Economic feasibility analysis of cattle farming ecotourism on former coal mining land

Mining Engineering Department, Faculty of Engineering and Planning, Institut Teknologi Nasional Yogyakarta 55281, Indonesia

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Abstract

This study aims to examine the economic feasibility of developing cattle farming ecotourism on former coal mining land in Tanjung Enim, South Sumatra. The methods used quantitative financial evaluation, which consists of Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), and Payback Period (PP), were applied to assess the viability of integrating agricultural tourism with post-mining land reclamation. The analysis encompassed comprehensive investment components, including infrastructure development, cattle procurement, operational costs, maintenance expenses, and considering revenue streams from tourism activities and cattle sales. The results showed strong economic viability with favorable financial indicators, confirming the project's feasibility. Furthermore, the model enhances the distribution of the State-Owned Enterprises Partnership Program (PKBL), potentially increasing fund allocation in Muara Enim Regency by 877.36%. The findings indicate that cattle farming ecotourism not only generates direct economic benefits but also contributes to environmental rehabilitation through land reclamation and sustainable land use practices. This integrated approach offers a sustainable solution for utilizing post-mining areas, combining economic objectives with ecological conservation and community development. The study provides valuable insights for mining companies, policymakers, and local communities in transforming post-mining landscapes into productive economic zones while addressing socioeconomic challenges through innovative ecotourism models.