Economics Feasibility Analysis of Fragrant Lemongrass (Andropogon nardus) Cultivation and Distillation System (Case study in Ganunghalu and Rongga sub-district, Bandung Barat Regency)

DOI

10.2991/assehr.k.200225.020How to use a DOI?

Keywords

fragrant lemongrass, economic feasibility, net present value, citronella oil

Abstract

One of the regions that produce lemongrass oil in West Java is Gununghalu and Rongga sub-district, Bandung Barat Regency. The problem faced in citronella cultivation is uncertainty on the quality of lemongrass and simple refining technology. This research was conducted to determine lemongrass cultivation (including procurement of raw materials, post-harvest handling) and refining technology used (in the refining process) that was economically feasible. In this study, the economic feasibility of citronella cultivation and refining was measured by considering the availability of raw materials; refining facility capacity, and operational costs incurred. This paper will describe the analysis of the Net Present Value of the cultivation and refining of citronella oil. The results showed that to maximize the distillation of citronella oil, raw materials needed as much as 1800 kg for each refining process. The raw material is needed for distillation in a refinery with a capacity of 600 kg and three times a day distillation. Based on Net Present Value analysis, it can also be seen that the business of refined fragrant lemongrass oil is considered economically feasible and can provide benefits if managed properly.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nugraha Nugraha
AU  - Aviasti Aviasti
AU  - Dewi Shofi Mulyati
AU  - Reni Amaranti
AU  - Chicha Nursagita
AU  - Indra Topik Maulana
PY  - 2020
DA  - 2020/03/03
TI  - Economics Feasibility Analysis of Fragrant Lemongrass (Andropogon nardus) Cultivation and Distillation System (Case study in Ganunghalu and Rongga sub-district, Bandung Barat Regency)
BT  - Proceedings of the 2nd Social and Humaniora Research Symposium (SoRes 2019)
PB  - Atlantis Press
SP  - 92
EP  - 97
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200225.020
DO  - 10.2991/assehr.k.200225.020
ID  - Nugraha2020
ER  -