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Business Feasibility Analysis with Hydroponic System in Kendari City (Case Study of Family Garden Hydroponic Vegetable Business)

JIA (Jurnal Ilmiah Agribisnis) : Jurnal Agribisnis dan Ilmu Sosial Ekonomi Pertanian · Vol. 9 No. 2 (2024) · pp. 186–191

DOI
10.37149/jia.v9i2.1158
ISSN
2527-273X
Published
2024-05-31
Publisher
Department of Agribusiness, Halu Oleo University Jointly with Perhimpunan Ekonomi Pertanian Indonesia - Indonesian Society of Agricultural Economics (PERHEPI/ISAE)
Language
eng
License
creativecommons.org/licenses/by-sa/4.0

Abstract

Rapid global population growth, climate change, and pressure on natural resources have driven the need for innovative and sustainable agricultural solutions. Hydroponic systems have emerged as an attractive alternative that promises to meet the world's food needs while reducing adverse environmental impacts. This study aims to determine the financial feasibility of Family Garden's hydroponic vegetable business in Poasia District, Kendari City. This research was conducted from April 2021 to July 2022 using the case study method. The research respondents were Family Garden business owners. The research variables include initial investment, operating costs, and projected income. The analytical tools used in this research are Net Present Value (NPV), Net Benefit-Cost Ratio (Net B/C), Internal Rate of Return (IRR), Payback Period (PP), and Sensitivity Analysis. The results showed that the Family Garden hydroponic vegetable business is financially viable. NPV analysis at a discount factor (df) of 15% shows a value of Rp196,307,009. A net B/C of 1.93 shows that the benefits outweigh the costs, making the business feasible. The IRR of 44% shows a high rate of return on capital, more significant than the 15% discount rate. The Payback Period shows that the investment will be returned within three years, three months, and 18 days, a relatively quick payback period. Sensitivity analysis shows that the business is still viable despite a 10% decrease in seed and nutrient prices or a 15% decrease in production. This study shows that marketing crops through social media such as WhatsApp and Instagram can be an effective strategy. The business is expected to reduce production costs by selecting quality seeds, taking good care of equipment, and maintaining water quality. This research contributes to modern agricultural literature by establishing a new theory on the financial viability of hydroponic businesses in areas with limited agricultural land.

Keywords

Collaboration network of the authors

40 authors · 113 co-authorship links · 2 across different organisations · showing the 40 most connected

