BUSINESS SPICE

Payment for Ecosystem Services to foster innovative agribusiness, Sumatra

The Payment for Ecosystem Services project, funded by the Belgian government and implemented by Rikolto, aims to improve the quality and competitiveness of organic cinnamon production in Sumatra’s Kerinci Regency. The project promotes an inclusive business approach, which includes sharing expertise, technology and capital along the value chain, and encourages the adoption of sustainable farming practices by rewarding farmers with technical, physical or monetary incentives.

The initiative has helped increase the marketability of Indonesian organic cinnamon products and has had a positive impact on business performance. TAKTIK, a local cinnamon farmers’ organisation, for example, received orders to export 240 tons of cinnamon to Europe and the USA. The organisation has also developed a mutually beneficial partnership with both public and private sector stakeholders that goes beyond a purely commercial relationship.

We are now better able to develop profitable business with buyers and get support from government. TAKTIK has created employment opportunities for rural communities, and farmers have adopted selective harvesting and intercropping techniques that contribute to preserving forests while diversifying our sources of income.

Madral
Head of TAKTIK