Payment for Ecosystem Services (PES): Assessment of PES Potential in Kapuas Hulu

Abstract

The CoLUPSIA project conducted an assessment of the potential of establishing payment for ecosystem services (PES) for two regencies in Indonesia. The objectives of the present study were to determine the feasibility of PES projects in the Kapuas Hulu regency, West Kalimantan, to assess whether there is potential for PES at our study sites and, if so, identify the opportunities, constraints, risks, risk mitigation and needed steps for future actions. The method used followed the CoLUPSIA’s PES methodological guidelines (Fripp 2014).Interviews were conducted with the national park office, regency forestry office, oil palm plantation company, water company, NGOs and local communities, exploring the wider potential for PES projects in Kapuas Hulu. The assessment focused predominantly on the socioeconomic, institutional and governance aspects, and so the findings can be applied to any PES project, beyond carbon sequestration alone.The results show that potential for PES in Kapuas Hulu range from carbon projects to PES bundles in the five locations that were assessed. The hamlet of Keluin and village of Nanga Dua are examples of potential for PES bundles that improve biodiversity through land rehabilitation and could be bundled with carbon stock and micro hydro projects. In Tinting Seligi, where an oil palm plantation has been operated, a carbon project from rubber production could be one of the PES options. In addition, in the hamlets of Nanga Hovat and Benua Tengah, there is the potential for carbon storage and sequestration projects the beauty of the landscape could provide a basis ecotourism.It is important to understand that this work focused on the opportunities for PES, but did not assess the feasibility of any identified specific PES projects. If a PES project is to be developed following our recommendations, then a full feasibility assessment should be conducted during the design phase.