Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia

Manifas Zubayr; Dudung Darusman; Bramasto Nugroho; Dodik Ridho Nurrochmat

doi:doi:10.11648/j.aff.20140303.17

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Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia

Manifas Zubayr, Dudung Darusman, Bramasto Nugroho, Dodik Ridho Nurrochmat

Published in Agriculture, Forestry and Fisheries (Volume 3, Issue 3)

Received: 24 May 2014 Accepted: 16 June 2014 Published: 30 June 2014

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Abstract

The use of forest area (UFA) is defined as utilization of a portion of forest land for any development purposes outside forestry without changing its function and designation. This study is aimed to explore the relationship of principal and agent in the UFA implementation. Based on the agency theory and using descriptive-qualitative methods, this study identified specific relationship characteristics, i.e. the lack of authority in agent selection, the domination of principal on information, the moral hazard behavior of both principal and agent, the higher risk assumed by the principal, and the poor implementation of incentive structure. The relationship patterns did not occur only between principal and agent, but also among different principals and between one agent and another especially in cooperation and conflict relationship. This study confirmed that better implementations of UFA are strongly influenced by the efficiency of contractual agreement, the principal control on the process of UFA implementation, the agent commitment on the agreed contract and the amount of transaction costs.

Published in	Agriculture, Forestry and Fisheries (Volume 3, Issue 3)
DOI	10.11648/j.aff.20140303.17
Page(s)	181-188
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

The Use of Forest Area, Agency Theory, Principal, Agent

References

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APA Style

Manifas Zubayr, Dudung Darusman, Bramasto Nugroho, Dodik Ridho Nurrochmat. (2014). Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia. Agriculture, Forestry and Fisheries, 3(3), 181-188. https://doi.org/10.11648/j.aff.20140303.17

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ACS Style

Manifas Zubayr; Dudung Darusman; Bramasto Nugroho; Dodik Ridho Nurrochmat. Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia. Agric. For. Fish. 2014, 3(3), 181-188. doi: 10.11648/j.aff.20140303.17

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AMA Style

Manifas Zubayr, Dudung Darusman, Bramasto Nugroho, Dodik Ridho Nurrochmat. Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia. Agric For Fish. 2014;3(3):181-188. doi: 10.11648/j.aff.20140303.17

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@article{10.11648/j.aff.20140303.17,
  author = {Manifas Zubayr and Dudung Darusman and Bramasto Nugroho and Dodik Ridho Nurrochmat},
  title = {Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia},
  journal = {Agriculture, Forestry and Fisheries},
  volume = {3},
  number = {3},
  pages = {181-188},
  doi = {10.11648/j.aff.20140303.17},
  url = {https://doi.org/10.11648/j.aff.20140303.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.aff.20140303.17},
  abstract = {The use of forest area (UFA) is defined as utilization of a portion of forest land for any development purposes outside forestry without changing its function and designation. This study is aimed to explore the relationship of principal and agent in the UFA implementation. Based on  the agency theory and using descriptive-qualitative methods, this study identified specific relationship characteristics, i.e. the lack of authority in agent selection, the domination of principal on information, the moral hazard behavior of both principal and agent, the higher risk assumed by the principal, and the poor implementation of incentive structure. The relationship patterns did not occur only between principal and agent, but also among different principals and between one agent and another especially in cooperation and conflict relationship. This study confirmed that better implementations of UFA are strongly influenced by the efficiency of contractual agreement, the principal control on the process of UFA implementation, the agent commitment on the agreed contract and the amount of transaction costs.},
 year = {2014}
}

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TY  - JOUR
T1  - Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia
AU  - Manifas Zubayr
AU  - Dudung Darusman
AU  - Bramasto Nugroho
AU  - Dodik Ridho Nurrochmat
Y1  - 2014/06/30
PY  - 2014
N1  - https://doi.org/10.11648/j.aff.20140303.17
DO  - 10.11648/j.aff.20140303.17
T2  - Agriculture, Forestry and Fisheries
JF  - Agriculture, Forestry and Fisheries
JO  - Agriculture, Forestry and Fisheries
SP  - 181
EP  - 188
PB  - Science Publishing Group
SN  - 2328-5648
UR  - https://doi.org/10.11648/j.aff.20140303.17
AB  - The use of forest area (UFA) is defined as utilization of a portion of forest land for any development purposes outside forestry without changing its function and designation. This study is aimed to explore the relationship of principal and agent in the UFA implementation. Based on  the agency theory and using descriptive-qualitative methods, this study identified specific relationship characteristics, i.e. the lack of authority in agent selection, the domination of principal on information, the moral hazard behavior of both principal and agent, the higher risk assumed by the principal, and the poor implementation of incentive structure. The relationship patterns did not occur only between principal and agent, but also among different principals and between one agent and another especially in cooperation and conflict relationship. This study confirmed that better implementations of UFA are strongly influenced by the efficiency of contractual agreement, the principal control on the process of UFA implementation, the agent commitment on the agreed contract and the amount of transaction costs.
VL  - 3
IS  - 3
ER  -

