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Economic Analysis of Protecting Cinnamon Resources in Kerinci-Seblat National Park, Kabupaten Kerinci, Jambi Province, Indonesia
Thesis Abstract:
The objectives of this study were to (1) ascertain the socioeconomic and demographic characteristics of cinnamon farmers in the Kerinci-Seblat National Park (KSNP) including their perceptions on environmental issues, (2) determine the benefits and costs of the cinnamon protection policy in the KSNP, and (3) provide recommendations for improving the implementation of the cinnamon protection policy in the KSNP.
A great proportion of the respondents were male. The majority of the farmers growing cinnamon was married, with an average age of 42 years old, and had educational attainment up to elementary level. Only two-fifths stated cinnamon farming as their only source of income. More than 40 percent of the respondents cultivated less than one hectare. The mean cultivated area for cinnamon was 1.8 hectares per household. There were about 2,443 cinnamon trees per farm with mean stand age of about eight years.
The respondents considered KSNP as providing important services to them especially water for their farms and households. Eighty-eight percent of the farmers expressed their willingness to accept compensation for the opportunity lost due to the implementation of cinnamon protection program.
The following alternative management schemes were considered in addressing the problems, needs, issues, and opportunities affecting the cinnamon farmers: (1) traditional cultivation system (without protection) will be continued, (2) alternative 1 (with protection) – farmers will not be given compensation and there is no sharecropping, and (3) alternative 2 (with protection) – farmers will be given compensations and there is sharecropping.
Benefits expected to be derived from cinnamon protection program include increase in net product value, decrease in replacement cost associated with soil erosion, and government revenues from sharecropping and cinnamon product charges. Costs include labor, materials, working capital, replacement of nutrients lost due to soil erosion, marketing cost, and protection activities.
This study recommended the adoption of a management option in which harvesting of cinnamon is permissible at 25 years of age, farmers will not be given compensation fee, and there is no sharecropping to be applied between the farmers and the government.
In order to improve the implementation of cinnamon protection program, the following were suggested: (1) an integrated and coherent legal and policy framework, (2) devolution and decentralization of resource management functions and responsibility, (3) provision of training and manpower development to KSNP personnel on the new concept of Integrated Conservation and Development Program (ICDP), (4) respect and promotion of indigenous knowledge and property rights, and (5) expansion of research to other cinnamon areas that may require similar protection program.