Challenges on Peatland Restoration: From Oil Palm Plantation to
Sustainable Peatland Ecosystem
S. Hutabarat
Fakultas Pertanian, Universitas Riau, Indonesia
Keywords: Industry, Oil palm, Peatland, Sustainable development.
Abstract: Use of peatland for commercial estate crops such as oil palm triggers peatland fires, increases carbon
emission, subsidences, and land-use conflicts. Oil palm expansion on peatland areas has been claimed to be
a major cause of peatland ecosystem degradation. Massive damage on peatland ecosystem has motivated
government of Indonesia to issue regulations and establish Peatland Restoration Agency. However,
regulations which were created by different government institutions were not synchronized each other and
often creates new problem. Development of sustainable peathydrological unitencounteroil palm industry
which was claimed to have important contribution to the economy of Indonesia. Balancing economic
growth and sustainable natural resource is the most challenging issues faced by nation-wide. The objective
of this study is to assess prospects and challenges of peatland restoration in relation with palm oil industry.
The study uses literatures and data from previous studies and documents from related institutions. The result
shows that palm oilindustry which occupied large area of peatland is the most vulnerable and challenging
sector in the present of peatland regulations. Development of oil palm plantation is a huge investment.
Therefore, stopping oil palm plantation in peatland area will have impacts on oil palm investment, farmers’
income, and people welfares. Collaboration amongst stakeholders together with establishing strategy and
action plan are necessary to ensure the implementation of sustainable peatland ecosystem.
1 INTRODUCTION
Oil palm plantation area in Indonesia has
achieved11,4 million hectares and produce 31
million ton of Crude Palm Oil (CPO). Indonesia has
become world largest palm oil supplier which
account for 52% of total world supply of CPO.
Increasing demand for CPO in the last two decades
has motivated investors and local people to develop
new oil palm plantations. At the beginning, oil palm
plantations have been expanded only in mineral
soil.However, since mineral soil has become scarce,
new plantations have been expanded to peat soilarea
which isnot recommended for oil palm trees.
Oil palm expansion in peatland areas has been
implemented by creating canals to reduce water
level to improve soil condition for oil palm
cultivation. It is often that land clearing has been
done using fire (Simorangkir, 2007).Dry peatland is
easy to burn but difficult to control since it contains
high carbon. The fire in peatland could burn and
create haze in long duration.
The worst of haze in Indonesia was recorded in
the late 1990s, 2014 and 2015 which affected not
only in Indonesia areas but also had negative
impacts to some neighbouring countries such as
Singapore, Malaysia and Brunei Darussalam. The
haze had asignificant effects on people activities
including health, education, and economic activities.
Use of peatland for oil palm plantation has been
claimed to deteriorate peatland ecosystem in low
land areas and threaten local people (Colchester,
2007; Kohne, 2014), deterioration of biodiversity
(Edwards et al, 2011; Kohet al, 2008), and global
climate change (Carlson and Curran, 2013).
It is crucial to increase water level in peatland
area to rise humidity and to prevent fire by
establishing canal blockings. Degraded peatland
should be recovered by replanting peatland with its
indigenous vegetation to improve peatland
ecosystem. The Government of Indonesia has
established The Peatland Restoration Agency
(Badan Restorasi Gambut/ BRG) to find solution
and recovering peatland ecosystem through
hydrological and vegetation interventions.
512
Hutbarat, S.
Challenges on Peatland Restoration: From Oil Palm Plantation to Sustainable Peatland Ecosystem.
DOI: 10.5220/0009905400002480
In Proceedings of the International Conference on Natural Resources and Sustainable Development (ICNRSD 2018), pages 512-520
ISBN: 978-989-758-543-2
Copyright
c
 2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

Hydrological intervention was recommended to
recover soil humidity by rewetting peat soil through
canal blocking in the canals which were used as
drainage system previously. Vegetation intervention
was propositioned to restore peatland ecosystem by
replanting native peatland vegetation.
Peatland restoration is the implementation of
laws and regulations established by Government of
Indonesia to restore peatland ecosystem. However,
the regulations were claimed to threat existing oil
palm plantations and other industries.The
requirement to meet less than 3 (three) meters depth
of peatland and less than 0.4 meter of water level
have been the major issues. These peatland
regulations could potentially stop the operation of oil
palm business in most of plantation in peatland.
