Economic Development of Mangosteen Agro-Industry Based on Sustainability
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Jejak Vol 12 (1) (2019): 33-53 DOI: https://doi.org/10.15294/jejak.v12i1.17677 JEJAK Journal of Economics and Policy http://journal.unnes.ac.id/nju/index.php/jejak Economic Development of Mangosteen Agro-Industry Based on Sustainability Parwa Oryzanti1, Ernan Rustiadi2, Eriyatno3, Nurul Taufiqu Rochman4 1Study Program of Natural Resource and Environment Management Post-Graduate School of Institute of Agriculture Bogor 2Faculty of Agriculture, Institute of Agriculture Bogor 3Study Center of Agriculture and Rural Development (PSP3), Institute of Agriculture Bogor 4Physics Research Center, the Indonesian Institute of Science Permalink/DOI: https://doi.org/10.15294/jejak.v12i1.17677 Received: October 2018; Accepted: January 2019; Published: March 2019 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. Key words : Agropolitan Approach, Agro-Industry, Mangosteen, Regional Economy. How to Cite: Oryzanti, P., Rustiadi, E., Eriyatno, E., & Rochman, N. (2019). Economic Development of Mangosteen Agro-Industry Based on Sustainability. JEJAK: Jurnal Ekonomi dan Kebijakan, 12(1), 33-53. doi:https://doi.org/10.15294/jejak.v12i1.17677 © 2019 Universitas Negeri Semarang. All rights reserved Corresponding author : ISSN 1979-715X Address: Jl. Raya Dramaga, Babakan, Bogor1 West Java 6680 E-mail: [email protected] JEJAK Journal of Economics and Policy Vol 12 (1) (2019) : 33-54 34 INTRODUCTION The chain of life in rural level should be strived for by establishing the sustainable Poverty and economic, social, and agrobusiness activities and building the proper cultural gap between the city and rural society residential centers in order to support people’s become one strategic issue in the national welfare. It is strengthened by Rustiadi and development plan. The emergence of Dardak (2008) that agropolitan development is agropolitan concept through the Acts No. 26 in aimed at increasing the agricultural products 2007 on Layout, supported by the Regulation of and sales of agricultural products, supporting Minister of Agriculture No. 50 in 2012 on the the growth of small-medium scaled agro- Guide of Area Development, becomes a processing industry, and encouraging the strategy to build the agricultural area in rural varied economic activities of the market center, areas by increasing the value added of the area, so that those will create the value added for the decreasing the imbalance of welfare, sustainability of the agropolitan areas to be harmonizing rural-city development, something significant. strengthening rural agro-business activities, The value added creation for the and increasing the people’s participation in the agricultural commodities is conducted by area. Rural areas have potential abundant processing it into a product having higher value natural resources and natural charm become and competitiveness, which is known as agro- the attractiveness for people to be willing to industry. The definition of agro-industry is stay inside. presented by Austin (1981) that is a company The problem is that the potential has not processing the vegetable materials (originated been maximally developed. Dominant and from plants) or animal ingredients (produced major livelihood on farm and the undeveloped by animals). The process used covers alteration off farm become the challenge to be solved. The and preservation through physical or chemical agricultural products that can only be sold in treatment, storage, packaging, and raw materials cause many leakage of the value distribution. added to the city. This makes the rural areas not Such frame can be completed by some developed. Whitby (1984) and Friedman (1966) factors those are planning, production process, present that in the rural development process and marketing. The production process should the main thing to be concerned is that be brought closer to the technique and agricultural sector is the economic base in the application of green productivity (GP) to the rural area. The relation with agropolitan is that agro-industry. In Marimin et.al. (2015), it is the starting point if this is the (agricultural) mentioned that to establish a business that can basic sector development in the frame of the answer the social demand on the quality of life area development. The follow-up, the through supplying the goods and service processing industries and the supporting produced by sustainable ways. The focus of GP services are developed in accordance with the on the small middle companies, in which rural environment. It is in line with the UKM become the backbone of business in Asia. balanced development principle between the UKM is a key to the overall economy agricultural and industrial sectors. development in the whole Asia. GP focuses on (Mubyarto,1993). 41 Parwa Oryzanti, et al., Economic Development of Mangosteen creating the relationship among environment, possible to be conducted by the people around quality, and profitability. It is explained by the area, and also to be dominated and even to Sadjad (2005), all this time the development in be owned by them. The existence of agro- agricultural sector using the extension device industry can give utility and value added for the has not targetted yet in the change in attitude, increase in income of the area and also can but still in the level of using the modern decrease the massive economic leakage. One of agricultural device. There is no change in the requirements is that the agro-industry attitude and mindset from subsistent to agro- should be beneficial and appropriate based on industry. Agro-industry here is a village as the the investment criteria and could be base of raw materials to be established into implemented by the people in the agropolitan agro-industry base in which there is a value area. The idea of agro-industry agropolitan added process to the agricultural product such development is a big concept to grow an as sorting, standardization of product, economy in rural level and to create packaging, service, and transportation. employment in the village. Rustiadi, et.al. (2011) suggest that the The agro-industry developed is based on significance of agropolitan area development is the local resources, or optimizing the leading closely related to the idea of Marimin, et.al commodities owned by the agropolitan area. In (2015) about the issues mentioned above. Both this research, Karacak agropolitan has opinions, if related to the concept of industrial mangosteen commodity. All this time village by Sadjad (2005), will bring a new mangoesteens are sold in fresh condition either concept that can bridge the aim of rural area at the local market or the export market. The and agro-industry development in a big circle value added owned by the people in the of natural and environment resource agropolitan area is still dominant in the management sustainability. cultivation business and not sourced from the The agropolitan area planned by the post-harvest processing activitiies or the agro- government becomes a positive effort in industry, so that there is still leakage in the bringing the progress in the village. However, value added that can be overcome through the the aspects supporting the agropolitan area mangosteen based agro-industry activity. have not been simultaneously collaborated yet For the sustainability and preservation of those are settlement and agrobusiness aspect as life environment in the agropolitan area, the the main aspect forming the definition of approach of technique and application of green agropolitan, as presented by Rustiadi (2004). productivity concept and zero waste is applied One of agrobusiness functions is agricultural to plan the frame of production process for the product processing or known as agro-industry. agro-industry. The concept of green Afterwards, what kind of agro-industry model productivity is introduced for the first time by that can be developed and can involve the Asian Productivity Organization (APO) in 1994 people in agropolitan area? Considering that as the respond to the needs on the agro-industry built must be in the relationshipbetween the strategy of economy agropolitan area, the next question is what kind development and the environment of role model to make the agro-industry preservation.The problems in model JEJAK Journal of Economics and Policy Vol 12 (1) (2019) : 33-54 34 development of the sustainable agro-industry Karacak Village, Leuwiliang District. The case agropolitan area involve various complex study of mangosteen agro-industry is elements, among others are the natural conducted in UMKM and industry scale. The resources (SDA), the environmental resources UMKM scale is mangosteen dodol and (SDL), the social resources (SDS), the human mangosteen peel extract floor soap located in resources (SDM), the technological resources Karacak agropolitan area. While the agro- (SDT) and the economic resources (SDE). All industry scale at PT Zena Nirmala Sentosa these elements are the composer of agro- producing the same products with Garcia industry agropolitan system.