Financial analysis of seaweed cultivation in Karimunjawa Islands, Indonesia

Abstract

Karimunjawa Islands is one of the conservation areas in Indonesia which has high biodiversity. Conservation support is needed from all stakeholders, including the local community. Without adequate sources of income, the local community has the potential to behave destructively, including logging mangrove trees and damaging coral reefs. One of the environmentally friendly jobs in Karimunjawa Islands is seaweed cultivation, especially in Kemojan Village. The purpose of this research was to make a financial analysis of seaweed (Eucheuma cottonii) farming in Kemojan Village. We conducted a survey of 90 seaweed farmers in Kemojan Village. We calculated profit, RC ratio, CR ratio and BEP (price). This research proved that the seaweed cultivation business in Kemojan Village can be an adequate source of income for the local people of Kemojan Village. The average profit is IDR. 63,749,572 per year, with an RC ratio of 6.04 or CR ratio of 0.17. BEP (price) of seaweed is IDR 248 per kg wet, while the price at the time of the study is IDR 1,500 per kg wet. By increasing the welfare of Kemojan Village people through seaweed cultivation, it is hoped that the local community will increasingly support conservation in Karimunjawa Islands