Payments for Ecosystem Services: The case of Indonesia

Indonesia uses Payments for Ecosystem Services (PES) to support conservation, sustainable resource management, and climate resilience. Programs operate at both national and community levels, linking ecosystem service providers—such as forest communities and land managers—with beneficiaries including government agencies, private companies, and NGOs. Projects focus on water regulation, biodiversity protection, reforestation, and habitat restoration, with performance-based payments tied to measurable outcomes. Strong legal frameworks, multi-stakeholder collaboration, and community engagement are key to success, turning conservation into a driver of sustainable development.