RESULTS AND DISCUSSION

Feasibility viewed from Technical Side

1. Factory Location
The location of a company or factory affects the overall risk and profit of the company.
This is because location greatly influences both fixed and variable costs, both in the medium and
long term (Heizer & Render (2006) in Fuad, 2015).
The location of the factory is planned in Binalatung, Amal Lama Village, North
Tarakan District, Tarakan City, North Kalimantan Province. The consideration in selecting the
location is as follows:
a) Close to the source of raw materials

The location is overgrown with karamunting plants, and it is an area for developing
Karamunting cultivation in the Faculty of Agriculture, University of Borneo Tarakan.
b) Cheap land prices

Binalatung Village, Amal Lama Sub district is an area with relatively low land prices. The
current price of land per square meter is around Rp. 15,000 up to Rp. 20,000, - / m2 (KPP
Pratama Tarakan, 2017). Besides, the population is also still small with an average population
density of 844 inhabitants / km2 (BPS Tarakan City, 2017), so that plantation development is
not disrupted by community activities.
c) Close to water sources and harbor

Regarding the limited natural conditions on Tarakan Island where people face difficulty in
finding clean water sources (wells), river is the second source alternative after rain. As a
result, the location will be planned in the area which is close to Binalatung River (± 700 m),
so the river can be utilized for washing raw materials. Besides being close to the Binalatung
River, the factory location is also close to the Amal Lama Harbor (± 2 km). This provides
benefits and convenience in product distribution.
 S. Binalatung

The Factory

Amal Lama
Harbor

Figure 1. Map of Tarakan Island

As seen in the figure 1, sign is the planned location of karamunting fruit powder processing.

d) Availability of raw materials

The raw material in the form of fresh karamunting fruit is obtained from karamunting gardens
that have been cultivated, and from wild plants that grow in almost all areas of Tarakan City
which are very abundant. Based on available data, the karamunting growing areas spread
across four districts on Tarakan Island ± 223 ha, with a range of 168.75 tons of fruit
production (Ismandari 2007); BPS City of Tarakan (2016)).

The raw material is ripe karamunting fruit, which is marked by the rupture of one fruit in a
bunch, as shown in Figure 2 below.
 Figure 2. Karamunting Fruit

e) Equipment

The equipment for making karamunting fruit powder is all available at Tarakan and some are
imported from Java. The tools used for simple extraction is steinlis steel stacking pots that are
widely available in Tarakan, while vacuum ovens and packaging devices, as well as other
auxiliary equipment are imported from Java.
f) Labor

Labor is the most important factor in ensuring a smooth production process. The availability
of labor with adequate skill levels and with the right amount is always the goal of the
production itself. Besides, other factors, such as machinery and equipment are also crucial
(Ginting, 2007). In determining the amount of labor on a small scale, the researchers employ
the Work Load Analysis method.
The Work Load Analysis (WLA) formula according to Ranupandoyo (1997) in Sofyan (2014)
is as follows:

number of product x processing time per unit

WLA ¿ x 1 person ..........(5)
Workingdays x Working hours

Before calculating WLA, the number of work centers for karamunting fruit powder must be
determined first. Karamuting fruit powder factory consists of 5 work stations or work centers:
• Work center I consists of two activities, namely sorting and washing activities
• Work center II consists of extraction activities
• Work center III consists of foam mat drying activities
 • Work center IV is finishing activities consisting of packaging activities
• Work center V is a marketing activity consisting of packaging activities
The WLA values from the results of the analysis are shown in Table 1. below.
Table 1. Recapitulation Results of WLA (People)
No Work centre WLA Person
(person)

1 Sorting & washing 1.57 2

2 Extraction 2.558 3
3 Foam mat drying 2.558 3
4 Packing 1.4 1
5 Marketing 1.4 1

Based on the WLA calculation results, the factory requires 10 direct workers and an
additional 2 indirect workers (1 manager and 1 administration).
In the processing of karamunting fruit powder, the recruitment of workers is taken
from the surrounding people of the factory, so it can create jobs for them.The division of
labor duties and responsibilities is presented in Table 2 below.
Table 2. Distribution of Duties and Responsibilities
No Position Job description Education Sum

