Improving the profits  from peatland without exacerbating the environmental impacts- By Fahmuddin Agus (Indonesia)

Editor's Notes

1. Peatlands have very important environment functions, among others as water storage, carbon storage and conservation of peatland-specific fauna and flora, above and below ground. Although these lands are considered as sub-optimal agronomically, but its role as agricultural land is increasingly important because of the limitations of optimal land for agricultural expansion. It’s our responsibility to keep the balance between environmental and economic roles. Winning one role and sacrificing the other is not the way to go.
2. Recent study which are supported by field surveys indicated that the best estimate of Indonesian peat land area is about 14.9 million ha. These lands are distributed primarily on the East coast of Sumatra, especially in Riau, Jambi and South Sumatra provinces; Kalimantan, especially Central and West Kalimantan and the southern coast of Papua and West Papua.
3. Recent study which are supported by field surveys indicated that the best estimate of Indonesian peat land area is about 14.9 million ha. These lands are distributed primarily on the East coast of Sumatra, especially in Riau, Jambi and South Sumatra provinces; Kalimantan, especially Central and West Kalimantan and the southern coast of Papua and West Papua.
4. In some districts, the peatland area exceeds 50% of the total land area. As a result, landholders and local governments have no choice but to utilize the peatland, although the land is considered sub-optimal for economic purposes.
5. Our study has demonstrated that, when properly managed, crop production on peatland is comparable to that of mineral land, but the initial investment to build the drainage network and increase soil fertility could be impeding for smallholders.
6. Various economic indicators such as net present value (NPV) and benefit cost ratio (B/C ratio) showed satisfactory profitability of agriculture on peatlands. NPV from peatland are relatively high, ranging from USD 315 to 4421 per hectare per year.
7. The opportunity costs or emission reduction costs is very high in general that may hardly be attainable by the carbon market. Therefore, using peat shrub is an outlet to high land pressure.
8. Degraded peatland is a subscriber of peat fire as shown by this short-duration video, taken by one of our researcher on 8 October 2014 in Jebiren, Central Kalimantan. Fires or arson causes high amount of CO2 emissions in addition to pollution caused by smog and carbon monoxide. These causes various respiratory and lung problems, especially the upper respiratory infection syndrome or better known as ISPA in Indonesia.
9. At the study site of ICCTF, where the land is covered by rubber and pineapple, farmers safeguarded their land so that it was safer from fire. Maintenance of shallow water table, for instance by using flap gate system, reduces fire risks even better.
10. Most farmers can not afford to rehabilitate the degraded peatland by themselves. They need incentives for doing so. The main forms of incentives required include: Secure and preferably semi permanent tenure Subsidies for initial investment Development of infrastructure, including drainage canals and water table control system High quality planting materials and fertilizers Technical guidance from extension agents The investments needed for such incentives is much cheaper compared to emissions reduction schemes through carbon trading.
11. “Land swap” is a mechanism in which forest land on production area (APL) is conserved and allocated as protection forest, while peat shrubs, regardless of their status (APL or forest areas) is allocated for APL. This mechanism requires coordination among ministries. The challenge is whether we are ready to reform the legal systems related to land allocations.