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Indirect Economic Value of Mangrove Ecosystem in the North Coastal of Sikka

Regency in Disaster Mitigation

Conference Paper in IOP Conference Series Earth and Environmental Science · August 2023
DOI: 10.1088/1755-1315/1224/1/012016

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ICTCRED 7th-2022 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 1224 (2023) 012016 doi:10.1088/1755-1315/1224/1/012016

Indirect Economic Value of Mangrove Ecosystem in the North

Coastal of Sikka Regency in Disaster Mitigation

B P P W Bhokaleba1*, Erfin1, and P B Utami2,3

1
Department of Aquatic Resources Management, Faculty of Marine Science and
Fisheries, Nusa Nipa University, Kesehatan St Number 03, Maumere 86111
2
Department of Aquatic Resources Management, Faculty of Agriculture, Tanjungpura
University, Prof Hadari Nawawi St, West Kalimantan 78124
3
Yayasan Ekonomi Keanekaragaman Hayati Laut Indonesia, Samarinda, 75117
Email: bebbapablo@gmail.com

Abstract. The earthquake disaster history in the Nusa Tenggara region recorded above
7 SR followed by tsunami happens in several locations such as Maumere, Alor, and
most recently in Larantuka. Due to this history, community understanding is needed in
the mitigation of disasters' impact. Therefore, this research aims to identify the economic
value of the mangrove ecosystem as an area that protects coastal communities from
tsunami disasters. The analysis used was willingness to pay (WTP) and willingness to
accept (WTA). The WTP value was analyzed from 3 different perspectives such as the
perspective of the people who experienced the tsunami disaster in 1992, the perspective
of the local government and other institutions responsible for the disaster, and the
perspective of people who did not have experience with tsunami disasters. Meanwhile,
the WTA assessment was conducted on the manager of Magepanda Mangrove Area.
Respondents consisted of 35 residents who experienced the tsunami disaster, 35
residents who never experienced the disaster, 20 respondents from Regional Apparatus
Organizations and other stakeholders, and 5 mangrove managers in Reroroja Village,
Magepanda sub-district. The WTA calculation indicated that the three stakeholder
institutions experienced significant changes in positive externalities, and 60% of
respondents chose to receive compensation funds for these positive externalities.
Meanwhile, the 40% was in the form of infrastructure development/repairment.
Interestingly, the WTP average of respondents who experienced a disaster and
respondents who did not experience disaster was not very significant, namely $ 0.81 and
$ 0.57. This was caused by 48% of respondents who never experienced a tsunami
disaster, who had already known the impact caused by the tsunami, and 86% already
known the ecological function of mangrove forests. Thus, these two things encouraged
them to provide high value for the mangrove ecosystem. WTP given by policymakers
had an average value of $1.86. The perspective of respondents in providing the value
was very realistic because 95% of respondents had ever seen the mangrove ecosystem
condition in Magepanda.

Content from this work may be used under the terms of the Creative Commons Attribution 3.0 licence. Any further distribution
of this work must maintain attribution to the author(s) and the title of the work, journal citation and DOI.
Published under licence by IOP Publishing Ltd 1
ICTCRED 7th-2022 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 1224 (2023) 012016 doi:10.1088/1755-1315/1224/1/012016

Introduction
The earthquake disaster history in the Nusa Tenggara region recorded above 7 SR followed by tsunami
happens in several locations such as Maumere, Alor, and most recently in Larantuka. Mangrove
ecosystem experienced a significant reduction due to the 1992 tsunami. The earthquake triggered a
tsunami wave and damaged houses and other infrastructure on the North Coast of Flores Island. In
Maumere, a place located in Sikka Regency, the tsunami disaster claimed at least 1,952 lives. This
disaster is the background of the existence of the Magepanda mangrove area that thrives to this day. The
mangrove forest in Reroroja Village is the result of the hard work of the community, especially Victor
Emanuel Rayon, better known as Babah Akong, Head of the Sabar Subur Group, who has been planting
since 1993 [1].
In previous studies, many economic valuation calculations used the indirect value of the role of the
mangrove ecosystem as a coastal protection belt using replacement cost analysis. The analysis used a
replacement cost approach if the government built a dike or breakwater with the same size and thickness
as the mangrove ecosystem [2-5]. The present study reveals the community's perspective on the role of
the mangrove ecosystem as a protector from the tsunami disaster.
More specifically, this study investigates the level of community perspective in monetizing the function
of the mangrove ecosystem as a barrier to tsunami waves. This investigation seeks to find out the four
different groups of respondents’ perspectives. The first and foremost was the perspective of the people
who experienced the tsunami disaster in 1992. The second was the perspective of the local government
and other institutions responsible for the disaster. The third was the perspective of people who did not
have experience with tsunami disasters. The last was the perspective of the daily manager of the
mangrove area, who had experience in the 1992 tsunami and planting mangrove plants to prevent this
incident from happening again.

