PRESERVATION MODEL FOR SUBAK IN BALI FROM ENVIRONMENTAL ECONOMICS PERSPECTIVE

Abstract

: This study aims to determine the social benefits, the total economic value of Subak and
preservation models of Subak in terms of the environment economics aspect. The research was conducted in
three Subaks: Subak Sangeh in Badung, Subak Bungan Kapal in Tabanan and Subak Padang Tegal in
Gianyar. The social benefits value of Subak was determined by calculating the values of direct use, indirect
use value and the value of alternative uses (option value), while the Total Economic Value was determined
by the sum of use value and non-use value. The determination of Subak preservation model utilized
investment eligibility criteria, namely Net Present Value (NPV) and Net Benefit Ratio (B/C). The findings
suggest that, regarding to the environmental economics aspect, the Subak system is feasible and worthwhile
to be preserved, as shown by social benefits NPV greater than zero and social benefits Net B/C greater than
one. Based on these findings, Subaks in Bali should be managed properly to sustain their environmental
functions and proper environmental economic assessment should be conducted as a reference for the efforts
to avoid the conversion of Subak farmlands into other functions.