Economic Valuation As a Basis for Sustainable Mangrove Resource Management A Case in East Sinjai , South Sulawesi

Diversity of mangrove function generates both tangible and intangible benefits and services causing its overall value is not easily recognized hence often overlooked in coastal areas development. The study used the total economic value as a framework for estimating the values of the different uses of mangroves in East Sinjai Sub District, South Sulawesi. Survey method was carried out from September 2014 February 2015. The results showed that total value − of mangrove ecosystems in East Sinjai with total area of ​​758 ha is IDR37,535,809,496 year . Those values were derived from direct benefits (polyculture fish pond, catching aquatic biota such as fish, shrimp, crab and milkfish, collecting fuelwood and bats catching) and from indirect benefits i.e. its function to evade abrasion and sea water intrusion, its function as carbon sink and sequestration, its biodiversity values ​​and its existence benefits. The problem that should be anticipated is potential expansion of polyculture fishpond which drives clearing intact mangrove forests as it contributes quick and direct income to local people. The research results are expected could be used as a consideration in formulating for sustainable for local government recommendations mangrove management in East Sinjai.

) 2015 .There is different point of view between policy makers and investors who concern more about investment and economic development on the one hand and environmentalists on the other hand, who see the forest ecosystem from the perspective of ecology and environment (Giri 2008;Soedomo 2013;Kildow & Guo 2014).et al.Therefore, i designing forest ecosystem management it n , require consideration, assessment, and analysis s a thorough hence it would not surrounding area adversely affect its (Karminarsih 2007).Thus, a balance between social economic and ecological needs should be taken into account in planning mangrove forest the of management.The economic valuation of mangrove resource aims to provide economic value of resources used based on the real value from the society's view point.Economic valuation offer a more comprehensive assessment of the various goods and services produced by the ecosystem so as to contribute more in-depth information for decision making in sustainable mangrove management (Napitupulu . 2012; et al Kildow & Guo 2014;Malik 2015).
In conducting economic valuation, one need to know how far is disparity between the market price and the real value that should be alloted to the resources used.Economics as a tool in conducting economic valuation is the science about making choice.Conventionally, economics is defined as the study on how people allocate scarce resources.The economic valuation of natural resources can be defined as the study about allocation of natural resources like water, land, fish and forest (Fauzi 2004).Benefits which could be provided by natural resources to meet human needs are a lot, however, limitations in science and technology as well as rigid institutional arrangement has impeded types and amount of its utilization so that benefits obtained are still very low (Darusman 2012).Making choices of several alternatives on environment management are more complex, compared to selection of options in the context of purely private goods (Harahap 2010).
In the context of deciding alternative for mangrove forest land use based on , its decision can be benefit-cost rule justified if net benefit of ecosystem development is greater than net benefits obtained from conservation.In this case conservation benefits are measured based on total economic value of mangrove forest (Pearce & Moran 1994).Mangrove forest in East Sinjai Sub District has very important and significant value for local community (social, economic and ecology).However the existence of mangrove forests often became a matter of debate by various parties whether it would be better if maintained as current condition, as commercial tourist area, or for other uses.The most optimal option of management is not yet known as there is lack of comprehensive data and information on the values (benefits and functions) of mangrove area in the region.Therefore, an assessment of the total economic value of the mangrove area in the Sub District of East Sinjai is needed as input for stakeholders in creating a more optimal mangrove management in the future.
Research on the economic valuation of mangrove resource use in East Sinjai, South Sulawesi aims to estimate total value of mangrove resources potential benefits.Lack of knowledge on the potential value of intact mangrove resources both tangible and intangible benefits may result in errors in formulating mangrove resource management policies that could instigate in damage and even destruction of mangrove ecosystem.Eventually, research results are expected could be used as the basis for formulating recommendations for more optimal use of mangrove ecosystem.

Location and ime t
The research location is mangrove forest area in East Sinjai Sub District, Sinjai Regency, South Sulawesi Province which is administratively located in 5 villages namely Samataring, Tongke-Tongke, Panaikkang, Passimarannu and Sanjai.Field data collection was , conducted from September 2014 until February 2015.