Materials and Methods

This research is survey research, which used primary data and secondary data. Primary data was sourced
from surveys conducted with various groups of respondents at the point of the observation area, while
secondary data was obtained from literature studies of documents originating from various related
agencies. Secondary data were collected from February 2022, while primary data was collected from
June 2022 to July 2022. Primary data was collected using in-depth interviews and distributing
questionnaires to respondents [6]. Respondents consist of 35 residents who have experienced the tsunami
disaster, 35 residents who have never experienced the disaster, 20 respondents from Regional Apparatus
Organizations and other stakeholders, and 5 mangrove managers in Reroroja Village, Magepanda sub-
district. The selection of mangrove functions as coastal protection against disasters refers to several
previous studies [7-9]. This was done by calculating the valuation of mangrove resources, the
abrasion/flood/disaster barrier function being one of the main ecological functions of this ecosystem.
Willingness to Pay (WTP) and Willingness to Accept (WTA) were used to determine the extent to which
respondents assessed the function of mangroves [10-11]. However, to minimize errors in conclusions
about the factors that drive the value of WTP, we applied a multivariate regression framework by
including control variables such as age and area of residence. To investigate the potential determinants
of WTP, we performed several multiple regressions using the Ordinary Least Squares (OLS) method.
To prevent the regression model from making negative predictions of the WTP number, and to account
for the slope of the value distribution, we apply the natural logarithm to the WTP value. The basic linear
regression model takes the following form [12-13] : ln(𝑊𝑇𝑃) = 𝛽0 + 𝑋 ′ 𝛽𝑗 + 𝛾𝐷 + 𝛿𝑠 + 𝜀 , where
𝑗
WTP is the amount in Rupiah that an individual is willing to pay for the mangrove function, X is the
vector of the control variables, and D represents the main determinant of interest (especially previous
disaster experience).

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ICTCRED 7th-2022 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 1224 (2023) 012016 doi:10.1088/1755-1315/1224/1/012016

A combination of approaches was also applied such as single bids and multiple bids. The use of multiple
bids was critically evaluated in the field during the pre-survey to avoid inefficiencies due to frequent
inconsistent answers, especially between the first and second bids. WTP and WTA of users used a
dichotomous choice question format. Two bounded procedures used in CVM were single and multiple
bounded dichotomous options. If the user is purely a buyer, the WTP is evaluated against the prevailing
market price which is generally higher measured by nominal or relative value. If the user is the seller,
the WTA offered is generally lower than the market price [14-15]. The following is a series of flow
diagrams that illustrates this study.

Figure 1. Flow Diagram of Research

Based on the flow diagrams above, it can be seen that the mangroves are monetized as a barrier to the
tsunami disaster by calculating economic valuations. In addition to having an ecological function,
mangroves also have an indirect use value. The calculation uses WTP and WTA. The results of this
calculation provide recommendations for stakeholders in creating policies for the management and
utilization of mangrove forests. The purpose of this study was to determine the level of community
perspective in monetizing the function of the mangrove ecosystem as a barrier to tsunami waves.

Result and Discussion

Sikka Regency, East Nusa Tenggara Province is located at coordinates 8°22' South Latitude to 8°50'
South Latitude and 121°55'40" East Longitude to 122°41'30" East Longitude.

Figure 2. Research Location

The North Coast Region of Sikka Regency includes eight sub-districts, namely: Magepanda, West Alok,
Alok, East Alok, Kangae, Kewapante, Waigete, and Talibura. The distribution of mangrove areas is only
on the north coast of the district, stretching from the west to the east, and small islands in the north.
Based on field observations, the types of mangroves that grow in Reroroja Village, Magepanda include
Avicennia alba, Bruguiera gymnorrhiza, Ceriops tagal, Rhizopora apiculata, and Sonneratia alba. The

