Review of the Development of Environmental Services Market in Indonesia

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Review of the Development of Environmental
Services Market in Indonesia

• S. Suyanto and Beria Leimona
• World Agroforestry Center-ICRAF

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BACKGROUND

• A creation of incentive system that provides the
  link between providers and beneficiaries of ES
  (Landdell-Mills and Porras 2002)
• In Asia ? not developed yet
• No benefit-sharing between ES providers and
  beneficiaries
• A new paradigm on envt policy to recognize and
  to reward ES (Costa Rica, India, China, )

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OBJECTIVE METHOD

• Objective
• To review the development of ES market in
  Indonesia
• Method
• The assessment a framework of ES typology
• (van Noordwijk 2003)
• Major sources published and unpublished
  documents, internet searches and limited
  interviews

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OBJECTIVE METHOD

• To help concerned stakeholders in understanding
  the stage of development of ES market in
  Indonesia
• To identify possible gaps in our knowledge in
  recognizing the potential markets of ES and
  developing transfer mechanisms to ES providers

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OBJECTIVE METHOD
ES Recognition and Reward (van Noordwijk 2003)
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OVERVIEW OF ES MARKET IN INDONESIA
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Types of Reward Mechanism
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Type of services, seller and reward of the on
going ES market
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Type of services, seller and reward of the on
going ES market
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BIODIVERSITYCommunity based - medicine
plantation conservation at Meru Betiri National
Park

• Location Buffer zone of Meru Betiri National
  Park.
• Buyer Management of National Park, Perum
  Perhutani (State owned enterprise on timber
  plantation)
• Seller Community
• Intermediaries At district level, Coordination
  Forum of Meru Betiri National Park Management
  (Forum Koordinasi Pengelolaan Kawasan Penyangga
  Taman Nasional Meru Betiri) based on SK Bupati
  Jember no. 34 tahun 1997.
• At sub-district level, Coordination Forum of
  Buffer Zone Community based on SK Camat no.3
  tahun 1998, in each sub-district.
• Supporters Consortium of LATIN and IPB, KAIL
  (Local NGO)
• Mechanism Land use rights and in-kind rewards
  for livelihood improvement

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CARBONClimate Change, Forest and Peatland in
Indonesia (CCFPI)

• Location villages surrounding the Berbak
  National Park (Jambi Province), future Sembilang
  National Park (South Sumatra Province) and the
  community peatland area of Sungai Puning, Buntok
  (Central Kalimantan Province).
• Buyer Canada International Development Agency
  Seller Community
• Intermediaries Local NGO, Wetland
  International-Indonesia Program
• Supporters Provincial Goverrment
• Mechanism A five-year loan contract is the form
  of reward. The amount of the loan is equivalent
  to the quantity of planted trees on agreed areas,
  compacted in the buffer zone of National Parks.

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WATERSHEDAction-learning to develop and test
upstream-downstream transactions for watershed
protection services a diagnostic report from
Segara River Basin, Indonesia

• Location Rinjani National Park, Segara River
  Basin
• Buyer Water Users Associations,drinking water
  company, Lombok InterRafting Company.
• SellerCommunities in upper watershed through
  community organizations
• Intermediaries KONSEPSI, YLKMP
• Supporters LP3ES, IIED, Government of Indonesia,
  International Development Agency (AusAID) and
  WWF.
• MechanismDirect Payment

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LANDSCAPE BEAUTYKomodo National Park
Collaborative Management Initiative

• Location Komodo National Park, East Nusa
  Tenggara
• Buyer Tourist, both local and foreign
• Seller Management of Komodo National Park
• Intermediaries a Joint Venture company (JV)
  Putri Naga Komodo between The Nature
  Conservancy (TNC) and a local tourism company
  (Jaytasha Putrindo Utama), as well as local
  communities, government agencies, and private
  sector organizations as a concession holder
• Supporters Government of Indonesia representing
  by Park Authority (PHKA) and Local Government
• Mechanism A Concession for Tourism Management .

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CONCLUSION

• Development of ES markets in Indonesia still in
  its early stage but.
• Numbers of initiative/emerging projects and
  researches
• Each ES showing different level of its
  development of ES market ? landscape beauty more
  progressive

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CONCLUSION

• Stewardship effort biodiversity conservation,
  carbon sequestration, watershed function ? land
  lease and carbon credit
• Natural capital and Guardianship landscape
  beauty ? entrance fee and ecotourism services

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THANK YOU

• For further information on this study
• Dr. Suyanto
• Environmental Economist
• C/o World Agroforestry Centre
• PO Box 161, Bogor, 16001, INDONESIA
• Tel [phone]
• FAX [phone]
• Email suyanto_at_cgiar.org
• http//www.worldagroforestrycentre.org/sea/Network
  s/RUPES