The objective of this study is to analyse the
application of peatland regulations by the BRG to
reduce peatland degradation and restore its
ecosystem. Oil palm plantations have been expanded
to peatland areas since 1980s. Do the plantations
have to stop their business in peatland areas? Could
oil palm plantations be operated with acceptable
strategies to avoid peatland degradation?
2 METHOD
This study analyse issues of peatland use for oil
palm plantations and peatland restoration program in
Riau Province. The study was conducted by
exercising qualitative and quantitative analysis and
literature review using data available from previous
studies, regulations and report documents at local
government agencies such as Estate Crop Agency,
Forestry Agency, Environmental Agency, and
National Landuse Agency.
3 RESULT AND DISCUSSION
3.1 Oil Palm Plantation Development
Oil palm is one of Indonesian estate crops that has
been massively expanded compared to other estate
crops (World Bank & IFC, 2010b). CPO is an
essential material used in various industries
including food, non-food and biodiesel (May-Tobin
et al, 2012). Palm oil is preferable because its
availability and lower price compared to other
vegetable oils (Teoh, 2012; Manggabarani, 2009).
Oil palm was introduced to Indonesia and
planted at Buitenzorg Botanic Garden (Kebun Raya
Bogor) in 1848 (Corley et al, 2004). Two seedling
were from ‘Bourbon or Mauritius’ and the other two
were from Amsterdam Botanical Garden (Gerritsma
and Wessel, 1997). At the beginning, oil palm trees
were introduced as decorative plants (Pamin, 1998).
Oil palm has been planted as commercial plantation
in Pulau Raja, Asahan, Sumatera Utara dan di
Sungai Liput, Aceh since 1911 (Corley et al, 2004).
However, oil palm plantations and industries have
not developed significantly until 1960s because of
power transition and political stability which was not
conducive for plantation investment (Pahan, 2012).
The Government of Indonesia started to develop
palm oil industry in late 1960s by establishing
Government Estate Enterprises (Perkebunan Besar
Negara/PBN) i.e., Perusahaan Negara Perkebunan
(PNP)/Perseroan Terbatas Perkebunan (PTP) in
1969 [15,16]. The establishment of PNP was funded
by The World Bank and The Asian Development
Bank. Oil palm plantation areas in Indonesia was
131.298 ha in 1971 consisted of 84.640 ha
Government Estate Enterprises (PBN) and 46.658 ha
Private Estate Enterprises (Perkebunan Besar
Swasta/PBS).
The development of estate crop industries was
started from large-scale estate companies. However,
the objective was not only for commercial objective
but also to support the development of smallholder
plantations to prepare farmersbecome oil palm
planters. PNP/PTP was established to be enterprises
that play a role as a nucleus estate which support
smallholders plantation called ‘kebun plasma’
(Manggabarani, 2010). Two plantation models were
developed in 1973 i.e., Project Implementation Unit
(Pola Unit PelaksanaProyek/UPP) and Nucleus-
Estate Smallholder (NES) or Perusahaan Inti Rakyat
(PIR). PIR model was started in 1978 through NES I
to NES VII projects. PIR was supported by
Government Estate Enterprises and financed by the
World Bank. In 1980, the oil palm areas achieved
294.560 ha consisted of 6.175 ha the plasma
(smallholder plantations), 199.538 ha PBN and
88.847 ha PBS.
The PIR Project was developed with PIR
TRANS Program in 1986 which was financed by
National Domestic Banks.Then, PIR KKPA
(KoperasiKredit Primer Anggota) or Credit Union
for Member’s Primaries, a type of scheme
smallholders in Indonesia was launched which was
financed by Cooperative Scheme. In the period of
1970-1990 the development of oil palm smallholders
was dominated by the PIR models. In this period,
PIR plantations have achieved 215.140 ha, i.e.
Challenges on Peatland Restoration: From Oil Palm Plantation to Sustainable Peatland Ecosystem
513

62.530 ha nucleus estates and 152.610 ha the plasma
plantations (Manggabarani, 2009).
The PIR Project had succeeded to increase
livelihood of farmers and the welfare of rural
community. Farmers’ income from oil palm
plantation is on average higher than other estate
crops. This condition triggered local people around
the plasma to start cultivate oil palm tree in their
owned land without any support from any party. The
smallholders was later called “Independent Oil Palm
Smallholders” (perkebunan kelapa sawit swadaya)
(Rahadian, 2013).
