The Strategy for Selecting Institutional Model and Financial Analysis of Sesame Agroindustry

Abstract

Business institution is one of the important components to develop an agroindustry. The aim of this esearch was to find the appropriate institutional model for sesame agroindustry based on financial feasibility Inalysis comprises Net Present Value (NPV), Internal Rate of Return (IRR), Pay Back Period (PBP) and Net lIC Ratio. The method to develop strategy was Analytical Hirarchy Process (AHP) approach, while to choose In institution was exponential comparison method (MPE). The results ofanalysis showed that the mainfactor in (eveloping strategy of sesame agroindustry based on evaluation value were market demand (0.209), and '1aterial quality and availability (0. 198). The main actors were bussinessman (0. 129) and the local goverment 0.123). The main objective for sesame agroindustrial development was increasingfarmer income (0.216). The esults of analysis based on aggregate weighting showed that the appropriate development institutions were '1tegrated agroindustrial cooperative pattern (J 17,106,036) and self-sufficient bussiness pattern (107,560,765). lased on financial analysis, it was known that opportunity level (discount rate) was 20%, NPV was Rp '92,796,108.90, Net BIC was 1.27, IRR 22.04% and PBP was 1.34%. In conclusion, the development of the esame-based agroindustry with cooperative institutional pattern was feasible.