Business analysis of small pelagic purse seine with two vessels: Case study in FV. Intan Istambul in the Bali Strait, Pengambengan Bali, Indonesia

The waters of the Bali Strait are among the areas rich in fishery resources, with the main fish community being lemuru (Sardinella lemuru). The average production of Sardinella lemuru in the Bali Strait reached 64,961 tons from 2004 to 2014. According to data from the Jembrana Regency Government (2015), the sustainable potential of marine fisheries resources in the waters of West Bali is 56,947 tons per year, consisting of 53,947 tons of pelagic fish and 3,877 tons of demersal fish. The composition of catches during the study using trawl nets over 15 trips, with 1–7 settings per trip, resulted in a total catch of 76,082 kg. The breakdown of the catch includes 19,026 kg of Sardinella lemuru, 3,624 kg of Decapterus spp., and 53,432 kg of Euthynnus affinis, with tuna being the dominant species. The highest catch occurred during trip 9, with a total of 10,876 kg. A feasibility study on small pelagic purse seine fishing using two vessels indicated a Payback Period (PP) of 67.4 months, meaning it takes 5 years, 7 months, and 12 days to recover the initial investment. The business is feasible to run despite being categorized as slow in capital recovery. Based on the breakeven point (BEP) criteria, the BEP price is IDR 803,325,503.64, meaning the business reaches a break even point when sales reach this amount. Meanwhile, the total revenue is IDR 1,594,409,500, indicating the business is profitable. The BEP unit value is 139,337.15 kg, meaning the business breaks even when fish production reaches this amount. The total production is 276,551.00 kg, which exceeds the BEP unit value, making the business feasible. Additionally, the revenue-cost (R/C) ratio is R/C = 1.25, which is greater than 1, indicating that the business is viable. The return on investment (ROI) is 18%, meaning the percentage of profit obtained from the invested capital over one year is 18%. This classifies the business as reasonably profitable and viable.