Financial Feasibility Analysis of Mutiara Catfish (Clarias sp.) Farming Using the Biofloc Method at PT ABAI, Malang, East Java, Indonesia

The rapid advancement of technology in catfish farming systems has led to the development of a new method known as the biofloc system, which enables farming in limited spaces with easy maintenance. One of the catfish farming businesses utilizing the biofloc system in Malang City is PT. ABAI, which was established in 2012; therefore, this study analyzed the financial feasibility of PT. ABAI using profitability analysis, financial feasibility analysis, and business sensitivity analysis. The profitability analysis showed a break-even point (BEP) in sales of IDR 170,600,946 or 24,768kg per year, with an R/C ratio of 1.24 (>1) and a return to capital (RTC) of 15.98% (>6%), indicating that the business is profitable. Financial feasibility indicators showed a Net Present Value (NPV) of IDR 484,158,261 (positive), a Net Benefit-Cost Ratio (Net B/C) of 1.41 (>1), an Internal Rate of Return (IRR) of 17.55% (>6%), and a payback period of 4.34 years, all of which indicate that the business is financially viable in the long term. The business sensitivity analysis was conducted under three scenarios: (1) costs increase by 28% while benefits remain the same, (2) costs remain the same while benefits decrease by 12%, and (3) costs increase by 15% while benefits decrease by 9%; the results indicate that while the business is financially feasible, it is vulnerable to fluctuations in cost or revenue. Therefore, optimized technical management of the biofloc system and land ownership are expected to reduce operational costs, while the use of online marketing through social media and e-commerce is expected to improve sales and expand market reach.