Analysis of Financial Feasibility of Melaleuca Leucadendra Plants to Revegetate the Former Land of Coal Mining in the Bukit Batu District, Palangka Raya Municipality Central Kalimantan Province

Ermal Subhan, Salampak, Andrie Elia Embang, and Masliani

University of Palangka Raya, Indonesia

Abstract: Mining activities cause changes in physical and chemical soil, thereby reducing the quality of soil. Repairing the quality damage of soil caused by mining activities is restore the residual results into pit holes of mining operation with replanting vegetation. One of the determinant success factors is reclamation of the former land of coal mining by selecting plants that are in accordance with the conditions of the land. Plants selected in conducting land revegetation on land former of mining land are Melaleuca leucadendra plants.

One of the locations in Central Kalimantan, that generate Melaleuca leucadendra production is in Bukit Batu district, which one in terms of community marketing it is not too difficult because there are available company will collect and buy cultivation of community crops specifically Melaleuca leucadendra plants.

The research objective is analysing the cost, profit and financial feasibility of Melaleuca leucadendra cultivation in Bukit Batu sub-district for revegetation of the former land of coal mining. The research method is using subjective-quantitative approach.

The financial feasibility analysis of Melaleuca leucadendra plantations get value IDR 309,499. Net Present Value of Melaleuca leucadendra cultivation business is positive and the value of internal rate of return is 34%, there is greater than bank interest at 14%. The average Benefit Cost Ratio of Melaleuca leucadendra cultivation is 1.042 and the rate of return is 0.9 months. There are mean the Melaleuca leucadendra cultivation is feasible or profitable.

Key words: cultivation, financial, land former of mining, Melaleuca leucadendra