Economic Feasibility Study of Green Business Development on Post-Mining Land: Case Study of PT Bukit Asam Tbk

Abstract

Coal mining activities often result in significant land degradation, and conventional reclamation practices which frequently stop at simple backfilling have proven inadequate for restoring ecological functions or providing long-term economic value, leaving many sites abandoned. To strategically address this gap by integrating environmental restoration with sustainable value creation, this study assesses the financial feasibility of implementing a green business model: a productive reclamation project featuring a 1.6-hectare Musang King durian plantation on post-mining land at PT Bukit Asam Tbk (PTBA). Using a quantitative descriptive case study approach, the financial viability was analyzed over a 20-year investment period, applying a 9.04% discount rate. The results indicate that the durian plantation project is financially feasible with strong performance metrics: it yielded a Net Present Value (NPV) of Rp 2,217,428,673 (NPV > 0), an Internal Rate of Return (IRR) of 29.47% (well above the 9.04% discount rate), a Benefit-Cost Ratio (BCR) of 2.21 (BCR > 1), and a short Payback Period (PP) of approximately 6 years and 2 months. In conclusion, this project successfully transforms reclamation obligations into a highly profitable agricultural venture, demonstrating that post-mining land can be converted into a productive asset that delivers consistent financial returns while supporting long-term economic and environmental sustainability.