Novian et al.
, / International Journal of Trends in Accounting Research.
Vol.
No.
2, 2025
INTERNATIONAL JOURNAL OF TRENDS IN
ACCOUNTING RESEARCH
Journal homepage: https://jurnal.
id/index.
php/ijtar/index Analysis of Financial Feasibility of Kerupuk Kulit in Tambang Sub-District.
Kampar Regency (Case Study of UD Kerupuk Kulit Jon Kened.
Novian*.
Yeni Kusumawaty.
Elsa Azzahra
1,2,3,
Department of Agribusiness.
Faculty of Agriculture.
University of Riau.
Indonesia
ARTICLE INFO
ABSTRACT
Article History:
This study aims to analyze the financial feasibility of the agroindustry of UD Kerupuk Kulit Jon Kenedi in Tambang District.
Kampar Regency.
The research uses a case study method with a quantitative Data was obtained through interviews, observations, and The analysis was conducted using the Revenue Cost Ratio (R/C) and profitability ratios, which include Gross Profit Margin (GPM).
Net Profit Margin (NPM).
Return on Asset (ROA), and Return on Equity (ROE).
The results of the study show that this business is feasible to run and develop.
The R/C value > 1 indicates that the business is in an efficient condition, and the profitability ratio provides positive results every year, which reflects the business's ability to generate profits consistently.
Nonetheless, this business still has weaknesses in terms of financial management and a lack of product innovation.
Therefore, systematic financial recording and the development of managerial and marketing strategies are needed to increase the competitiveness and sustainability of the business in the Accepted: 03 Jul 2025 Accepted: 28 Nov 2025 Published: 30 Nov 2025 Keywords:
Financial Eligibility.
Agroindustry.
Skin crackers.
Cost of Revenue Ratio
(R/C),
Profitability Ratio
INTRODUCTION
Development in the livestock subsector is one of the factors that play a role in the provision of raw materials for the food industry.
One of the uses is leather.
Leather processing that is quite famous among the public is Kerupuk Kulit or rambak crackers.
People make Kerupuk Kulit as snacks and side dishes(Prawinata, 2.
The stages of processing cowhide to produce Kerupuk Kulit start from soaking the skin with a lime solution, scraping the fur, boiling, drying, followed by the soaking of spices, and the frying stage to produce ready-toconsume crackers (Laughte.
et al.
, 2.
Riau is one of the provinces in Indonesia that has potential in various sectors, one of which is the livestock sector.
The number of beef cattle in Riau in 2023 will reach 210,784 heads, and buffalo 27,499 (BPS, 2.
The number of beef cattle and buffalo livestock is spread across 12 districts/cities in Riau Province, including Kampar Regency.
The livestock sub-sector can also improve the community's economy and spur regional development.
In the industrial world, the livestock sub-sector is a provider of animal feed that can be used as industrial raw materials (March 2.
______________
Correspondence author.
*Email: novian@lecturer.
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Novian et al.
, / International Journal of Trends in Accounting Research.
Vol.
No.
2, 2025
One of the Kerupuk Kulit agro-industries that has been developing for quite a long time, namely the UD Kerupuk Kulit business Jon Kenedi.
Mr.
Jon's business is located on the border of Kampar Regency and Pekanbaru City, precisely in Tambang District.
Kampar Regency.
Mr.
Jon started his business in 2011 until now.
In running his business.
Mr.
Jon is assisted by 7 Pak Jon's Kerupuk Kulit business uses cowhide and buffalo skin as raw materials.
Processed cowhide and buffalo produce products in the form of Kerupuk Kulit that provide a source of animal protein (Rusdiani et al.
, 2.
The raw materials used in UD Kerupuk Kulit Jon Kenedi come from the Kampar Slaughterhouse (RPH) and RPH Pekanbaru City.
The number of livestock slaughters in Riau Province in 2023 was recorded at 15,568 beef cattle and 1,472 buffaloes (BPS, 2.
UD Kerupuk Kulit Jon Kenedi produces every day except Friday.