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ICTCRED 7th-2022 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 1224 (2023) 012016 doi:10.1088/1755-1315/1224/1/012016

northern and southern parts of Reroroja Village, Magepanda have quite dense mangroves, while the
mangrove conditions in the middle part of Reroroja Village, Magepanda are seen as sparse.
The research location is Reroroja Village, Magepanda sub-district, which is part of the western part of
the mangrove area. According to [16], the condition of mangrove cover decreased from 1991 to 2006,
then increased again until 2016. The decline in mangrove cover was caused by land conversion and the
natural disaster of the 6.8 SR tsunami on December 12, 1992. Furthermore, the condition of mangrove
cover on the north coast of Sikka Regency has been recovering since 2006 due to several causes, namely
natural environmental factors that allow mangroves to grow well, reduced pressure, land conversion by
residents, and mangrove restoration programs by the community, government and NGOs. The most
dominant mangrove species on the north coast of Sikka Regency include Sonneratia alba, Rhizopora
apiculata, Avicennia marina, Lumnitzera racemora, Rhizopora mucronata, Bruguiera gymnorrhiza,
XylocaIDRus granatum Wetlandts IIP-PfR in [17] and Avicennia mucronata [18].

The mangrove forest in Reroroja Village, Magepanda has an important value as the main key in
providing food for organisms that live around mangroves such as shrimp, crabs, fish, birds, and
mammals. Mangroves are also a feeding ground for the organisms in them. Because it is possible for
mangroves to protect the life of the organisms in them, the mangrove forest is also used as a gathering
place and a nursery ground for fish, especially for young shrimp, fish, and other marine biotas. In
addition, with their unique shape, mangrove forests also provide an excellent and ideal place for the
spawning ground for marine life in it. The existence of shrimp and fish can be seen in the catches of
fishermen who catch fish in the mangrove forest area [19-20].

In its development, the function of the mangrove ecosystem as the main alternative to reduce the impact
of disasters is increasingly shifting. The Magepanda mangrove area is now one of the ecotourism
destinations for the surrounding community. The mangrove area of Reroroja Magepanda Village was
first opened for ecotourism activities around 2015 [21]. The group managing this ecotourism area then
built a bamboo bridge and shelter for visitors. Ecotourism in this area is functions as a place of recreation,
research, and photo spot. The income from ecotourism activities is partly used for the maintenance of
mangrove forest areas and partly used to meet the household needs of members of the area management.

Public awareness in conducting natural tourism experiences is increasing, to fulfill one of their needs.
Public awareness of the ecological function of mangroves as a vital protector from the tsunami disaster
is expected to be directly proportional to the awareness of natural tourism. Therefore, this study
classified two different categories of people who travel in the Magepanda area, namely the people who
were victims of the tsunami disaster in 1992, and people who had never had experience with tsunami
disasters.

The community's perspective regarding the role of mangroves greatly determines how respondents
assess the ecological function of mangroves. In order to make the assessment more focused and
balanced, this research also involved other stakeholders outside the Magepanda area management group
in the assessment of mangrove functions. Based on the results of primary data collection, there were 35
respondents who had no experience with tsunami disasters; 35 respondents who have experience with a
tsunami disaster; and 20 respondents from several institutions with interests in the Magepanda Mangrove
Area.

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ICTCRED 7th-2022 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 1224 (2023) 012016 doi:10.1088/1755-1315/1224/1/012016

Estimated WTP Mean Score

In the Willingness to Pay (WTP) group who have no experience with disasters, all of them were willing
to pay for mangrove ecological services outside of the entrance fee imposed by the Magepanda manager.
This is quite reasonable, because 50% of them claimed to know about the tsunami disaster, although
they did not know for sure the impact it had. After being given an understanding by the enumerators
regarding the tsunami disaster, the impact of its damage, as well as the role of mangroves in minimizing
the impact, 100% of the respondents felt the important role of mangrove forests. Thus, it caused all
respondents to be willing to issue their WTP values.

The following is a table of the average WTP scores given by people who have no experience of a tsunami
disaster. On average, each respondent gave IDR 8,429 per one-time entry as a value of their appreciation
for the function of mangroves as one of the disaster mitigation efforts, excluding the entrance fee charged
by the Magepanda mangrove manager. So, if the WTP given by all respondents is accumulated, the
value obtained is IDR 295,000.

Table 1. The average WTP scores given by people who have no experience
of a tsunami disaster
WTP Value Frequency Relative Mean WTP
No (IDR) (People) Frequency (IDR)
1 50,000 0 0.00 0,00
2 25,000 3 0.09 2,142.86
3 20,000 2 0.06 1,142.86
4 15,000 1 0.03 428.57
5 10,000 4 0.11 1,142.86
6 5,000 25 0.71 3,571.43
Total 35 1.00 8,428.57

The next group was the people who had experienced the tsunami disaster. All respondents were over the
age of 30 years and had been domiciled in Magelo`o for more than 26 years. All respondents knew with
certainty the impact caused by the tsunami, and 95% admitted that they had lost their property, as well
as their relatives, due to the tsunami disaster. What is interesting is that 2 out of 35 respondents admitted
that they did not know the ecological function of mangroves during the interview. However, all
respondents were willing to pay for mangrove ecosystem services, with an average value per person, per
one visit, IDR 11,857. The data are presented in the table below.

