Impact and economic value of agricultural land conversion in sub-urban of Bantul Regency

Department of Environmental Geography, Faculty of Geography, Universitas Gadjah Mada, Bulaksumur, Yogyakarta 55281, Indonesia

^* Corresponding author: hestina.fandani@mail.ugm.ac.id

Abstract

Increasing the number of populations in urban areas results in increasing the need for shelter and food, while the land area is limited. This has led to a conversion of agricultural land to non-agricultural land, especially in sub-urban areas that directly adjacent to urban areas. This study aimed to identify the impact of agricultural land conversion, and also to estimate the economic value of paddy land loss in sub-urban of Bantul Regency. Data were collected through structured interviews, institutional data, and literature reviews. These data were analyzed in a quantitative descriptive. Most of the paddy fields are converted for home and housing, partially used for economic activities that have higher land rent such as shops, boarding houses, and restaurants. The perceived impact is increasing air temperature, air pollution, also reduced employment opportunities and income from agricultural sector. The total economic value of the direct use obtained from the existence of agricultural land in Bantul sub-urban is IDR 96 806 832 ha^–1 yr^–1. It is includes the value of rice production of IDR 53 934 540 ha^–1 yr^–1, the value of employment opportunities is IDR 17 126 688 ha^–1 yr^–1 and the value of agricultural income is IDR 25 745 604 ha^–1 yr^–1.