Economic Analysis of Benefit Value of Coral Reef Ecosystem in Ternate Island North Maluku Province

Abstract

Artisanal fishermen are people whose economic activities depend on natural resource especially coral reef ecosystem. In Ternate Island there are 729 fishermen household. Who are running some economic activities, including destructive fishing practices . The aim of this research is to estimate the benefit value of coral reef in Ternate Island using Effect on Production (EoP) approach. This approach mainly applies to estimate the difference in value of productive output before and after the impact of activity. The results of this research show that the actual economic values of coral reef in Ternate Island based on cross section data is Rp 21.027.933.840,00, while produce an estimation of present value of the benefit is Rp 384.542.778,79. Furthermore, the present value of residual rent is as of estimated to be Rp 239.081.334,38. Based on the time series appproach, it is estimated that a loss of benefit after 10 years has been occurred. Therefore foregone benefit value of coral reef in 10 years is Rp 5.097.140.400,00 or Rp 2.842.800.000,00 per hectare.