cultivation areas. This study on the sustainability of the food estate program was analyzed using a multidimensional approach (5 dimensions) and focused on farming activities in Pulang Pisau Regency, with 90 respondents. The objectives of this research are: (1) to analyze the financial of the food estate development program and (2) to assess the sustainability of the food estate program. The results of the study indicate that the food estate program in Pulang Pisau Regency is deemed feasible and sustainable based on feasibility analysis; (1) the net B/C ratio is 1,52, indicating feasibility, (2) the NPV is IDR 95.360,35, indicating feasibility, the EIRR (Economic Internal Rate of Return) is 18%, indicating feasibility, and the payback period is < 1 years. The multidimensional analysis resulted in a score of 70.35, indicating that the food estate program is sufficiently sustainable. The findings show that the food estate program is considered successful, with many farmers benefiting across the ecological, economic, social, institutional, and technological dimensions. The average analysis of RAP-Food Estate suggests that the program is fairly sustainable. The Food Estate Program investment (in the rice cultivation sector) provides a positive contribution to the economy of Pulang Pisau Regency in Central Kalimantan Province.