In the beginning, the palm fruits from
independent smallholders were sold to the nearest
mills where their owned plantation production was
still below the mill’s capacity. Following rapid
demand for palm oil, the investors responded by
establishing new mills to meet the market demand.
Larger capacity of new mills increased demand for
FFB. Simultaneously, higher price of FFB has been
responded by smallholders by expanding their oil
palm plantation. Land expansion is a simple method
when farmers have little information and knowledge
about oil palm culture. Local farmers do not have
awareness on efficient use of production factors. In
period 1990-2000, smallholder plantation areas have
increased fivefold to 1.166.758 ha. The oil palm
areas continues to rise by threefold in 2000-2010.
Independent oil palm smallholders have the highest
contribution in the oil palm expansion areas after
1990.
3.2 Oil Palm Productivity
In general, independent smallholders have less
knowledge on oil palm practices. Farmers use low
quality of plant materials because of little
information, knowledge, and less access to good
seedling. These conditions have significant impact
on oil palm productionparticularly for independent
smallholders which is on average less than the
plasma. Independent smallholders production
ranging from 10 to 14 ton FFB/ha/year whereas
scheme smallholders ranging from 16 to 22 ton
FFB/ha/year. According to Molenaaret al.(2010)
productivity of oil palm smallholder in Indonesia
ranging 9-24 ton FFB/ha/year while in Malaysia 14-
19 ton FFB/ha/year. Lee et al (2013)
found that
independent oil palm smallholder production for age
5-9 years in Sumatra was on average 14.8 ton
FFB/ha/year compared to 17.8 ton FFB/ha/year for
scheme smallholders. For palm age 9-17 years,
independent smallholders productivity was 15.9 ton
FFB/ha/year while scheme smallholders achieved
22.1 ton FFB/ha/year. Lack of knowledge on palm
culture was identified as the main constraint for
good agricultural practices. However, Molenaar et al
(2010) found that low access to information, input,
finance, and market could also be critical constraints
for smallholders to improve farm management and
production.
3.3 Positive Impacts of Palm Oil
Industry
Palm oil industry has been claimed as a leading
sector that support economic growth and people
welfare in Indonesia. The industry has strategic role
in economic, social, and environmental aspects.
Development of palm oil industry provides basic
food, creates job opportunity, increases farmers’
livelihood, reduces poverty, promotes economic
activities in rural areas, reduces urbanization, and
become one of potential exchange earnings.
In Riau Province, farmers income from oil palm
achieved IDR 36.1 million per household per year in
2013 while income from coconut and rubber were
IDR 20.9 and 15.7 million per household per year,
respectively (Dinas Perkebunan Provinsi Riau,
2015). Palm oil export value was also the highest
among the estate crops. Palm oil export was 8.6
million ton equivalent USD 6.4 billion in 2014.
Estate crops contributed 51.1% of PDB in
Agricultural Sector and 14.4% of the Riau PDRB in
2012 (Dinas Perkebunan Provinsi Riau, 2015).
3.4 Negative Impacts of Palm Oil
Industry
Rapid demand for FFB has been responded by
investors and local people through land expansion.
However, development of new plantationsis often
conducted without adequate legality documents such
as land ownership certificate (HGU or SHM),
business registration and permits (IUP or STD-B),
and statement of environmental management
(AMDAL or SPPL). Development of oil palm
plantations has been conducted rapidly and
uncontrollable. This condition has been claimed by
international consumers and NGOs to be worsen by
traditional agricultural practices without adequate
good agricultural practices and business
management to reduce negative impacts on
environmental and social aspects. Some studies
show the negative impacts of oil palm expansion in
Indonesia such as deforestation (Casson, 2012), land
degradation (Fainhurst et al, 2009; World Resources
Institute, 1994), biodiversity loss[5,24], GHG
ICNRSD 2018 - International Conference on Natural Resources and Sustainable Development
514

emission (Smith et al, 2007; Fainhurst et al, 2009;
Carlson et al, 2013), land conversion (Susanti et al,
2013), land and forest fires (Rowell and Moore,
2012), food security (Ewing and Msangi, 2010),
land conflicts (Colchester, 2007; Kohne, 2014) and
other environmental and social issues.
