JURNALNEWS.CO.ID – Indonesia, with its abundant natural wealth, faces serious challenges in preserving its ecosystems. This natural wealth, including tropical forests, marine ecosystems, and other resources, holds high economic value. However, the inability to quantify the economic value of ecosystems causes these ecosystems to become “invisible” to public policies. This facilitates exploitation and environmental damage, which in turn threatens community welfare. In this context, applying Digital Identification (ID) to critical ecosystems can be a significant breakthrough.

This technology not only monitors but also provides protection through data accountability and transparency, opening a new era for more sustainable and measurable natural resource management. Indonesia possesses extraordinary biodiversity, including mangrove, seagrass, coral reef, and tropical forest ecosystems. Each of these ecosystems has immense economic value and contributes to the national economy across various sectors such as fisheries, tourism, and energy.

Indonesia’s mangrove ecosystem spans approximately 3.36 million hectares, accounting for about 23% of the world’s total mangrove ecosystem. Mangroves play vital roles in coastal protection, carbon storage, and supporting marine life. Economically, Indonesia’s mangrove ecosystem is estimated to be worth around Rp340.46 trillion (USD 20.61 Billion).

The Indonesian seagrass ecosystem, covering 293,464 hectares, holds significant carbon reserves, reaching 39.5 million tons of carbon. The economic value of these seagrass ecosystems is estimated at Rp76.29 trillion, derived from carbon storage and other ecosystem functions supporting fisheries and marine tourism.
The coral reef ecosystem in Indonesia covers around 2.5 million hectares, with a very high economic value in fisheries and tourism industries. Its estimated worth reaches Rp935.80 trillion.

Coral reefs also serve as habitats for various marine species, including high-value commercial species such as ornamental fish and mollusks. In East Kalimantan, the Sungai Wain Protected Forest (HLSW), covering 11,246 hectares, also has significant economic value. With carbon reserves reaching 178-222 tons per hectare and contributions to tourism and regional income, the estimated value of HLSW is about Rp64 billion annually.

Seaweed potential for Indonesia’s foreign exchange. Indonesia’s seaweed also holds substantial economic potential, both for domestic consumption and export. As one of the largest seaweed producers globally, Indonesia contributes about 13.2% of total global seaweed production. The economic potential includes exporting seaweed.

Indonesia exports over 1.5 million tons annually, valued at more than Rp10 trillion. Besides being raw material for food products, seaweed is also used in cosmetics, pharmaceuticals, and bioenergy industries. With appropriate technology, Indonesia can enhance added value through processing derivatives and developing seaweed-based biotechnology.Indonesia also has other ecosystems with great economic potential, such as tropical forests, peatlands, and marine resources.

With approximately 125.9 million hectares of tropical forests, Indonesia harbors most of the world’s biodiversity. For example, the Leuser Forest in Sumatra provides water for over 4 million people and absorbs significant global carbon emissions. Additionally, Indonesia’s tropical forests contain over 30 billion tons of carbon and contribute Rp2 trillion (USD 121 million) annually through forest tourism. Indonesia’s peatlands, covering about 14.9 million hectares, have a very large carbon content.

Peatlands are estimated to store more than 55 gigatons of carbon, acting as vital natural carbon sinks in climate change mitigation. These ecosystems also prevent natural disasters such as floods and droughts. However, converting peatlands into palm oil plantations causes severe damage and contributes to greenhouse gas emissions.

Indonesia has a coastline of 95,181 km, making it a country with vast marine resources. Capture fisheries and aquaculture contribute about Rp190 trillion (USD 11.5 billion) to the national GDP. Additionally, marine ecotourism destinations like Raja Ampat, Bunaken, and Wakatobi generate over Rp10 trillion(USD 605 million) annually. The ocean energy potential is also significant, reaching up to 60 gigawatts capacity.

With advances in technologies such as Augmented Reality (AR) and Virtual Reality (VR), Indonesia’s natural ecosystem tourism sector can be enhanced. National parks and other natural destinations can offer engaging virtual tourism experiences, allowing global tourists to explore Indonesia’s natural beauty without leaving their homes. This not only introduces Indonesia’s natural beauty to the international community but also boosts tourism revenue.

Beyond government roles, the private sector can also participate in managing ecosystems through programs focused on sustainability and conservation. Many companies have invested in reforestation and marine ecosystem restoration programs to reduce their carbon footprint. The private sector can also play a role in carbon offset schemes, providing incentives for communities to preserve their ecosystems.

