Table 14. Economic valuation of coral reef ecosystem in Ndana Island
RC Ecosystem
function Monetary value
Rp.hayr Assumption
Reference
Fisheries of coral reef
125,000,000.00 Constantyear Hutomo and Suharti,
1998 in Agus, 2005 Abrasion
prevention 40,531,327.55 Constantyear
Data analysis Carbon stock
2,160,000.00 Constantyear Kusumastanto et al.,
1998 in Agus, 2005 Research 819,720.00 Constantyear
Kusumastanto et al
., 1998 in Agus, 2005
Revenue
Biodiversity 135,000.00 Constantyear Ruitenbeek,
1991 in
Agus, 2005
Total of Revenue
168,646,047.55
Invest for fisheries
4,384,153.78 Constantyear Analysis
Operational 7,614,208.71 Constantyear Analysis
Fixed cost 5,966,033.86 Constantyear
Analysis Cost
Rehabilitation of coral reef
51,750.00 Constantyear PKSPL, 1999 in
Agus, 2005
Total of Cost 18,016,146.35
Total Economic of coral reef ecosystem
150,629,901.20 Area of coral reef = 196.64 Ha
Æ TEV = Rp. 29,619,863,771.97yr
Assumption: US 1 ≈ Rp 9,000 in 2006
5.1.3. Development Alternatives
Management of natural resources especially for coral reef ecosystem in Ndana Island needs an optimal and sustainable way. It’s should be better attention
in ecology aspect, not only economic aspect. There are alternative scenarios to achieve a sustainable management of coral reef in Ndana Island. These scenarios
based on site selection using spatial analysis that has been done before.
52
53 Based on spatial analysis, in 196.64 hectares area of coral reef there are
17.95 hectares are suitable for protected area highly suitable for conservation area and 177.60 hectares are suitable for diving refer to Table 11 and 12. From
that result then alternative scenario for management of coral reef can be formulated as follows:
a. Scenario I: existing condition of Ndana Island where there is fishing
activity in coral reef area. Total area of fisheries is 196.64 hectares in all of coral reef area;
b. Scenario II: all coral reef as protected area, not allows for fishery and
tourism activities; c.
Scenario III: Tourism activity can be allowed in the area that suitable for diving. In the same area, fishery activity can be allowed too. Area for
tourism and fishery is 177.60 hectares. Total area for protected area is 19.04 hectares which calculated from 196.64 hectares minus 177.60
hectares; d.
Scenario IV: There are zonation of coral reef ecosystem for fisheries, tourism and protected area. Where location of tourism choose at north
part of Ndana Island because based on Muller 1999 and Anonym 2005 reports, condition of that area is the best suitable for diving
activity. The tourism area covers only 30 from suitable area for diving 177.60 hectares that is 53.28 hectares. Area suitable for core zone is
17.95 hectares that means this area for protected area. Other area is 125.41 hectares for fisheries activities 196.64 minus 53.28 and minus
17.95 hectares. Spatial scenarios can be seen in Figure 15 and 16.
Figure 15. Spatial scenario 1 and 2
54
55 Figure 16. Spatial scenario 3 and 4
Economic valuation for alternative scenarios was analyzed by Benefit Transfer Analysis using Microsoft Excel. Revenue and cost components of four
scenarios show in Table 15. Table 15. Revenue and cost components
No. Revenue
Cost Area
Scenario I
1. Revenue of fisheries
Invest for fisheries 2.
Abrasion prevention Operational of fisheries
3. Carbon stock
Fixed cost 4.
Research Rehabilitation of coral reef
5. Biodiversity Area of Fisheries
= 196.64 hectares
Scenario II
1. Abrasion prevention
Rehabilitation of coral reef 2. Carbon
stock 3. Research
4. Biodiversity All of
Conservation area = 196.64 hectares
Scenario III
1. Revenue of fisheries
Invest for fisheries 2.
Revenue of Tourism Operational of fisheries
3. Abrasion prevention
Fixed cost 4.
Carbon stock Invest for tourism
5. Research Operational
of tourism
6. Biodiversity
Fixed cost of tourism 7.
Rehabilitation of coral reef Area of tourism
and fishery = 177.60 hectares;
Area of protection = 19.04 hectares
Scenario IV
1. Revenue of fisheries
Invest for fisheries 2.
Revenue of Tourism Operational of fisheries
3. Abrasion prevention
Fixed cost 4.
Carbon stock Invest for tourism
5. Research Operational
of tourism
6. Biodiversity
Fixed cost of tourism 7.
Rehabilitation of coral reef Area of tourism =
53.28 hectares; area of fishery =
125.41 hectares; Area of protection
= 17.95 hectares.
In this study, there is a limited data so it used assumption in economic valuation. The assumptions are:
a. The area for NPV analysis included 196.64 hectares;
b. T = 20 years, because assumption for recovery of coral reef need 20 years
Agus, 2005; 56
c. 11.75 for discount rate based on SBI = interest rate of Central Bank in
August, 2006; d.
US 1 equal to Rp. 9,000 in 2006; e.
Assumption in scenario IV, with distribution area of coral reef production of fish can be rise until 100.
Result of NPV analysis of four scenarios can be seen in Appendix 5, 6, 7, and 8. Figure 17 shows graph of Net Present Value NPV for management of
coral reef ecosystem in Ndana Island with discount rate 11.75 in 20 years.
