An Analysis on the Growth and Financial Feasibility of Shorea Ovalis and Shorea Balangeran Plantation Forest with Restoration using Indonesian Silvicultural Systems as a Model for Sustainable Natural Forest Management in East Kalimantan Province

Mitsuaki Sawada, Abubakar M. Lahjie, B.D.A.S Simarangkir


This research aims to analyze (1) the growth and distributions of stand diameter and (2) to analyze the financial feasibility of dipterocarp  plantation forest restored using Indonesian Silvicultural Systems as a model for sustainable natural forest management (SNFM) in East Kalimantan, located exactly at PT Balikpapan Forest Industry, applying the theory of production to estimate the increment and basal area while the financial feasibility was analyzed using Net Present Value (NPV), Net B/C ratio dan IRR.

This research applied scientific methods and the data were obtained up to ten years and then predicted and simulated up to 50 years.

The research findings showed that S.ovalis is harvested for the first time at the age of 35 years with the total volume of 97.31 m3 even though the maximum mean increment is achieved at the age of 45;  and subsequent harvests are performed every 15 years. S. balangeran is harvested for the first time at the age of 40 years with the total harvest volume reaching 112.95 m3 although the maximum  average increment is achieved at the age of 50 years and subsequent harvests are performed in every 20 years.

Restoration using Indonesian Silvicultural System Model has more comparative advantages compared with other natural silvicultural system. This model is more productive, having shorter cutting cycles, more profitable, having clearer analysis on its ecological growth.

The result of financial analysis using Net Present Value, Net B/C and IRR model proved that S. ovalis and S. Balangeran were feasible to cultivate because the values of their IRR was higher than the value of their MAR.

Keywords: Restoration, Increment, Finance, Dipterocarps

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