|Working Paper Series|
|Title||Potential and challenges in developing co-investment for ecosystem services schemes in Buol district, Indonesia|
|Author||Betha Lusiana, Lisa Tanika, Sacha Amaruzaman and Beria Leimona|
|Publisher||World Agroforestry Centre (ICRAF) Southeast Asia Regional Program|
|City of Publication||Bogor, Indonesia|
|Series Number||Working Paper no. 211|
|Number of Pages||40|
|Keywords||Ecosystem services, co-investment, participatory and inclusive approach, Central Sulawesi, SWOT analysis|
|Developing a co-investment scheme to enhance the provision of ecosystem services (ES) and farmers’
livelihoods requires a comprehensive understanding on the condition of ES and how farmers interact
with and use the natural resources in the landscape. This paper describes the result of the initial phase
in developing a co-investment scheme in Buol district, Central Sulawesi, Indonesia. The coinvestment
of ES schemes aims to support the local farmers and government in managing their
landscape sustainably while also improving farmers’ livelihoods.|
Using the Capacity Strengthening for Vulnerability Assessment (CaSAVA) framework, we assess the
environmental and socio-economic issues faced by both farmers and the local governments, which
influence their vulnerability and provide challenges to the implementation of a co-investment for ES
scheme. Buol landscapes represent a typical forest frontier area where forest is being converted into
more intensive systems of oil palm plantation and massive smallholder maize systems. The
geographic location of the district along the coastal line of the Sulawesi Sea offers diverse livelihood
options for farmers but also poses many environmental challenges.
The socio-economic problems faced by farmers are related to agricultural pests and diseases, scarcity
of farm inputs in the market, and limited access to sell products on the market. The environmental
issues faced by farmers and local governments are related to coastal abrasion and river-bank collapse
along the Buol river, the area’s main river whose catchment takes up a third of the entire district. The
lack of market access and the only recently developed roads have prevented the development of
industrial or private companies; hence the lack of ES buyers in the area. Therefore, co-investment
schemes involving public funding are deemed the most feasible for Buol district.
The co-investment activities in the form of climate-smart agriculture that can maintain and rehabilitate
ecosystem service provisioning in the landscape.
Observing the local conditions, we understand that improving farmer and local government awareness
of ecosystem services, and enhancing their ability to monitor the quality and quantity of ecosystem
services in their area are prerequisites to develop sustainable co-investment schemes. The challenges
that lie in the low awareness and capacity of local stakeholders can be overcome through trainings and
awareness campaigns aimed at those actors. However, the main challenge lies in the willingness and
commitment of both parties to work together sustainably, which requires a process of learning
together and negotiation. It is essential that ‘honest’ brokers exist, with the ability and capacity to
facilitate and mediate the process.
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