3.5 Oil Palm Plantation in Riau
Oil palm plantation in Riau achieved 3 million ha in
2016 which accounted for 31.5 million tons of FFB
and 6.5 million tons of CPO. Riau Province
contribute more than 60% of the total oil palm areas
in Indonesia. However, there are many oil palm
plantations that have been operated with traditional
agricultural practices and without adequate legal
documents. Special committee of House of
Representative in Riau Province for monitoring
plantation recorded 513 oil palm enterprises operate
in Riau and most of them have land certificate
(HGU). However, in practice, plantation areas of the
enterprises have expanded more than the permitting
areas (Tanjung, 2017). This finding indicates that the
oil palm plantations areas in the field are larger than
what has been recorded officially by government
agencies. This study found that the majority of
independent smallholders did not have adequate land
ownership certificate. They also do not have
business registration or permit and statement of
environmental management. Therefore, the area of
oil palm plantations is predicted based on the
production of mills.
Based on Provincial Regulation No. 10/1994
regarding Regional Spatial Planning (Rencana Tata
Ruang Wilayah/RTRW) inRiau Province,areas
allocated for oil palm plantation development is
3.133.398 ha (33.14%) of the total area of Riau
Province (9.456.160 ha). However, the oil palm
plantation has achieved 3,543,714 ha in 2013 which
consisted of 2,439,750 haoil palm smallholders,
90,447 haGovernment Estate Enterprises and
1.013.517 haPrivate Estate Enterprises (Dinas
Perkebunan Provinsi Riau, 2015).
Riau Province has 4.03 millions ha peatland
which is about 56% of the total land in Riau where
the largest peatland areas is in District of Indragiri
Hilir followed by Bengkalis and Pelalawan(BKSDA
Riau, 2014).The data indicates that part of oil palm
plantations must be located in peatland areas.
BKSDA Riau (2014)
recorded 25% of forest
fires in Riau occurred in oil palm plantation areas.
Silvius et al (2016)
claimed that about 99% of land
and forest fires occurred in oil palm plantation areas
located in peatland. Massive haze occurred in the
last two decade in Riau caused by fires in peatland
areas and most of it located in oil palm areas.
Negative impacts of land and forest fires have
motivated Government of Indonesia to establish
regulations related to the use of peatland including
Minister of Environment Decree No.5/2000,
Presidential Instruction No.1/2007, Minister of
Agriculture Regulation No.26/2007, Government
Regulation No.26/2008, Laws No.32/2009, Minister
of Agriculture Regulation No.14/2009, Presidential
Instruction No.10/2011, Presidential Regulation
No.61/2011, Presidential Regulation No.61/2011,
Presidential Regulation No.71/2011, Minister of
Agriculture Regulation No.19/2011, Law
No.39/2014, Government Regulation No. 71/2014
which revised by Government Regulation No.
57/2016, Minister of Agriculture Regulation
No.11/2015, Government Regulation No.1/2016,
Minister of Forest and Environment Regulation
No.P.15/2017, P.16/2017, and P.17/2017, Minister
of Forest and Environment Decree No. 129/2017
dan 130/2017.
Government Regulation No. 57/2016 which was
revised from Government Regulation No. 71/2014
was published to protect and manage peatland
ecosystem as a systematic and integrated effort to
prevent degradation and conserve function of
peatland ecosystem. Peatland ecosystem is peatland
system as an integrated unit which create
equilibrium, stability, and productivity.Peatland
Ecosystem is Peat Hydrological Unit (Kesatuan
Hidrologi Gambut/KHG) located between two rivers
or between river and sea or in peat areas. KHG
consists of protected and cultivated functions.
Protected function of peatland ecosystem was
delimited to 30% of the KHG located in peat dome.
Protected function could be larger if the depth of
KHG is 3 (three) meters or more, has specific
vegetation (plasma nutfah and/or endemic),
endangered species, and other protected area (Figure
1). Cultivated function is area in peatland ecosystem
outside protected function areas that can be used for
crop cultivation.
Based on Minister of Forest and Environment
Decree No. 129/2017 regarding Map of National
Peatland Ecosystem, there are 59 KHGs which
account for 5,067,909 ha in Riau Province where
two of the KHGs are next to North Sumatera and
Jambi Provinces. Minister of Forest and
Environmental Decree No.130/2017 regarding Map
of National Peatland Ecosystem Function
determined that 2,468,058 ha (48.1%) are protected
function areas and 2,658,849 ha (51.9%) are
cultivated function areas.
