ASSESSING THE IMPACT OF MANGROVES IN TRADITIONAL SHRIMP FARMING IN THE MAHAKAM DELTA USING A COST BENEFIT ANALYSIS

Mangroves began rapidly converting into shrimp-farming ponds in the Mahakam Delta, East Kalimantan, Indonesia. In 2000, the government launched the mangrove reforestation project, but the expected outcome was not achieved. Evaluation and recommendations are needed to attain the economic and environmental sustainability benefits of ponds with planted mangrove plants mandated by the government. This study examined the feasibility indicators of ponds with and without mangrove systems and analysed the feasibility of aquaculture pond performance. The results showed that the polyculture ponds with mangroves were more beneficial than the other pond systems, accruing more than 3.55 million IDR/ha/yr in net income. The polyculture pond with 10% mangroves showed the highest feasibility and benefits. The NPV, IRR, BCR, and PP were IDR72 million/ha/yr, 22%, 2 and 4.8 years, respectively. Therefore, the polyculture ponds with 10% mangroves were the best recommendation for farmers for the next 25 years. Government policy should facilitate improving environmental quality and sustainability in the Mahakam Delta.