Abstract
Fieldwork in the village of Dadahup along the Lower Barito basin in Central Kalimantan (Southern Borneo, Indonesia) shows that smallholder rattan cultivation is financially profitable to smallholders and economically profitable to the nation. The financial net present value (NPV) for green and processed canes is Rp 828,000 and Rp 946,000;the economic rate of return is about 22% for both green and processed canes. The article contains a discussion of the methodology for evaluating the shadow price of a nontimber forest good.