Currently, Indonesia’s conservation policies face various challenges, including centralized management. Centralized policies limit the participation of indigenous and local communities, who possess essential knowledge about their ecosystems.

The lack of economic incentives is another issue; conservation is often seen as a cost rather than a long-term investment providing economic benefits. Weak enforcement of laws, such as illegal logging and coral reef destruction, still occurs and harms ecosystems. One innovative solution to these challenges is the application of technology-based Digital Identification (ID).

This technology allows real-time ecosystem monitoring via sensors and digital tagging, providing accurate data accessible to communities and investors. The benefits of digital ID include real-time monitoring, with continuously updated data enabling more effective oversight of ecosystem changes. Data transparency allows the public and investors to see directly the economic value and condition of ecosystems, encouraging accountability.

It also provides legal protection; digital data can serve as legal evidence in violations, such as ecosystem destruction by irresponsible parties.

Policy Implications The implementation of digital ID in Indonesia’s ecosystem management has several key policy implications, including the recognition of ecosystem economic values. The government can incorporate these values into national and regional development planning, ensuring conservation becomes an integral part of economic growth.

Recognizing the economic value of ecosystems is crucial for integrating conservation into development planning. In Indonesia, ecosystems such as forests, mangroves, and coral reefs significantly contribute to the national economy. For example, the mangrove ecosystem’s value is estimated at Rp340.46 trillion (USD 20.61 billion).

Mangroves serve functions like carbon storage, water quality regulation, and coastal protection, also playing roles in tourism and fisheries sectors. The government can include this value in national and local planning, making conservation a component of economic growth, which promotes ecosystem sustainability while developing resource-dependent sectors.

With data transparency enabled by digital ID technology, local communities, including indigenous groups, can be more involved in ecosystem management and monitoring. Their local knowledge is vital, and digital data access facilitates their participation in decision-making related to resource use and conservation efforts. For example, in the Sungai Wain Protected Forest (HLSW) in East Kalimantan, covering 11,246 hectares, community participation in ecosystem management can generate an economic impact of Rp5.8 billion annually from agriculture and non-timber forest products.

Strengthening regulations is an essential aspect of digital ID technology deployment. This technology can help authorities monitor ecosystems in real-time and provide data for law enforcement.

Digital data can be used to track illegal activities such as illegal logging, illegal fishing, and coral reef destruction. In Indonesia, illegal fishing losses are estimated at Rp30 trillion annually. Digital ID technology can identify changes within conservation areas, accelerate responses to environmental threats, and prevent further damage. For instance, in Gunung Leuser National Park, which spans about 2.6 million hectares, digital ID can detect illegal hunting or land conversion using satellite-based monitoring data.

Digital ID technology can support developing economic incentive schemes for communities contributing to conservation. This can turn conservation into an economic opportunity rather than just an obligation. Carbon offset programs are an example; communities involved in maintaining forests or ecosystems that store carbon can receive compensation from companies aiming to reduce emissions to meet targets. Additionally, government can develop eco-tourism schemes based on digital ID to incentivize communities to preserve natural beauty and manage eco-tourism responsibly.

One of the main benefits of digital ID implementation is increased accountability and transparency in resource management. Open, accessible data allows stakeholders to monitor and evaluate policies and conservation projects, reducing corruption risks. In fisheries, digital tracking systems can monitor supply chains and reduce illegal fishing practices that harm the country.

For example, Indonesia loses about Rp30 trillion annually due to illegal fishing, which can be mitigated through digital monitoring systems. Transparent data also makes it easier for the public to access information about protected areas, fostering active community involvement in ecosystem preservation. Digital technology further reduces opportunities for illegal exploitation by irresponsible actors, thus preventing ecosystem damage.

Applying Digital Identification in Indonesia’s ecosystem management offers numerous benefits, including clearer recognition of economic values, increased community participation, regulatory strengthening, and economic incentives supporting sustainability. With real-time data capabilities, Indonesia can improve natural resource management, reduce environmental damage, and create sustainable economic opportunities. Policy implementation emphasizing transparency, accountability, and incentives will positively impact conservation and the nation’s economy.

Dr. Aswin Rivai, SE., MM
Environmental Economist and Lecturer
Department of Economics-Universitas Pembangunan Nasional Veteran, Jakarta