Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) June 2016 Vol. 5(6), pp 155-161

Copyright © 2016 Global Advanced Research Journals   

 

Original Research Articles

Semi-Mechanized Brick-Making in Southeast Sulawesi: Feasibility and Constraints for Its Adoption

Dr. Haji Saediman

Faculty of Agriculture, Halu Oleo University, Indonesia.

Email saediman@yahoo.com

Accepted 04 June 2016


Abstract

This study aimed to assess feasibility of semi-mechanized brick-making enterprises and constraints for their adoption in Southeast Sulawesi. Data about feasibility collected from one unit of semi-mechanized brick enterprise, while information about adoption constraints was collected from 30 traditional small-scale brick making units. Data were collected using interview method based on the questionnaire. Data were analyzed using financial tools of decision making, namely NPV, IRR, BCR, PBP, and sensitivity analysis. The study revealed that the enterprises can generate a positive NPV, IRR higher than the discount rate, BCR higher than 1, and PBP shorter than economic life of the project. These results indicated that semi-mechanized brick making is financially feasible, and the enterprises that received microcredit from local commercial bank could repay fully the loan. However, depsite its higher net profit, producers continued to use traditional brick making. Some factors that cause its non-adoption included financial barriers, lack of knowledge and skills, poor infrastructure, limited support from government and other agencies, labor problem, and non-difference in price.  The government and stakeholders need to take measures to solve and eliminate the identified barriers in order to promote the brick industry. 

Keywords: Adoption, Brick making, Constraint, Feasibility, Sulawesi







 








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