Environmental and Economic Value Studies in the Use of the Tomatoes Production Land

Abstract

Indonesia,  elida@fpp.unp.ac.id Abstract This paper examines the benefits of economic agglomeration in the value of land use in clustering tomato production into a growth center. The economic value of land use in this paper is tomato production per hectare of land cultivated per farmer and costs are calculated including the cost of seeds and fertilizer. The Bukit Sileh region has the potential for tomato plants that have the opportunity to be economically increased. When harvesting crops is better, farmers should not be harmed due to low tomato prices. To overcome the price remains stable and there is already a market guarantee that tomatoes will still be sold at normal prices. For this reason, it is necessary to create related business units. The step to bring together the related business units, the tomatoes are clustered into a downstream business unit of tomato-based tomato commodities. More and more related business units are established in an area, meaning that the parent industry increasingly has the opportunity to produce. The parent business (tomato plantation) will support the birth of related businesses such as; tomato sauce business, tomato candied business, tomato date business and other tomato-based businesses. The result of the research is that there are no strong linkages between input and output between economic activities and in the future it is expected that there will be a parent industry which is the leading sector encouraging economic growth centers that have agglomeration benefits. The advantage of new agglomeration can arise if there is a close link between existing economic activities at the concentration both in the form of linkages with inputs (backward linkages) or linkages with output (Forward Linkages) which will lead to various forms of external benefits for entrepreneurs both in the form of cost savings production, transportation costs of raw materials and production and savings in the use of facilities because the costs can be shared. Suggestions for research on the characteristics of growth centers concentrated in Bukit Sileh location are expected to encourage