THE AQUACULTURE DEVELOPMENT PROGRAM AT PEAT RESTORATION LOCATIONS IN COLLABORATION WITH SUSTAINAQUA INDONESIA FOUNDATION AND THE PEAT AND MANGROVE RESTORATION AGENCY

 

THE AQUACULTURE DEVELOPMENT PROGRAM AT PEAT RESTORATION LOCATIONS IN COLLABORATION WITH SUSTAINAQUA INDONESIA FOUNDATION AND THE PEAT AND MANGROVE RESTORATION AGENCY

Background

Based on data from the Ministry of Environment and Forestry (KLHK), the extent of peatland in Indonesia reached 13.43 million hectares (ha) in 2019. Peatland is distributed across four islands in Indonesia. Sumatra has the largest peatland area in Indonesia, reaching 5.85 million ha. Following Sumatra, Kalimantan has a peatland area of 4.54 million ha, and Papua records a peatland area of 3.01 million ha. The fourth island in Indonesia with peatland is Sulawesi, covering an area of 24,783 ha. Meanwhile, Java, Bali, Nusa Tenggara, and Maluku do not have peatland.

Peatland plays a crucial role in preventing climate change and natural disasters. Peatland can sequester 30% of the world’s carbon to prevent it from being released into the atmosphere. Additionally, peatland serves as an important biodiversity ecosystem, hosting various flora and fauna such as fish, water birds, and orangutans.

The main challenge faced is the rate of degradation of peatland and mangrove ecosystems, which currently exceeds the pace of rehabilitation efforts. This damage is caused by natural factors such as rising sea levels, wave impacts, and tsunamis, as well as human factors including regional development interests, economic infrastructure development, opening of new residential areas, expansion of shrimp farming areas, especially in mangrove ecosystems, chemical waste discharge, illegal logging, and over-cutting. Therefore, restoration and rehabilitation efforts should not only focus on physical improvement but also include social and economic aspects.

In line with the triple bottom line concept, peatland restoration and mangrove rehabilitation activities integrate social, environmental, and economic aspects. Community groups involved in peatland restoration receive economic revitalization assistance. From 2017 to 2021, a total of 2,295 community groups in peatland restoration areas have been revitalized through the provision of land-based businesses such as agriculture and animal husbandry, water-based businesses like fisheries, and environmental services such as ecotourism. These revitalization activities not only increase community income but also successfully change community behavior in peatland restoration and mangrove rehabilitation activities.

An evaluation of economic revitalization program recipients in West Kalimantan shows that only 10% of community groups were able to develop their businesses, while 73% were able to sustain and 17% of business groups have ceased operations. This condition roughly reflects the situation in other provinces. To facilitate the development of successful groups and encourage sustained groups to expand their businesses, these groups are provided with business incubation activities. The target of the business incubation program is community groups that previously received the R3 program. These groups are clustered based on the type of commodity business and geographic location. The business incubation activities are expected to provide comprehensive business development support until the groups become self-sufficient. In its implementation, this program is conducted through a collaborative self-management partnership between the Deputy for Community Empowerment of BRGM and supporting partners.

Goals of the Activity

This business incubation initiative, a collaboration between the Peat and Mangrove Restoration Agency (BRGM) and Sustainaqua Indonesia Foundation, aims to provide comprehensive business assistance to community groups receiving economic revitalization programs in peat restoration locations. The assistance activities begin with internal strengthening, market chain analysis, product development, group financial management, product marketing, and partnership establishment.

Expected Outputs

The expected outcomes of this business incubation activity include:

  1. Establishment of a productive community business model.
  2. Creation and/or distribution of community business products on a promotional and marketing platform.
  3. Connection of business groups with off-takers in the market chain, including investors and buyers, enabling them to become self-sufficient.
  4. A measurable increase in the income of community business groups, at a minimum of 5%.