By 2024, the amount of leather used in a day will range from 60-85 kg, which will be produced according to consumer demand.
The leather to be produced is delivered directly by RPH to the Kerupuk Kulit Jon Kenedi production site.
UD Kerupuk Kulit Jon Kenedi has many suppliers so that its marketing can reach outside the city.
Along with the increase in population and quality of life, the demand for a product is also increasing (Wahyudi, 2.
The products marketed are Kerupuk Kulit made from cowhide and buffalo skin mixed to facilitate consultation in purchase.
During the course of the business, there has been no other variant, both in terms of taste and However, in this business there is indeed a slight difference from Kerupuk Kulit in general, namely in its slightly yellowish color because it uses turmeric spice which also aims to remove the fishy smell from the skin used.
The price of Kerupuk Kulit at Jon Kenedi Kerupuk Kulit Business is IDR 50,000 per can with a weight of around 0.
14 grams.
The development of the Kerupuk Kulit business judging from the production value produced is quite promising.
A significant challenge that may be faced in running a business is the occurrence of price fluctuations, both increases and decreases in production input The income received by UD Kerupuk Kulit Jon Kenedi is uncertain due to ignorance of production input and output factors.
UD Kerupuk Kulit Jon Kenedi produces Kerupuk Kulit according to consumer orders so that the income earned every month is unstable.
The price of Kerupuk Kulit continues to change according to price fluctuations that occur in production UD Kerupuk Kulit Jon Kenedi until now does not have a systematic and welldocumented financial analysis basis.
This causes uncertainty in assessing the extent to which the business is able to generate decent profits and survive in the long term.
Based on research conducted by Afifah et al.
, .
, it shows that the added value is relatively low, which is below 50%, which is influenced by the high price of raw materials and the low selling price of products.
Meanwhile, this study shows that the jon kenedi Kerupuk Kulit business is financially feasible.
The results of the R/C ratio analysis of >1, as well as the analysis of profitability ratios (GPM.
NPM.
ROA, and ROE) showed positive values.
It can be concluded that this business is efficient and able to generate profits in the long run.
LITERATURE REVIEW
Agroindustry Agroindustry utilizes the results of the agricultural sector as raw materials and providers of tools and services needed in agro-industrial activities (Suwandi et al.
, 2.
Agroindustry is the processing of raw materials sourced from plants, animals, and fish.
Processing includes the processing of raw materials into new products through physical or chemical changes, storage, packing, and distribution.
According to Syafruddin and Darwis, .
that the development of the agro-industrial sector in the upstream industry and downstream industry has the potential to improve people's welfare.
Agroindustry can continue to develop if raw materials are available in large quantities.
In its development, the agroindustry will face several challenges and problems, including: .
weather factors, unstable climate, .
markets and prices, .
infrastructure, .
technology and innovation, .
sustainable agriculture, .
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regulations and policies, .
capital limitations, .
labor, and .
education and training (Timmye.
et al.
, 2.
Kerupuk Kulit Crackers with leather raw materials, commonly called Kerupuk Kulit or Kerupuk Jangek, are popular with the public because of their distinctive texture and taste.
The raw materials commonly used are from cowhide and buffalo skin (Rezeki, 2.
The protein content in cowhide crackers is 64.
71% and after frying it contains fat at 32.
The protein content in buffalo skin crackers is smaller, at 63.
In contrast to the lower fat content of buffalo skin, which is 31.
The purine content in skin crackers will be dangerous for gout sufferers if they consume large amounts of skin crackers, because in 100 grams of skin crackers there is 7 mg of uric acid content (Thohar.
et al.
, 2.
Making Kerupuk Kulit using fresh cowhide and/or buffalo skin.
According to Bulkainil et al.
that the quality of Kerupuk Kulit can be improved by choosing quality leather, improving formulas and production techniques, and paying attention to every stage of cracker making.
Cost Cost is the sacrifice of economic resources that are spent for the purpose of producing an item that will be marketed with the aim of obtaining future profits measured in units of According to Syo Paulo et al.
