PES scheme in Cidanau watershed, Indonesia

The Cindanau watershed plays two main roles in the areas economic development, as a source for industrial and domestic water usage and as the only remaining mountain swamp conservation site with several endemic species. As a result of the encroachment into the swamp and intensified land use the watershed the Banten Governor established integrated management as a priority in the watershed. TKI, the company that pipes water for industrial and domestic use, is helping fund conservation activities and compensate community efforts to maintain good forest cover on a pilot site. In the contract between farmer groups and KTI, the state-owned water company, farmers agree to maintain at least 500 fruit and timber trees per hectare. For every 500 trees maintained during the contract, farmers receive USD 120 per year. A more formal environmental science management body will likely be formed to to administer the growing program - additional farmers groups have expressed willingness to join and other government and private companies have indicated a willingness to pay for similar environmental services.