Update REDD IndonesiaUpdate REDD Indonesia

Bernadinus SteniPerkumpulan HuMa

Points of Presentation

• Forest Condition

• Pilot projects of REDD

• Why Indonesian Forest is Important

• Drivers of deforestation• Drivers of deforestation

• Moratorium of license of converting natural forest

and peat land

Mining, logging, oil palm

Mining, oil palm

Mining, oil palm

Forest Existing Condition

Mining, oil palmMining, industries

Plantation, logging

Mining

Forest Conflict

Data Base

HuMa dan Forest Watch Indonesia

FORCLIME: (€7 Millions; 2010-12)Innovative designs for REDD demonstration activities incl. establishment of FMUs,

ProposedAusAID2nd Demonstration Activity

GTZ Merang: (€ 1,445,255; 2008-11). Incl:- Measures to restore forest areas -Strategies and structures for peat forest management Integrated -Fire management scheme.

Kapuas Hulu

Malinau

Berau

TNC: Demonstration activities: improved forest management, forest restoration, oil palm swap, land use planning, policies and enforcement

Demonstration Activities of bilateral cooperation

ITTO: USD 540K (2010-12)- Institutional setting to prevent deforestation; -Technology in restoration and rehabilitation of PSF;- Demonstration activities with the plantation of indigenous species.

UNREDD: USD 1.5 Million (2010-11)- Capacity for spatial socio-economic planning incorporating REDD; - Empowered local stakeholders to benefit from REDD;- Multi-stakeholder-endorsed district REDD plans

KOICA: USD 5 Million (2009-13)Joint research and implementation of pilot project on afforestation/reforestation CDM project and REDD.

Musi Banyuasin

JambiKapuas

Kapuas Hulu

Meru BetiriJember

Central Sulawesi

East & Central Lombok

KFCP: AUD 30 Million - Reducing deforestation & forest degradation (incl. rehabilitation of peatland); - Monitoring & carbon accounting; - Payment mechanism:- Readiness at provincial and district level. MoF

(Some of) Voluntary ActivitiesGlobal EcoRescueInhutani IIWinrock Intl Malinau regency

Aceh provincial Govt, FFI, & Carbon Conservation

FFI, Macquarie, PHKA, WWFWWF

Malinau

Jambi Mamuju,

Ulu Masen, Aceh Province

Minahasa Utara & Bitung, Sulawesi Utara

Green Synergie

Kapuas HuluKampar Peninsular

Riau TN

Sebangau Mamberamo

BOS Foundation, UNAS Jakarta & Museum of anthropology of Zurich

NewForest Emerald Planet

Taman Nasional Berbak, Zoological Society of London, Environmental Resource

RSPB, Burung Indonesia & BirdLife International

Keep the Habitat & Inhutani I APRIL

TN Berbak Jambi

MawasCentral Kalimantan

Jambi

South Sumatera

Mamuju, West

Sulawesi

Riau Sebangau

Jayapura Unurum Guay,

Mamberamo

Mimika

MoF

World Bank

• Forest Carbon Partnership Facility.

• Introducing RPP (Readiness Preparation Proposal)

– Consultation Process (no documents provided, invitation letter to the

participants was sent out very late, no improvement after having inputs from

CSOs)

• RPP will be approved together with SESA

• National safeguard will be proposed. Climate change DPL

responsible for the substance of policy discussion. FCPF will trigger

the process. It seems that safeguard will include oversight

mechanism and complaint mechanism

Substance of RPP: lack of social safeguards, giving

mandate to the biggest corrupt department (minister of

forestry), still BAU – Business as Usual – as it is still

accommodating the existing extractive policies

UNREDD

• Bilateral cooperation between UN organizations (UNEP,

UNDP and FAO) and Minister of Forestry.

• Introducing FPIC (Free and Prior Informed Consent)

– Setting up local principles and procedures for REDD

– Setting up complaint mechanism

– Setting up a cooperation with peoples chamber of DKN

• Problems:

– Highly bureaucratic (so much negotiation to minister of forestry)

– No updates of related documents after having public

consultation

Initiated by Aceh

Provincial

Government and

Carbon

Conservation.

Invite Merrly Lynch

as a third party to

purchase ulu

Ulu Masen Project, Aceh

purchase ulu

masen carbon.

Promising benefit

has been promised

out to masyarakat

adat (indigenous

peoples).

• Doing FPIC but re-define some definitions and

procedures

– If you don’t agree with the scheme, you will be

excluded from project.excluded from project.

Why Indonesia Forest is Important

• First, huge amount of forest land and

deforestation rate � ±70 % of the country area

are forestland/state forest : 132 million hectares

(± 37 % of them are degraded at various levels, (± 37 % of them are degraded at various levels,

forest lost 2000-2005 ± 1.18 million ha/year, in

2010: 1,08 million ha/year

• Second, Forest contribution to national GHG is the

highest compared to other sectors.

Energy

20%Industry

3%

Peat

Fire

Waste

11%

National GHG Inventory 2000

3%

Agriculture

6%Land Use

Change and

Forestry

47%

13%

Source: MoE, 2009

• Third, REDD policies. Three policies have been issued

under the Minister of Forestry: (1), ministerial decree on

demonstrative activities (Permenhut 68/Menhut-II/2008).

(2), guidelines for REDD (PermenhutNo. 30/Menhut-

II/2009. (3), Permit procedures for Carbon Sequestration

and Carbon Sink (Permenhut No. 36/Menhut-II/2009).and Carbon Sink (Permenhut No. 36/Menhut-II/2009).

