This article examines peatland conversion in South Sumatra and its impact on environmental management and the economy. As unique ecosystems, peat swamp forests have significant economic and ecological value. However, the increasing conversion of land for other economic uses, such as oil palm plantations and forest plantations, has threatened the sustainability of this ecosystem. This research analyzes the economic value of various ecosystem services provided by peat swamp forests, including timber, fish, water, and other environmental aspects. We also consider the impact of this land conversion on biodiversity, carbon emissions, and the environment. The results show that peatland conversion significantly negatively impacts economic value and biodiversity. Therefore, we provide several policy recommendations to balance economic development and preserve this important peat swamp forest ecosystem. The chapter provides in-depth insight and a comprehensive analysis of the surrounding conversion of peatlands, emphasizing the significance of conserving these ecosystems within the framework of environmental sustainability. Quantitative methodology is used.