Sustainable Financing for Payment for Ecosystem Services (PES) to Conserve Peat Swamp Forest Through Enterprises Based on Swiftlets’ Nests: An Awareness Survey in Central Kalimantan, Indonesia

Abstract

In recent years, the proliferation of small-scale enterprises based on sales of edible swiftlets’ nests harvested in peat swamp forests in Central Kalimantan, Indonesia has occurred. This study focuses on enterprises that might offer a promising opportunity as a user-side financing system for payments for ecosystem services (PES) to balance forest conservation priorities with local communities’ livelihood needs. Two possible sustainable user financing systems for PES were designed. The first entailed a modification of an existing tax structure in limiting usage of its revenue (an earmarked tax). The second entailed a community-level business structure based on customary village practices. Receptiveness to the first system was assessed using questionnaire and interview-based surveys carried out on 50 respondents. The second system was assessed using questionnaire and interview-based surveys with five representatives in each of nine villages in the region. Findings revealed a reasonably high potential for developing each of the two options. Enterprise owners and workers demonstrated a high level of awareness of the model’s conservation and societal benefits and were incentivized to pay the same level of tax redirected to conservation and fire prevention activities. However, few were willing to pay a higher tax level. The overall reception of the cooperative business model was positive, but start-up financial concerns and negative community dynamics such as low trust among community members were the main constraining factors. Financial and technical support from governmental and non-governmental organizations as well as research-based support from universities would be required to promote these financing systems.