This project has been financed by Wetlands International

Indonesia: Mangrove and Peat Swamp Forest restoration

Problems
  1. Total deforestation of mangroves on the north coast of Java as a result of unsustainable aquaculture, causing loss of biodiversity and environmental services (90% of Java's mangroves have disappeared) and leading to increased poverty and environmental degradation.
  2. Mangrove forests and other useful wetland habitats were also destroyed in Atjeh, northern Sumatra, as a result of the devastating tsunami of December 2004. The Bio-rights experience gained in Java since 2003 was used to work with local communities in the recovery of their livelihoods involving active restoration of the important coastal wetland resources.
  3. Peatswamp forests in Indonesia are a threatened habitat as a result unsustainable development. Their degradation has resulted in some of the largest environmental disasters of our time. In 1997 1,5 - 2,2 million ha burned, especially in Kalimantan & Sumatra, resulting in a carbon emission of 1 - 2,5 gigaton - equivalent to 15-40% annual global emission of fossil fuels (Page et al. 2002). Similar fire events have happened also in previous El Niño years, e.g. 982/83, 1990, and this had a significant impact on public health as well as serious economic impacts. Poverty in peatland regions is 2 to 4 times higher than elsewhere in Indonesia.

Approach
The approach to address these poverty-environment issues involved consultation and cooperation with local communities by providing access to micro credits for agricultural and other economic developments linked to environmental management schemes. On the north coast of Java and in Atjeh access to micro-credits was linked to mangrove restoration schemes as well as rehabilitation of other coastal wetland habitats. In Jambi province and Central Kalimantan micro-credits for agricultural development were linked to peat swamp forest restoration schemes. The micro-credits were provided on basis of a contract. As the funding was derived from donations of international donors, these contracts could in effect be considered business contracts between the global community and the local communities.

Bio-rights mangrove replanting in coastal zone of Pemalang, Java

The business deal involved the requirement to replant one 1 mangrove or peat swamp forest tree per Rp 1000 (or equivalent of US$ 0.10). This means that a micro-credit of Rp 1.000.000 (US$ 100) invested in e.g. goat farming would result in 1000 trees planted.
The replanting of the forests in effect constituted payments of interest over the micro-credit.

The business deal also stipulated that if 70% of the trees would survive the first 3 years the micro-credit would become a grant; i.e. the loan would have been fully paid back through provision of successful environmental services.

Results
This approach resulted in all cases in increased productivity from farming as well as restoration of thousands of hectares of mangrove and peat swamp forest areas. In Atjeh the approach appeared to be more successful than other coastal restoration schemes, mainly as a result of the after-care provided by communities after planting. Other organisations that worked with grants were markedly less successful.

Bio-rights in action in degraded peatswamp forests of Central Kalimantan


The approach empowers local communities in choosing to invest in their own development priorities. The Bio-rights approach provides a double incentive to the communities to restore their environment: First of all by providing access to credits and secondly by enabling payments of interest and repayment of the loan itself through delivery of environmental services.

The same approach is now used also for the rehabilitation of bufferzones of protected areas and planting of boundary marking vegetations. By using useful tree species, extra incentives can be provided in case communities can be provided with tenure and resource use rights over the replanted areas.

Next steps
New schemes are being developed in which sustainable financing mechanisms are being established for longer-term Bio-rights actions in Central Kalimantan and Jambi provinces.



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