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

*Email: auliahjuwita@staff.uns.ac.id

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.