Assessing the Economic Impact of Peat Fires on Industrial Plantation Forests in Mesuji Subdistrict, South Sumatra, Indonesia

South Sumatra is home to extensive peatlands, with a significant portion situated in Ogan Komering Ilir Regency. Among these areas, the Mesuji subdistrict stands out as a critical region, hosting Industrial Plantation Forests (IPFs) primarily planted with Acacia mangium, a vital economic resource. This study assesses the economic losses caused by peat fires in Mesuji, which have persisted since 2015, disrupting livelihoods and degrading ecological functions. Using secondary data and valuation techniques, the study quantifies the economic value of key ecosystem services, including timber production, honey production, and water cycle and hydrological regulation. The results indicate a total estimated loss of approximately forty-two trillion rupiahs, with timber production accounting for the majority of these losses. These findings emphasize the urgency of implementing effective peatland restoration and fire prevention strategies. Moreover, the study offers a framework to better understand the socioeconomic and ecological consequences of IPF losses, providing valuable insights for policy development and public engagement.