AN ECONOMIC ANALYSIS OF COASTAL MANAGEMENT IN SUBANG REGENCY, WEST JAVA PROVINCE, INDONESIA

Abstract

Brackish-water pond area in North coast of Subang Regency expanded while the mangrove forest still growing there. The objective of this research is to analyze total economic value of coastal land, which
summed up all of the values, such as direct use value, indirect use value, option value and existence value
.

Based on identification of capture-able benefits, the result of benefits quantification on the coastal land that covered by mangrove forest were a) direct use value was US$ 5004134.80, b) indirect use value was
US$ 13547042.40, c) option value was US$ 76731.84, and d) existence value was US$ 13408903.96. While the value of coastal land that used for brackish-water aquaculture was US$ 5949924.03. Thus, total economic value of 136.83 km2 coastal land was US$ 37986737.03 or US$ 277619.94/km2.

INTRODUCTION

Coastal area in Subang Regency was covered by mangrove forest. But every year that forest area reduced by the extended of brackishwater aquaculture. Total area of brackishwater ponds in eight villages increased from 15.25 kilometer square in 1988 to 50.50 kilometer square in 1995 or increased about 33 % anually.

Human population growth and price increasing of brackish-water product supported the extended of brackish-water aquaculture area. Population growth in eight villages was around 1.24 % per year from 37811 persons in 1988 to 41094 persons in 1995. This human growth pushed the demand of land for culturing brackish-water fishes. The average price of brackish-water aquaculture product was increased about 12.75 % per year from US$ 1.96/kg in 1992 to US$ 2.71/kg in 1995. This price also pushed the demand of land for culturing brackish-water fish. Furthermore, those demand forced to land use changes in coastal area.

Table 1. Changes in Coastal Land and
Coastal Community in Subang Regency, West Java.

Human
Population (persons)

Year 1998

Year 1995

Changes (%/year)

1.Highest

2. Lowest

3. Average

7552

765

4726

8122

821

5137

1.34

1.21

1.24

Fish Price (US$/kg)

Year 1992

Year 1995

Changes (%/year)

1. Highest

2. Lowest

3. Average

3.75

0.12

1.96

6.25

0.21

2.71

22.22

25.00

12.75

Brackish-water
Ponds (km2)

Year 1998

Year 1995

Changes (%/year)

1. Highest

2. Lowest

3. Average

3.85

0.71

1.91

10.21

1.88

6.31

23.60

23.54

32.90

Source: Fisheries Agency of Subang Regency, 1996.

Unfortunately, government supported these land use changes. In the land use planning document made by government, stated that all of the coastal land of Subang Regency could be used for brackish-water aquaculture. The government seems not considered the ecological functions of mangrove forest. Decreasing of mangrove forest area would mean significant decreasing of fish population in adjacent marine waters.

METHODS
Study area and characteristics of fishery

There was 15 villages in coastal area of Subang Regency which total area covered 163.80 kilometer square. Fisheries Agency of Subang Regency estimated around 136.83 kilometer square or 83.52 % from total area was a coastal land. This estimation based on the impact of salinity in the rivers on that area and the kind of soil, which dominated by gleisolhidrik.

Total human population of coastal area was 73668 persons, which average population density 459 persons/km2. Most of coastal community worked as farmers (53.71 %), brackish-water aquaculture
operators (4.23%) and fishermen (3.69%). Total production from marine fisheries was 13466 ton and from brackish-water aquaculture fisheries was 9014 ton. All of fisheries productions recorded by 5 fish auctions for marine fisheries and 9 fish auctions for brackish-water aquaculture fisheries.

Table 2. Coastal Area and Population Density in Subang Regency, West Java (1995)

Items

Highest

Lowest

Average

1. Coastal area

a. Village area (km2)

b. Coastal land (km2)

c. Percentage (%)

18.99

17.70

93.21

6.07

4.20

69.19

10.92

9.12

83.52

2. Coastal population

a. Human population (persons)

b. Population density (persons/km2)

8122

831

821

187

4911

459

Sources : 1. Fisheries Agency from Subang Regency, 1996.

2. Village Potential Books, 1996.

Parameter estimation

Coastal resources valuation using three-step valuation as below:

a. Identification of benefit and functional relationship among resource components,

b. Quantification of all benefits and resource functions in term of money, and

c. Valuation of resource allocation alternatives.