Identif
mangrove forest in East Sinjai y types of use Mangrove forest benefits were analyzed descriptively including type, location and scale, system and model of utilization.Analysis of total economic value of mangrove forests was conducted by using formula from Munasinghe (1993)

Direct use value DUV) (
The immediate benefits are benefits derived from land use associated with mangrove forests based on market prices including timber and fuelwood, benefits from its biological condition and from fishpond cultivation.

Indirec use value IUV)
t ( I use value ndirect is the sum of indirect benefits mangrove forest gained from including coastal protection against wave and wind erosion (abrasion); prevention from sea water intrusion; shelter and habitat for diverse wildlife, particularly avifauna; nutrient sink-effect and reduction in excessive amonts of pollutants (FAO 1995); and its significant role as carbon sink and sequestration (Alongi 2012;Patil . 2012) et al .In this study, indirect benefits limited to are its function as prevention from abrasion and seawater intrusion and its benefit as carbon sink and sequestration ion .Estimat of mangrove benefit as coastal erosion barrier is approached by means of the cost for constructin break water if there is no mangrove ecosystem g .While estimat as sea intrusion ion of its function water prevention approached water consumption costs to was from be incurred based on standard water needs of average household issued by .Sinjai Regional Water Enterprise Calculation of mangrove function as carbon sink and sequestration were estimated fom previous several studies on carbon biomass of mangrove forests (below and above ground).Many studies revealed that mangroves are among the most carbon-rich ecosystems in the tropics.Mangrove account for 3% of carbon sequestration by the world's tropical forests, but 14% of carbon sequestered in the world's ocean, although accounting for only 0.5% of total coastal ocean area.If disturbed, mangrove may emit 0.02-0.12PgC year , equal to 2-10% of global deforestation emissions -1 (Chumura . 2003;Cai 2011;Alongi 2012).et al

Option alue v (OV)
Option value benefit is benefit to preserve the use of goods, services and environmental resources in the future that cannot be used at present.In this study, the value which will be used is benefit of preservation for mangrove forest biodiversity.Alleged value to be used in this analysis was obtained from research result in other location (benefit transfer).Option value benefit was approached by referring to the value of biological diversity of mangrove ecosystems of USD1,50 km year or USD15 h 0 a --1 -1 2 year (Ruitenbeek 1992;Indrayanti 2015).This method -1 et al. is still being debated in economic valuation, however since its measurements are complicated and difficult and its value tends to have a small portion, the benefit transfer method is often used with the assumption that the condition of mangrove forest are relatively similar.

E v (XV) xsistence alue
Existence value is benefits perceived by the public from the presence of mangrove ecosystems after other benefits (direct benefits, indirect benefits and option , value) are removed from the analysis.It is benefits to be enjoyed by humans from the existence of mangrove forest.
Respondents were asked to give a value on forest resources with a hope that presence of forest resources could be maintained continuously.Data was collected by using contingen valuation method (CVM), where respondents were asked about their willingness to pay the amount of goods and services from mangrove ecosystems by expressing values for non-market environmental goods and services.This benefit is the economic value of existence (physical) mangrove ecosystems (Harahap 2010).2).

Identif mangrove forest benefits in East Sinjai ication of
Understanding the value, particularly those involving goods and services produced by a natural resources and the environment, can be different, depending on the view angle of science used.The difference on the concept of value can be difficult to understand the importance of an ecosystem.Therefore it is necessary to have similar perception of the ecosystem assessment (Harahap 2010).Various benefits of mangrove ecosystems identified in East Sinjai consisted from direct, indirect, option value and existence value , benefits.

Total conomic alue ( ) of mangrove forest in East
The direct benefits of D Direct se alue mangrove forests comes from polyculture fishpond cultivation, catching aquatic biota (fish, crab, shrimp), collecting fuelwood, collecting small milkfish and shrimp and catching bats (Napitupulu . 2012).et al

