Assessing the economic feasibility of cattle farm agritourism at ex-coal mine lands through the partnership program

##plugins.themes.bootstrap3.article.sidebar##

PDF
DOI https://doi.org/10.13057/biodiv/d230417
Issue
Vol. 23 No. 4 (2022)
Section
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

##plugins.themes.bootstrap3.article.main##

FAISOL MUKARROM
1Graduate School of Environmental Science, Universitas Sebelas Maret. Jl. Ir. Sutami 36A, Surakarta 57126, Central Java, Indonesia. 2. Mining Engineering Department, Faculty of Mineral Technology, Institut Teknologi Nasional Yogyakarta. Jl. Babarsari 1A, Sleman 55281, Yogyakarta, Indonesia
EVI GRAVITIANI
Faculty of Economics and Business, Universitas Sebelas Maret. Jl. Ir. Sutami 36A, Surakarta 57126, Central Java, Indonesia
PRANOTO PRANOTO
Faculty of Mathematics and Natural Sciences, Universitas Sebelas Maret. Jl. Ir. Sutami 36A, Surakarta 57126, Central Java, Indonesia
RAVIK KARSIDI ♥
Faculty of Teacher Training and Education, Universitas Sebelas Maret. Jl. Ir. Sutami 36A Surakarta 57126, Central Java, Indonesia

Abstract

Abstract. Mukarrom F, Gravitiani E, Pranoto P, Karsidi R. 2022. Assessing the economic feasibility of cattle farm agritourism at ex-coal mine lands through the partnership program. Biodiversitas 23: 1843-1851. Extensive coal mining activities have various negative impacts on environment as well as on local communities living adjacent to the mining areas. Reclamation followed by revegetation using forage crops could significantly improve the value of the land. The forage crops produced from the reclaimed land can be integrated with developing cattle farm agritourism to obtain a win-win solution of environmental recovery by enhancing the socio-economic livelihood of local communities. Hence, this study aims to analyze the economic feasibility of developing cattle beef agritourism at ex-coal mine lands in South Sumatra, Indonesia, and assess its potential in increasing the effectiveness of partnership program funding. The analysis of feasibility criteria revealed a Net Present Value (NPV) of 129,152,169,746 IDR, meaning that the project is feasible to be implemented since the NPV is greater than 1. The Benefit-Cost Ratio (BCR) was 1.22, which is more than 1, implying that it is feasible to be run. The Payback Period (PP) was 3.5 years which is far shorter than the estimated investment period of 15 years. The Internal Rate of Return (IRR) was 35.6% which is much greater than the assumed annual interest rate of 8%. The farmers’ plasma system analysis showed that the cattle farm agritourism could increase the amount of fund distribution, collectibility rate, and also farmer’s income.