Identification of benefits and resource functions using total economic value (TEV) which summed up all of the values, such as direct use value (DUV), indirect use value (IUV), option value (OV) and existence value (EV) that can be wrote as TEV = DUV + IUV + OV + EV.

Direct use value was the direct benefits derived from mangrove forest such as woods, brackish-water aquaculture and biological benefits. These biological benefits indicated the functional correlation among resource components within ecosystem. These benefits included biological benefit for fin-fishes, shrimps, crabs, bivalves, birds and snakes. All benefits were estimated by simple linear equation between benefits
and area covered by mangrove forest.

Indirect use value was estimated by total fish catch in adjacent marine waters. The value of mangrove forest
function as physical buffer from waves and storms was estimated by the cost of artificial coastal protector such as brake-water walls. The assumption of this estimation was equal benefit distributions within the area.

Option value estimated by mangrove biodiversity if the mangrove forest ecologically important and preserved as nature. According Ruitenbeek (1991), this value was US$ 1500/km2/year. While the existence value was estimated by contingent valuation method (CVM) from 139 respondents.

Table 3. Data Collected for Estimate
the Coastal Resource Values

No.

Data

Measurements

Data Sources

1.

Mangrove area

Kilometer square

Gov. Forestry Agency

2.

Brackish-water aquaculture area

Kilometer square

Gov. Fisheries Agency

3.

Human population

Person

Village potential books

4.

Mangrove stumped value

Cubicmeter/km2/year

Literature

5.

Wood collected

Cubicmeter/km2/year

Respondent

6.

Wildlife collected

Individu/km2/year

Respondent

7.

Fish catches

Kg/year

Respondent

8.

Existence value

US$/km2/year

Respondent

9.

Aquaculture production

Kg/km2/year

Respondent

10.

Aquaculture inputs

US$/km2/year

Respondent

Quantification of all benefits was the second step in this research which using several ways such as:

a. Market value for estimated the direct values of resource components, such as fin-fishes, crabs, shrimps, woods, bivalves, birds and snakes,

b. Indirect price for estimated the values of resource components which did not have a market price, such as physical and biological benefits, and

c. Contingent valuation method for estimated the existence value of mangrove forest.

Valuation of resource allocation alternatives using cost benefit analysis with some considerations such
as:

a. Resource alternative uses in 7 scenarios; actual condition, 100 % traditional aquaculture, 100 % intensive aquaculture, 75 % intensive aquaculture, 50 % intensive aquaculture, 25 % intensive aquaculture, and 100 % mangrove forest,

b. Twenty years of time analysis based on stumpage age (10 cm – 30 cm DBH) of mangrove trees (Sumardjani, 1993),

c. 10 % discount factor based on opportunity cost of free risk investments (Ruitenbeek, 1991).

Results

Identification of benefits

Direct flora benefits from mangrove forest were stumpage value, firewood, and alur (Salicornia brachiata).
While direct fauna benefits were shrimps, fin-fishes, crabs, bivalve, snake and birds. These results can be seen in table below.

Table 4. Results of Parameter Estimations

Variable (Y)

Intercepts (a)

Estimator (b)

Coefficient of det. (R2)

Firewood

25.81

(6.70)

1.11

(0.06)

0.98

Alur

38.41

(10.64)

1.41

(0.11)

0.96

Shrimps

14.78

(161.50)

307.55

(43.70)

0.58

Snakes

16.55

(60.37)

8.72

(0.57)

0.97

Fin-fishes

816.24

(97.97)

12.24

(0.80)

0.97

Eel

466.56

(71.92)

4.14

(0.60)

0.85

Mangrove
crab

40.25

(207.60)

9.45

(1.86)

0.68

Small
crab

377.41

(251.50)

38.98

(2.13)

0.98

Bivalves

523.15

(78.43)

4.19

(0.74)

0.84

Birds

1050.26

(24.87)

2.53

(0.23)

0.95

( ) = standard error

Benefit of stumpage value counted by seed trees method forest management and the value was 9791.30 m3/year. Benefit of poly-culture (silvofishery) counted directly and the valuewas 1389.37 ton/year.

