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Article Case

An Estimate of the Financial Cost of Peatland Restoration in Indonesia

Amanda Hansson and Paul Dargusch
Case Studies in the Environment January 2018, DOI: https://doi.org/10.1525/cse.2017.000695
Amanda Hansson
School of Earth and Environmental Science, University of Queensland, Queensland, Australia
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Paul Dargusch
School of Earth and Environmental Science, University of Queensland, Queensland, Australia
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  • FIGURE 1
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    FIGURE 1

    Location of Indonesia’s peat forests (highlighted in blue). Adapted from Ministry of Agriculture, “Indonesia peat lands.” Accessed through Global Forest Watch on 21 August 2017. Available at www.globalforestwatch.org

  • FIGURE 2
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    FIGURE 2

    Peat forest in Central Kalimantan, which was burnt in 2015. After approximately two years, the regrowth is dominated by fern species.

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    FIGURE 3

    Peat forest in Central Kalimantan, which was burned in the 1990s. This part of the forest has been restored through assisted enrichment planting.

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    FIGURE 4

    Map showing the seven provinces where restoration activities will take place (highlighted in green).

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    TABLE 1.

    Cost of hydrological restoration based on estimates from the Peatland Restoration Agency [21].

    Canal typePrimary canalSecondary canalTertiary canalCommodity canal
    Canal width (m)20–3010–204–10>3
    Approximate cost (US$/ha)15,500–23,5006,000–8,0002,000–4,000400–1,200
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    TABLE 2.

    Restoration classification.

    Degradation activityCanal typeCost of hydrological restoration (US$/ha)Cost of assisted revegetation (US$/ha)Total estimated cost of restoration (US$/ha)
    Drained peat with high-intensity fires or high-frequency firesPrimary15,500–23,5001,225–1,57516,725–25,075
    Secondary6,000–8,0001,225–1,5757,225–9,575
    Tertiary2,000–4,0001,225–1,5753,225–5,575
    Drained peat with low-intensity fires or clearingPrimary15,500–23,500315–1,22515,815–24,725
    Secondary6,000–8,000315–1,2256,315–9,225
    Tertiary2,000–4,000315–1,2252,315–5,225
    Drained and selectively logged peatPrimary15,500–23,500235–31515,735–23,815
    Secondary6,000–8,000235–3156,235–8,315
    Tertiary2,000–4,000235–3152,235–4,315
    Drained unlogged peatPrimary15,500–23,500–15,500–23,500
    Secondary6,000–8,000–6,000–8,000
    Tertiary2,000–4,000–2,000–4,000
    Drained small-scale agricultural peat (<40 cm water table)Commodity400–1,2001,225–1,575a1,625–2,775
    Commodity400–1,200–b400–1,200
    Undrained selectively logged or agricultural peat (>40 cm water table)––––

    aFull revegetation is required for restoration.

    bHydrological restoration is sufficient if the aim is to reduce the spread of fires to adjacent peat forest areas.

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      TABLE 3.

      Cost estimates for restoration of the BRG priority restoration area.

      BRG area classificationRestoration requirementSize of area (ha)Lowest estimated cost (US$/ha)Lowest estimated total cost (US$)
      Licensed production areas burnt post 2015 and drained production areasHydrological restoration of primary, secondary, or tertiary canals1,410,9432,0002,821,886,000
      Non-licensed production areas burnt post 2015Hydrological restoration of primary, secondary, or tertiary canals with full revegetation396,9453,2251,280,147,625
      Protection areas burnt post 2015Hydrological restoration of commodity to primary canal with full revegetation226,3351,625367,794,375
      Protection areas with canalsHydrological restoration of commodity to primary canal with potential enrichment planting201,45740080,582,800
      Protection areas with shallow peat and canalsHydrological restoration of commodity canal with potential enrichment planting256,846400102,738,400
      Total2,492,5274,653,149,200
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    An Estimate of the Financial Cost of Peatland Restoration in Indonesia
    Amanda Hansson, Paul Dargusch
    Case Studies in the Environment Jan 2018, DOI: 10.1525/cse.2017.000695

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    An Estimate of the Financial Cost of Peatland Restoration in Indonesia
    Amanda Hansson, Paul Dargusch
    Case Studies in the Environment Jan 2018, DOI: 10.1525/cse.2017.000695
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