Economic Value of Water for Domestic and Rice Farms in Surrounding Wan Abdul Rachman Forest Park

Abstract

Wan Abdul Rachman Forest Park (Tahura WAR) has a useful hydrological function for the surrounding community, especially for the household and rice farmers. Tahura WAR condition that changed function, causing water supply is reduced. The economic value of water needed to be known, so the community can support the sustainability of Tahura WAR. The purpose of this study is to estimate the economic value of water from Tahura WAR which is a source of water for the surrounding households and rice farmers. The economic value of water is approached by an assessment of the willingness to pay of the community in Batu Putuk urban village that borders directly with Tahura WAR. This research was conducted in August 2017 with the number of respondents is 47. Sampling technique by using purposive sampling and proportionate stratified random sampling. The results showed that the domestic economic value of water is Rp.9,602,428,308/year, while the economic value of rice farming water is Rp.1,050,000/year and willingness to pay from the community and farmers of rice fields is Rp.411,513,920/year. Total economic value of water utilization around Tahura WAR is Rp.10,014,992,228/year. The value proves that the forest could give high benefit to the community from the hydrological function. Therefore, the existence of the upstream community dependence on Wan Abdul Rachman Forest Park. Keyword: water economic value, total economic value, Tahura Wan Abdul Rachman, willingness to pay