In recent years, widespread peatland degradation has occurred in Indonesia as a result of both natural events and human activities. Although there is a strong push for restoration from national and international stakeholders, at the local level, farmers and communities are still widely managing peatlands with unsustainable practices including their conversion into agricultural land. To understand the causes of such a challenging situation, we carried out a survey to investigate the drivers of local livelihoods in the typical peatland village community of Kayu Labu in South Sumatra Province. Our findings showed that while the unsustainable practices adopted do not align with either the long-term interests of this community or the wider public interest, they do align with the best socioeconomic interests of the farmers. A preliminary examination of the livelihood options chosen illustrates the strong contrast between public and private interests. In particular, in local communities like Kayu Labu, the profit margins for oil palm and rubber are higher than those for sustainable alternatives. We conclude that, to address the problem of peatland degradation and to design successful and sustainable peatland restoration initiatives, decision-makers need to understand the local socioeconomic situation, people's livelihoods, and their expectations. A key option is to increase the roles and responsibilities of local communities in determining the rules that relate to land management. Only then are regulatory and policy interventions likely to improve peatland conservation and restoration outcomes.
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