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Universitas Halu Oleo
  • Universitas Gadjah Mada
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Muhammad Aswar LimiUniversitas Halu Oleo22
Lukman YunusAffiliation unknown7
La Ode AlwiUniversitas Halu Oleo4
Usman RianseAffiliation unknown4
Azhar BafadalUniversitas Halu Oleo3
Ilma Sarimustaqiyma RianseAffiliation unknown3
Munirwan ZaniUniversitas Halu Oleo2
Salamah SalamahAffiliation unknown2
Haji SaedimanUniversitas Halu Oleo2
Darwan DarwanAffiliation unknown2
wa Ode YusriaAffiliation unknown2
Dewi Nurul CahyaniAffiliation unknown2
Arif RahmanUniversitas Gadjah Mada2
Idrus SalamUniversitas Halu Oleo2
Hasyanky M SaragiUniversitas Halu Oleo1
Ahsan Taqwim HasyimUniversitas Halu Oleo1
Sidarilis SidarilisAffiliation unknown1
Kansa Dwi RamadhaniAffiliation unknown1
Bahari AbdullahAffiliation unknown1
Fitriaman FitriamanAffiliation unknown1
Safitria SafitriaAffiliation unknown1
Sumiman UduUniversitas Halu Oleo1
ABDUL MANANAffiliation unknown1
Hidrawati HidrawatiAffiliation unknown1
Sariamin SahariAffiliation unknown1
Rimat MaulanaAffiliation unknown1
Arif NastainAffiliation unknown1
Ade SaputraAffiliation unknown1
Sardianti SardiantiAffiliation unknown1
Fadel AhmadAffiliation unknown1
Uswatun NisaAffiliation unknown1
Hariati HariatiAffiliation unknown1
Ahmad MuhajirAffiliation unknown1
Nur FilmaAffiliation unknown1
Waode Siti Anima HiseinUniversitas Halu Oleo1
La Rianda BakaAffiliation unknown1
Dhian HerdhiansyahAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://ejournal.agribisnis.uho.ac.id/index.php/JIA/oai, first harvested 4 Nov 2026, last seen 4 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">Business Feasibility Analysis with Hydroponic System in Kendari City (Case Study of Family Garden Hydroponic Vegetable Business)</dc:title>
	<dc:creator>Radhy, Muhammad</dc:creator>
	<dc:creator>Yusna, Yusna</dc:creator>
	<dc:creator>Fyka, Samsul Alam</dc:creator>
	<dc:subject xml:lang="en-US">hydroponics</dc:subject>
	<dc:subject xml:lang="en-US">financial viability</dc:subject>
	<dc:subject xml:lang="en-US">Kendari City.</dc:subject>
	<dc:description xml:lang="en-US">Rapid global population growth, climate change, and pressure on natural resources have driven the need for innovative and sustainable agricultural solutions. Hydroponic systems have emerged as an attractive alternative that promises to meet the world's food needs while reducing adverse environmental impacts. This study aims to determine the financial feasibility of Family Garden's hydroponic vegetable business in Poasia District, Kendari City. This research was conducted from April 2021 to July 2022 using the case study method. The research respondents were Family Garden business owners. The research variables include initial investment, operating costs, and projected income. The analytical tools used in this research are Net Present Value (NPV), Net Benefit-Cost Ratio (Net B/C), Internal Rate of Return (IRR), Payback Period (PP), and Sensitivity Analysis. The results showed that the Family Garden hydroponic vegetable business is financially viable. NPV analysis at a discount factor (df) of 15% shows a value of Rp196,307,009. A net B/C of 1.93 shows that the benefits outweigh the costs, making the business feasible. The IRR of 44% shows a high rate of return on capital, more significant than the 15% discount rate. The Payback Period shows that the investment will be returned within three years, three months, and 18 days, a relatively quick payback period. Sensitivity analysis shows that the business is still viable despite a 10% decrease in seed and nutrient prices or a 15% decrease in production. This study shows that marketing crops through social media such as WhatsApp and Instagram can be an effective strategy. The business is expected to reduce production costs by selecting quality seeds, taking good care of equipment, and maintaining water quality. This research contributes to modern agricultural literature by establishing a new theory on the financial viability of hydroponic businesses in areas with limited agricultural land.</dc:description>
	<dc:publisher xml:lang="en-US">Department of Agribusiness, Halu Oleo University  Jointly with  Perhimpunan Ekonomi Pertanian Indonesia - Indonesian Society of Agricultural Economics (PERHEPI/ISAE)</dc:publisher>
	<dc:date>2024-05-31</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://ejournal.agribisnis.uho.ac.id/index.php/JIA/article/view/1158</dc:identifier>
	<dc:identifier>10.37149/jia.v9i2.1158</dc:identifier>
	<dc:source xml:lang="en-US">JIA (Jurnal Ilmiah Agribisnis) : Jurnal Agribisnis dan Ilmu Sosial Ekonomi Pertanian; Vol. 9 No. 2 (2024); 186 - 191</dc:source>
	<dc:source>2527-273X</dc:source>
	<dc:source>10.37149/jia.v9i2</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://ejournal.agribisnis.uho.ac.id/index.php/JIA/article/view/1158/236</dc:relation>
	<dc:rights xml:lang="en-US">Copyright (c) 2024 Muhammad Radhy, Yusna Indarsyih, Samsul Alam Fyka</dc:rights>
	<dc:rights xml:lang="en-US">https://creativecommons.org/licenses/by-sa/4.0</dc:rights>
</oai_dc:dc>