Estimation of part of the economic losses due to deforestation in West Kalimantan, Indonesia, using a TEV-based provincial assessment framework

Abstract. Yani A, Febryano IG, Duadji N, Tresiana N. 2026. Estimation of part of the economic losses due to deforestation in West Kalimantan, Indonesia, using a TEV-based provincial assessment framework. J Asia for 10 (2): r100201. https://doi.org/10.13057/asianjfor/r100201. Deforestation in West Kalimantan, Indonesia, represented by the reduction of forest areas and the depreciation of natural capital, has an impact on ecosystem stability, regional development, and the well-being of local communities. The study analyzed the dynamics of annual deforestation during 2015-2024 and estimated some partial economic losses based on Total Economic Value (TEV) by integrating five components of the assessment: loss of forest resources, loss of carbon emissions, loss of hydrological function, loss of health burden, and loss of productivity. Annual secondary data from Global Forest Watch is monetized using coefficients compiled from official government-published statistics, policy references, and relevant literature. Since direct coefficients at the provincial level are not available, conservatively standardized transfer or proxy values are used based on 2024 IDR and are treated as a partial approach at the provincial level. Cumulatively, forest area losses reached 440,409.2 ha, decreasing from 111,154.0 ha in 2015 to 7,872.8 ha in 2022, which further increased again to 39,598.0 ha in 2024. The estimated cumulative partial economic loss reached IDR 4.854 trillion. The value of carbon emission loss is the dominant component, which is IDR 4.217 trillion (86.88%), which is followed by the loss of forest resources (9.99%), then the loss of productivity (2.54%), the loss of hydrological function (0.40%), and the loss of health burden (0.19%). Deterministic sensitivity analysis conducted using a coefficient variation of ± 20% yielded a cumulative range of IDR 3.883-5.824 trillion with the same interpretation. These results provide evidence to support prudent decisions that impact the economic risks of West Kalimantan Province, but remain partial because biodiversity assessments, costs of social conflict, cultural value, and long-term ecosystem restoration costs have not been monetized.