Direct enefits b from polyculture fishpond cultivation (milkfish shrimp) and
Cultivation of fish and shrimp is done by traditional and semi-intensive systems.However, due to limited capital, traditional pond system is more common.Traditional system is developed by farmers who rely on the knowledge obtained from their predecessors.This system mostly rely on water circulation system from up and JMHT Vol. 2, (1): ,  down tidal to obtain a continuous water supply.While semiintensive pond cultivation is a system requiring significant costs for feed, fuel and fishpond worker incentives (Dinas Kelautan dan Perikanan Kabupaten Sinjai 2014).The total area of polyculture fishpond of milkfish and shrimp (semiintensive and traditional) in East Sinjai is 25.6 ha.Cultivation of milkfish and shrimp polyculture is relatively small compared to polyculture of milkfish and seaweed cultivation due to several factors i.e limited capital and higher risk from fungal diseases attack.The total value of the benefits derived from milkfish and shrimp cultivation in East Sinjai is IDR215,739,622 year (Appendix 1).
-1 Direct Benefits from polyculture fishpond cultivation (milkfish and seaweed) Milkfish and seaweed polyculture cultivation is widely developed in East Sinjai.Total area of milkfish and seaweed polyculture is 251.6 ha, much wider than milkfish and shrimp polyculture.This system is more preferred by people as its cultivation is relatively easy and seaweed cultivation generate greater and more frequent revenue (harvesting every 40 days).Seaweed species commonly cultivated is sp.Total value of milkfish Gracilaria and seaweed polyculture cultivation is IDR9,884,285,894 year (Appendix 1). -1

D
from m a b Mangrove irect benefits angrove quatic iota provides primary food for fish, shrimp, and crabs living in the coastal ecosystem through avalanche litter of mangroves (especially its leaves).A small portion of litter falling on the forest floor will be consumed by crabs and most will be decomposed by microbes that become food source for detrivora, hereinafter detrivora becomes food source for carnivores (Harahap 2010;Kusmana 2010).Another benefit gained from mangrove ecosystem is the abundance of aquatic biota that can be captured.Some aquatic biota routinely obtained by the people are fish (mullet, baronang mangrove, tude), crab, oysters and shrimp (Harahap 2010;Napitupulu 2012).Costs needed to capture aquatic biota is relatively small including costs for nets, pouch, kerosene and kerosene lamp.However, despite aquatic biota abundance, not all the people routinely took advantage of it.The reason is there are still many alternative benefits that can be derived from the existence of mangrove resources, hence people choose the most profitable (considering availability of costs, time and labour).The average benefit value from mangrove aquatic biota is IDR12,033,000 HH .Assuming that there are 10% of -1 East Sinjai household utilizing the abundance of aquatic biota, benefit obtained is IDR4,055,121,000 year ( ).
-1 Table 3 Direct benefit from ng fry, fingerling and collecti hatchling C of fry, fingerling (young milkfish) and ollection hatchling (young shrimp) is a routine activity conducted by women, where some is used for fishpond cultivation (Yap et al. 2007)  Direct enefit b from collecting fuelwood Although most people in East Sinjai already used oil and gas stoves, some still use fuelwood as additional energy.It was found that the use of fuelwood from mangrove species has several advantages, i.e more durable fire, faster heat and less smoke (Din . 2008;Atheull . 2011)  East Sinjai is IDR647,040,000 year . -1

Direct b obtained from c b enefits
atching ats Catching bats was common in Sinjai.Bats are used for traditional medicine in many developing countries (Borokini et al. 2013).In order to preserve mangrove forests and the viability of bats, while taking into account local people interests, bats catching was regulated by Sinjai local government.First regulation was issued by Regent of Sinjai's decree Number 300/LNG/SET regarding bats catching permits on January 13, 2003.At that time population of bats was too high hence it threatened existing mangrove.However, on October 20, 2003 Regent of Sinjai re-issued letter Number 522/848/SET regarding termination of bat catching in order to keep the preservation of bats.The value benefits of catching bats (15 HH) is IDR189,000,000 year . -1

Indirect se alue enefit angrove u v . Indirect b of m function to prevent abrasion
Indirect benefits of mangrove forest in East Sinjai was derived from its function to prevent abrasion or breaking waves.Coastal protection by mangrove ecosystem occurs through mechanism of breaking waves kinetic energy and reduction of tidal range to the main land (Harahap 2010;Suzana . 2011).The research on the north coast of Java et al island found that coastal erosion did not occur on area where mangrove grows with 100 Meters width and tidal range had been reduced by more than 60% (Suryana 1998).Indirect benefit of mangrove to prevent abrasion was estimated through replacement cost for breakwater construction.The value were by standar cost for building construction breakwater issued by the Research and Development Agency of Ministry of Public Works in Sinjai i.e.IDR13,870,946 km .This standard cost then were -2 calculated based on the length of the coastline of East Sinjai which was protected by mangrove i.e 12.8 km.Total benefit of mangrove forest as a buffer abrasion or breaking waves was IDR177,548,108,800 with economic life for about 10 years or IDR17,754,810,880 year . -1