, .
Cost is a guideline in deciding the level of output that can provide maximum profit for the company.
Costs are cash outflows or the use of assets, or incurring debts arising due to the production process of goods, the delivery of services or the implementation of main activities.
Some of the important components that need to be understood in conducting a financial feasibility analysis in a company include investment costs, operational costs, production costs, and business revenues and profits Scarlet Witch et , .
Investment costs are the initial costs incurred to build and equip production facilities with the aim of making a profit while the business is still running (Pelipa and Astikawati, 2.
Operating expenses are expenses related to the company's activities including the company's regular expenses consisting of fixed costs and variable costs (John et al.
, 2.
Meanwhile, production costs are the total direct expenditure by the company to process raw materials into finished products (Harahap and Tukino, 2.
Revenue is the income obtained by business actors from the sale of their products.
Based on the point of view of pure economics, profit or profit is the income that an investor earns from the invested capital minus the expenses associated with the company that increase the investor's wealth (Rai.
et al.
, 2.
Analysis of the Financial Feasibility of the Business Business efficiency is the use of resources to the minimum possible to achieve optimal results, assuming that the right goals have been determined.
According to Rusdiani et al.
business is said to be efficient if Cost of Revenue Ratio (R/C rati.
>1.
Meanwhile, to assess the financial feasibility of long-term businesses, the profitability ratio approach is used.
According to Cashmere .
, the ratios include Gross Profit Margin (GPM) to see production efficiency.
Net Profit Margin (NPM) to measure net profit from sales.
Return of Assets (ROA) to measure the ability of businesses to utilize assets, and Return of Equity (ROE) to assess how effectively capital itself generates profits.
RESEARCH METHODS
This research is a case study research that emphasizes the study of specific programs, events, activities, processes or parts in a certain context where data is obtained by various data collection techniques with a quantitative approach.
The object of this study is the Jon Kenedi Kerupuk Kulit Business located in Tambang District.
Kampar Regency.
The subjects IJTAR
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of the study are business owners and employees who know business-related information.
The selection of objects was done deliberately because this business has been running for quite a long time and is the largest Kerupuk Kulit business in the region.
The data used in this study are primary data and secondary data.
Data collection was carried out through direct interviews, observations, and documentation.
The data collected includes production costs, production quantity, selling prices, and business income.
The data analysis technique of this study uses the analysis of Revenue Cost Ratio and Profitability Ratio with the help of Microsoft Excel software and calculators.
RESULT
The results of the analysis of the efficiency of the Jon Kenedi Kerupuk Kulit Business during the 25-year projection .
show that the business profit obtained is greater than 1 (R/C >.
which means that the Jon Kenedi Kerupuk Kulit Business is declared efficient and profitable and feasible to run.
The total revenue of this business is greater than the total Analysis of financial feasibility with Gross Profit Margin (GPM).
Net Profit Margin (NPM).
Return On Asset (ROA).
Return On Equity (ROE) analysis tools shows that Jon Kenedi's Kerupuk Kulit Business is feasible to run and develop during the 25-year projection period .
The results of the calculation of Gross Profit Margin (GPM).
Net Profit Margin (NPM).
Return On Asset (ROA), and Return On Equity (ROE) prove that the business being run is in a very good condition in terms of finances, in generating profits, and has a good ability to utilize the company's assets to generate a large profit.
Table 1.
Gross Profit Margin (GPM) Year
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Income
HPP
Gross Profit
GPM
48,04%
47,27%
46,50%
45,71%
44,91%
44,10%
43,28%
42,44%
41,60%
40,74%
39,87%
38,98%
38,09%
37,18%
36,25%
35,31%
34,36%
33,40%
32,42%
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Source: data processed .
31,42% 30,42% 29,39% 28,35% 27,30% 26,23% 25,15% The table above shows that the Gross Profit Margin of Jon Kenedi's Skin Crackers Business is in good condition.
The highest GPM is 48.