##plugins.themes.bootstrap3.article.details##

References
Aldai N, Lavín P, Kramer JKG, Jaroso R, Mantecón AR. 2012. Breed effect on quality veal production in mountain areas: Emphasis on meat fatty acid composition. Meat Sci 92: 687-696. DOI: 10.1016/j.meatsci.2012.06.024.
Amriansyah MA, Sihombing FMH. 2021. Study of ash and total moisture effects on calorific value in coal seam at West Banko Field, PT. Bukit Asam, Tbk., Tanjung Enim, South Sumatra. IOP Conf Ser Earth Environ Sci 830: 012044. DOI: 10.1088/1755-1315/830/1/012044.
Andrianto. 2017. Implementation of partnership program and community development of PT. Pelindo III Surabaya. J Account Sci 1 (2): 71-94. DOI: 10.21070/jas.v1i2.906.
Angerer V, Sabia E, Borstel UKv, Gauly M. 2021. Environmental and biodiversity effects of different beef production systems. J Environ Manag 289: 112523. DOI: 10.1016/j.jenvman.2021.112523.
Barlettaa I, Despeissea M, Johanssona B. 2018. The proposal of an environmental break-even point as assessment method of product-service systems for circular economy. Proc CIRP 72: 720-725. DOI: 10.1016/j.procir.2018.03.257.
Borgert T, Donovan JD, Topple C, Masli EK. 2020. Impact analysis in the assessment of corporate sustainability by foreign multinationals operating in emerging markets: Evidence from manufacturing in Indonesia. J Clean Prod 260: 120714. DOI: 10.1016/j.jclepro.2020.120714.
BPS [Statistics Indonesia]. 2022. Exports of Coal by Major Countries of Destination, 2012-2020. https://www.bps.go.id/
Bukit Asam. 2014. Consolidated Community Development Partnership Program 2014. PT. Bukit Asam, Jakarta. [Indonesian]
Bukit Asam. 2015. Consolidated Community Development Partnership Program 2015. PT. Bukit Asam, Jakarta. [Indonesian]
Bukit Asam. 2016. Consolidated Community Development Partnership Program 2016. PT. Bukit Asam, Jakarta. [Indonesian]
Bukit Asam. 2017. Consolidated Community Development Partnership Program 2017. PT. Bukit Asam, Jakarta. [Indonesian]
Choo H, Petrick JF. 2014. Social interactions and intentions to revisit for agritourism service encounters. Tour Manag 40:372-381. DOI: 10.1016/j.tourman.2013.07.011.
Cunha P, Ribeiro P. 2022. Definition of a technique for characterizing the expected benefits of a project. Proc Comput Sci 196: 1007-1012. DOI: 10.1016/j.procs.2021.12.103.
Damanik D, Purba E. 2020. Analisis daya saing sektor pariwisata Di Kabupaten Simalungun. J Ekonomi Pembangunan 2 (2): 116-125. DOI: 10.36985/ekuilnomi.v2i2.378. [Indonesian]
Dominati EJ, Mackay AD, Rendel JM, Wall A, Norton DA, Pannell J, Devantier B. 2021. Farm scale assessment of the impacts of biodiversity enhancement on the financial and environmental performance of mixed livestock farms in New Zealand. Agric Syst 187: 103007. DOI: 10.1016/j.agsy.2020.103007.
Fordham AE, Robinson GM, Cleary J, Blackwell BD, Leeuwen JV. 2018. Use of a multiple capital framework to identify improvements in the CSR strategies of Australian resource companies. J Clean Prod 200: 704-730. DOI: 10.1016/j.jclepro.2018.07.184.
Frej EA, Ekel P, de Almeida AT. 2021. A benefit-to-cost ratio based approach for portfolio selection under multiple criteria with incomplete preference information. Inf Sci 545: 487-498. DOI: 10.1016/j.ins.2020.08.119.
Friederich MC, Leeuwen TV. 2017. A review of the history of coal exploration, discovery and production in Indonesia: The interplay of legal framework, coal geology and exploration strategy. Intl J Geol 7: 56-73. DOI: 10.1016/j.coal.2017.04.007.
Giap VT, Lee YD, Kim YS, Bui T, Ahn KY. 2022. New de?nition of levelized cost of energy storage and its application to reversible solid oxide fuel-cell. Energy 239: 12220. DOI: 10.1016/j.energy.2021.122220.
Greenwood PL. 2021. Review: An overview of beef production from pasture and feedlot globally, as demand for beef and the need for sustainable practices increase. Intl J Anim Biosci 15: 10029. DOI: 10.1016/j.animal.2021.100295.
Indrayani I, Andri. 2018. Infleuence factors of beef cattle farm’s income in Sitiung, Dharmasraya District. J Peternakan Indonesia 20 (3): 151-159. DOI: 10.25077/jpi.20.3.151-159.2018.
