Sustainable Asset Valuation (SAVi) of Katingan peatlands and Belitung mangroves in Indonesia

Flying foxes on the background of mangroves. Indonesia. Komodo

Indonesia faces challenges such as natural disasters and depleted natural resources. Increasing floods, droughts, and major fire events impair economic development, threaten people’s lives and livelihoods, and affect the climate and environment. Peatland and mangrove degradation are examples of environmental issues with large socioeconomic impacts.

Based on our SAVi assessment, blocking canals and revegetating peatland, while also monitoring land use and improving fire suppression, brings the highest net benefit for society: USD 4.136 million cumulatively by 2100. Also, investing in mangrove rehabilitation for Belitung is economically viable only if connected to the generation of an additional source of revenue, such as ecotourism. This income avoids the desire to convert land for mining. Ecotourism and mangrove restoration create more jobs than mining and have the potential to generate wages of up to USD 1,600 per capita per year and forms a sustainable source of income for the local community.

This SAVi assessment uses system dynamics modelling and financial analysis to analyze restoration options for the Katingan peatlands and Belitung mangroves. We quantify the societal benefits and costs of several policy, land-use, and climate scenarios.