Abstract
The objective of this study is to analyse the economic impact of a micro-hydro plant in Jambi to society around this micro-hydro plant. This study was conducted in Jambi Province Indonesia at Merangin and Mamasa Regency, Indonesia from January – December 2015. Primary data was collected by interview and observation. Analysis of Productivity Approach and Opportunity Cost was done to reveal the economic impact of a micro-hydro plant in Sungai Tenang District. From the result, micro hydropower has considerable benefit in Sungai Tenang District; total value of the benefits obtained is IDR 77.83 billion per year. Communities’ revenue through the economic enterprise that does not divert the function of forest needs to be improved. So the electrical energy independence in the community can be created. To fulfil the independence management of micro hydropower, economic treatment is needed especially in increasing of revenue. Micro hydro power also has a positive impact on the forest conservation on upper river area. Micro hydro power improvement must coincide with the non-timber forest revenue increasing program or other businesses that do not divert the function of the forest
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