Transaction Cost of Forest Utilization Licenses in Indonesia
Abstract: Forest resource
management has a characteristic of high transaction cost particularly due to
lack of valid information and policy process. Such characteristic requires
unique institution to ensure an effective policy implementation. This study
shows that state has inadequate control over forests and forest governance,
extra-legal access, as well as patron-client relationships as the causes of the
high transaction costs. Consequently, more and more the natural production
forests are degraded and this does not only cause loss of state revenue from
natural resources, but also a bankruptcy of corporations which exploit natural
production forests.
Keywords: high transaction
costs, institution, extra-legal access, patron-client, natural production
forests
Author: Hariadi Kartodihardjo
Journal Code: jpkehutanangg150017
