Sustainability of the Boat Bagan Fishing Business Operating in the Waters of Kao Bay Halmahera, Indonesia

Bagan fishing operations in the waters of Kao Bay, Halmahera, consist of one-boat bagan and two-boat bagan systems. The number of bagans continues to increase due to their perceived profitability. However, there is currently insufficient information regarding the sustainability of these fishing practices. This study aimed to analyze productivity and to assess the business sustainability of one-boat and two-boat bagan operations based on investment criteria and benefits for fishers. Data collection was conducted through observations and interviews. The analysis included productivity assessment, investment criteria evaluation, and business benefit analysis. The results showed that the revenue from a one-boat bagan was 25,392 USD, which was higher than that of a two-boat bagan, at 17,005 USD. The Net Present Value (NPV) of the one-boat bagan (12,056 USD) was also significantly greater than that of the two-boat bagan (4,554 USD). The Internal Rate of Return (IRR) for the one-boat bagan was 25.94%, compared to 16.42% for the two-boat bagan—both exceeding the prevailing bank interest rate of 12%. Both types of bagans had a Benefit-Cost (B/C) ratio greater than 1—1.09 for the one-boat bagan and 1.05 for the two-boat bagan—indicating that revenues consistently exceeded the costs incurred to support operations. The profit from the one-boat bagan (28,155 USD) was higher than that from the two-boat bagan (12,337 USD), although the payback period was slightly faster for the two-boat bagan (7 months) compared to the one-boat bagan (8 months). During the fishing season, the income of fishers operating one-boat and two-boat bagans (263 USD and 344 USD, respectively) exceeded the 2023 regional minimum wage of North Maluku Province (183 USD). However, during the normal season, their income (160 USD and 230 USD) fell below the minimum wage. These findings suggest that both one-boat and two-boat bagan fishing operations can be sustainable in terms of productivity and investment viability. However, there is a need for targeted support to address the lower incomes of fishers during the regular season to ensure equitable and sustainable livelihoods.