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The world is facing a fuel crisis because, the reserves of crude oil from fossils are depleting. This phenomenon inspires many parties to find alternatives to non-fossil materials, such as organic material to be converted into fuel. This research discusses of a potential pineapple peel which can produce methanol, as one alternative ingredient that can be processed into gasoline. The main phenomenon of study is determining the location of the establishment of a fuel processing industry, with the raw material of pineapple skin located in an area surrounded by pineapple plantations. Pineapple skin is a waste that has not been exploited, and only becomes organic waste that pollutes the environment. About two hundred thousand tons of pineapple peels per day are produced, so it is a potential raw material that can be converted into gasoline. The delivery of pineapple skins from seven industrial areas that produce pineapple peel needs to be determined, to maintain the logistics continuity that ensures the operation of the industry, pineapple skin processors become gasoline using Gravity Method. The factors observed in this research are distance, road condition, transportation and costs which its weight made by using Analytic Hierarchy Process (AHP), further from the weight was made determinant for the location of the pine apple peels processing industry to be gasoline. Processing results show that the position of the industrial waste processing of pineapple peels, highly determined by economic factors. This phenomenon shows that improving public welfare is more concerned, in seven plantations as well as the pineapple processing industry, compared to distance, transportation selection, as well as road conditions during the time of the pineapple skin waste processing industry was established.