An Analysis of Coal Post-Mining Land for Agricultivation Uses (A Case Study on PT ABK in Kutai Kartanegara District, East Kalimantan Province)

Abstract

The characteristics of coal surface mining activity are vulnerable to environmental degradation due to soil excavation, although only causing a lower risk in worker’s incidence and economically beneficial as requiring a lower cost than the underground mining method. This study aimed to analyze the types of post-mining land use worth developing for the local community’s livelihood around the post-mining land on the concession of PT Anugerah Bara Kaltim (ABK) in Kutai Kertanegara District, Kalimantan Timur Province. The method used was a cost-benefit analysis (CBA). The analysis results indicate that the pepper plant cultivation on the post-mining land within six years produces Net Present Value (NPV) at Rp 49,484,637.00, Benefit/Cost (B/C) Ratio at 1.347, Net B/C Ratio at 2.56, and Internal Rate Return (IRR) at 39.20%. Meanwhile, rice plant cultivation stimulated within six years produces NPV at Rp 8,653,754.00, B/C Ratio at 1.035, Net B/C ratio at 1.3871, IRR at 8,50%. The economic analysis results based on all indicators: NPV, B/C, net B/C, and IRR, demonstrate that the pepper and rice plant cultivation activities are feasible in the coal post-mining land.