1 Manager Manager is responsible for whole activities S1 1

in the factory
2 Administration Membukukan semua kegiatan produksi dan S1/D3 1
pemasaran
3 Production Running all production activities, starting SMA 9
Process from the supply of raw material, powder
production, packaging, until to the last
product storage
4 Sales and Promoting company products, finding SMA 1
Promotion customers, and conducting sales transaction

The production of karamunting fruit powder is carried out by workers who have
previously received training in mastering the processing technology of karamunting fruit,
starting from raw material preparation, processing, packaging, until storing the final product.
So it is expected to be able to run production operations properly.
g) Public Facilities
 Public facilities available in the Binalatung area of Amal Lama Subdistrict, East
Tarakan District, Tarakan City are PLN, PLTU, PDAM, Port, SPBU, and Embung
Binalatung.
h) Transportation

The transportation and roads in the area are sufficient to facilitate the transportation
of raw materials and production to consumers. Transportation can be in the form of land and
sea because the area is close to the port.
i) Marketing
Temporarily, the marketing of karamunting fruit is carried out in the Tarakan area,
and outside Tarakan Island, such as Malinau, Bulungan, and Nunukan area. While in the
long-term, it is planned to distribute Karamunting outside the Province of North Kalimantan.
j). Waste management

The processing of karamunting fruit powder does not produce hazardous waste,
because the raw materials do not contain chemicals. The remnants from the extraction will be
returned to the land as compost.
The processing of karamunting fruit powder does not produce hazardous waste,
because the raw materials do not contain chemicals. The remnants from the extraction will be
returned to the land as compost.
Feasibility viewed from Economic Side

In establishing a business, economic factors are also one of the main factors that must
be considered. The economic feasibility of karamunting fruit cultivation business in this study is
reviewed from several aspects, namely:
1. Production costs
These costs consist of raw material costs, direct labor costs, and factory overhead costs
(Sutrisno, 2012). While Mulyadi (2012), states that production costs are costs arising from
processing raw materials into finishing products.
The calculation of production costs is done in 1 year, which consists of fixed costs and
variable costs in 1 year as seen in the picture 3 below:
Table 3. Production cost of Karamunting Fruit Powder
N Type Explanation
o
 1 Fixed costs for 1 year (FC) Rp. 64,722,667,-
(Salary, tools and maintenance costs, depreciation costs,
administrative costs, and PBB)
2 Variable costs for 1 year (VC)
(raw materials costs, supporting materials costs, packaging costs,
utilities, and variable labor costs) Rp. 330,150,000,-
3 Total cost for 1 year (TC) Rp. 394,872,667,-
4 Total production for 1 year (@ 200 mg) (Q)
(packaged in capsule form) 750,000
5 Variable costs per unit (VC per unit)
(VC/Q) Rp. 440,-

The total production cost of karamunting fruit powder for 1 year is Rp. 394,872,667, -
consisting of fixed costs of Rp. 64,722,667 and variable costs of Rp. 330,150,000 with the
production of karamunting fruit powder of 150 kg which is packaged in form of capsules with a
weight of @ 200 mg. Then, it is obtained 750,000 capsules at a cost per unit of Rp. 440, -.

2. Cost of Goods Manufactured (HPP)

The cost of goods manufactured is the number of costs incurred in processing raw
materials into a product. Furthermore, Mulyadi (2012) adds that the costs of goods manufactured
are several costs directly related to production, namely direct material costs and direct labor
costs.
The cost of goods manufactured of karamunting fruit powder is Rp. 526.5, - / capsule.
Based on the results of the calculation, the selling price at the producer level to retailers is Rp.
789.75, - / capsules, assuming a markup is 50% of each product.
3. Break-Even Point (BEP)

BEP analysis is one way to find out the minimum sales volume so that a business does
not experience a financial loss. The BEP calculation results show that the turning point will be
reached when the sales volume is 185,162.44 units or Rp. 146,231,172,57. This shows that, if the
company achieves sales of 185,162.44 units (capsules), it can be interpreted that the company
reaches a point where the company has not experienced any losses or profits.
4. Business Efficiency

Business efficiency or profit, that is, gross income divided by the production cost that has
been incurred. If the R / C ratio produced is greater, the greater the benefits obtained by the
traditional herbal medicine entrepreneur. The efficiency of karamunting fruit production business
is 1.5. This shows that the business provides benefits.