04%, which means that from IDR 100 operating income will be obtained IDR 48.
04 gross profit after deducting the Cost of Goods Sold (COGS).
Likewise, in the following years, it shows that the company's condition remains in good condition because it is still able to make a profit until the 25th year, even though the business HPP is getting bigger.
Table 2.
Net profit margin (NPM) Year Year of Gross Revenue Source: data processed .
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Total Cost
Net Profit
NPM
36,37%
46,59%
45,81%
45,01%
44,20%
43,38%
42,55%
41,70%
40,85%
39,98%
39,09%
38,20%
37,29%
36,37%
35,43%
34,48%
33,52%
32,54%
31,55%
30,54%
29,52%
28,48%
27,43%
26,36%
25,28%
24,18%
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The analysis of the Net Profit Margin (NPM) in Jon Kenedi's Kerupuk Kulit Business is the highest at 46.
49% and the lowest is 20.
The highest NPM condition shows that from IDR 100 operating income generates a net profit of IDR 46.
This result shows that businesses are able to generate net profit well and can increase business equity.
The NPM analysis in the following year began to decline due to the cost required every year.
However, the ability of businesses to generate net profit is still in good condition due to the efficient use of costs to generate net profit.
Table 3.
Return on Assets (ROA) Year Year of Source: data processed .
Net Profit
Total Assets ROA
34,08%
34,00%
33,91%
33,83%
33,75%
33,67%
33,58%
33,50%
33,42%
33,34%
33,26%
33,17%
33,09%
33,01%
32,93%
32,85%
32,77%
32,69%
32,61%
32,53%
32,45%
32,37%
32,29%
32,21%
32,13%
32,06%
The table above shows that the use of business assets is efficient because it is able to generate operating profits.
The largest ROA value is 34.
08%, which means that from spending IDR 100 on business assets, it is able to generate a profit of IDR 34.
The greater the ROA, the greater the profit level achieved and the better the company's position.
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Table 4.
Return on Equity (ROE) Year Year of Source: data processed .
Net Profit
Own Capital ROE
36,93%
36,84%
36,75%
36,66%
36,57%
36,48%
36,39%
36,30%
36,21%
36,12%
36,03%
35,94%
35,86%
35,77%
35,68%
35,59%
35,51%
35,42%
35,33%
35,25%
35,16%
35,07%
34,99%
34,90%
34,82%
34,73%
The table above shows the largest ROE value of 39.
93%, meaning that the business is able to generate a profit of IDR 36.
93 from IDR 100 of its own capital spent on the production The ROE value in the following years decreased, but the ability of the business to generate profits was still in good condition.
The increasingly high ROE value shows that the use of their own capital by business actors is good, and is able to generate considerable profits from their own total capital.
CONCLUSION
The results of the efficiency analysis and profitability ratio prove that Jon Kenedi's Skin Cracker Business is feasible to run and develop during the projection period of the next 25 years .
The financial condition of the business is in good condition in generating profits, and has a good ability to utilize the company's assets to generate a large profit.
The right strategy will greatly affect business development, so that business profits continue to increase and obtain stable income.
LIMITATION
First, the research was only conducted on one business unit, namely UD Kerupuk Kulit Jon Kenedi as a case study.
This limits the generalization of findings to similar agro-industries in other locations with different characteristics.
Second, the source of business financial data
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is still simple and has not been systematically documented.
Most of the data is obtained through interviews and personal records of business actors, which allows for memory bias or numerical inaccuracies.
This can affect the accuracy in calculating financial ratios and longterm projections.
Third, the financial projections in this study are based on the assumption of average inflation and input-output price estimates over 25 years, without including uncertain scenarios such as economic crises, changes in energy subsidy policies, or market Although this approach provides a long-term feasibility picture, external uncertainty remains an unquantified factor in this study.
Fourth, the study did not evaluate non-financial aspects such as consumer preferences, product innovation, or marketing strategies in depth.
In fact, these factors can have a significant effect on business sustainability in the long term.
REFERENCE