Curbing Illegal Grazing Through Mediating Interests of Local Communities in East Nusa Tenggara Province, Indonesia

Rahman Kurniadi(1), Retno Maryani(2), Lukas Rumboko Wibowo(3), Budiyanto Dwi Prasetyo(4), Retno Setyowati(5),


(1) Forestry and environment research and development institute of Kupang
(2) Center for research and development of social, economic, policy, and climate change
(3) Center for research and development of social, economic, policy, and climate change
(4) Environment and forestry research and development institute of Kupang
(5) Environment and forestry research and development institute of Kupang

Abstract

Communities living surrounding forest  have  used state forest for grazing area  in East Nusa Tenggara Timur Province, Indonesia for a long time.  However, Indonesia government have not given them a permit for managing state forest. Government will  involve communities in state forest management   to generate people income but government ,as a principal, was worried that the communities, as agent,  will act in the way contrary to the interest of government. We used  a principal agent theory to analyze principal agent problems which will occur if  communities manage  state forest for  silvopasture purpose. The research showed that there are some principal agent problems in silvopasture contract if government give communities a permit for silvopasture purpose, i.e.  communities, as agent, are  not willing  to plant trees and keep forest. Government must control communities to prevent some principal-agent problems in silvopasture contract.

Keywords

principal agent problem, silvopasture, community, forest

Full Text:

PDF

References

Bogle, T. and van Kooten, G. C. (2013) ‘Options for maintaining forest productivity after natural disturbance: A principal-agent approach’, Forest Policy and Economics, 26, pp. 138–144. doi: 10.1016/j.forpol.2012.09.005.

Guo, C. and Tang, Y. (2015) ‘Research on principal-agent problem of tourism attractions development: a case study of Kaiping Diaolou’, Journal of Sustainable Development, 8(6), pp. 119–126. doi: 10.5539/jsd.v8n6p119.

Jensen, M. and Meckling, W. (2012) ‘Theory of the firm: Managerial behavior, agency costs, and ownership structure’, in The Economic Nature of the Firm: A Reader, Third Edition. doi: 10.1017/CBO9780511817410.023.

Jost, P.-J. (1991) ‘Monitoring in principal-agent relationships’, Jornal of institutional and Theoretical economics, 147(3), pp. 517–538.

van Kooten, G. C. (2017) ‘Forest carbon offsets and carbon emissions trading: Problems of contracting’, Forest Policy and Economics, 75, pp. 83–88. doi: 10.1016/j.forpol.2016.12.006.

Kurniadi, R. (2017) Model tata kelola silvopastur lestari di pulau Timor.

Laffont, J. J. and Martimort, D. (2009) The theory of incentives: The principal-agent model, The Theory of Incentives: The Principal-Agent Model.

Page, F. H. (1991) ‘Optimal contract mechanisms for principal-agent problems with moral hazard and adverse selection’, Economic Theory, 1(4), pp. 323–338. doi: 10.1007/BF01229312.

Resosudarmo, I. A. P. et al. (2019) ‘Indonesia’s land reform: Implications for local livelihoods and climate change’, Forest Policy and Economics. Elsevier, 108, pp. 1–14. doi: 10.1016/j.forpol.2019.04.007.

Roach, C. M. L. (2016) ‘An Application of Principal Agent Theory to Contractual Hiring Arrangements within Public Sector Organizations’, Theoretical Economics Letters. doi: 10.4236/tel.2016.61004.

Sappington, D. E. M. (1991) ‘Incentives in principal-agent Relationships’, The Journal of Economic Perspectives, 5(2), pp. 45–66.

Shah, S. N. (2015) ‘The Principal–Agent Problem in Finance (a summary)’, Research Foundation Publications.

Sobel, J. (1993) ‘Information control in the principal-agent Problem’, International Economic Review, 34(2), pp. 259–269.

Refbacks

  • There are currently no refbacks.




Copyright (c) 2020 KOMUNITAS: INTERNATIONAL JOURNAL OF INDONESIAN SOCIETY AND CULTURE

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.