Problem with a craft going around island (7)
I believe the answer is:
sumatra
'island' is the definition.
(Sumatra is an example)
'problem with a craft going around' is the wordplay.
'problem' becomes 'sum' (arithmetic problem**).
'with' says to put letters next to each other.
'craft' becomes 'art' (I've seen this before).
'going around' shows that the letters should be reversed in order.
'art' in reverse letter order is 'tra'.
'sum'+'a'+'tra'='SUMATRA'
(Other definitions for sumatra that I've seen before include "Large Indonesian island" , "Large island of Indonesia" , "A US mart on an Indonesian island?" , "Some land" , "Eastern island" .)