Value chain analysis for community livelihoods in peatlands: A case study in Southern Riau

Many of the Indonesian peatlands have been cleared of forest, then drained and burned for both large- and small-scale agricultural crop development. This has resulted in regular occurrences of haze from peatland fires during the dry season. Peatlands have long been a livelihood source providing up to 80% of earnings for nearby local communities. Nevertheless, many such communities apply unsustainable practices involving the use of fire for land preparation and drainage of wet healthy peatland ecosystems. For that reason, haze-free sustainable livelihoods need to be found immediately. This research analysed commodities traded in local markets as well as those with the potential for trade that could be grown in targeted villages. We collected data through market observations, focus group discussions and key informant interviews in nine targeted villages. Using Value Chain Analysis (VCA) methods, we analysed and assessed each commodity for their value chain distribution and governance, and power relations. The results of these assessments indicate that pineapple, areca nut, honey and fish are financially viable for generating income throughout the year and have fewer environmental impacts. These commodities have potential for consideration as alternatives in lieu of oil palm, which requires peatland drainage and often use of fire.