Economic performance and financial feasibility of pearl lobster (P. ornatus) grow-out aquaculture in South Sulawesi, Indonesia

Abstract

Aquaculture has quickly grown, with increasing interest in high-value products that contribute to the economic and social development of coastal communities. One example is the pearl lobster (Panulirus ornatus), which is in high demand and commands a high price. While production and research have improved, there is still little information on whether commercial grow-out systems are financially viable in Indonesia. This study examines the economic performance and investment potential of pearl lobster farming in South Sulawesi, Indonesia. Researchers gathered primary data from 94 farmers in three main production areas using a stratified sampling method. They measured economic performance by looking at profitability and analyzed investment feasibility using Net Present Value (NPV), Internal Rate of Return (IRR), Net Benefit-Cost Ratio (Net B/C), Payback Period (PP), and sensitivity analysis. The results show that pearl lobster farming yields a net profit of USD 1,584 per production cycle, indicating strong operations. Financial indicators also show that investing in this sector is attractive, with an NPV of USD 5,623, an IRR of 367%, a Net B/C of 13.25, and a PP of 0.35 years. Sensitivity analysis shows that the business remains financially sound in all tested scenarios. Even though investment results are most affected by changes in annual revenue, the project still produces positive returns when revenue drops, costs rise, or survival rates fall. This shows that the business is financially resilient. Besides confirming that pearl lobster farming is profitable, this study fills a gap by combining profitability assessment, discounted cash flow analysis, and investment risk evaluation into a single framework. The findings offer real-world evidence to help guide investment decisions and policy for tropical lobster aquaculture. In summary, the results suggest that pearl lobster grow-out farming is a strong, resilient business and deserves serious consideration for future development.

Access to Document

Other files and links

• Link to publication in Scopus
• Open Access Version Available

Fingerprint