This study seeks to understand the enabling conditions for the development of peatland restoration, with a focus on the tamanu oil business, and to assess whether the same situation might apply in the context of the restoration of degraded peatland. Unfortunately, there is not much information available about the pre-conditions required to create a restoration business. Peatland restoration businesses are part of the innovative effort to finance this endeavor.

However, restoration is still a costly, top-down approach lacking community participation, and is focused on the 3R scheme (rewetting, revegetation, and revitalization). The Indonesian government is committed to peat restoration.

Indonesia’s tropical peatlands are one of the world’s largest carbon sinks, and they are facing the threat of extensive degradation and conversion. This can be done at three scales: personnel, organization and system. Strengthening FMU capacity will significantly improve their performance in forest fire control, particularly in the initial stages. Most FMUs have limited capacity and resources, as well as complicated budget mechanisms and low community participation. Our analysis shows the policies, standards and objectives to manage fire are clear for FMUs, but there are challenges in their implementation, such that fire control activities have not been fully implemented.

The performance of the FMUs is measured by achievement of the policy objectives and effectiveness of policy implementation. The study was based on five FMUs in fire-prone regions of Central Kalimantan and South Sumatra, Indonesia. This research aimed to analyze the performance of forest fire-related policy implementation. FMUs are mandated to establish a local fire brigade, to provide adequate personnel and equipment, and to carry out fire prevention as well as suppression programs.

Forest Management Units (FMUs, known locally as Kesatuan Pengelolaan Hutan, KPH) are the implementation agencies on the ground that play a strategic role in both the prevention and suppression of forest fires. This is an annual disaster for the country and surrounding region, with severe impacts on the environment, as well as human health, economic and social factors. Wildfires in Indonesia are an annual phenomenon which peak in dry El Nino years, with up to 2.6 million ha of forest and land burnt in the drought year of 2015.

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