Wildayana, Elisa and Armanto, M. Edi and Adzemi, M.A. (2011) FROM ECONOMIC VALUATION TO POLICY MAKING IN FOREST CONVERSION FOR ELAEIS GUINEENSIS JACQ PLANTATION. In: Proceedings of the International Seminar. Universitas Sriwijaya, Palembang, pp. 19-26. ISBN 978-979-98938-5-7

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    The research objective was to calculate economic values of converting forest to oil palm plantation, to compare economic value of forest before conversion (without project) with oil palm plantation (with project), and to calculate allocation scenario of an efficient, effective and sustainable oil palm plantation. The research was conducted in Pulau Rimau tidal area, South Sumatra. The data collection was stratified random sampling, such as monoculture oil palm and mixed farming (integration between oil palm and cattle fattening). The method was divided into three categories, such as utilization identification, quantifying, and valuing of utilization. Feasibility of forest conversion was calculated using NPV, net BCR and IRR. The research results showed that Pulau Rimau utilization has very big economic role in increasing the society welfare around Pulau Rimau of 16,700 ha. It costs totally around Rp 80,696.20,- Millions. The total economic valuation was calculated by the values of direct use, indirect use, option, bequest and existence. Pulau Rimau conversion to monoculture oil palm had shown NPV of around Rp 11.478.00,- with BCR of 1.16, and IRR 27 %. If Pulau Rimau was converted into mixed farming, its NPV would be Rp 130,143.00,- Millions with BCR of 3.67, and IRR 57 %. Although the highest NPV was given by 100 % conversion of forest, it is still not recommended to apply this scenario in the field. The scenario II or III are very applicable and rational relating to environmental consideration because the indirect use values and existence value were still very dominant compared to other use values.

    Item Type: Book Section
    Uncontrolled Keywords: Economic valuation, policy making, forest conversion, oil palm plantation
    Subjects: S Agriculture > S Agriculture (General)
    Divisions: Faculty of Agriculture > Department of Soil Science and Land Resources
    Depositing User: Ir. M.Si. Siti Nurul Aidil Fitri
    Date Deposited: 28 Jun 2016 18:20
    Last Modified: 28 Jun 2016 18:20

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