The study analyzed the economic benefits of managing a forest resource to help inform stakeholders of the most economically efficient management option for KHH. The study was done in three parts as follows: a) construction of three resource management strategies for KHH; b) selection of environmental variables and valuation of the ecosystem services from KHH; and c) cost-benefit analysis (CBA) of the three management options. Six ecosystem services were selected as the environmental variables for this study: a) the provision of timber, b) carbon dioxide (CO2) sequestration, c) oxygen (O2) generation, d) water supply, e) flood control, and f) biodiversity. Market valuation was used to estimate the values of provision of timber, CO2 sequestration, O2 generation, water supply, and flood control. The value transfer approach was used to determine the value of the service derived from KHH biodiversity. The study recommends that rubber farmers be encouraged to re-convert their rubber plantations into forest areas. Implementing a payment for ecosystem services (PES) mechanism is also encouraged to motivate rubber farmers to reforest. However, further studies are needed to establish an effective PES system for KHH. In the long term, plans should include defining the sustainable use of forest products, formulating public policy and regulations to guarantee sustainable use, determining and implementing a systematic monitoring strategy, and promoting the conservation of local species for the next generation.