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Evaluation of Natural Resources Depletion in Indonesia: A Natural Resource Accounting Approach
Dissertation Abstract:
The study evaluated the depletion of natural resources because of economic activity in Indonesia. The evaluation encompassed physical, economic, and national income based on sustainable economic development principles.
A natural resource accounting approach was applied in physical and monetary units. Net price method (NPM) and asset value approach (AVA) were used to come up with the economic accounts. Integration of the accounts into national accounts was done to estimate net (actual) national income and expenditures, in terms of the following: net domestic product (NDP), net national product (NNP), net national income (NNI), and net domestic investment (NDI).
Two natural resources found nationwide were included in the evaluation: forest (timber) and petroleum. Forest resource accounts encompassed natural dipterocarp forests (outer Java islands) and plantation forests (Java island).
Applying the approach showed that net addition in terms of area and volume of the forest resources in islands outside Java was found negative from 1968 to 1990. The major cause of the depletion was deforestation rather than logging. For plantation forests in Java, no change in terms of forest area stock was found, but change was noted in the forested area. However, the volume of the standing stock showed positive net changes from 1976 to 1990 because its depletion (harvest, etc.) was less than the forest stand growth. The forest timber stand of the plantation forest was domina ted by the younger age classes (immature timber stand) which tended to provide higher growth than its depletion.
The depletion of petroleum resource appeared relatively balanced with its discoveries in 1970-1990. However, without new discoveries henceforth, this resource may be completely exhausted by the year 2010.
Negative changes in the total natural resource accounts were detected through economic accounts using NPM within the 1983-1990 period. However, using AVA, it was determined that the negative changes occurred only within the 1983-1985 accounting period because of the inclusion of the predicted future income gained from these two natural resources. Integrating such charges into the national accounts showed that using net price method, the NNI and NDI were pos itive but lower than that calculated using the conventional method. Excluding petroleum discoveries from the accounts tended to emphasize that all income gained from natural resource extractions were used more to finance domestic investments rather than current consumptions.