COMPARATIVE ANALYSIS OF FOUR PINE PLANTATION MANAGEMENT SITUATIONS IN WEST JAVA

Abstract

Four systems of managing pine plantations in West Java, Indonesia, were compared using two types of criteria: technical efficiency using data envelopment analysis, and financial criteria (NPV, B/C ratio, annual equivalent value, and IRR). Both types of criteria were used to evaluate the systems for the first 15 y after establishment. Only the financial criteria were applied in a 30-y period evaluation. The four systems are plantation management for timber production, for timber and food crops (involving "tumpangsari" activities), for timber and resin, and for timber, resin and food crops. Perum Perhutani, a state-owned company, manages these plantations. The 15-y period evaluation showed that systems involving food crops were more efficient, technically and financially. The 30-y period financial evaluation showed that systems with resin harvesting activities were more efficient. Considering a 30-y rotation, combining resin harvesting and "tumpangsari" would be a very good strategy for Perhutani to facilitate the attainment of its economic goals and of its social objective of allowing the greatest participation by local people in the company's forest activities, in both the short, and long run. Both arrangements reflect a very important implication: a win-win situation for the timber company and for the local population as situations in both sides are improved.