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Valuation of a Dayak Benuaq customary forest management system (CFMS) in East Kalimantan, the benefits of CFMS compared to alternatives

by Portal Web Editor last modified Jan 10, 2013 09:10 AM
Contributors: NRM/EPIQ Program, SHK Kalimantan Timur

The intent of this report is to provide a comparison of economic results of various land use practices in East Kalimantan. Typically, direct comparisons are difficult because of the complication of trying to quantify intangible and environmental benefits. To resolve this for the purposes of the evaluations presented here, the authors use market prices to place a cash value on benefits. This was accomplished by determining what value would need to be placed on environmental/social costs to render the existing land use practice equally or more valuable than the alternatives. They note that this approach is not foolproof. In particular, the authors compared customary forest management systems (CFMS) with conversion of land to oil palm plantations. CFMS includes cultivation and collection of goods. Surveys revealed that there is a large range of direct returns from various management systems. From the perspective of local people, most of them rate higher than conversion to oil palm plantations, which rates high only when performed in conjunction with liquidation of forest resources. This paper articulates multiple economic perspectives at play in the region. The results help to clarify the how certain land use decisions may bring greater benefit and offer insight into motivations that underlie management decisions.

Author(s): NRM/EPIQ Program , SHK Kalimantan Timur

Publication Date: 2000

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