Economic valuation of natural resource management: a case study of the Benuaq Dayak tribe in Kalimantan, Indonesia

Abstract

The unavailability of total economic values of indigenous people in Indonesia, both in the short and long term, has created the rejection of their existences in the forest area. The purpose of this study is to estimate the total economic value of sustainable forest management conducted by indigenous tribes in Indonesia using total economic value concepts. The tribe’s total economic value is expressed by estimating the use value, indirect use value and non-use value. The study used benefit transfer and survey methods using questionnaires to estimate the tribe’s total economic value. The estimated total economic value of the Benuaq Dayak of U.S. $ 6,025.88 per hectare per year was calculated by summing the direct use value (U.S. $0.028 per hectare per year), indirect use value (U.S. $3,156 per hectare per year), and non-use value (U.S. $2,870 per hectare per year). The research hypothesis that the Benuaq Dayak’s sustainable resource management has economic value is supported. The research predicted that the estimated total economic value of the Benuaq Dayak’s management might create a new perception of the tribe, the private companies, and the government.