Financial feasibility and green supply chain management analysis of sustainable watermelon farming
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Jahrizal 1 * , M. Rayen Paresko 1 , Indri Yovita 2 , Achmad Tavip Junaedi 3 , Nicholas Renaldo 3
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1 Department of Management, Faculty of Economic and Business, Riau University, Pekanbaru, Riau, INDONESIA2 Department of Economic Development, Faculty of Economics and Business, Riau University, Pekanbaru, Riau, INDONESIA3 Department of Management, Faculty of Business, Institut Bisnis dan Teknologi Pelita Indonesia, Pekanbaru, Riau, INDONESIA* Corresponding Author

Abstract

Indonesia’s agriculture, particularly watermelon farming in Riau, offers economic growth opportunities but requires sustainable practices for profitability. This study aims to analyze the benefits of watermelon farming, assess its financial feasibility, and explore the integration of green supply chain management (GSCM) practices into the farming process in Indonesia. Employing a descriptive method, the research focuses on profitability and feasibility aspects by analyzing field data. The analyzes cost data and production to provide financial insights for farmers on sustainable supply chains and enhance Indonesian watermelon competitiveness. The findings indicate that watermelon farmers in Sako Village earn an average profit of IDR 155,900,000 per hectare annually. The financial analysis further reveals that the payback period for watermelon farming investment is approximately nine months, with a net present value of IDR 450,705,000, an internal rate of return of 149%, and a profitability index of 4.37, confirming the high profitability and attractiveness of the business. Moreover, the adoption of GSCM practices demonstrates a strong potential to enhance both environmental and economic sustainability in watermelon farming.

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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

EUR J SUSTAIN DEV RES, Volume 10, Issue 3, 2026, Article No: em0399

https://doi.org/10.29333/ejosdr/18339

Publication date: 01 Jul 2026

Online publication date: 10 Apr 2026

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Article Downloads: 11

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