Study of Development Policies for Sustainable of Karacak Agropolitan Area Based on Mangosteen Agroindustry

Abstract

The majority of livelihoods in rural areas are still dominated by farming activities. The lack of development of yield processing business has become a challenge to be solved. Agricultural products, which are only sold raw, cause many flows of economic value added to the city. The importance of developing an agropolitan area is closely related to efforts to create maximum added value of regional strategic commodities for the sustainability of agropolitan areas through the development of cultivation systems and processing of products. The development of activities that can create economic added value of strategic commodities in the region can be achieved by developing processed products that have higher value and competitiveness, known as agro-industry. In general, the processing of agricultural products in the agropolitan area is limited to processing activities with low value added and simple technology as occurs in Karacak Agropolitan Area, Bogor Regency. The purpose of this study was to analyze the feasibility of mangosteen agroindustry investment with the method of Financial Feasibility; analyze the level of sustainability for Karacak agropolitan area using the Multidimensional Scaling (MDS); formulate alternatives and determine policy priorities using the Analytical Hierarchy Process (AHP); and compile the direction of agropolitan approach policy based on agro-industry through the Interpretative Structural Modelling (ISM). The development of agro-industries in agropolitan areas was modeled on strategic commodity. Furthermore, the model was mapped in the form of conceptual diagrams for agropolitan development based on agro-industry. This model is general but adaptive, meaning that it is adapted to climate conditions, and geographical area, especially characteristics of local strategic commodities and human resources. The results of the feasibility analysis of agro-industry showed that mangosteen dodol (traditional food) and floor cleaner from mangosteen peel extract agro-industries were very sensitive to increasing raw material prices as well as a decreasing product prices. Under normal conditions, the results of feasibility for mangosteen dodol were: NPV Rp. 4,914,291,000; IRR 111.6%; B/C Ratio 1.18; and PBP 1.03 years. Whereas for floor cleaner of mangosteen peel extract, has: NPV Rp1,186,600,400; IRR 20.2%; B/C Ratio 1.04; and PBP 3.5 years. Product that have more resistance to increasing raw material factors, decreasing product prices and increasing bank interest rates was capsulated mangosteen peel extract. This product was feasible to be implemented in agropolitan area with NPV Rp. 17,690,067,800; IRR 102.1%; B/C Ratio 1.39; and PBP 1,025 years. The added value of agro-industrial mangosteen peel extract was Rp. 90.800/kg, mangosteen dodol was Rp. 53.600/kg, and mangosteen peel extract floor cleaner was Rp. 18.700/L. The economic value of the agropolitan area of Karacak on the basis of mangosteen farming and the collaboration of three types of agro-industry was Rp. 364,429,156,800. Through the development of agro-industry can encourage the sustainability of the agropolitan area. The results of the MDS analysis showed that the agropolitan area of Karacak is not sustainable especially in terms of policy. MDS analysis on the economic, social, environmental, technological and infrastructure dimensions were stated to be less sustainable with the sustainability index between 34.12- 49.96%. Whereas the policy dimension was declared not to sustain with sustainability index 22.31%. Based on the results of the AHP analysis, it was found that the priority policy in supporting the economic development of the region was the provision of incentives for agro-industry investors in agropolitan area. Criteria for private actors, in this case investors, as the main actors in achieving the economic development goals of agropolitan area based on agroindustry, with criteria weight values 0.263. The objective criteria for achieving economic development in Karacak agropolitan area based on agro-industry, was encourages investors to enter the region and invest, with criteria weight values 0.402. Based on ISM analysis, it was known that the key sub-elements of the constraints that gave great affect for the success of the incentive system for investors in agropolitan area was the weak political will of the local government in the incentive and disincentive programs for the development of the agropolitan area. In the element of change, the increasing interest of investors to be involved in developing the area in the form of the establishment of agro-industry, was to be key sub-element that is very likely to occur if the program is executed. Furthermore, in the objective element, the establishment of agroindustry based on mangosteen in agropolitan area that meets the technical requirements so that it functions in accordance with its objectives and is in line with the applicable spatial plan, was a key element of the program's objectives. Next to the actor elements, there are two key elements, namely the Regional Governments and Private/Investors, but, both of them can support and collaborate each other in order to succeed the incentive program for agro-industry investors in agropolitan area. In order to integrate the interests of the agropolitan area and mangosteenbased agroindustry, a forum is needed to bridge all agricultural and SME entrepreneurs and agro-industry with the government and all relevant stakeholders. The chamber is interpreted into a conceptual model called PEKAKlaster Mangosteen Global Network 4.0 based on E-Commerce. The conceptual model of sustainable agro-industrial agropolitan area economic development is universal and adaptive. The model can be applied to the economic development of regions throughout the world, but needs to be adapted to geographical conditions and the character of resources and the local environment to be sustainable.