A Perspective on On The Payment For Environmental Services’ Implementation In The Brantas Watershed

Muhammad Iqbal and Gelar Satya Budhi ()
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Gelar Satya Budhi: Researcher, Indonesian Center for Agro-socioeconomic and Policy Studies (ICASEPS), Jl.Ahmad Yani 70, Bogor 16161

Economics and Finance in Indonesia, 2008, vol. 56, 329-357

Abstract: A deterioration in an upstream area may cause some problems in its downstream such as flood, drought, and erosion. To overcome such problems, some conservation programs have been carried out; yet, the deterioration is worsening. One of the weaknesses of those programs was the lack of incentives to encourage people in preserving the environment. Hence, payment for environmental services (PES) approach has been offered as a solution. This article aims at providing a perspective on the PES implementation in the Brantas Watershed. Such implementation should be based on “community participation” or “bottom up approach” in which farmers in the upstream area and the communities in the downstream area participate in planning through evaluation. It suggests that the establishment of PES should start in a limited area. The government should attract community attention to participate in PES programs to protect and sustain the environmental development. In order to strengthen the implementation of PES, it can be included in local regulations (Perda). It is suggested that campaigns on PES implementation are carried out in other watersheds throughout Indonesia. The main stakeholders in the downstream, including large companies utilizing much water, should be the initiators of PES tests’ implementation. The government, on the other hand, should play its main role as a facilitator and regulator.

Keywords: watershed; payment for environmental services; Brantas (search for similar items in EconPapers)
JEL-codes: H23 Q52 Q53 Q58 (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:200816

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