• Provide “red carpet” for REDD related-activities

(demonstration activities, guidelines, benefit sharing)

• Open for market/fund/mixed. Fund could be generated

from corporate social responsibility

• Fourth, forest is a home of more than 60 million

indigenous and local communities. Some of them

have managed the forest sustainably and need to

be protectedbe protected

Drivers of Deforestation

• First, license holders

• Oil palm plantation (Astra Agro Lestari, Wilmar Group, Sinar Mas)

• Planting trees for industrial scale (APRIL – Asia Pacific Resource

International Limited, Sinar Mas)

• Logging (Djajanti Group, Alas Kusuma, Barito Pacific): 45 % of the • Logging (Djajanti Group, Alas Kusuma, Barito Pacific): 45 % of the

60 million hectares of forest that is allocated for logging

concessions owned by these groups

• “Food security program” such Merauke Food Estate Project (PT

Medco Energy International Tbk, PT Bangun Cipta, PT Wilmar

International and PT Industri Gula Nusantara)

• Second, role of financial institution (banks)

• Just recently, Bank of Indonesia issued a regulation to

push private’s and government’s banks to lend more loan

by lowering any requirements needed

• Most of bank credits are given to finance mining

operation. operation.

• From January to May, 2009 loan went to mining is about

26,38 trillion rupiahs. In the same period in 2010, it has

already spent higher 47,41 %. Increasing 79,72 %;

• There is no control to the banks to limit their loan to

those investments which destructing forest. No

environmental safeguards

• Third, market driven

• Demands for CPO are increasing, but the oil palm trees

are old. Companies need to apply new license in some

other areas (forest or peat land or even peoples

agriculture land).

• Astra Agro Lestari Tbk production report showing that

along semester I 2010, CPO production is going decrease along semester I 2010, CPO production is going decrease

rather than the same period in 2009. In 2009, it produced

499.444 ton of CPO. While in 2010, only produces

470.993 ton. The reason is oil palm trees are old (Kontan,

9 Agustus, 2010). And then they are seeking new land

• There is a huge pressure from private sectors now to pass

law on Land Security

• Fourth, policies.

– No policies to limit mining and plantation.

– No coordination among policies (monetary policies,

plantation, and mining are supporting extractive

industries very much. While environmental policies are

standing alone) standing alone)

– No policies to realize international human rights

instruments

Moratorium

• Becoming a new agenda after LoI between Indonesia and Norway.

Norway gives Indonesia grant 1 billion USD to halt deforestation

from 1 January 2011 to 2013.

• No legal basis. But, a little hope is Presidential task force quite open

the forum to let stakeholders involved

• Current debate di pemerintah:• Current debate di pemerintah:

– Moratorium is rejected by existing sectors (mining, plantation, etc) as their

mandate to give license will be limited.

– Rejected by forest industries (KADIN, GAPKI – Gabungan Pengusaha Kelapa

Sawit Indonesia)

– Likely, it does not include existing license and those in application process

(stated by Hadi Daryanto Dirjen Pengusahaan Hutan)

• Institutionally, sectors compete each other to have REDD institution under their authority. – Topic of institution is three aspects: MRV, Finance and

implementing body

– Minister of Forestry wants to pull moratorium agenda – Minister of Forestry wants to pull moratorium agenda

under forestry department. DNPI as well

– President trust Koentoro who is now leading Satgas

Pemberantasan Mafia Hukum, because of his track

record

Proposed Location

• Forestry Minister said location could be in four provinces: Riau, Kaltim, Papua and Kalteng. Bisa juga lima dengan mempertimbangkan antara Jambi atau Bengkulu (Jakarta Post 5 June 2010)

• Hatta Radjasa mempertimbangkan Riau-Jambi, West • Hatta Radjasa mempertimbangkan Riau-Jambi, West Kalimantan, East Kalimantan and Central Kalimantan (Jakarta Post, 19 Agust 2010)

• Emil Salim, penasihat lingkungan hidup presiden masih mendorong Papua karena primary forest yang masih luas ada di Papua dan target pembangunan skala besar akan didorong di Papua

Riau

Strength

• Moratorium could hit the expansion of HTI of big companies (APRIL)

• Save the rest of deepest

Challenge

• Government said, moratorium will not include existing license

• Holding concession is on • Save the rest of deepest peat land in the world

• Recover the social and economic life of peoples who living under the intimidation and terror

• Holding concession is on going operating now

• Resistance of companies will be very strong

• Local government back up the expansion of extractive industries to primary forest and peat land

Kalteng

Strength

• Moratorium could stop the expansion of oil palm in primary forest

• There is a pilot project

Challenge

• Governor rejects moratorium. Together with Jambi’s governor and East Kalimantan’s governor, they • There is a pilot project

initiated by Australia in peat land and already approved by President

Kalimantan’s governor, they said “protecting forest will change us to be orang utan”

• Most of big oil palm companies playing their business in Kalteng

Kalbar

Strength

• Primary forest is still there especially in some big national parks controlled by national government

Challange

• Putting REDD in business sector to generate money (Perusahaan Daerah)

• Coal mining survey is more national government • Local government in

Kapuas Hulu has some concern in conserving forest

• Coal mining survey is more and more intensive

Papua

Strength

• Most of primary forest is in Papua

• There is special autonomy which recognize the rights

Challenge

• Too political • Two big mining companies

in the world operating in Papua (BP and Rio Tinto)which recognize the rights

of indigenous peoplesPapua (BP and Rio Tinto)

• Military approach is quite often used by national government to bend protest in Papua