REDDI Strategy draft August09(english)

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MINISTRY OF FORESTRY

NATIONAL STRATEGY

REDUCING EMISSIONS FROM

DEFORESTATION AND FOREST

DEGRADATION IN INDONESIA

READINESS PHASE

Draft - August 2009

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RESOURCE PERSONS:

1. Director General of Forestry Research and Development Agency

2. Assistant to the Minister of Forestry/Head of the Ministry of Forestry of Climate Change Working Group

AUTHORS :

1. Dr. Nur Masripatin 2. Dr. Rufi’ie

3. Dr. Kirsfianti Ginoga 4. Dr. Ngaloken Gintings 5. Dr. Chairil Anwar Siregar 6. Dr. Ruandha Sugardiman 7. Ir. Ari Wibowo, M.Sc .

8. I. Wayan Susi Darmawan, S.Hut., M.Si. 9. Ir. Saipul Rahman, M.Sc.

10. Ir. Retno Maryani, M.Sc. 11. Ir. Achmad Pribadi, M.Sc. 12. Fitri Nurfatriani, S.Hut., M.Si. 13. Dyah Puspasari, S.Hut, M.Si. 14. Reinaldi Imamnudin, S. Hut 15. Sukaesih Pradjadinata, S. Hut

SECRETARIAT:

1. Dra. Sumiyati

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CONTENTS Page

I. INTRODUCTION 3

II. LAND USE, FOREST POLICY AND GOVERNANCE 3

III. DEFORESTATION AND FOREST DEGARADTION IN INDONESIA 5

IV. REGULATORY FRAMEWORK TO TACKLE DEFORESTATION AND FOREST DEGRADATION

CHALLENGES 6

V. REDD AND READINESS STRATEGY 7

Lists of Figures

Figure 1. IFCA process in the National Climate Change Context prior COP-13 Figure 2. REDD Indonesia Road Map

Figure 3. REDD Indonesia Framework

Lists of Tables

Table 1. Stakeholders communication for each component of REDDI framework

Table 2. Summary of REDD Indonesia Strategy

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I. INTRODUCTION

Indonesia is one of the three largest tropical forest countries. The use of forest resources in Indonesia follows the rules applied to each of the four forest functions/categories. First, conservation forest, managed to conserve biological diversity, the source of genetic resources needed for food crops, medicinal plants, wood and non-wood forest species domestication. Second, protection forest, important to maintain hydrological function, watershed protection and soil conservation. Third, production forest, provides timber and non-timber products, and is managed through selective cutting for natural forest and clear cutting for plantation forests. The forth category is conversion forest, forest area which can be converted for other land uses.

About 48 million people live in and surrounding Indonesia’s forests. Around 6 million Indonesians make their living directly from forests. The government has made extensive efforts to accommodate community rights in forest management through forestry regulations and laws.

Wood products contributed significantly to Indonesia’s economic growth , employment and exports, especially between 1980s – 1990s. Foreign exchange earnings from forest product exports were estimated as US$ 1.2 billion in 1985. Since then the composition of exported forest products has shifted from logs to processed products such as sawn timber, plywood, panels, furniture and pulp and paper products. By 2005 the reported level of forest commodity exports had risen to US$ 5 billion.

Along with deforestation problem in the tropics, Indonesia has lost approximately 1.7 million ha of its forest per year during the period of 1985 – 1997. The highest forest lost occurred during 1997-2000, reaching the figure of 2.8 million ha per year. The latest published data (MoF, 2008) showed that net forest lost has decreased during 2003-2006, reaching about 1.17 million ha. Volume of harvested wood products decreased from 26.2 million m3_{in 1990 to 11.2 million m}3_{in 2005. The importance of non wood forest}

products increased during the same period (food products, medicinal plants, rattan etc). According to FAO (2005) it was reported that the volume of fuel wood declined from 357.000 m3_{in 1990 to 171.000 m}3_in

2000 and only 79.000 m3 _{in 2005.}

Sustainability of forest resources is crucial for the continuation of national development. Sustainable management of forest resources is a form of mitigation and adaptation measures, which is survival issue for Indonesia. As a country with thousands of island and high dependency on agricultural sector (agriculture, forestry, fishery, livestock), Indonesia is vulnerable to climate change not only from environmental aspect but also economic and social.

II. LAND USE, FOREST POLICY AND GOVERNANCE

1. Land Use

The Act No. 41/1999 on Forestry and Act No. 5/1990 on Biodivesity Conservation are the main references for managing forest resources in Indonesia. These two laws reflect the phylosophy of forest management in Indonesia which accomodate the needs to utilize forest resources optimally as well as to conserve forest resources to assure obtaining multi benefits in a sustainable manner.

