Investment Opportunity and Strategy in Developing Laccifer Lacca KERR Cultivation Bussines : Case Study at KPH Probolinggo Perum Perhutani Unit II East Java

Abstract

Shellac flea Laccifer lacca Kerr is a kind of fitofag insect, which is living at Kesambi Tree (Schleichera oleosa Merr). During its life cycle, shellac flea has been producing secretion in liquid form, known as LAK and having many uses, such as varnish/polish, food cover, drug capsule, cassette ribbon, etc. In 2005, Perum Perhutani has produced 60 547 kg LAK pellets, but has not fulfilled yet market demand. Cultivation technique is still conducted in a very sampling, and easy to be studied. Investment in developing shellac flea is also profitable, and promising. There are two choices of management schemes in it cultivate, the first is by infecting shellac flea to the host tree when the tree is 15 years old (project I) and the second is by infecting shellac flea when the tree is 4 years old (project I). Financially, the Project II is more beneficial than Project I, so that the investment for project II is reasonable to be done. The value of NPV + 22 321 052 395, IRR 16.9%, BCR 1.55 and Net B/C 3.71 with discounted payback period for 10 year 8 months. SWOT analyzing was used in design strategy to face the competition in business world. Strategy of SO (Strength Opportuniy) in SWOT analyzing could be applied in Perum Perhutani to develop shellac flea cultivation in the future.