Alternative natural capital-based livelihoods in facing peatland degradation in Rengas Merah hamlet, Ogan Komering Ilir Regency, Indonesia: A financial analysis approach

Abstract

Peat swamp forests in Ogan Komering Ilir (OKI) Regency have been experiencing dramatic changes caused by timber extraction and fire. These changes are now increasing ecological vulnerability and threatening the livelihoods of communities living in rural areas around these forests. This study investigated the diversity of natural capital-based livelihood strategies for sustainable livelihood in Rengas Merah hamlet, OKI Regency, South Sumatra Province, Indonesia, with a financial analysis approach. A combination of qualitative and quantitative methods is used for data analysis. Data were collected using questionnaires, in-depth interviews, and focus group discussions. A benefit-cost analysis analyzed the choice of various livelihoods. The result showed that gelam wood harvesting and developing edible bird nests while cultivating rice paddy are feasible as a sustainable livelihood. Natural capital is still a significant asset for the community to achieve sustainable livelihood. The natural capital-based livelihood strategy by directly exploiting natural resources combined with agricultural cultivation is the primary strategy chosen by the community for livelihoods sustainability.