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Paper ID: 133

Cost Benefit Analysis of the Establishment of an Environment-based Regional-Owned Enterprises (BUMD) in Tourism Sector in Magetan Regency

Aulia Hapsari Juwita1*, Vita Kartika Sari1, and Akhmad Daerobi1

1Faculty of Economic and Business, Universitas Sebelas Maret, Indonesia


Magetan Regency has natural tourism destinations that can be optimized in itsmanagement. The high interest in nature tourism has a negative effect on the environment. Environmental degradation is slowly increasing. Nevertheless, the Magetan government must provide services to the community as a public service function, a function of development implementation (development function), and the function of protection to the public (protective function). The government plans to establish an environment-based tourism BUMD as an alternative to optimizing tourism management by paying attention to the environment. This study aims to analyze the cost and benefits of establishing an environment-based tourism BUMD in Magetan Regency. The results are NPV is Rp. 53.322.599.739, IRR is 36,81%, Profitability Index is 1,67 and The BC Ratio is calculated to be 1,45 % so this project is feasble.

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