ABSTRACT
Law 11/2020 on job creation has changed a partial forest business license to a multi-purpose forest business and devolved some authorities in forest management to local communities. Studies on common-pool resources demonstrate that devolution of common property is one of the most important factors for sustainability. This study aims to analyze the factors that influence reducing deforestation and focuses on two different village forest organizations in East Kalimantan: first, village forests under the management of the Forest Management Unit of Berau Barat -forests managed by a provincial government (Long Duhung and Merapun village forests), and second, devolution of village forest managed by a local village institution (Merabu village forest). Recent evidence from these study sites indicates that the devolution of forest management associated with village forests has not consistently reduced forest cover loss. There was a complex interaction between the passage of robustness of the institutional settings and economic preferences linked to deforestation. The forest governance systems, including rules that determine property rights, can promote forest conservation when people's interests are served by forest land use. Conversely, economic preferences also control deforestation. This study confirms that the institutional robustness of forest governance systems and actors' economic preferences play an important role in controlling deforestation. This study suggests the devolution of rights for forest management and incentivizing economic alternatives for using forest resources to reduce deforestation.
ABSTRACT
Peatland plays a pivotal role in providing natural resource production and environmental services for human welfare. However, many studies have mentioned the impact of dryland cultivation in peatland on the shifting carbon balance in the ecosystem that clearly will alter the interaction of these two ecosystem services. The goal of this study, conducted under the framework of the System of Environmental-Economic Accounting (SEEA) framework, was to monetary value the ecosystem services (ES) of provisioning and carbon regulating services of the Gaung-Batang Tuaka Peat Hydrological Unit (KHG). We focused on KHG in response to Regulation No.57/2016, which highlights ecosystem boundary as a new basis for peatland management. Under the SEEA framework, ecosystem services become a benefit when utilized by ecosystem beneficiaries. In this case, provisioning services will be valued only for cultivated land, while carbon services calculated for the entire study area (global beneficiaries). Our study showed that the provisioning services and carbon services are under the trade-off condition, where the monetary value of provisioning services increased at a slower rate (0.50 million USD annually) than the monetary loss of the benefit of carbon services (5.28 million USD annually), greatly exceeded the monetary value of provisioning services. We highlight two main strategies to increase the monetary value of the KHG towards a synergy condition, namely increased value-added by reducing the productivity gap among ES beneficiaries and large-scale adoption of a profitable cultivation system with minimum peat disturbance. The main enablers required include financing access and incentives (e.g., reduce tax) and disincentives to allow for peat-adaptive commodities to compete with dryland commodities in the future market.