Indirect biological benefit was counted by total fin-fishes catches and shrimps catches. The value of
fin-fishes catches was 3965.60 ton/year and the value of shrimps catches was 1395.60 ton/year.

Quantification of benefits

Based on identification of capture-able benefits, the result of benefits quantification on the coastal
land that covered by mangrove forest were:

a. Direct use value was US$ 5004134.80

b. Indirect use value was US$ 13547042.40

c. Option value was US$ 76731.84

d. Existence value was US$ 13408903.96.

While the value of coastal land thatused for brackish-water aquaculture was US$ 5949924.03. Thus, total economic value of 136.83 km2 coastal land was US$ 37986737.03 or US$ 277619.94/km2.

Resource allocation alternatives

Based on several scenarios made before, the value from each alternative shown in table below.

Table 5. The Results of Cost Benefit Analysis from Coastal Land Use Alternatives

No.

Coastal Land Uses

NPV (US$)

B/C

1.

Actual condition

301477549.50

5.73

2.

100 % traditional aquaculture

(265334615.97)

0.24

3.

100 % intensive aquaculture

789408408.41

1.65

4.

75 % intensive aquaculture

1480932476.40

1.98

5.

50 % intensive aquaculture

1767605894.01

2.93

6.

25 % intensive aquaculture

1781875767.73

3.98

7.

100 % mangrove forest

699482979.20

7.47


DISCUSSIONS

The total economic value derived from this research was estimated by extractive use from the resource that found in the location. This could be underestimated if there are some discoveries in the future for using more valuable resource components. For example, the uses of mangrove trees based on existing knowledge of society in Subang Regency such as for firewood and woodchip. While in other society, the uses of mangrove fruits could be more expand, such as food and pharmacy.

The changing of coastal land use could be more beneficial only for intensive aquaculture, but that use needed more intensive capital, which made consequences to decreasing net present value and B/C. Without land use changing, B/C would be increased but the present alue would be decreased. The favorable land use was 25 % for intensive aquaculture while remaining conserved as mangrove forest. This favorable land
use derived highest present value with moderate B/C. If the coastal land use must be changed for covered population needed, this research suggested maximum land use changing up to 50 %. The relative benefit would be decreased if coastal land-use changing more than half of coastal area (Table 5).

ACKNOWLEDGEMENTS

I wish to thank Prof. Bunasor, Dr. Rokhmin Dahuri and Hermanto Siregar for they suggestions in
this research. The Perhutani State Corporation, Fisheries Agency, Forestry Agency and Local Government of Subang Regency is acknowledged for the data support. Most of all, I wish to thank the people of Subang whose friendliness and coorporated to this study.

REFRENCES

Barton, D. N. 1994. Economic
Factors and Valuation of Tropical Coastal Resources. SMR-report 14/94. Center
for Studies of Coastal Resources, University of Bergen. Norway.

Burbridge,
P. R. and J. E. Maragos. 1985. Coastal Resources Management and Environmental
Assessment Needs for Aquatic Resources Development in Indonesia. IIED;
Washington DC, USA.

Clark,
C. W. 1976. Mathematical Bioeconomics : The Optimal Management of Renewable
Resources. John Wiley and Sons, New York.

Fisheries
Agency of Subang Regency. 1996. Fisheries Annual Reports.

Forestry
Agency of Subang Regency. 1996. Forestry Annual Report

Hufschmidt,
M. M. et al. 1983. Environment, Natural Systems, and Development – An
Economic Valuation Guide. John Hopkins Univ. Press. Baltimore, USA.

Johson,
G. L. 1986. Research Methodology for Economists., Philosophy and Practice.
Macmillian Publishing Co., New York.

Koutsoyiannis,
A. 1977. Theory of Econometrics. An Introductory Exposition of Econometric
Methods. The Maccmillian Press Ltd., UK.

Local
Government Agency of Subang Regency. 1996. Village Potential Books.

Ruitenbeek,
H. J. 1991. Mangrove Management : An Economic Analysis of Management Options
with a Focus on Bintuni Bay, West Irian. EMDI Reports No. 8, Jakarta.

Sumardjani,
L. 1993. Development of Mangrove Timber Estate in Air Sugihan, South
Sumatera. Bulletin Instiper Vol. 4 No. 2, 1993, Yogyakarta.

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