Cost benefit analysis of the establishment of an environment-based regional owned enterprise (bumd) in the tourism sector in magetan regency

Magetan Regency has natural tourism destinations that can be optimized for management. However, the high interest in nature tourism impacts the environment negatively, increasing environmental degradation. Therefore, the Magetan Regency Government must carry out its functions, such as public service, implementation development, and community protection. In this case, the government has planned to form an environment-based local-owned enterprise (BUMD) as an alternative to optimize tourism management by paying attention to the environment. This study aims to analyze the feasibility and benefits of establishing an environment-based local-owned enterprise in Magetan Regency. The methods used cost-benefit analysis with a feasible study approach i.e. Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI) and Benefit Cost Ratio (BCR) . The feasibility test results found that the NPV was IDR 53,322,599,739, the IRR value was 36.81%, the PI value was 1.67, and since the PI value was > 0, the establishment of the Magetan Regency Tourism Regional Public Company was declared acceptable or feasible. In addition, the BC Ratio value was obtained at 1.45%. Thus, the establishment of an environment-based local-owned enterprise can provide benefits for internal parties and related sectors.