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Research Report

Payment for Ecosystem Services (PES): Assessment of PES Potential in Seram Island

Emily Fripp
Nining Liswanti
Marthina Tjoa
Thomas Silaya
Copyright Date: Jan. 1, 2014
Pages: 41
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Table of Contents

  1. (pp. 1-2)

    One component of the CoLUPSIA project is to explore the potential for establishing payment for ecosystem services (PES) projects in the pilot sites in each of the districts where the CoLUPSIA project is working, namely Seram (Maluku Province) and Kapuas Hulu (West Kalimantan Province).

    The aim of this assessment was to determine the feasibility of PES projects in Seram, particularly in Waraka village and Masihulan, a hamlet in Sawai village. Interviews were also conducted with the national park agency, district forestry agency, a cocoa plantation company and water company, to explore the wider potential for PES projects in Seram.


  2. (pp. 2-2)

    A practical guide to assessing the feasibility of PES project (Fripp 2014) is designed to lead the user through the process of identifying the ecosystem service, the buyer, the seller and the market. This assessment of the potential for PES in Seram uses the 10 steps as its framework.

    Before presenting the feasibility results, it is worth reiterating a widely recognized definition of PES. Wunder (2005, 2008) defines PES as:

    (a) a voluntary transaction where

    (b) a well-defined ecosystem service or corresponding land use is

    (c) bought by an ecosystem service buyer from

    (d) an ecosystem service provider, but only...

  3. (pp. 2-4)

    The assessment of the potential for PES in Seram followed the PES guide (Fripp 2014) as a “feasibility” template. For each step in the guide, the feasibility assessment considered the opportunities, constraints, risks and means of mitigating risks, assumptions and next steps.

    Assessments were completed for a potential carbon project in Masihulan, a hamlet of Sawai, and Waraka village. The assessment focused predominantly on the socioeconomic, institutional and governance aspects, and so the findings of the assessment can be applied to any PES project, beyond carbon sequestration alone.

    For all PES projects (and REDD+ projects), a baseline or business-as-usual scenario...

  4. (pp. 4-9)

    This section summarizes findings from the assessment of the potential for PES projects in Seram, with a focus on carbon projects in Masihulan hamlet and Waraka village. Further details are in the interview notes included in Annex A.

    Masihulan is a hamlet of Sawai village, Seram. The CoLUPSIA project has conducted socioeconomic surveys in Masihulan, Sawai and the surrounding area and, in 2011, research on the potential carbon storage of primary and secondary forests (data on the potential carbon stocks in each type of forest were collected).

    In the Sawai area, population growth and lack of available land for agricultural...

  5. (pp. 9-12)

    To make progress in developing PES projects in Seram, the issue of insecure land tenure (and access to forest resources and ecosystem services) must be resolved. Potential PES projects can then be developed in full consultation with local communities. An initial step in the project design is identification of the baseline or “without project” scenario. Once the project is under development, a full feasibility study should be undertaken to ensure the financial feasibility of the project, among other things.

    The biggest threat to PES in Seram, as elsewhere in Indonesia, is the lack of clear and secure land tenure. Although...