**2. Method**

*Land Use Change and Sustainability*

peatlands is degraded.1

of stored organic matter in the drained peatlands also contributes substantially to Indonesia's total GHG emissions [21, 54] and leads to irreversible land subsidence [9, 20, 21, 33, 35]. As the majority of the underlying mineral soils are below sea level, this land subsidence will result in the future flooding of land [21]. Additionally, mineral soil contains acid sulfate soil, which turns acid when exposed and tends to be extremely infertile [34]. Thus, continuous peat degradation and subsequent flooding

will prevent the productive use of land for agriculture or for other purposes.

Southern Oscillation climate phenomenon (ENSO). In so far, a lack of anticipatory fire responses has made the province of Central Kalimantan one of the most affected by fire and haze [13, 24, 45]. The 2015 fire episode burnt an estimated 429,000 hectares and caused a financial loss of 233 million Indonesian rupiah [53]. Deforestation and canalization under the MRP have paved the way for further exploitation of the region and pressure on the peatlands is increasing as a result of migration to the area, the opening up of new land for smallholder and industrial plantations, and slash and burn farming practices [15, 42, 52]. Rapid agricultural development, in particular palm oil expansion, is one of the main drivers of deforestation and peatland degradation in Central Kalimantan and deforestation and palm oil expansion rates are now among the highest in Indonesia [1, 45, 48, 49]. As palm oil and other conventional cash crops require drainage for cultivation, the peatlands are continuously degrading, which leads to an increase in fire vulnerabil-

ity and land subsidence in Central Kalimantan [13].

ted to restore 2 million ha of peatlands [53].<sup>2</sup>

during the dry season (see.e.g. [18, 19, 47]).

peat swamp forests into agricultural land ([53], 23 October Statement).

As a result of the failed "Mega Rice Project" (MRP) that deforested and drained peat swamp forests to develop rice paddies, a large part of Central Kalimantan's

In light of the serious environmental, social, and economic impacts of degraded peatlands, restoration and sustainable peatland management is critical in order to reduce emissions, maintain biodiversity, and ensure a long-term solution to the recurring fire and haze problems in Indonesia [1, 9]. This requires a revision of land management policies and land use planning of these areas. The Indonesian government has taken up several regulations on peatland management and has commit-

economic costs from peat fires, peatland restoration can lead to a large reduction of GHG emissions from fire and peat decomposition and in this way assist Indonesia in reaching its GHG emission reduction target of 29% compared to business as usual levels by 2030 [1, 9]. However, in addition to these policies, the government is also looking to expand its agricultural production and has pledged to double its palm oil production by 2020 [1]. Despite sustainability concerns, there is a large economic interest in the conversion of the degraded peatlands into plantations and large areas have already been licensed to pulp or palm oil companies [29]. Hence, the conflict between the social and environmental benefits of peatland restoration and

<sup>1</sup> The Mega Rice Project was a government project initiated in 1996 that aimed to convert 1.7Mha of unproductive and sparsely populated peat swamp forest into rice paddies by deforesting and canalizing the area. However, the project was unsuccessful and was eventually abandoned after severe environmental damage had already occurred. The deep drainage of the peatlands. Has resulted in annual fire hotspots

<sup>2</sup> For regulations on peatland see for example Government Regulation (Perpes) No. 71/2014 on the Protection and Management of Peatland Ecosystems and Presidential Instruction (Inpres) No.8/2015 on the postponement of the exisiting moratorium on the conversion of peatlands and primary forest. President Joko Widodo has also called for a moratorium on new peatland concessions and a cancelation of existing concessions that have not been developed, thereby halting the legal conversion of peatland and

Besides reducing social hazards and

This results in regular fires that are linked to the El Niño

**76**

#### **2.1 Study area**

Central Kalimantan is the third largest province in Indonesia and covers approximately 15.4 million hectares (Mha), of which around 3.47 Mha is peatland [27] and Government of Central Kalimantan [14]. The province has a tropical climate and its forests and peatlands are part of the biodiversity hotspot of Borneo that provides vital ecosystem services [48, 49]. Around 2.7 million ha is degraded in one form or the other. In 2015 alone over 429,000 ha burnt. In 2014, the province had a total population of 2.4 million inhabitants, with a population density of 16 inhabitants/

km2 [7]. Agriculture is the main economic sector contributing to local GDP, with the most important crops being, rice, oil palm, and rubber [8, 45]. Other important sectors include mining and tourism and to a limited extend other sectors such as industries and transportations [7, 45].
