Track: Case Studies

Abstract

Nowadays, swiftlet bird nest is one of the valuable agribusiness products in Indonesia and other countries in ASEAN. Current global production for this nest is estimated to 5 billion USD annually. Meanwhile, in Indonesia, the price of raw nest from farmers each kilogram is Rp.10 million (USD 715) and up to Rp30 million (USD 2.143) per Kg in export transactions. The increase of swiftlet nest demand over the years that is not followed by the production capacity upscaling of farmers, creates the existing producers cannot fulfil the needs of market and at the same time loss  of opportunities in this industry.

In order to taking the advantage from this opportunity and additionally the availability of resources and space to operate this business, Wahana Walet Sejahtera as new venture of swiftlet bird nest now runs the swiftlet bird nest farming in Berau. To deliver the prospective view of this business to the investors and the management of organization, feasibility study and corporate valuation are assessed thus, it is able to confer the adequate information as the consideration of them to invest and take an action. Business feasibility study in this case uses several parameters, including Internal Rate of Return (IRR), Net Present Value (NPV), Payback Period, and Profitability Index through two different schemes, single house production and multi house production. And for the valuation calculation for both methods, discounted cash flow model (DCF) model is the main way to generate the value.