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Quantifying the Economic Value of Ecosystem Services in Oil Palm Dominated Landscapes in Riau Province in Sumatra, Indonesia

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  • Ando Fahda Aulia

    (College of Science and Engineering, Flinders University, Adelaide, SA 5001, Australia
    Faculty of Economics and Business, Universitas Riau, Pekanbaru 28293, Indonesia)

  • Harpinder Sandhu

    (College of Science and Engineering, Flinders University, Adelaide, SA 5001, Australia
    UniSA STEM, University of South Australia, Adelaide, SA 5001, Australia)

  • Andrew C. Millington

    (College of Science and Engineering, Flinders University, Adelaide, SA 5001, Australia)

Abstract

Ecosystem services in oil palm plantations owned by smallholders in four villages in the Riau Province, Indonesia were identified and valued. Nine provisioning, three regulating and maintenance, one cultural ecosystem service, and a single ecosystem dis-service, were identified from interviews with 62 farming households. Direct and indirect market valuation methods were used to estimate the total economic value (TEV) of these services, which averaged USD 6520 ha −1 year −1 (range = USD 2970–7729 ha −1 year −1 ). The values of provisioning services were USD 4331 ha −1 year −1 (range = USD 2263–5489 ha −1 year −1) , regulating and maintenance services were valued at USD 1880 ha −1 year −1 (range of USD 707–3110 ha −1 year −1 ), and cultural services were USD 309 ha −1 year −1 . We conclude that identifying and valuing ecosystem services offers an opportunity to improve the environmental and economic sustainability of smallholders in oil palm landscapes in Indonesia.

Suggested Citation

  • Ando Fahda Aulia & Harpinder Sandhu & Andrew C. Millington, 2020. "Quantifying the Economic Value of Ecosystem Services in Oil Palm Dominated Landscapes in Riau Province in Sumatra, Indonesia," Land, MDPI, vol. 9(6), pages 1-23, June.
    • Handle: RePEc:gam:jlands:v:9:y:2020:i:6:p:194-:d:370388
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    3. Edi Purwanto & Hery Santoso & Idsert Jelsma & Atiek Widayati & Hunggul Y. S. H. Nugroho & Meine van Noordwijk, 2020. "Agroforestry as Policy Option for Forest-Zone Oil Palm Production in Indonesia," Land, MDPI, vol. 9(12), pages 1-34, December.

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