Challenges on Peatland Restoration: From Oil Palm Plantation to Sustainable Peatland Ecosystem
515

In general, cultivated function has met the
criteria regulated in the Minister of Agricultural
Regulation No.14/2009 regarding Guideline on
utilization of peatland for oil palm cultivation, i.e.,
peatland can be use for oil palm cultivation if (a) oil
palm plantation located around local community and
cultivated areas, (b) the depth of peatland less than 3
(three) meters, (c) substratum of mineral soil below
peatland is not kuart and acid sulphate soil, (d) level
of peat maturity is sapric, and (e) level of peat soil
fertility is eutrophic. Cultivated areas could
previously be free state-lands (tanahnegara yang
telahdibebaskan) or other land use (area penggunaan
lain/APL). Oil palm plantations spread must be in
areas where peatland with depth less than 3 (three)
meters is at least 70% of the total oil palm
plantation.
Figure 1: Protected Function of KHG.
The difference that criticized in the Government
Regulation No.57/2016 is the height of water table
which is regulated less than or equal to 40 cm below
the surface of peatland while it is regulated 60-80
cm in Minister of Agriculture Regulation
No.14/2009. High water table could be an important
constraint for the root of palm tree that could cause
death (Pahan, 2012; Corley et al, 20013). In
contrast, Wawan (2017) stated that the change in
physical and biological characteristics in peatland
with water table 60-80 cm is still tolerable for palm
tree.According to Wawan [34], peatland area in Riau
with depth less or equal to 3 (three) meters is
2,667,581.1 ha (61.17%) and based on Minister of
Agricultural Regulation No.14/2009, this peatland
area can be used for oil palm cultivation. However,
based on Government Regulation No.57/2016 this
area cannot be cultivated for oil palm
plantation.Even though, the area of plantation
located in peatland with less than or equal to 3
(three) meters but the standard of water table less
than or equal to 40 cm could be a serious problem
for oil palm plantations that have been planted
before the publication of Government Regulation
No.57/2016.
3.6 Peatland Restoration Agency
Peatland Restoration Agency (BRG) was established
in 2016 based on Government Regulation No.1/2016
to coordinate and facilitate peatland restoration in 7
(seven) provinces in Indonesia (Riau, Jambi, South
Sumatera, West Kalimantan, Central Kalimantan,
South Kalimantan, and Papua). The BRG functions
are to coordinate and support the implementation of
peatland restoration policy which includes (1)
planning, mapping and zonation, (2) construction,
operational and maintenance, (3) institutional
capacity building, (4) socialization, monitoring and
evaluation, and (5) research and development,
network of research and international relations. The
BRG has to prepare planning dan implementation of
peatland ecosystem restoration for 5 (five) years in
two million hectares which is 8% of the total area of
KHG in Indonesia.
The task of BRG to implement Government
Regulation No.57/2016 might be a big challenge.
Peatland has been occupied by many parties
particularly oil palm and pulp industries. The
regulation was established to stop all activities that
degrade peatland ecosystem. There are parties which
do not agree with the regulation. Oil palm and pulp
industriesclaimed that their industries create benefits
to Indonesia including provides job opportunity,
improves people livelihood, accelerates rural
development, source of foreign exchange and
provide basic material for food and downstream
industry. Oil palm become one of leading sectors
and the driver of Indonesian economy. Therefore,
the role of oil palm industry in Indonesia economy is
very important.In contrast, other parties claimed that
there are negative impacts of oil palm activities on
social and environmental issues. Palm oil cultivation
in peatland has been claimed to destroy peatland
ecosystem, land fires and haze which create loss to
local, national and international community.
3.7 Sustainable Agriculture
Sustainable agriculture entails that all parties in the
economy have to bear equal but proportional risks
and benefits. The gainer should compensate the
loser. The ideal equilibrium condition could be
achieved if we can calculate the value of benefit and
loss. If the benefit (profit) of the business (palm oil
and pulp industries) cannot compensate the cost bear
KHG
Protected
Function
30%
RTRW
Protected
forest
Conservation
forest
Peatland>3m
Plasma
Nutfah
Endanger
Spesies
ICNRSD 2018 - International Conference on Natural Resources and Sustainable Development
516

by the community because of land/forest fires and
loss of ecosystem services, oil palm and pulp
industries that have already occupied peatland areas
must be stopped and withdraw from the peatland.
The application of Government Regulation
No.57/2016 have to be evaluated economically,
socially, and ecologically. Study on these aspects
could at least explain that the regulation has more
positive impacts compared to negative impacts.
