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Abstract. Simangunsong BCH, Manurung EGT, Elias, Hutagaol MP, Tarigan J, Prabawa SB. 2020. Tangible economic value of non-timber forest products from peat swamp forest in Kampar, Indonesia. Biodiversitas 21: 5954-5960. Development of alternative economy based on non-timber forest products usage is an important means to prevent forest conversion and preserve the quality of a forest ecosystem. The main objectives of this study were to identify and calculate the economic value from tangible/marketable perspective of the non-timber forest products (NTFPs) provided by peat swamp forest in Kampar, Sumatra, Indonesia. This is one of the largest remaining peat swamp forest ecosystems in the country. Seven villages located around that forest ecosystem with total forest cover area of 201,224 ha were chosen as samples. A conversion return approach was used to estimate the economic value of non-timber forest products. The results showed 18 kinds of non-timber forest products were identified, but only seven were used commercially by community. They are jungle rubber (Hevea brasiliensis), sago (Metroxylon sp.), swiftlet nest (Aerodramus fuciphagus), honey, betel nut (Areca catechu L), Agathis resin (Agathis dammara), and pandan (Pandanus amaryllifolius Roxb.) The obtained economic value of NTFPs was very low, which was about Rp 9,367.4 (or US$0.68 ha-1 yr-1). Market development of non-timber forest products is then crucial, and the government should play an important role in promoting it in collaboration with private companies. Non-marketed non-timber forest products and various environmental services should also be taken into account to measure that peat swamp forest ecosystem value. Otherwise, concerns about the sustainability of that forest ecosystem in Indonesia due to undervaluation of forest resources will continue.

The export value of Indonesia’s wooden furniture was sharply decreased by about 31.9% over the period in 2007-2018. On the other hand, global wooden furniture export was increased by 5.8% during the same period. Understanding the behavior of the demand side of Indonesia’s wooden furniture exports that is reflected by its relative price and income elasticities is needed for the policy development of Indonesia’s wooden furniture industry in the future. The objective of this study was to estimate the export demand function of Indonesia wooden furniture using a panel data regression model. Three types of panel data models, such as pooled ordinary least squares model, fixed-effects model, and random effects model, were investigated. The results showed that the export demand function of Indonesia wooden furniture could be well estimated using the fixed effects model. Relative price elasticity and income elasticity were -0.45 and 0.8, respectively. The adjusted R2 value obtained was 0.99. Keywords: export demand function, panel data regression, wooden furniture

Indonesia has abundant forest biomass resource, which should not be considered as a low economic value resource. This forest biomass resource can be converted into bioenergy through various technologies and it becomes one of sources in Indonesia's energy mix. This paper focuses on the wood processing mill residues, one type of forest biomass resources. Data were obtained from observation and survey at one of large private wood processing companies in Indonesia. An economic value of US$19.0 per ton wood residue would be created when the company sold its wood processing mill residues as fuelwoods. In contrast, using a conversion return approach, the economic value of wood residues increased to be about US$ 29.6 per ton wood residue when they were pelletized, an economic value increase of 56%. Sensitivity analysis further showed that the economic value of wood processing mill residues is more sensitive to changes in the price of wood pellets than to changes in the price of fuelwoods.

Oil palm plantation is a very potential source of feedstock for biodiesel production in Indonesia. Its productivity is high in terms of biomass, such as fresh fruit bunch (FFB), trunk and frond. FFB can be processed into crude palm oil (CPO) and further into biodiesel. Currently, most CPO productions are exported even though a domestic demand for biodiesel is increased. The problem might be due to a low added value of biodiesel production from CPO/FFB. The objectives of this study were to estimate the potential production of biomass from oil palm plantation and calculate the economic value of FFB as feedstock for biodiesel. Data were obtained from observation and survey at one of large stated-owned oil palm plantation companies in Indonesia. The results showed that potential production of biomass were 42.10 tons/ha/year based on photosynthetical approach. Further, based on conversion return approach, economic value of FFB when processed into CPO was found about USD 121.82 per ton FFB and this value would decrease to USD 95.20 per ton FFB is processed into biodiesel. This indicates that the CPO production is economically more favorable than biodiesel production. If the price of CPO decreases by more than 15%, implying at least 13% decrease in biodiesel production cost; the expansion of FFB use as bioenergy would be expected as the economic value of FFB derived from biodiesel production would be higher than that obtained from CPO production.