Execution Method

The business incubation program is carried out through on-site mentoring of selected community groups based on their business conditions and contributions to the creation and maintenance of peat drainage infrastructure (IPG). The business commodities of these groups are classified into Agriculture Commodities, Livestock Commodities, Fisheries Commodities, Processed Agricultural, Livestock, or Fisheries Products, and Craft Product Commodities. The collaboration between BRGM and Sustainaqua Indonesia Foundation specifically focuses on Fisheries Commodities, specifically Freshwater Fish Farming and Shrimp Farming. The mentoring activities encompass the following:

Initiation and Internal Strengthening

Encompassing activities such as assessing the existing conditions of the group, providing motivation for business development through methods such as champion meetings/study tours and other approaches, setting business goals, identifying group needs, and strengthening internal group institutional capacity.

Market Chain Analysis and Product Development

Comprising activities such as commodity mapping and market chain analysis, raw material mapping and product innovation, production planning, quality improvement practices, and packaging and labeling. The high cost of feed, especially for freshwater fisheries, has prompted a new innovation by the group, namely the development of maggots as an alternative feed. Maggots boast high protein content and can be produced by utilizing household waste.

Group Financial Management

Encompassing assistance in production cost calculation and pricing determination, financial literacy such as bookkeeping, and access to financing.

Product Marketing

Comprising assistance in branding and marketing strategy, sales and distribution strategy, regulatory compliance (PIRT/MD) and halal certification management, market validation, sales pitch presentation practices, and facilitating meetings between community business groups and potential buyers or investors.

 

Empowerment of Fish/Shrimp Farmer Families

The field-placed mentor also trains the wives of group members to produce processed fish products such as fish crackers. Additionally, the female members of the group are instructed on how to make Virgin Coconut Oil (VCO), utilizing coconuts abundant in the project area. This is intended to ensure that the resulting products have added value and can contribute to increased family income.

 

Partnership
Encompassing the establishment of a Memorandum of Understanding (MoU) for collaboration between community business groups and off-takers within the market chain, including both investors and buyers. The group is also facilitated to access financial assistance from government institutions related to the development of fisheries farming.

 

 

 

 

Target Groups

The community groups that will be the target of this activity are

  1. Kelompok Masyarakat Maju Bersama (Community Group).

Pokmas Maju Bersama is located in Pematang Raman Village, Muaro Jambi Regency, Jambi Province. The activities carried out are freshwater fish farming using the Biofloc method. Pokmas also develops maggot farming as an alternative feed.

  1. Kelompok Masyarakat Tanjung Harapan (Community Group)

Pokmas Tanjung Harapan is located in Tanjung Village, Muaro Jambi Regency, Jambi Province. The activities carried out are fish fatming in floating net cages. Pokmas are encouraged to develop maggot fatming as an alternative feed.

  1. Kelompok Masyarakat Tunas Muda Mandiri (Community Group).

Pokmas Tunas Muda Mandiri is located in Nilau Village, Tanjung Jabung Timur Regency, Jambi Province. The activities carried out are freshwater farming using the biofloc method. Pokmas also develops maggot farming as an alternative feed.

  1. Kelompok Masyarakat Generasi Peduli Gambut (Community Group).

Pokmas Generasi Peduli Gambut is located in Pelintung Village, Dumai City, Riau Province. Pokmas. The activities carried out are vaname shrimp farming. Pokmas is also trained to make processed products from shrimp such as shrimp crackers.

  1. Kelompok Masyarakat Mundam Jaya Makmur (Community Group).

Pokmas Mundam Jaya Makmur is located in Mundam sub-district, Dumai City, Riau Province. The activities carried out are vaname shrimp cultivation. Pokmas is also trained to make processed products from shrimp such as shrimp crackers. Pokmas also plants mangroves near the shrimp farming location.

 

Closing

The Aquaculture Development Program for Clustered Community Groups in Peat Restoration Locations’ is a crucial component of the peat restoration implementation efforts. This program not only develops community group businesses but also raises awareness among the public about the importance of preserving peat by maintaining the existing peat drainage infrastructure in the village.