Economic Analysis of Melon Cultivation in Greenhouse in Semarang, Central Java, Indonesia

Abstract

Melons are horticultural crops grown in tropical regions with strong market potential, as it is highly demanded by consumers and offers substantial economic value. Nowadays, melons are widely cultivated in greenhouses using hydroponic systems to adapt to climate change. Since the climate change has become a major challenge to agricultural sector, it is important to assess the sustainability of an innovation, in this study, melon cultivation in a greenhouse. The sustainability of a business can be predicted through economic analysis and sensitivity analysis. This study aimed to analyze the economic aspects of cultivating “Sweet Aprilia” melons in a 400m2 greenhouse (GH) with a capacity of 1,000 melons. This study also aimed to determine the sensitivity or how businesses respond to changes in production costs and selling prices of melons. The research was conducted in Semarang, Central Java. The fertilizer used was an AB mix fertilizer formulated according to the needs of the plants. Each plant was cultivated to produce only two melons to optimize the nutritional intake for each melon, with the PPM adjusted to the needs of the melons. The feasibility and sensitivity analysis were Net Present Value (NPV), Payback Period (PP), Profitability Index (PI), and Internal Rate of Return (IRR). The results showed that a greenhouse containing 602 premium Sweet Aprilia melon plants requires an initial investment of IDR 80,000,000 with an economic life of 5 years. The cost of melon sold (CMS) was IDR 9,967, the BEP was 440 units, and the production cost was IDR 9,966,600. Revenue was IDR 17,500,000, so the income was IDR 7,533,400. This study produced an NPV of 54.67, PP of 2 years, 7 months, 16 days, PI was 1.68, and IRR was 37.03. The findings highlight that the melon business in a GH is feasible to be carried out with a cultivation process for 4 planting periods per year. Despite rising production costs and declining selling prices, melon business is projected to maintain a positive respond by continuing to generate profits for the business.