10000 20000
30000 40000
50000 60000
70000 80000
90000 100000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year NP
V i
n m il
li o
n r u
pi a
h
Scenario I Scenario II
Scenario III Scenario IV
Figure 17. NPV of four scenarios
Scenario I Existing condition
In this scenario, existing condition of coral reef of Ndana Island is only for fisheries activities. This scenario is the worst of NPV which value of NPV is
Rp.63,649,752,119. Until 20 years value of NPV not so much different with scenario II and the trend of scenario I to draw near scenario II.
Production of fish in Rote Barat Daya District is 746.5 ton per year or 3.80 tonhayr BPS, 2002. This production is smaller than the research of Hutomo
57
and Suharti 1998 in Agus 2005 that fish production in coral reef area can be 25 tonhayr. This production may come from the percentage of coral reef,
whereas there only 25 - 50 fishery production or it may cause by lack of infrastructure and technology of local fisherman. According to report of survey by
BAKOSURTANAL and LPPM – IPB Anonym, 2005 fisherman often use bomb for catching fish, resulted in the destruction of the coral reef.
Scenario II all protected area
Assumption of scenario II is coral reef area in Ndana Island is prohibited for tourism or fishery activities. Therefore, 196.64 hectares coral reef area is
being protected. For this scenario the rank of NPV is the third. Based on economic analysis, NPV is Rp. 65,047,603,571 and this scenario
can viable, because value of NPV 0. Even though the scenario is viable through the economic perspective, the social aspect may cause opposite impact, since there
is no change for the local people to afford their daily life through catching fishes. It seems this scenario may end in social conflict.
Scenario III
In scenario III, there are tourism and fishery activities in buffer and use zone of coral reef area. Area for these activities is 177.60 hectares and for
protected area core zone is 19.04 hectares. Value of NPV is Rp. 78,314,998,387 and significantly the value of NPV
bigger than scenario I and II after the 3
rd
year Figure 18. In 1
st
year and 2
nd
year value of NPV of scenario III lower than scenario II because tourism activity need
much invest in the beginning of activity.
58
10000 15000
N V
i
5000 20000
25000 45000
1 2
3 4
5
Year P
n millio
p i
30000 35000
40000
n r
u a
h
Scenario I Scenario II
Scenario III Scenario IV
Figure 18. NPV of four scenarios at the 1
st
of five years Scenario III may consider as a good alternative solution for Ndana Island
management. However, tourism and fisheries that locate in the same area may cause another social conflict in the future. This should be considerable manage
before being applied within the site.
Scenario IV
There are zonation areas of coral reef in scenario IV where 53.28 hectares for tourism, 17.95 hectares for protected area and 125.41 hectares for fishery
activity. Value of NPV is Rp. 86,767,185,416 and it is the biggest value of NPV f
ou .
Divin rea is on
Ndana Island in order to make not piled up between tourism activity, pr
activity so hopefully local pe
e can g dvantage
tivity so fishe
. rom f
r scenarios g a
ly at north part of otected area and fishery
opl et a
s from tourism ac and al
ries
59
Protected area was design in order to maintain the biodiversity especially fisheries stock. Therefore, the sustainable capture fisheries around the Ndana
Island will be achieved in the future. Based on suitability analysis and economy valuation, scenario IV is the
best alternative in coral reef management of Ndana Island. Table 16 shows value of NPV, BCR and rank of four scenarios.
Table 16. Result from economic analysis of four scenarios
No. Scenario
NPV BCR
Rank
1. I 63,649,752,119 3.13 4 2. II 65,047,603,571
843.40 3 3. III 78,314,988,387 2.70 2
4. IV 86,767,185,416 4.52 1 Result of economic analysis indicate that all scenario have NPV 0 and
BCR 1. It means the scenarios are viable in Ndana Island. Scenario IV has the biggest value of NPV and may cover as the best alternative for management of
Ndana Island. Scenario IV has zonation of coral reef area for tourism, fishery and protected area. The second is scenario III. Scenario III is similar to scenario IV,
since th
rnment should be prepare in infrastructure and promotion, while private
lso from tourism activity. ere are area for tourism, fishery and protected area. The difference is that
area for tourism activity is same with fishery activity. However, the implementation of scenario III and IV, i.e. for tourism, that
is need support from government, private company, and also local people. This means gove
company can invest in tourism activity. Culture aspects of local people also need attention and may develop as tourist attraction. Hopefully local people
will get benefits not only from fishery activity but a
60
BCR analysis show the 2
nd
scenario is the bigger value than four scenarios. However, scenario II has no contributions to local people since it protect the
whole area for any activities. Scenario IV is the second value of BCR, 4.52, means benefits of this alternative will be 4.52 times than cost to spend. Then BCR
value follow by scenario I, 3.13, and the last is scenario III. The rank is based on NPV; the 1
st
is scenario IV, then scenario III, scenario II and scenario I. Hopefully decision maker will be consider those
alternatives as an input for sustainable management of Ndana Island and can achieve by ecology, economic and social benefits that will be use by future
generation. Result of maps of
Figure 19, 20, 21 and 22. The map also show graph of NPV at 5
th
, 10
th
, 15
th
, and 20
th
year and detail of NPV every year can be seen in Appendix 5, 6, 7, and 8.
four scenarios can be seen in
Figure 19. Map of Scenario I
61
Figure 20. Map of Scenario II
Figure 21. Map of Scenario III
62
Figure 22. Map of Scenario IV
5.2. Graphical User Interface GUI
