Proceedings of The 2nd International Conference On Advance And Scientific Innovation, ICASI 2019, 18 July, Banda Aceh, Indonesia

Research Article

Economic Impact of Microhydro Power Project in Jambi Province, Indonesia

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  • @INPROCEEDINGS{10.4108/eai.18-7-2019.2288677,
        author={Rizal  Bahtiar and A. Faroby Falatehan and Deffi Ayu Puspito Sari and Suyono  Thamrin},
        title={Economic Impact of Microhydro Power Project in Jambi Province, Indonesia},
        proceedings={Proceedings of The 2nd International Conference On Advance And Scientific Innovation, ICASI 2019, 18 July, Banda Aceh,  Indonesia},
        publisher={EAI},
        proceedings_a={ICASI},
        year={2019},
        month={11},
        keywords={green energy less carbon development opportunity cost productivity approach remote area power supply},
        doi={10.4108/eai.18-7-2019.2288677}
    }
    
  • Rizal Bahtiar
    A. Faroby Falatehan
    Deffi Ayu Puspito Sari
    Suyono Thamrin
    Year: 2019
    Economic Impact of Microhydro Power Project in Jambi Province, Indonesia
    ICASI
    EAI
    DOI: 10.4108/eai.18-7-2019.2288677
Rizal Bahtiar1, A. Faroby Falatehan1, Deffi Ayu Puspito Sari2,*, Suyono Thamrin3
  • 1: Department of Resource and Environmental Economics, Faculty of Economics and Management, Bogor Agricultural University
  • 2: Environmental Engineering Program Study, Universitas Bakrie
  • 3: Defense Industry Program Study, Indonesia Defense University
*Contact email: deffi.sari@bakrie.ac.id

Abstract

The objective of this study is to analyse the economic impact of a micro-hydro plant in Jambi to society around this micro-hydro plant. This study was conducted in Jambi Province Indonesia at Merangin and Mamasa Regency, Indonesia from January – December 2015. Primary data was collected by interview and observation. Analysis of Productivity Approach and Opportunity Cost was done to reveal the economic impact of a micro-hydro plant in Sungai Tenang District. From the result, micro hydropower has considerable benefit in Sungai Tenang District; total value of the benefits obtained is IDR 77.83 billion per year. Communities’ revenue through the economic enterprise that does not divert the function of forest needs to be improved. So the electrical energy independence in the community can be created. To fulfil the independence management of micro hydropower, economic treatment is needed especially in increasing of revenue. Micro hydro power also has a positive impact on the forest conservation on upper river area. Micro hydro power improvement must coincide with the non-timber forest revenue increasing program or other businesses that do not divert the function of the forest