Indirect be of m function to prevent nefit angrove seawater ntrusion i
The value of mangrove forest to prevent seawater intrusion is obtained by using a replacement cost method.This approach is one method of economic valuation based on the potential expenditure (Harahap 2010).From field observation and interviews results, people now are able utilize well water for various domestic puIDRoses.This is different from the situation in the past when there has been no mangrove forests, where people had to buy water for household daily needs.The value of mangrove for seawater intrusion barrier is approached from water consumption if they have to purchase it.Average cost spent for domestic needs of customers in East Sinjai IDR450,000 month HH -1 -1 (calculations are based on water price in Sinjai Regional Water EnteIDRrise.Therefore, the value of mangrove as seawater intrusion barrier for 3371 HH living in East Sinjai Sub Districy is IDR1,516,950,000 year .
-1  benefits in this study.

Indirect benefit of mangrove as carbon sink and sequestration
In general, the price of carbon credit depends on the commitment level of Annex 1 countries for reducing green gas house (GHG) emissions and the inclusion of potential sectors particularly the energy sector.Buyers of carbon credits will buy them as long as they are cheaper than the marginal cost of abatement in their respective countries.The price fluctuates depend on several factors (stand age and condition, ecosystem types, region, situation in buyer countries, etc) (Ojha 2009).In this study, carbon price used is assumed not so optimistic i.e USD1 for 1 ton CO ( 2 excahnge rate USD1 = IDR13,500).Hence, total mangrove benefits as carbon sink and sequestration in East Sinjai (758 ha) would be IDR407,955,600 year -1 .

Option alue v
Option value shows individual's willingness to pay to preserve certain natural resource for future utilization (Harahap 2010;Rachmansyah & Maryono 2010;Napitupulu 2012).Option value can be considered as an insurance where people is willing to pay to ensure future utilization of the resources.With total mangrove area of approximately 758 ha and average benefit value is USD15 ha (excahnge rate -1 USD1 = IDR13,500) , the option value of mangrove forest in East Sinjai is IDR153,495,000 year . -1

