Overview

It is an unfortunate and widely known fact that Indonesia continues to experience environmental degradation, year after year. This degradation includes the wildfires which ravaged ± 32.7 million hectares of land in 2014 alone, as well as a deforestation rate that currently stands at 540,000 hectares per year. Indeed, Forest Watch Indonesia (FWI) believes that this latter figure has already reached 1.13 million hectares per year, making it the highest rate of deforestation in the world.

In light of the abovementioned facts, Indonesia has taken several steps in a bid to begin to preserve and restore the country’s environment and its various functions.[1] One way of addressing this problem is through the implementation of so-called economic instruments for environmental management.