Economic Value Estimation of Mangrove Ecosystems in Indonesia

Abstract

Mangroves are highly productive ecosystem with various important social, economic and environmental functions. In Indonesia, mangrove ecosystem is one of the threatened resources in the coastal zone, and the mangroves have been under intense pressure from competing resources use. In many parts of Indonesia, the social economic values for mangrove ecosystem are varied depending on local specific of the ecosystem. The direct use value of mangrove ecosystem has been tapped for wood, charcoal, tannin, construction material, household equipment, medicines, fish, shrimp, crab, vegetable and raw material for pulp and paper industries. The indirect use value of mangrove ecosystem is in the from of vital ecological functions including control coastal erosion, prevention of salt interaction, stabilization of sediment, procession of adjacent coral reef from suspend solid, protection of coastal land from storm, natural purification of coastal water from pollution, supply of organic detritus and nutrients to adjacent coastal water, and the prevision of feeding, nursery and breeding areas for fish, crustacean and wild life. Using total economic valuation methodology, the economic value of mangrove resource is estimated ranging from US $3,624.98 - US $26,734.61per ha per year.