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Payment for Environmental Services (PES)

Payment for Environmental Services (PES) is a form of incentive/compensation to maintain the availability of environmental benefits.

Types of Stakeholders Involved In a PES Scheme Watershed Conservation

Three main stakeholders are involved in the implementation of PES Scheme, where each have their own function and responsibilities.

Benefits of PES Scheme Watershed Conservation

Benefits include encouraging communities to improve the quality of land through economic and/or social compensation, and increasing the awareness on the significance of watershed preservation efforts.

Engaging with Potential PES Buyer

Potential buyers of PES are diverse, but to ensure a meaningful and sustainable purchase, active engagements and fostering partnerships are crucial in supporting the PES for watershed conservation program.

Implementation of PES in Indonesia – A CASE STUDY IN BALI

DWIPA Water Stewardship – Infiltration Wells Construction in DAS Ayung

Project Goals

To maintain the constructed infiltration wells and ensuring a sustainable result through PES implementation

Location

Indonesia, Bali
DAS Ayung, in 2 villages: Pangsan and Sangeh

Challenges/Context

Bali’s water crisis is driven by severe groundwater depletion, inefficient water management, and a lack of conservation efforts, leading to significant socio-economic challenges and reputational risk. Over 70% of Bali’s groundwater potential is extracted, exceeding the safe limit of 10%, which threatens water security, increases soil erosion, and hinders groundwater replenishment.

Number of Infiltration Wells

Pangsan Village: 10 Infiltration wells
Sangeh Village: 10 Infiltration Wells

Project Status and Duration

Infiltration Wells PES Status: Ongoing
Duration: The current contract between PES buyers and PES providers is for 5 years, with an option for renewal

PES Conception and Implementation

Multi-stakeholder forum (MSF) in Bali led the conception and implementation of the PES scheme, ensuring a relevant and productive design.

PES Packages in Ayung Watershed

Potential PES Beneficiaries will be offered the opportunity to buy the following PES Packages to contribute in the water conservation effort through the infiltration wells construction and maintenance.

Other examples of PES Implementation In Indonesia

PES schemes for water conservation are still limited in Indonesia, especially in Bali, and mostly focusing on three maintenance.