Essential Water Supply Resources through Payment for Environment Services Program in The Cidanau Watershed, Banten Province, Indonesia

Abstract

Payment for Environmental Services (PES) is seen as an effort to preserve and used environmentally sustainable manner. The program is believed to bridge the two different interests, such as the people who inhabit in the upstream watershed in general are poor farmers with land holdings of less than one hectare with urban communities. The field data were processed using descriptive qualitative way. The results showed that the PES in Cidanau watershed started in 2003 and has entered into the second phase (the second 5 years), followed by 15 farmer groups to target land area of 520 hectares. Value of contracts was signed through a memorandum of agreement between the PT KTI acting as a buyer to a group of farmer-members (sellers) through Communication Forum of Cidanau Watershed (FKDC) as organizational managers IDR 4 billion until 2019. For farmer groups with an initial contract of five years was paid IDR 1.2 million per hectare per year and will increase to IDR 1.75 million per hectare per year for a second five-year contract. The program of PES in Cidanau Watershed relatively has been successful in maintaining the availability of Cidanau river flow which is used for domestic and industrial needs in Cilegon City.