Report

Sustainable Asset Valuation (SAVi) of Forest Restoration in the Brantas River Basin, Indonesia

An example of how forest restoration is used to address land degradation and water availability

In this report, we present a SAVi assessment that quantifies the ecosystem services and economic impacts of the planned reforestation and water retention wells in the Brantas River basin in Indonesia.
By Andrea Bassi, Ronja Bechauf, Emma Cutler, Matthew Gouett, Marco Guzzetti on January 17, 2022
  • A SAVi valuation of a forest restoration project in Indonesia shows that reforestation has positive net benefits for society that far exceed the costs when externalities are considered.

  • Land restoration and improved water management contribute to climate resilience and increased adaptive capacity for upstream agricultural communities and downstream industrial activity. Reforestation is cheaper than constructing a reservoir with the same water retention capacity.

  • Carbon payments in Indonesia may play a critical role in stimulating investments in nature-based infrastructure, which creates various other benefits, including avoided costs from climate and weather-related events. These avoided costs are not monetized for investors but generate considerable benefits for society.

This Sustainable Asset Valuation (SAVi) assessment shows that the nature-based infrastructure solution of land restoration is more cost effective than building a reservoir for water storage and also provides significant societal benefits. Specifically, over 20 years, these interventions generate net benefits of between USD 104.34 million and USD 131.59 million in avoided flood and erosion damages along with improved water quality, carbon storage, job creation, agroforestry, and bamboo production.

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