Mangrove-based projects are booming in Indonesia, home to 21% of the world’s mangroves. How can we ensure that the projects not only mitigate climate change but also provide economic benefits to local communities and operate sustainably
In a national dialogue hosted by the Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF), National Research and Innovation Agency (BRIN), and the Blue Carbon Deck, on 17 December 2024, at Borobudur Hotel Jakarta, leaders from various sectors gathered to share their knowledge and experiences in developing mangrove business models. Robert Nasi, Director General of CIFOR and Chief Operating Officer of CIFOR-ICRAF emphasized the importance of balancing ecological and economic sustainability.
“The purpose of this gathering is precisely to explore how we can develop business models that incorporate all these elements without sacrificing one for the other,” said Nasi.
Challenges in developing mangrove business models
Creating sustainable mangrove business models presents numerous challenges. According to Nasi, the main difficulty lies in balancing ecological conservation, economic needs and sustainable use while ensuring the inclusion of local communities.
“How do we tackle the complexities of ecology, conservation, economic viability, and community involvement? It is not an easy puzzle to solve, but I believe we can make significant progress and achieve tangible results on the ground,” Nasi remarked.
Robert Nasi at the national dialogue to discuss the business model for mangrove and blue carbon enterprises, especially in Indonesia. Photo by Ricky Martin / CIFOR-ICRAF
The role of local communities
Local communities are central to ensuring the sustainability of mangrove business models. Andes Hamuraby Rozak, Head of the Research Organization for Life Sciences and Environment at the National Research and Innovation Agency (BRIN), stressed that communities are “the main actors for mangrove-related activities,” which include restoration, conservation and ecotourism.
“As scientists, we provide the technology. We explore opportunities for restoration technologies and assess their viability,” Rozak explained.
Rozak also underlined the need for sustainable use alongside conservation. Research can help identify new applications for mangroves, including their potential medicinal properties.
“Some mangrove species may contain active compounds with anticancer properties,” Rozak said. “Further research is needed to explore these opportunities and enhance their economic value. Meti Ekayani, a lecturer at the Faculty of Economics and Management at IPB University, echoed this sentiment, stating that the mangrove ecosystem serves multiple functions.
“We can calculate the various functions of mangroves using economic valuation and we can convert them into economic value, but it is still potential value. Now our task is to make the potential value into real value,” she said.
Building trust and sustainable livelihoods
Bambang Suprayogi, CEO of Yayasan Gajah Sumatera, shared his experiences developing mangrove business models that could generate additional income for the local communities. “In our experience, a mangrove business must operate for at least three years before it gains the full trust of the local community,” he said.
“We have been conducting mangrove restoration work since 2005, after the Aceh tsunami. So, there are two sides: one for carbon interests, another for the community interests,” Suprayogi explained. “However, the point is that we need to socialize with the community; carbon is just a bonus. The most important thing is to enhance the community’s livelihood.”
Beni Okarda, Senior Research Officer and SMART Project Team Member at CIFOR-ICRAF, also shared his experience managing mangrove business models in Banyuasin, South Sumatra. The various business models formed result from the participation of the local communities.
“An ideal mangrove business model is very dependent on the location and the community itself because they are the ones we are trying to build up,” said Okarda. “In the research we do, we call it Participatory Action Research, we try to dig up ideas from the community based on their condition and abilities.”
For example, the mangrove business models built in Sungsang IV village, Banyuasin, include mangrove seedling nursery and trade, ecotourism and educational tourism, mangrove tree adoption, and the processing of mangrove fruit into food and liquid soap. In the neighbouring village, Marga Sungsang, a growing mangrove-related business, is crab silvofishery.
The event is part of CIFOR-ICRAF’s Action Research on Developing a Community-Based Business Model for Mangrove Restoration in South Sumatra in partnership with Temasek Foundation. Photo by Ricky Martin / CIFOR-ICRAF
Romi Adi Candra, head of the Sungsang IV Village, said, “The first time we protected the mangrove, our only reason was so that our forest would not be cleared for the sake of environmental sustainability.”
However, their conservation activities developed so that the Community Village Forest Management Institution (LDPHD) for Sungsang IV was formed.
“Finally, in 2023, we obtained a social forestry permit for 553 hectares,” he added. Thanks to research, planting, ecotourism, and educational tourism activities related to mangroves, the number of visitors to Sungsang IV increased. In 2024, the number of visitors to the mangrove ecotourism and educational tourism area reached more than 1,000 people and provided income for local MSMEs.
Shruthi Kumar, associate director of programmes (Climate and Liveability) at Temasek Foundation — a Singapore-based philanthropic organisation partnering with CIFOR-ICRAF in one of its mangrove projects to develop sustainable mangrove business models in South Sumatra, Indonesia — shared her perspectives.
“We had the privilege of visiting the project site and were deeply moved by all partners’ dedication, including the local communities. We believe that the data from this project, such as costs and benefits, will offer valuable insights for future initiatives and highlight the scalability and impact for other stakeholders,” Kumar said.
Catur Endah Prasetiani, director of Social Forestry Business Development at the Ministry of Environment and Forestry (KLHK), said to date, there are 385,064 hectares of Indonesian mangrove forests managed by the communities in the form of social forestry permits. “There are 375 social forestry groups who are managing the mangrove forests,” she said. “We ensure that the communities are protecting the forest. So, from the 385,064 hectares of the mangrove forests, the hope is that the mangrove forest cover of the area will be preserved.”
Herry Purnomo, director of CIFOR Indonesia and senior scientist at CIFOR-ICRAF, underlined that the ideal mangrove business model is one that provides multiple benefits to the local community. For example, in Banyuasin, the local community can benefit from silvofishery, tourism activities and other activities. The mangrove business model also has the potential to earn money from the blue carbon trade if the community can sell it. However, Purnomo noted, “It is very important to see the capabilities of the main actor.”
Acknowledgement
This dialogue is part of Sungsang Mangrove Restoration and Ecotourism (SMART) action research, a project in partnership with the Temasek Foundation.
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