Abstract

The concept of developing agro-industry based agropolitan area for Mangosteen Peel Extract is a solution to create the high added value and to increase people’s income in the area. Agro-industry development in agropolitan areas by optimizing the local strategic commodities is a breakthrough to support the regional economy growth to be sustainable, so it is common in accordance with the potential regional leading commodities. The aim of this research is to analyze the sustainability of the area and to assess the feasibility of mangosteen agro-industry investment. The results of analysis show that the level of sustainability of technological and infrastructure, economic, social, and environmental and technological aspects are categorized as less sustainable with the sustainability index ranging from 34.12% to 49.96%. While the policy aspects in the development of Karacak agropolitan area are categorized as unsustainable with the sustainability index of 22.31%. The results of the feasibility analysis show that the capsulated agro-industrial product of mangosteen peel extract have greater opportunity to attract the investors because it is feasible with NPV value of Rp 17,690,067,855 and the added value of Rp 90,833/ kg of raw materials.

Highlights

  • Poverty and economic, social, and cultural gap between the city and rural society become one strategic issue in the national development plan

  • A financial analysis of mangosteen farming has ever been investigated by Fauzan A (2011) by assuming a 20-year project period, and the results show an average net profit per year of Rp 66,096,770.00; Net Present Value (NPV) of Rp. 43,544,536; B / C ratio of 3.57; Intenal Rate of Return (IRR) of 9.54%; and Pay Back Periode (PBP) for 12 years 5 months

  • The sustainable index value of technology and infrastructure aspects of Karacak agropolitan area is 34.12, which means that the status of agropolitan area to develop the technology and infrastructure is less sustainable

Read more

Summary

Introduction

Social, and cultural gap between the city and rural society become one strategic issue in the national development plan. The agricultural products that can only be sold in raw materials cause many leakage of the value added to the city. This makes the rural areas not developed. Whitby (1984) and Friedman (1966) present that in the rural development process the main thing to be concerned is that agricultural sector is the economic base in the rural area. The follow-up, the processing industries and the supporting services are developed in accordance with the rural environment. It is in line with the balanced development principle between the agricultural and industrial sectors. It is in line with the balanced development principle between the agricultural and industrial sectors. (Mubyarto,1993)

Objectives
Methods
Results
Conclusion
Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.