Existence alue v
Existence value of mangrove ecosystem in East Sinjai was estimated by using contingent valuation method (CVM).Through this method, respondents were asked to assess the significance of the presence of mangrove ecosystems (Harahap 2010;Wahyuni . 2014) , if compared with other benefits, existence benefit is 90 of proportion of only 0. % total economic benefits.This small portion of existence value to total benefits implies that people in general do not understand the indirect value of existing mangrove ecosystem.
done by This is different from research result Siregar (2012) in Kubu Raya w found that value ho existernce of mangrove forest provides greatest contribution to total economic value (49.1%).But if compared with result of CVM analysis done in The Philippines (combining the data sets from Palawan and Bohol) using a least-squares method (i.e., bid function approach) (Carandang 2013) showed et al. a mean willingness-to-pay amount of PHP 44/month per person (IDR13,200 month or IDR158,400 year ; PHP1 = -1 -1 IDR300), East Sinjai people seems put higher value on existing mangrove.This significant difference may be due to people's the mangrove benefits assessment upon more or less is influenced by how much real that could gain benefits they directly from mangrove.
From the analysis on the potential economic value calculation, the total potential economic value of mangrove forests in East Sinjai is IDR37,535,809,496 year .Table 4 -1 shows that biggest benefit derived indirectly (52.43%) is from abrasion, and seawater intrusion prevention and from mangrove function as carbon sink and sequestration (IDR19,679,716,480).This indicates that if mangrove does not exist there, the cost needed to replace its function is extremely high.This is in line with research results from Rusdianah ( 2004) conducted in Tongke-tongke village and Baderan (2013) in Kwandang District-Gorontalo, Siregar (2012) in Kubu Raya-West Kalimantan, Kalitouw (2015) in Kulu village, North Minahasa, and Malik (2015) in et al.Takalar, South Sulawesi where total value of indirect benefits contribute more outweigh direct benefits.This verifies that ecological benefits derived from mangrove resource is greater than direct economic benefits.However, since most of ecological benefits is not seen and experienced directly, it is often overlooked in understanding total value of natural resource.Ostrom (1990) and Uphoff (2000) argued that public tends to appreciate value of resources if its benefits can be sensed in real, immediate and close.While benefits of products and services derived from mangrove ecosystems often cannot be acquired directly, real and close with the place where people exist .Therefore, in formulating strategies for mangrove resource management, it is urged to increase awareness and understanding of local community on the value and importance of mangrove ecosystems.Understanding that economic benefits is better than ecological benefits should be resolved as a lot of evidences verified that ecological functions are greater than economic functions.
The second largest proportion of the benefit was derived from direct use which was 46.26% (IDR17,364,340,516).Direct benefits derived from polyculture fishpond cultivation of milkfish and seaweed contributed 26.91% to total direct benefit.It has become a mainstay of coastal communities economy in East Sinjai because it provided more frequent and rapid high income ( times year ).8 -1 The smallest contribution benefit derived from of was option value benefit that s equal to 0. % , wa 41 from total value benefit This low portion of benefit implies that .value to preserve the use of goods and services in the future that cannot be used This is consistent with results of now is low.previous studies conducted S regar (2012) in Kubu Raya, by i West Kalimantan Rusdianah ( 2004) n Tongke-Tongke, , i Asbar (2007) in Sinjai Hiariey (2009) 1994).It is also revealed by Manan (1985), who argued i.e that forest has versatile functions, as timber producer for , water system regulator, shelter wild life, food produc , and recreation areas.t is very difficult to define er as I the boundaries of these functions clearly due to interaction between the .
m The use of benefit transfer method used in this study assumed that provision of services is constant across all mangrove sites.For future rerearch, the inclusion of potentially important spatial variables, including mangrove area, abundance and road density variables in the vicinity of study site would provide better description about biophysical characteristics of mangrove in the research area (Brander . 2012) , Therefore any pu ose of mangrove resource management rp should accommodate its role to avoid negative externalities.Harahap (2010) stated that efforts to optimize management of resources could be achieved if there is a balance of relationship between the existing systems in the resources.Results on calculation of total value of mangrove potential benefits shows that utilization of mangrove in East Sinjai so far was done without disturbing existing mangrove ecosystems.Public awareness on the value and importance of mangrove in East Sinjai is the crucial factor for careful mangrove exploitation by people in this area (Rusdianah 2006;Samsudin 2015).
Nevertheless there are some issues that should be  anticipated for sustainable and optimal mangrove management.First is mangrove potency which has not been developed in East Sinjai i.e. 1) its potency for ecotourism and 2) its use as natural laboratory for education and research site.There are three potential touris area to be developed i.e.Tongke-Tongke beach in Tongke-Tongke; Marana beach in Passimarannu and Ujung Kupa beach in Sanjai.Those three potential tourist areas have mangrove forest that should be preserved.In spite of its potential value which already begun to attract local tourists to visit, those area has not been professionally managed and every body can enter the area free of charge.
To preserve and maintain tourist area, professional management is needed involving relevant stakeholders such as local government, private sector and local communities (Miswadi . 2015).In its establishment, a specific et al institution is needed to manage the region and determine right and responsibility of each stakeholder.In its implementation, every visitor entering the region needs to pay entry fee which will be used for facilities maintenance and expansion of planting mangrove while simultaneously improve social and public facilities in the region.
If professionally managed, mangrove ecotourism could encourage people to participate in mangrove conservation as well.There are new alternative jobs available such as selling mangrove products and souvenir, becoming tour guide, providing restaurant, home stay and means of transportation.Kustanti (2011) mentioned that ecotourism is one of the environmental products and services generated from mangrove forest ecosystems which was potentially developed without destroying existing ecosystem.Additionally, tourism development could also indirectly increase revenue for nature conservation while providing economic benefits to surrounding community (Sawitri . et al 2013).Research done by Mayudin (2012) on ecotourism development in Labakkang, Mandalle and Segeri District estimated value of IDR 864,000,000 year by offering natural -1 beauty, mangrove forests uniqueness, bird attraction, fishing, and mangrove tour by boat rental.
Another potency that has not been explored is the use of mangroves as natural laboratory for education and training.Many researchers and students (domestic and foreigners) came to the site to conduct research.So far there is no charge at all to enter the site as long as they got permission from local government.Supposedly every activity of education or research pay certain amount of money as cost/fee which will be used to preserve existing mangrove ecosystem.
In spite of unexplored potential benefits, there are several problems that need to be anticipated in mangrove management.First is potential over expansion of aquaculture fish ponds due to economic pressure (Wahyuni . 2014).

