Businesses and policymakers looking for sustainable solutions to tropical peatland degradation may have found a blueprint for success in South Sumatra. New research indicates a strong “bottom-up” willingness from local communities to financially invest in agrosilvofishery — an integrated system that restores the environment while securing local livelihoods.
The study, conducted by researchers from South Korea’s National Institute of Forest Science and Indonesia’s Universitas Sriwijaya, surveyed 617 residents of Perigi Village. The findings showed that 83.5% of respondents were willing to contribute financially to see these systems implemented — a significant signal for stakeholders involved in carbon farming, environmental consultancy, and regional development.
Economic value of ecosystem services
The research team used a ‘double-bounded dichotomous choice’ approach to pinpoint exactly how much residents valued this transition. By presenting respondents with various ‘bid’ levels, they estimated the ‘truncated mean’ willingness to pay (WTP) at Rp261,928 (approximately £14.50) per person annually.
For the entire village of Perigi, this represents a total community valuation of over Rp643 million (£35,500). While these numbers may seem modest in a global corporate context, they represent a significant commitment from a population where 90.8% of residents lack a fixed monthly income.
“The active participation of local stakeholders, including farmers and fishers who directly depend on peatlands, is essential for the design and implementation of sustainable peatland management strategies,” the authors noted.
The study also argued that while top-down government initiatives often tended to fail once funding has dried up, a model where the community could see enough value to contribute their own resources would be far more likely to achieve long-term sustainability.
Risk perception drives investment
One of the most striking revelations of the report was what actually motivated a farmer to reach into their pocket. While one might assume general environmental concern to be the driver, the data suggested that “risk salience” — the immediate threat of disaster — was the true catalyst.
The study found that experiences with droughts and peatland fires significantly increased a person’s willingness to pay. Interestingly, exposure to floods did not have the same effect. This suggested that the persistent, recurring threats of fire and drought, which directly destroy crops and peat layers, were viewed as more urgent business risks by the community than occasional flooding.
For companies developing insurance products or agricultural technology for Southeast Asia, this highlights a critical market sentiment: local demand for ‘climate-smart’ solutions is highest where the threat to productivity is most visible and chronic.
Barriers to adoption
Despite the high level of support, the transition to agrosilvofishery is not without its hurdles. The 16.5% of respondents who declined to pay cited a lack of financial resources and the burden of ongoing labour costs as their primary concerns.
The research identified key determinants that influenced whether a resident would support the model — income stability, birthplace, and expected profit. For instance, those with regular monthly incomes were significantly more likely to invest.
Interestingly, residents not born in the village showed higher WTP, possibly because they were less wedded to traditional “sonor” (slash-and-burn) techniques. The belief that agrosilvofishery would improve peatland productivity was another major driver of positive responses.
A global model for restoration
The implications of the Perigi Village study extend far beyond the borders of Indonesia. Tropical peatlands are vital global carbon reservoirs, holding more than 57 gigatons of carbon in Indonesia alone. When these lands are drained for monoculture or cleared by fire, they become massive carbon emitters.
The agrosilvofishery model, which allows for fish ponds (the Beje system), timber growth, and crop cultivation without the need for intensive drainage, offers a ‘nature-based solution’ that aligns with global low-emission production goals.
The researchers suggested that this model was relevant for other peat-rich regions, including the Congo Basin and the Amazon, provided that financing mechanisms were adapted to local economic capacities.
Recommendations for the sector
The study concluded with several actionable insights for organisations involved in environmental management and rural development.
Firstly, communication strategies must move beyond “ecological talk” and focus on well-being and productivity. Farmers are more likely to buy into a system if they believe it will protect them from fire and increase their yields.
Secondly, the report called for “financial policy support”. Since income was the strongest predictor of participation, the researchers argued that subsidies, access to credit, and profit-sharing schemes were essential to bridge the gap between people’s willingness and ability to pay.
As the private sector increasingly looks toward carbon farming and ESG-aligned investments in Southeast Asia, the Perigi Village study indicates thatt the community is ready to be a partner in restoration, but the economic framework must be as resilient as the peatlands themselves.
Source: Forests
“Valuing Community Willingness to Pay for Agrosilvofishery on Tropical Peatlands Using a Double-Bounded Dichotomous Choice Approach: A Case Study of Perigi Village, Indonesia”
https://doi.org/10.3390/f17030322
Authors: Choi Eunho, et al