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Author Information

Manifas Zubayr

Forestry Ministry of Indonesia, Jakarta, Indonesia
Dudung Darusman

Department of Forest Management, Bogor Agricultural University, Bogor, Indonesia
Bramasto Nugroho

Department of Forest Management, Bogor Agricultural University, Bogor, Indonesia
Dodik Ridho Nurrochmat

Department of Forest Management, Bogor Agricultural University, Bogor, Indonesia

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Plain Text BibTeX RIS

APA Style

Manifas Zubayr, Dudung Darusman, Bramasto Nugroho, Dodik Ridho Nurrochmat. (2014). Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia. Agriculture, Forestry and Fisheries, 3(3), 181-188. https://doi.org/10.11648/j.aff.20140303.17

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ACS Style

Manifas Zubayr; Dudung Darusman; Bramasto Nugroho; Dodik Ridho Nurrochmat. Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia. Agric. For. Fish. 2014, 3(3), 181-188. doi: 10.11648/j.aff.20140303.17

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AMA Style

Manifas Zubayr, Dudung Darusman, Bramasto Nugroho, Dodik Ridho Nurrochmat. Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia. Agric For Fish. 2014;3(3):181-188. doi: 10.11648/j.aff.20140303.17

Copy | Download

@article{10.11648/j.aff.20140303.17,
  author = {Manifas Zubayr and Dudung Darusman and Bramasto Nugroho and Dodik Ridho Nurrochmat},
  title = {Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia},
  journal = {Agriculture, Forestry and Fisheries},
  volume = {3},
  number = {3},
  pages = {181-188},
  doi = {10.11648/j.aff.20140303.17},
  url = {https://doi.org/10.11648/j.aff.20140303.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.aff.20140303.17},
  abstract = {The use of forest area (UFA) is defined as utilization of a portion of forest land for any development purposes outside forestry without changing its function and designation. This study is aimed to explore the relationship of principal and agent in the UFA implementation. Based on  the agency theory and using descriptive-qualitative methods, this study identified specific relationship characteristics, i.e. the lack of authority in agent selection, the domination of principal on information, the moral hazard behavior of both principal and agent, the higher risk assumed by the principal, and the poor implementation of incentive structure. The relationship patterns did not occur only between principal and agent, but also among different principals and between one agent and another especially in cooperation and conflict relationship. This study confirmed that better implementations of UFA are strongly influenced by the efficiency of contractual agreement, the principal control on the process of UFA implementation, the agent commitment on the agreed contract and the amount of transaction costs.},
 year = {2014}
}

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TY  - JOUR
T1  - Principal-Agent Relationship in Policy Implementation of the Use of Forest Area for Mining Activity, Indonesia
AU  - Manifas Zubayr
AU  - Dudung Darusman
AU  - Bramasto Nugroho
AU  - Dodik Ridho Nurrochmat
Y1  - 2014/06/30
PY  - 2014
N1  - https://doi.org/10.11648/j.aff.20140303.17
DO  - 10.11648/j.aff.20140303.17
T2  - Agriculture, Forestry and Fisheries
JF  - Agriculture, Forestry and Fisheries
JO  - Agriculture, Forestry and Fisheries
SP  - 181
EP  - 188
PB  - Science Publishing Group
SN  - 2328-5648
UR  - https://doi.org/10.11648/j.aff.20140303.17
AB  - The use of forest area (UFA) is defined as utilization of a portion of forest land for any development purposes outside forestry without changing its function and designation. This study is aimed to explore the relationship of principal and agent in the UFA implementation. Based on  the agency theory and using descriptive-qualitative methods, this study identified specific relationship characteristics, i.e. the lack of authority in agent selection, the domination of principal on information, the moral hazard behavior of both principal and agent, the higher risk assumed by the principal, and the poor implementation of incentive structure. The relationship patterns did not occur only between principal and agent, but also among different principals and between one agent and another especially in cooperation and conflict relationship. This study confirmed that better implementations of UFA are strongly influenced by the efficiency of contractual agreement, the principal control on the process of UFA implementation, the agent commitment on the agreed contract and the amount of transaction costs.
VL  - 3
IS  - 3
ER  -

Copy | Download