et al
The result of interviews with communities and relevant stakeholders (local government, extensionis, NGO) found that total area of fish ponds tend to increase.This coincides with meta analysis study on mangrove value in Souteast Asia done by Brander .(2012) who argued.thatdegradation et al and conversion of mangroves in Southeast Asia is mainly due to the expansion of shrimp aquaculture cultivation.Without disregarding struggle of people to maintain and expand mangrove forest in East Sinjai, for some people, expansion of mangrove is a motive to expand fish ponds.In other words, after people succeeded in growing and expanding mangrove plants, they plan to open mangrove on the inside part to be converted into fish pond.They have no guilty feeling as total area of mangrove is not reduced (new pond area is equal to the area of mangrove planted earlier).This should be a concern of all parties, because if economy burden continued to increase (population growth, inflation) while alternative sources of income are limited, it is possible that conversion of mangroves into fishponds would be done extensively in the future even before they set up area for replacing mangrove as mangrove is slow-growing species.
Another issue associated with the expansion of aquaculture fishpond is land suitability.Most suitable soil type for aquaculture fishpond should contain a lot of clay and little sand (Baderan 2013).Soil type in Panaikkang and Passimarannu village are predominantly sandy, so less able to hold water due to its high level of soil porosity.In addition, its soil structure is fragile and more quickly decompose causing less suitable for fishpond cultivation as pond dike is prone to landslides and easily destroyed.
From the above discussion, it is expected that the study on the total economic value of mangrove ecosystems in East Sinjai along with some issues that should be anticipated can be used as a reference to formulate strategies for optimal mangrove ecosystem management in East Sinjai.Eventually, existing ecosystem is expected to be sustainably maintained while still providing the maximum economic benefit to surrounding community.

Conclusion
The benefits of mangrove ecosystems identified in East Sinjai consist of direct benefits (polyculture fishpond cultivation, catching aquatic biota including crabs, shrimp, fry, fingerling and hatchling, fuelwood collection and bats catching); indirect benefit (to prevent abrasion and seawater intrusion; option benefit of biodiversity values; and existence benefit value bestowed by local people.Total potential economic value of mangrove in East Sinjai is IDR37,535,809,496 year Indirect values contribute the -1 .highest portion to total income (52.43%),followed by direct values (46.26%), existence value (0.90%) and option value (0.41%) respectively.To optimize mangrove management, there are potential benefits that have not been developed i.e benefit as tourist area and its function as natural laboratory (for education and research).This potential benefits need to be developed to increase alternative sources of community's income while encouraging them to participate in mangrove conservation.The problems that need to be anticipated is over expansion of polyculture fishpond as it contributes quick and direct significant income.

I
for n formulating strategies optimal mangrove ecosystem management results total economic , research on value of mangrove ecosystems along with some issues that need to including identification and be anticipated development of unexplored mangrove benefits (ecotourism; natural laboratory) and the need to establish professional management involv relevant stakeholders such as by ing local government, private sector and local communities ,

Figure 1
Figure 1 Research location on five villages of East Sinjai sub district coastal area.
how many/how much they worth, how frequent they got them, how they consider the importance of them and how they value existing mangrove forest.Secondary data were obtained from literature , reports and other documents s related to the study.
. Collecting fuewood is et al et al done on area close to their settlement.Assuming that there are 10% of the total household (337 HH) who are still collecting fuelwood, and in average each HH use fuelwood benefit of IDR1,920,000 the value of fuelwood obtained in

Table 2
Result of vegetation analysis in East Sinjai mangrove forest

Table 3
In this research, the justification to use benefit transfer from Ruitenbeek is based on the good performance of mangrove forest in East Sinjai which is assumed almost similar with mangrove condition in Bintuni bay.This similarities could reduce some biases in the calculation.Total economic value of mangrove ecosystem in East Sinjai is IDR37,535,809,496 year .If it is calculated in .