27 The Benuaq Dayak keeps an open-mind regarding new technologies. Some
studies that were conducted at the Dayak’s tribe areas have shown that the Benuak Dayak has adopted new technology from outside their villages. Michael Dove 1993 has shown
that the Dayak tribes have shifted their natural local rubber species to Hevea braziliensis species, which has given their neighboring village better rubber sap productivity.
1.3 Agricultural Plantations
Agricultural plantation production and exports in Indonesia are dominated by oil palm and rubber. The area of oil palm had increased 24 times in 30 years, from 105,000
hectares in 1965 to 2,630,000 hectares in 1998 and the rubber plantation area reached 3.5 million hectares in 1998 Resosudarmo, 2002. The rubber products exports in 1998
were worth up to U.S. 1.1 million and oil palm products exports were worth U.S. 1.4 billion Casson, 2004. The agricultural plantations in Indonesia are usually created on
land that has been converted from tropical forests. Casson 2002 explained that the expansion of oil palm plantations has raised concern because much of it has occurred at
the expense of Indonesia’s humid tropical forest.
PT SMP is one of the agricultural plantation companies in the East Kalimantan
area. This company’s total economic value will be presented as an example of the agricultural plantations’ past total economic value. The data is taken from the research
done by Farma Mangunsong and included in her dissertation at the University of Indonesia in 2000. Mangunsong 2000 reported that PT SMP oil palm plantation covers
20.000 hectares and is located in East Kalimantan. The company was granted the right to manage the area for 28 years. The company has its own factory to process the oil palm
fresh fruits into crude palm oil CPO and kernel palm oil KPO. The average production
28 of its fresh fruit is about 25 tonhectares annually. The projected company’s net profit for
28 years is 43,250.50. The net profit per year per hectare on average is U.S. 1,544.66. When the company’s profits are analyzed for the 28-year period with 15 percent interest,
the estimated net present value NPV of the company is U.S. 5,191.7ha28 years or U.S. 185.42hayear. If the estimation included the externalities and internalized the
indirect values, the NPV would be U.S. 5,795.00ha28 years or U.S. 206.96hayear Mangunsong, 2000. Table 1.2 shows PT SMP’s direct use value, indirect use value and
total economic value. The table is cited from Mangunsong 2000. Table 1.2 Oil Palm Plantation Economic Value
Economic Value’s Components Values U.S. 1,000
Direct Use Values 409,630
Indirect Use Values 301,960
Non Use Values 393,803.9
Total Economic Values 286,134
NPV 15 206.96
1.4 Forest Concessions