Table 2. The average WTP scores given by people who have experience
of a tsunami disaster
WTP Value Frequency Relative Mean WTP
No (IDR) (People) Frequency (IDR)
1 50,000 2 0.06 2,857.14
2 25,000 1 0.03 714.29
3 20,000 5 0.14 2,857.14
4 15,000 0 0.00 0.00
5 10,000 11 0.31 3,142.86
6 5,000 16 0.46 2,285.71
Total 35 1.00 11,857.14

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ICTCRED 7th-2022 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 1224 (2023) 012016 doi:10.1088/1755-1315/1224/1/012016

When viewed from the frequency distribution generated, the value of the WTP of groups that had
experienced a tsunami disaster tends to have a wider distribution than the group who had no experience
with disasters. The WTP value of IDR 5,000 was the most chosen value from the two groups. In total,
the WTP value of the group who had experienced tsunami disaster in paying for the function of
mangroves as protection from disasters was IDR 415,000.

The WTP value also came from other stakeholders totaling 20 respondents from five institutions, namely
Reroroja village, Magepanda sub-district, UPT Forest Management Unit for Sikka Regency, Fisheries
Service of Sikka Regency, and Marine and Fisheries Service of East Nusa Tenggara Province. All
respondents had lived in NTT for more than 26 years, and all were aware of the tsunami disaster,
although only two respondents did not know the impact caused by the disaster. The five institutions
already had work programs related to the disaster mitigation in coastal areas, for examples, mangrove
planting, the socialization of resilient villages and disaster mitigation, and the socialization of mangrove
forest care.

The average WTP value generated from 20 respondents was IDR 27,250, this value was much higher
than that given by the community. The highest frequency was IDR 50,000 with 7 respondents. This is
very reasonable, because the five stakeholders have much higher interests than the community. Thus,
the accumulated value of willingness to pay of this group was around IDR 545,000. The following table
shows the average value of WTP given by 20 respondents.

Table 3. The average value of WTP given by stakeholders

WTP Value Frequency Relative Mean WTP
No (IDR) (People) Frequency (IDR)
1 60,000 1 0.05 3,000.00
2 50,000 7 0.35 17,500.00
3 25,000 3 0.15 3,750.00
4 20,000 0 0.00 0.00
5 15,000 0 0.00 0.00
6 10,000 3 0.15 1,500.00
7 5,000 6 0.30 1,500.00
Total 20 1.00 27,250.00

People who had experienced the tsunami disaster on the north coast of Sikka Regency were willing to
pay a total WTP of IDR 415,000, while people who had no experience with the disaster were willing to
pay a total WTP of IDR 295,000. On the other hand, the government/stakeholders were willing to pay a
total WTP of IDR 545,000. People who have experienced the tsunami disaster tend to pay higher than
those who had not. Several variables were observed, including age, income, length of stay in NTT,
information on the occurrence of the tsunami disaster, and the level of importance of mangrove
ecosystem functions. These variables were analyzed using Ordinary Least Squares (OLS) to see their
effect on the willingness to pay of respondents who were not affected by the tsunami disaster in the
northern coastal mangrove forest area of Sikka Regency. From the results of multiple regression
analysis, the equations obtained are:

𝑌 = −348,82 + 347,47 𝑋1 + 673,76 𝑋2 + 387,80 𝑋3 − 459,58 𝑋4 + 1585,91 𝑋5 + 𝜀 … (1)

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ICTCRED 7th-2022 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 1224 (2023) 012016 doi:10.1088/1755-1315/1224/1/012016

Partially, only the factor of information on the occurrence of the tsunami disaster had a negative effect.
Meanwhile, other factors such as age, income, length of stay in NTT and the level of importance of
mangrove functions had a positive effect. The tsunami disaster information variable shows a negative
value, meaning that the high number of respondents who know about the disaster is not proportional to
the WTP value.
The second analysis is the Willingness to Accept (WTA). It is deals with how WTP value is accepted
and used by the mangrove area manager. WTA is a willingness to accept the form of compensation for
the Magepanda Mangrove Area as a protector from the tsunami disaster. All respondents are willing to
receive compensation in the form of infrastructure improvements, infrastructure development and
compensation funds. The percentage of compensation forms is presented in Figure 3 bellow.

