QUANTIFYING THE ECONOMIC VALUE OF TRADITIONAL AGROFORESTRY TREE-CROPS AND THE ECOSYSTEM SERVICES: A STUDY FROM BERINGIN TINGGI, JAMBI, INDONESIA

Abstract

This study was conducted in Beringin Tinggi Village, Merangin Regency, Jambi Province where the village still maintains a traditional agroforestry farming system. The purpose of this research is to calculate the economic value of traditional agroforestry ecosystem services in Beringin Tinggi Village. The quasi-option value was calculated based on the market price of the traditional food-tree-crops growing in the agroforestry system (durian, kepayang, jengkol, candle nut, enau) and the indirect use value was estimated through respondents’ willingness to pay for the environmental services of food security, clean water and natural disaster prevention. The results indicate the quasi-option value of the traditional agroforestry amounted to IDR 2,860,938,714 (USD 190,729) per year. The indirect use value for food security, clean water, biodiversity and natural disaster prevention amounted to IDR 829,380,000 (USD 55,292) per year. Direct use value comprising from paddy, coffee, cinnamon, chili, corn and cucumber amounting to IDR 1,169,030,200 (USD 76,302) per year. The finding from this study highlights the understanding for both quasi option value and indirect use values is essential for making informed decisions about land management, resource allocation and policy development.