There will not be loss to any party without
compensation. Evaluation has also to be
implemented in relation with its impact to future
generation. Finally, results of the evaluation should
be implemented with appropriate policies together
with low enforcement.
3.8 the Opportunity of Palm Oil
Industries
Currently, oil palm plantation areas are about 11,4
million ha while areas that suitable for oil palm
plantations are 9.7 million ha (PPKS Marihat, 2004).
These data show that about 1.7 million ha of oil
palm plantation located in areas that are not suitable
for oil palm tree. If oil palm production on average
18 ton FFB/ha/year, assumed the price of FFB IDR
1,000 per kg, the value of FFB in the “not suitable”
land is about IDR 30.6 billion. The value might
increase when there are peatland which do not meet
the Government Regulation No.57/2016 in part of
the suitable land. The cost of unsustainable use of
peatland particularly the impact of haze yearly are
IDR 221 billionloss in economy, 504,000 people
have health problems, 5 million students have to
stop school activities, increase GHG emission by
15.95 million ton CO2 per day, and biodiversity loss
in 2.6 million ha (Askary, 2017). These informations
should be evaluated to find policy alternatives that
improve the welfare all parties.
3.9 Sustainable Policy Alternatives
Sustainable oil palm production can be achieved in
foursteps (Figure 2). First, to stop oil palm
expansion to forest and peatland area in E, F, and
G.Second, withdrawing existing oil palm plantation
from forest and peatland area in B, C, and D. Third,
restoration in forest and peatland ecosystem in B, C,
and D. Four, increase oil palm productivity in A to
compensate production loss when production in B,
C, and D is stopped.
First step, oil palm expansion to forest and peatland
areas has to be stopped to avoid deforestation.
Currently, the Government of Indonesia has
established Presidential Instruction No.10/2011 and
No. 6/2013 regarding Peatland and Primary Forest
Management Improvement and Moratorium of New
Permit.
Figure 2: Sustainable Policy Alternatives.
Second steps, Government of Indonesia
establishedGovernment Regulation No.57/2016 that
regulate criteria of water table and depth of peatland.
The regulation might be policy tool to withdraw oil
palm plantation from forest and peatland areas (areas
B, C dan D).
Third step, Government of Indonesia established
the BRG to recover peatland ecosystem through
hydrological and vegetation restoration at areas B, C
and D. Activities of BRG include identify peatland
ecosystem and mapping final peat hydrological unit,
determine peatland ecosystem function, i.e.,
protected and cultivated functions, establishing
peatland ecosystem management and protection
plan.
Four steps, Government of Indonesia motivate
improvement of oil palm productivity in area A for
compensating area B, C and D that have to be
quitted by oil palm plantation. This objective can be
achieved by implementing Good Agricultural
Practices (GAP) and Best Management Practices
(BMP).
Policy on sustainable use of peatland should be
supported by stakeholders. Peatland ecosystem
management and protection plan include (a)
technological and information transfers to prepare
migration of oil palm plantation and other activities
that degraded peatland ecosystem, (b) introduce
original peatland vegetation that can be
commercialized, (c) rearranging and replanting
original peatland vegetation, (d) improving
Oilpalm
Hutan
Gambut
D
A
B C
E
F
G
Challenges on Peatland Restoration: From Oil Palm Plantation to Sustainable Peatland Ecosystem
517

collaboration amongst stakeholders (gainers and
losers) to implement peatland restoration, (e)
improve local community capacity and use of local
wisdom to manage ecosystem service, and (f)
provide opportunity for oil palm plantation and
related activities to move their business after
planting cycle.
4 CONCLUSION
Government of Indonesia and investors claim that
palm oil industry have positive impacts on economic
growth and community welfare. The application of
Government Regulation No.57/2016 is claimed to be
a constraint for oil palm plantation in peatland areas.
In contrast, environmental activist claimed that oil
palm activities in peatland is the source of fires and
haze that cause economic loss and reduce the
welfare of community.
Peatland restoration is an effort to recover and
rearrange peatland ecosystem based on peat
hydrological unit. Peatland restoration is expected to
reduce and to stop fire in peatland areas, recover
peatland ecosystem and rearrange sustainable use of
peatland.The implementation of peatland restoration
should involve related stakeholders to use and
manage peatland. All activities of restoration should
be planned and implement with care and measurable
to minimize lose for any party.
Lesson from peatland restoration shows that
managing equilibrium between economic benefits
and sustainable natural resources is a challenge
faced by many countries.
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