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Abstract
Forest and peatland fires that occurred in the region of Riau was triggered by deliberate action. Combustion is a easy and cheap way to prepare the land that will be utilized. This study would like to see the economic impacts of fires on peatlands from the community side, because the communities are affected and has the potential as the prepetrator. Location of the study was conducted in Sub-District Pusako, and Sub-District Dayun, Siak District, Riau Province. The objective of this study are: (1) Estimating the economic impact of the community from peatland fires; (2) Analyzing the driving factors of the community conducting land clearing activities by burning. The methods used in the study are Cost of Illness, Loss of Earnings, Preventive Expenditure, and Descriptive Analysis. Total economic losses due to fires in peatland areas in 2015 were experienced by the householder (HH) in Dayun Subdistrict were Rp. 31.393.786.212 or Rp. 4.607.924/HH with the number of householders 6.813HH and the area of burned land 742,5ha. Total economic loss in Pusako District is Rp. 4.330.577.040 or Rp. 2.392.584/HH with the number of householders 1.810HH and the area of land burned 199,5ha. The driving factor for the community in conducting land clearing by burning is economic and social factors. Economic factors are cheap land clearing costs, and fast land clearing time, while social factors are the type of community work dominated in the oil palm plantation sector, and the influence of conflict between actors, both fellow communities, communities and companies, and communities with enforcers law.