Is the Traditional Roof Tile Industry in Rural Indonesia Financially Viable?

This research examines the economic viability of small-scale roof tile enterprises in Kebumen Regency, Central Java, Indonesia. These industries, dependent on local clay and human labour, substantially enhance rural livelihoods. Nonetheless, escalating operational expenses and intensifying competitiveness require a thorough financial assessment. The study uses purposive sampling to choose three tile manufacturers—Super BM Sokka, Mas Sokka, and MH Sokka Genteng. A descriptive quantitative methodology was employed, using four fundamental indicators: Net Present Value (NPV), Benefit-Cost Ratio (BCR), Modified Internal Rate of Return (MIRR), and Payback Period (PP). Data were collected via interviews and the examination of financial and production records. The findings indicate that all three enterprises are financially sustainable. Every firm possesses a positive NPV, a BCR greater than 1, and a MIRR beyond the 12% discount rate, signifying profitability. Payback periods are within acceptable durations, facilitating prompt capital recovery. Mas Sokka has the highest NPV and MIRR, Super BM Sokka leads in BCR, and MH Sokka Genteng attains the shortest payback period. These data validate that traditional roof tile industries represent a viable investment opportunity in rural Indonesia. The research provides practical suggestions for municipal authorities and investors in fostering small-scale enterprises. Future studies may incorporate environmental and social aspects.