Faustmann Formula Can Be Applied to Indonesian Natural Forest Management

Image: article cover, from Yonky (2018), Jurnal Wasian, licensed CC BY-NC 4.0.

The Faustmann formula, a forestry economics equation long used in plantation forests, can in fact be applied to the management of natural forests under selective cutting systems in Indonesia. This was concluded in research by Yonky Indrajaya of the Agroforestry Technology Research and Development Centre, published in the Journal Wasian in 2018. Until now, managers of natural forests in Indonesia have not used the formula in their decision-making, relying instead on silvicultural considerations, namely calculating the residual stand that can be harvested in the next cutting cycle.

The study examined the application of the Faustmann formula to the Indonesian Selective Cutting and Planting System (TPTI) currently in force. According to the research team, the formula can be used in selective cutting regimes in Indonesia if supported by a reliable growth model, namely a matrix transition model, and a robust damage model, that is, a transition matrix with different damage proportions for each species and diameter class. In this way, natural forest managers have the opportunity to obtain maximum profit while safeguarding forest sustainability.

For forest-dependent communities and natural forest managers, these findings offer a way of thinking that balances economic returns and sustainability more evenly. Until now, sustainability aspects have been assessed only from calculations of the residual stand, without taking economic profit into account. This research is a qualitative study based on a literature review, so its application in the field still requires further testing.

Source and how to cite

This story is based on the research article The Study of Faustmann Formula Application in Sustainable Natural Forest Management in Indonesia by Yonky Indrajaya Yonky, published in Jurnal Wasian Vol. 5 No. 1 (2018). The full article is free to read on the Jurnal Wasian website.

Cite the original article (APA 7):

Yonky, Y. I. (2018). The Study of Faustmann Formula Application in Sustainable Natural Forest Management in Indonesia. Jurnal Wasian, 5(1), 57–65. https://doi.org/10.62142/0wktcp40

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.