Making Policies Work for Payment for Environmental Services (PES): An Evaluation of the Experience of Formulating Conservation Policies in Districts of Indonesia

Abstract

Payment for Environmental Services (PES) is one of several schemes designed to conserve the environment by means of a market-based approach which also incorporate The PES framework and depends upon a number of criteria, namely: (a) A voluntary transaction where (b) a well defined environmental service [ES, or a land use likely to secure that service] (c) is being bought by a (minimum one) ES buyer (d) from a (minimum one) ES provider (e) if and only if the ES provider secures ES provision (conditionality). The case studies described are not perfect examples of PES, in thempayments have been made in ways that are not as simple as those described by the PES criteria. The article attempts to describe lessons learned from three case studies by comparing the principles of PES with other conservation approaches. As shown by these case studies, to make PES work, the government has an important role to play. An initial stage of payments, taxes, and subsidies could be seen as a rational step toward an increasing willingness to pay on an individual basis that will lead to conservation on a wider scale.

Indonesia's Forest Management Units: Effective intermediaries in REDD+ implementation?

“…International organizations working in Lombok, such as the World Wildlife Fund and Flora and Fauna International, have successfully adapted their primary organizational mission of biodiversity conservation (global interests) to a focus on watershed protection (local interests) (Pirard, 2012). The development of a local payment for watershed services program by municipal rate-payers and forest communities is one of the very first examples of PES systems in Indonesia (Pirard, 2012;Prasetyo et al, 2009). …”

Palm oil intensification and expansion in Indonesia and Malaysia: Environmental and socio-political factors influencing policy

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Managing natural capital assets and ecosystem services under global change

“…Payments for environmental services schemes have been piloted in Indonesia (Fauzi & Anna 2013) but have primarily been initiated by private enterprise. A regulatory framework to facilitate payments between districts is being drafted under the government regulation on environmental management, but is still awaiting endorsement (Prasetyo et al 2009). A broader regulatory and institutional framework that encompasses such schemes and new market-based mechanisms will be essential to deliver effective land-use planning and land management.…”