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This research aims to assess the financial feasibility of cocoa investment by smallholders in the province of Central Sulawesi Indonesia. Primary data were collected from 282 cocoa farmers in Sigi and Parigi Moutong Regency. Net Present Value (NPV) and Internal Rate of Return (IRR) were used to evaluate the financial feasibility of cocoa farming with the discount rate of 7% per year. The economic parameters were the price of input and output in 2018. The results showed that the NPV value of IDR 39,906,387 and IRR of 17.82 percent. This implied that smallholding of cocoa is financially feasible to be cultivated but with low profitability. It was due to the less intensive orchards cultivation and old age of cocoa plant. So, more intensive cultivation is required using the young plant and rejuvenation of the old cocoa plants. The government needs to promote cocoa cultivation technology that could improve the productivity of smallholder cocoa and the profitability of farming. So, the smallholding of cocoa in the province of central Sulawesi can become sustainable.

Evaluation of economic efficiency from smallholder cocoa investment in Indonesia: A case study in central Sulawesi province with tropical climate