Karsidi R, Kartono DT, Herdaningrum D. 2020. The evaluation of the empowerment of thematic village community “Kampung Mangoet” in Bandarharjo, Nort Semarang. Intl J Educ Soc Sci Res 3 (4): 102-111. DOI: 10.37500/IJESSR.2020.30410.
Khairabadi O, Sajadzadeh H, Mohamadianmansoor S. 2020, Assessment and evaluation of tourism activities with emphasis on agritourism: The case of simin region in Hamedan City. Land Use Policy 99: 105045. DOI: 10.1016/j.landusepol.2020.105045.
Kodir A, Hartono DM, Haeruman H, Mansur I. 2017. Integrated post mining landscape for sustainable land use: A case study in South Sumatera, Indonesia. Sustain Environ Res 27 (4): 203-213. DOI: 10.1016/j.serj.2017.03.003.
Li S, Li C. 2021. What makes customer participation a double-edged sword: The impact and factors of self-serving bias in agritourism. J Destin Mark Manag 21: 10057. DOI: 10.1016/j.jdmm.2021.100571.
Mellichamp DA. 2017. Internal rate of return: Good and bad features, and a new way of interpreting the historic measure. Comput Chem Eng 106: 396-406. DOI: 10.1016/j.compchemeng.2017.06.005.
Mettauer R, Baron V, Turinah, Demitria P, Alamsyah Z, Penot E, Bessou C, Chambon B, Jean Ollivier J, Thoumazeau A. 2021. Investigating the links between management practices and economic performances of smallholders’ oil palm plots. A case study in Jambi province, Indonesia. Agric Syst 194: 103274. DOI: 10.1016/j.agsy.2021.103274.
Montefrio MJF, Sin HL. 2021. Between food and spectacle: The complex reconfigurations of rural production in agritourism. Geoforum 126: 383-393. DOI: 10.1016/j.geoforum.2021.09.008.
Narula SA, Magray MA, Desore A. 2017. A sustainable livelihood framework to implement CSR project in coal mining sector. J Sustain Min 6: 83-93. DOI: 10.1016/j.jsm.2017.10.001.
Petroman I, Varga M, Constantin EC, Petroman C, Momir B, Turc B, Merce J. 2016. Agritourism: An educational tool for the students with agro-food profile. 3rd Global Conference On Business, Economics, Management and Tourism. Rome, 26-28 November 2015. DOI: 10.1016/S2212-5671(16)30244-1.
Peymankar M, Davari M, Ranjbar M. 2021. Maximizing the expected net present value in a project with uncertain cash ?ows. Eur J Oper Res 294: 442-445. DOI: 10.1016/j.ejor.2021.01.039.
Popa RA. 2015. The Corporate Social Responsibility Practices in The Context of Sustainable Development. The case of Romania. Proc Econ Finance 23: 1279-1285. DOI: 10.1016/S2212-5671(15)00395-0.
Ramadhan A, Arymurthy AM, Sensuse DI, Muladno. 2021. Modeling e-livestock Indonesia. Heliyon 7: e07754. DOI: 10.1016/j.heliyon.2021.e07754.
Rustinsyah R. 2019. The signi?cance of social relations in rural development: A case study of a beef-cattle farmer group in Indonesia. J Co-op Organ Manag 7 (2): 100088. DOI: 10.1016/j.jcom.2019.100088.
Samarkoon S, Parinduri RA. 2015. Does education empower women? Evidence from Indonesia. World Dev 66: 428-442. DOI: 10.1016/j.worlddev.2014.09.002.
Santos D, Monteiro MJ, Voss HP, Komora N, Teixeira P, Pintado M. 2021. The most important attributes of beef sensory quality and production variables that can affect it: A review. Livestock Science 250: 104573. DOI: 10.1016/j.livsci.2021.104573.
Sgroi F, Enrica Donia E, Mineo AM. 2018. Agritourism and local development: A methodology for assessing the role of public contributions in the creation of competitive advantage. Land Use Policy 77: 676-682. DOI: 10.1016/j.landusepol.2018.06.021.
Sisilia K, Peranginangin Y, Setyorini R, Moeliono N. 2015. A framework of affiliation partnership between univesity, SMEs, and business sector: A case study of PKBL Telkom, Indonesia. The 6th Indonesia International Conference on Innovation, Entrepreneurship and Small Business. Kuta, Bali, 12-14 August 2014. DOI: 10.1016/j.sbspro.2015.01.280.
Tang-Lee D. 2016. Corporate Social responsibility (CSR) and public engagement for a Chinese state-backed mining project in Myanmar - Challenge and prospects. Resour Policy 47: 28-37. DOI: 10.1016/j.resourpol.2015.11.003.
Wozniak J, Jurczyk W. 2020. Social and environmental activities in the Polish mining region in the context of CSR. Resour Policy 65: 101554. DOI: 10.1016/j.resourpol.2019.101554.