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This paper estimates the break-even price in Central Kalimantan province, Indonesia and evaluates the effectiveness of a REDD+ mechanism in this area. On the basis of data collected through a field survey, we found that the break-even price is $$\$15.45$$ per ton of carbon or $$\$4.21$$ per ton of carbon dioxide. The figure can be even lower when we take the peat thickness of the area into account. Our analysis shows that the current level of carbon price can provide adequate compensation for Indonesian farmers. [ABSTRACT FROM AUTHOR]