Assessment of the multifunctional role of wetlands in Indonesia: a case study in West Java Province
Abstract Agricultural activities in paddy fields (wetlands) producing products and sell that product, and also generate desirable or positive externalities as environmental services. Environmental services and the products that sell to the market are called multifunctional agriculture (MFA). This study aims to evaluate and economically assess the multifunctional role of wetland areas in Indonesia by taking the case of the West Java region. This study uses secondary data and data collected from various institutions and publications. This study uses the replacement cost method (RCM) to investigate the economic value of the role of MFA in wetland farming systems. The results show that the total value of environmental products and services marketed in wetland areas in West Java Province is around USD 36.59 billion per year or USD 39.41 million per hectare per year. The policy implications of this research are (1) attracting the maximum capacity of the stakeholders and community to participate in all the programs planned to protect, preserve and conserve the environment; (2) parting, endorsing, and strengthening the government and communities in the downstream area to invest in rehabilitating the upstream and middle watersheds; and (3) in per hectare a year, excluding the price of the land itself, the cost of building paddy fields, and the value of other infrastructure and facilities, USD 39.41 million is the replacement cost value if the rice fields are to be converted to non-agricultural use and replaced by the construction of rice fields new in other areas that are still possible.