The Impact of Forest Sector Investments on Leading Economics and in Co2 Emissions Changes in Jambi Province

Abstract

s. Jambi Province has 2.18 million hectares of forest which absorbing CO2 emissions of 41.30 MT. This research aims: to analyze the magnitude of the role of the forestry sector in the forestry sector, the forestry sector-based industrial sector and the 10 leading economic commodities in Jambi Province, analyze the impact of the forestry sector investment on the forestry sector, forest sector-based industrial sector and 10 leading commodities economy and analyzing the impact of the forestry sector investment on CO2 emissions absorbed by the forestry sector itself and CO2 emissions issued by the forestry sector-based industrial sector and 10 leading economic commodities in Jambi Province. The data analysis tool used in this research is the environtment-insightful SAM. The role of forestry sector in Jambi (timber industrial forest, non-timber industrial forest and other forest products), the forestry sector-based industrial sector and ten leading economic commodities (mining, transportation, plantations, food crops, electricity and drinking water and livestock) provide value added greater than one (>1) which means that the sector provides more than one role for the economy. Except for the paper and paper products, the processing and construction industries have a smaller value than one, meaning that the sector provides a smaller economic role of less than one, because this industry lacks competitiveness towards a sustainable industrial sector in the domestic market or international. The impact of the forestry sector investment was able to increase economic output by 365 percent, absorb CO2 emissions by 61 percent and 0.06 percent in the rubber sector (one of the sectors including 10 leading commodities). While the impact of forestry sector investment on economic output increased 1.93 percent, CO2 emissions 0.53 percent and 10 leading economic commodities increased 2.4 percent of economic output, CO2 emissions 2.42 percent.