ECONOMIC VALUE OF HYDROLOGICAL FUNCTION IN GUNUNG GEULIS AREA FOR HOUSEHOLD SECTOR

• Main Author: Putri Cahyadi, Novyanni
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/62802
• Institution: Institut Teknologi Bandung

The hydrological function is the economic potential of forest areas that is still market failure. The Gunung Geulis protected forest is an Educational KHDTK that provides hydrological services to support the three surrounding sub-districts. Water from Gunung Geulis is needed by the community to meet household needs. However, this water supply is still deemed insufficient to meet the needs due to poor management and the community has not assessed water according to its economic value. This study aims to: (1) Measure the area of the catchment area and water user area. (2) Calculating the hydrological benefit value of the Gunung Geulis protected forest area for the household sector with a supply side and demand side approach; (3) Analyzing the relationship of stakeholders of water management and water catchment area. In this study, surveys and interviews were conducted with 220 respondents from water users and 20 water management stakeholders. Analysis of the data used are: measurement of the area of the catchment area with the GIS method; Economic assessment of supply side hydrological function with marginal cost pricing; Economic assessment of demand side hydrological benefits using the Procurement Cost Method; and Stakeholder Analysis. The conclusion of this study is that the water catchment area is divided into two areas, namely inside the Gunung Geulis Protection Forest area of 181.65 ha and outside the area of 61.83 ha. Meanwhile, the water user areas are spread over eleven villages covering an area of 268 ha. The price of water based on the supply side is Rp. 21,287/m3. and based on the demand side, which is Rp. 7,952/m3. The estimated value of the hydrological benefits of 220 samples in 2021 for the household sector is Rp. 424,153,400. The strength of the relationship between key stakeholders and primary stakeholders has not been maximally established in water management in the Gunung Geulis area.