Do you want to build a business that focuses on natural resource management activities? Perhaps extractive business can be an option. Considering Indonesia’s abundant natural resources, it is not surprising that extractive business can be a promising option for both individuals and companies. To know more about this extractive business, let’s see the following explanation!
What is Extractive Business?
As explained above, extractive business is a business activity engaged in the management of natural resources, starting from the extraction of natural raw materials, to the manufacture of products in factories. Extractive businesses are generally carried out in areas rich in natural resources. Not only that, this business also requires adequate raw materials and production equipment. So it is important for extractive business activists to know the environment of the natural resources themselves so that the stock of materials is maintained and monitored. In carrying out their work, extractive businesses do not merely explore and extract natural resources, but are also responsible for maintaining and processing them into products that are beneficial to human life. Therefore, this extractive business requires supervision and implementation of special policies in its implementation. Experts are also needed for the continuity of processing a product and ensuring the quality of the product.
Characteristics of Extractive Enterprises
Based on its activity process, extractive business has its own unique characteristics and characteristics that distinguish it from other types of business. The characteristics of extractive businesses include:
Seeking Fortune from Natural Products
Like other types, business activities are carried out to make a profit. But the difference is, this type of extractive business takes advantage of natural products. However, the processing process is still carried out in accordance with economic principles, namely trading to benefit all parties.
Materials Directly Extracted from Nature
Aside from profit-making, extractive businesses also have another unique feature, namely in the source of their profits, where these businesses take materials directly from nature.
Types of Extractive Business
After knowing what extractive business is and its characteristics, KH friends also need to know what are the types of extractive business itself. This is because activities in extractive businesses rely on the processing of natural resources, so of course the processing methods and results are different. Based on the sector of work, the types of extractive businesses are as follows:
Extractive Business in Agriculture
In Indonesia, agriculture is a business field that has great potential to be maximized by the community as a source of income. It can be seen from the large number of Indonesian people who work as farmers. This is also supported by the fertile and promising nature to be developed.
Extractive Business in Animal Husbandry
Animal husbandry is also known as one type of extractive business because it develops livestock to be utilized by the community. Some farm animals that can be utilized as business activities include goats, horses, cows, buffaloes, ducks, chickens, turkeys, and others.
Extractive Business in Plantation Sector
Plantation is an extractive business that utilizes certain plants to be managed and marketed into more valuable products. To manage it requires science, technology, capital, and qualified management so that all parties can benefit.
Extractive Business in Marine Fisheries
The sea is one of the largest natural resources in Indonesia. In it, there are thousands to millions of marine biota that can be taken advantage of. Extractive business activities in the marine fisheries sector are generally in the form of catching, packaging, and distributing fish.
Extractive Business of Salt Making
Apart from the existing biota, the water in the ocean itself can be used as another business field, namely the salt making business. This one business utilizes sea water by drying it into salt crystals. But apart from the sea, salt making can also be done from land where mining is similar to stone mining. Like himalayan salt or himalayan salt which is known to be very good for health.
Extractive Forestry Business
This type of business is also included in one of the examples of extractive businesses because it utilizes forest products to be processed into various products such as paper, furniture, and building materials. In addition, other forest products such as plants and rubber sap can also be utilized and generate profits.
Extractive Business in the Mining Sector
The next type of extractive business is in the mining sector. Where activities include investigation, feasibility analysis, area exploration, construction, to processing of raw materials. In Indonesia alone, the mining business includes mines such as copper, gold, nickel, coal, petroleum, and natural gas, to sand.
Extractive Business Function
After knowing the types of extractive businesses, we can understand that this business has several functions. The functions of this extractive business include the following:
Utilizing natural resources
The main function of this one economic activity is to process natural resources or natural resources into products that are rich in benefits.
Increase Profit
By utilizing and processing natural resources, it will automatically bring a profit. Companies in this type of extractive business will mostly get large profits. This is because the products produced are always needed and sought after by the community.
As an Alternative
Extractive businesses will provide alternatives for human needs. Where products produced from processing natural resources can be substituted needs so that people can fulfill all their needs.
Enjoying natural resources
Not only does it function to process natural resources or natural resources, but the results that will later be circulated in the community can be enjoyed together. With this, the available natural resources will not be wasted. Based on the explanation above, we can conclude that extractive businesses are important for the availability of raw materials in the market because their business activities utilize natural resources to be managed and utilized to generate profits. In addition to utilizing natural resources in a more positive direction, this extractive business can also create new jobs and reduce unemployment. This is because in managing existing natural resources, it also requires labor and human resources.
KH Contact
Are you interested in starting this extractive business? Although it is quite promising, KH friends must also continue to run it by preserving the environment and nature! For KH friends who want to become one of the extractive business owners and need help in running their business, you can immediately consult us, Kontrak Hukum. We are ready to help your needs, from licensing to business legality to smooth your business. Immediately visit the page https://kontrakhukum.com/semua-layanan/ or contact us via the following link Ask KH and Direct Message (DM) to social media Instagram @kontrakhukum.
