Presented by Budi Wardhana, Deputy for Planning and Cooperation of Peatland Restoration Agency (BRG), at Webinar "A Synthesis and Way Forward", 17 December 2020. The presentation offered an extensive review of environmental goods and services provided by peatlands. This presentation showed the general economic model for restoration used to understand relevant indicators of the economic aspect of peat restoration. In this session speaker shared some potential criteria and indicators related to the costs saving and value of avoided environmental disaster and emissions; the value of ecosystem services; short-term and long-term growth; and return to investment capital.

1. 1
Indonesian Peatland Restoration -
Economic Indicators
Budi Wardhana – Deputy Head of BRG for Planning and
Cooperation
Badan Restorasi Gambut Republic of Indonesia

2. 2
To understand relevant indicators of peat restoration economy, we
can relate it back to a general input - output economic framework
Peat
Restoration
Rewetting,
Revegetation of
degraded peatland
Educating,
socialisation,
training,
empowering
Revitalizing
peoples livelihood
and transformation
to sustainability
Peatland, raw
materials/crops, land,
financial capital, labor,
technology
Peatland local communities,
communities/people, labor,
culture, knowledge, wisdom,
cooperation, societal values
and norms
Peat degradation halted.
Avoided emissions from fire
and decomposition, avoided
floods and loss of landmass
Land & materials, labor,
capital and technology.
These main factors provide
the ingredients for a product
INPUTS PROCESSES OUTPUTS
General Economic
Model
Economy
Peatland ecosystem
services: provisioning,
regulating, controling,
cultural
Production.
Manufacturing or other
activities to generate
products.
Goods and services.
The products and services
that could be enjoyed by
consumer/public.
INCOME
VALUE
Better and more sustainable
products. Avoided loss from
product destruction, avoided
long term loss of productivity
People and community’s
safety and health. Avoided
health issues, avoided
disruption to life, livelihood
and activities
Social
Environment

3. 3
ENVIRONMENT SOCIETY ECONOMY
Two key focus areas
Filling the gap on economic indicators of
peatland restoration
• how to measure values created out of the
outputs of peat restoration, as well as
• how these outputs and values relate to the
initial inputs.
These two areas should give key insights on
how peat restoration has effectively performed
in accelerating the general economy, and how
efficient the process has been.
Revenue from sustainable
products and services:
Rp-$
Contribution to GDP:
%
Sustained long term
growth of revenue/
prevention of productivity
loss:
Annual % growth
Return to invested capital:
%
Cost savings from avoided
environmental disaster:
Rp-$
Value of emissions
avoided:
Rp-$, based on carbon
costs/prices
Rp-$ invested per ton
avoided emissions:
Rp-$ /tCO2e
Ecosystem services
generated per hectare:
Rp-$ /hectare
Larger total workforce:
# people
Improvement to human
capital value:
Rp-$ /capita, based on
assessment of skills,
education and health
Increased farmer
household’s annual
savings:
Rp-$ /household
Avoided health costs
Rp-$ /capita
The key indicators describe values that are generated from peat
restoration activities for the environment, people, and the economy
These indicators are for illustration purposes and are not exhaustive