Auri Agroforestry with Food Crops in Sumbawa Found Financially Viable

Image: article cover, from Yonky and Siarudin (2021), Jurnal Wasian, licensed CC BY-NC 4.0.

A research team from the Forestry Research and Development Institute for Agroforestry Technology has analysed the financial viability of an agroforestry system combining auri (Acacia auriculiformis) with rice, groundnuts, pigeon peas and maize in the Batulanteh Forest Management Unit (KPH), Sumbawa, West Nusa Tenggara. The findings, published in Jurnal Wasian in 2021, show that the system is financially viable.

This viability is reflected in a net present value (NPV) of Rp14,607,837, an internal rate of return (IRR) of 53 per cent and a benefit–cost ratio (BCR) of 1.51. For the general reader, a BCR above one means that the benefits obtained exceed the costs incurred. The system combines auri trees with food crops commonly grown by local communities, so that forest land yields not only timber but also food while the trees are still maturing.

The finding is significant because forest land in Indonesia frequently faces pressure from surrounding communities in need of land to cultivate. According to this research, planting trees alongside food crops can offer a middle way between the interests of forest managers and the needs of local residents. The study assesses only the financial aspect, so its results should be read as an indication of business viability rather than a guarantee of success in the field.

Source and how to cite

This story is based on the research article The Business Analysis of Acacia auriculiformis Agroforestry in Batulanteh Forest Management Unit, Sumbawa, West Nusa Tenggara by Yonky Indrajaya Yonky and Mohamad Siarudin Siarudin, published in Jurnal Wasian Vol. 8 No. 1 (2021). The full article is free to read on the Jurnal Wasian website.

Cite the original article (APA 7):

Yonky, Y. I., & Siarudin, M. S. (2021). The Business Analysis of Acacia auriculiformis Agroforestry in Batulanteh Forest Management Unit, Sumbawa, West Nusa Tenggara. Jurnal Wasian, 8(1), 25–35. https://doi.org/10.62142/a96brp48

If you use these findings in coursework, a thesis or other writing, cite the original article above, not this news story. The original article is licensed CC BY-NC 4.0.