OPTIMIZATION MODEL THE BENEFITS OF COAL AND FOREST RESOURCES UPON OVERLAPPING LAND USE USING TOTAL ECONOMIC VALUE OF FOREST ECOSYSTEMS APPROACH (CASE STUDY CENTRAL KALIMANTAN PROVINCE)

• Main Author: REINALDY BENUNG (NIM : 32112302), MARTWEIN
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28783
• Institution: Institut Teknologi Bandung

Coal and forests are valuable natural resources to improve the well-being of people. The potential benefits generated by coal economically can be transformed into the financial sector delivering direct benefits to society. The potential benefits of forests have economic and ecological values, as they produce timber and provide ecosystems potentially improving quality of the environment. Both natural resources are sometimes occuring on the same land, resulting in overlapping allocations. According to previous studies, the overlapping conditions of both natural resources potentially eliminate the benefits of one natural resource during extraction of the other resource. This research is conducted in Central Kalimantan Province reality there exists overlapping land usage between license of coal mining business and permit of timber forest product utilization in natural forest. This research is conducted to develop the model so that to the benefits of coal and forest resources both can be obtained optimally in overlapping land use. Optimization of benefits is expected when both natural resources are extracted entirely. Benefit values are estimated using several valuation models of natural resources utilization. The valuation of coal economic benefit is calculated using net present value with discounted cash flow and total economic value approach. The valuation of forest economic benefit is calculated using net present value with exponential and total economic value approach. The calculation of net present value of coal and forest resources deterministically using constant discount rate and interest rate of 6%. The benefit optimization model succeeded in obtaining the optimal value of coal and forest resources on overlap land usage up to $354.604.894 which is predicted to occur on the 43rd year after performing deforestation stages, coal mining and tree planting. The sensitivity of optimization benefit minimum becomes $261,371,505 if some variables are reduced by 10% and maximum becomes $447,838,283 if some variables increase by 10%.