A business case: co-investing for ecosystem service provisions and local livelihoods in Rejoso watershed

The Rejoso business case is based on information from piloting a payment for ecosystem services (PES) scheme aimed at stimulating multi-stakeholder co-investment in restoring and maintaining good watershed functions. The business case presents the benefits of applying innovations in setting the PES pilot that enhance participation and inclusiveness of smallholder farmers in the programme, link the scientific approaches to on-the- ground actions and, ultimately, ensure that the programme is cost-efficient and effective in restoring and maintaining watershed functions compared to ‘business as usual’.

The business case covers the upstream and midstream pilots of Rejoso watershed, the first phase of the Rejoso Kita initiative implemented by a consortium coordinated by Social Investment Indonesia Foundation, World Agroforestry Centre (ICRAF), Collaborative Knowledge Network (CK-Net), TNC and partners supported by the Danone Ecosystem Fund. At the end of this document, a ‘roadmap’ presents four follow- up strategies, which cover further interventions in the downstream of Rejoso to guarantee comprehensive and integrated watershed and water resource management that simultaneously enhances local welfare and stimulates a change of behaviour to reduce the local water footprint.