Considering the significance of Indonesia’s peatlands for the environment as well as for the livelihoods of the communities surrounding the area, Indonesia has prioritized its environmental strategy to restoring degraded peatland, conserving the remaining good peatland and providing alternative livelihood for communities living inside and surrounding peatland. Several measures were taken including issuing policy and regulations reflecting the commitment for better peatland management, developing institutional arrangements to deal with problems in peatland management, conducting research and development to better manage Indonesia’s peatland, and providing incentives for conservation and sustainable management of peatland.