Figure 3. The Percentage of the Expected Form of Compensation

20% of respondents expect infrastructure improvements such as improving road access to mangrove
areas and repairing bridges in mangrove areas. Another 20% of respondents expect compensation in the
form of infrastructure development, such as roads and construction of toilet facilities at the village level.
Meanwhile, 60% of respondents expect aid in the form of money as compensation for planting and
caring for mangroves. Respondents also hoped that boots, hoes and crowbars would be provided for
mangrove planting activities. The government's attention regarding compensation funds for mangroves
and disasters is carried out gradually according to its capacity. The Reroroja Village Government has
carried out several programs including planting mangrove and hibiscus seedlings; capacity building of
the Disaster Risk Management Forum; making a village regulation on the protection of marine and
coastal areas Number 5 of 2017 with funding sources from the village; guidance, assistance and
motivation in disaster mitigation efforts by the Magepanda sub-district government; development of
resilient coastal villages by the Fisheries Service of Sikka Regency, socialization of disaster mitigation,
planting of coastal mangroves, and training on disaster preparedness and knowledge training on
evacuation routes. The budget is sourced from the Regional Revenue and Expenditure Budgets I and II,
and the Ministry of Marine Affairs and Fisheries; The Technical Implementation Unit of the Sikka
Regency Forest Management Unit has planted mangroves covering an area of 30 ha in 2020. Sources of
funds are from the Regional Revenue and Expenditure Budget I; The Department of Marine Affairs and
Fisheries of East Nusa Tenggara Province has rehabilitated coastal areas, planted mangroves, installed
evacuation routes, and disseminated disaster mitigation. The source of funds is from the Regional
Revenue and Expenditure Budget I. The motivation of managers to replant mangroves for sustainability
and disaster mitigation is because they have experienced the benefits of the existence of mangroves,
including: their homes have never experienced disasters such as sea level rise due to high tides and
storms, the air is clean and fresh, the number of flora and fauna increases, and the mangrove forest
becomes a place for ecotourism, research and education.

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ICTCRED 7th-2022 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 1224 (2023) 012016 doi:10.1088/1755-1315/1224/1/012016

Estimated WTA Mean Score

The estimated WTA mean value was calculated based on the respondents' WTA distribution data. The
distribution data of the respondents' WTA is presented in Table 4. The calculation of the estimated WTA
average value (EWTA) yields a value of IDR. 5,000. This value reflects the number of compensation
funds received by the manager per one visit to the mangrove tourism area.

Table 4. Distribution of WTA Respondents in Reroroja Village, Sikka Regency

WTP Value Relative Mean WTA
No (IDR) Frequency (People) Frequency (IDR)
1 75,000 0 0.00 0
2 25,000 0 0.00 0
3 15,000 0 0.00 0
4 5,000 5 1.00 5,000
5 2,000 0 0.00 0
Total 5 1.00 5,000

60% of what the manager expects was a compensation fund, where this fund can be used for various
needs to manage the Magepanda area. Based on the value of the WTA results, the manager expected
that per person, per one visit, excluding ticket fees, individual visitor pay IDR 5,000 for services
produced by the mangrove ecosystem in disaster mitigation. The value of IDR 5,000 was the value most
chosen by the community as the compensation value. So, this study also recommends the value of
mangrove ecosystem services in disaster mitigation at IDR 5,000 per person, per one visit, excluding
ticket fees charged by area managers.

Conclusion
People who have experienced the tsunami disaster tended to pay higher, namely IDR. 415,000 compared
to people who had no experience with tsunami, which was IDR. 295,000. Meanwhile, the government
and other stakeholders have a high interest in the mangrove ecosystem, so the value of their ability to
pay was higher than the two preceding groups of people above, which was IDR. 545,000. Meanwhile,
community groups managing mangrove forest areas recommended that the value of mangrove
ecosystem services as a tsunami barrier was only IDR 5,000, excluding ticket fees per individual visitor.
From this research, it is suggested that further research is needed on investigating the value of economic
losses in a more real way in areas that have experienced the tsunami disaster.

Acknowledgement
Thank you and very high appreciation to Ministry of Education, Culture, Research and Technology of
the Republic of Indonesia for the grant funds provided. Thanks a lot for Reroroja Village community
and mangrove stakeholders: Reroroja village government, Magepanda sub-district government,
Fisheries Service of Sikka Regency, Department of Marine Affairs and Fisheries of East Nusa Tenggara
Province, and UPT Forest Management Unit for Sikka Regency who gave the required data during the
research.

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