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Changing demographic circumstances, and increase in population in the outer islands, decentralization of government and a growing economic importance of estate crops, particularly palm oil, have all contributed to increasing pressure on the Ministry of Forestry to convert land for non-forest purposes. The forest land is categorized as Convertible Forest (Hutan Produksi Konversi) and decisions on the release of land zoned for this forest function are taken by the Minister on the basis of applications from proponents. Once land is released from the Forest Estate it becomes subject to land use decisions which are largely in the hands of local governments (Kabupaten/Kota) and are subject to a regulated process known as spatial planning, whereby land is allocated over a 5-year time frame and within 25 year long term strategic plans to contribute to economic and social development. Forested land (Hutan Negara)) - the potential subject of management for the natural resource of carbon – is largely under the control of the Ministry of Forestry ; but forested land outside the national forest land exists and this is within the scope and decision making capacity of the Local Government, the District Head and the local parliament as well as the Minister of Forestry. Decisions over REDD activities therefore involve national activities and local activities.

2. Forest Land Use Policy

Indonesian Forest Land is divided into four major functional categories: Production Forest (Hutan Produksi), Convertible Forest (Hutan Konversi), Protection Forest (Hutan Lindung) and Conservation Forest (Kawasan Konservasi). Within each of these categories there are a number of other functional zones which constrain the range of uses to which the forest can be put.

Production Forest for which sustainable forest management is intended to maintain forest ecosystems within the forest estate. Permanent Production Forest is managed as: (a) Natural Production Forest (Hutan Produksi Alam – HP-A), (b) Limited Production Forest (Hutan Produksi Terbatas – HPT); and Industrial Plantation Forest (Hutan Tanaman Industri – industrial forest plantations). The utilization of the production forests is undertaken through forest concessions that are granted to private companies, individuals, cooperatives, communities, or state enterprises concerned with the forest sector. Concessions are granted for 20 to 55 years over natural forests and for up to 60 years over HTI. Following a review of non-performing natural forest concessions in 1998, the Minister of Forestry at the time cancelled over 200 concessions which reverted to the Ministry of Forestry and have since had little direct management. This land, particularly in Sumatra and Kalimantan is sometimes referred to as open access and is the subject of new initiatives from the Ministry to incorporate them into planned plantation developments through the mobilization of local communities and the granting of a range of community concessions, including Hutan Tanaman Rakyat – HTR.

The zoning of the production forests takes into account factors such as soil type, elevation and slope and rainfall, while the distinction between HP and HPT relates to the intensity of permitted logging. The decision to establish a plantation forest HTI can be taken where the damage from concession logging of the natural forest is judged to have caused irreparable damage to the natural forest ecosystem. It is generally acknowledged that the future of Forestry production in Indonesia will be increasingly tied to industrial plantation production.

Convertible Production Forest (Hutan Produksi Konversi – HPK). This forest can be converted to other non-forest uses, such as agriculture, estate crops (e.g., coffee, oil palm, rubber) and settlement.. The decision to release HPK from the forest estate is subject to ministerial approval based on proposals from industry. The majority of the HPK is found in the lowlands of Indonesia, more suitable for non-forest uses than higher and steeper landscapes which are reserved for HP or HPT..

Protection Forest (Hutan Lindung). Protected Forest has been set aside largely for watershed protection and protection of beachfronts, riversides and steep upper slopes of mountains where uncontrolled human activities or logging could easily create critical land through erosion. Limited human activities are permitted including the taking of rattan and the secondary forest products at non-commercial scales. The management of Protected Forests has been devolved to Local Government (Kabupatan/kota).

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3. Forest Governance

The Indonesian constitution gives the state broad authority over forests and forest land, at the same time recognizes customary rights and use of forests, although subordinate to national interests. In the last decade, the legitimacy of state institutions has been strengthened and rebuilt on democratic principles. The legitimacy of the current system of forest governance is now contested in two arenas:

 In the ongoing debate over how far decentralized authority should empower local governments to regulate forest use and forest-related income; and,

 In the efforts by local communities and their supporters in civil society to assert and defend customary claims to forests and forest land.1

State sovereignty over virtually all forest land was asserted in the Basic Forestry Law of 1967 and reaffirmed in act 41/1999. The need for better local management and pressure for democracy and decentralization have encouraged opportunities for community-based forest management, including locally managed production to feed forest-based industry. Reforms such as the “Joint Forestry Management Approach” in Java have begun to provide local communities with greater forest access and benefits2_{. More}

can be done to clarify and recognize the rights of local people under customary law and resolve the competing claims of more recently settled migrants.

The Ministry of Forestry’s initiatives to legally strengthen community access to customary land under designations such as “village forest”, “community forest” and HTR are designed to promote an interested management presence on land that has become de facto open access where communities have not had legal authority or means to prevent forest encroachment.

III. DEFORESTATION AND FOREST DEGRADATION IN INDONESIA

According to the UNFCCC Decision 11/CP.7, definition of deforestation is the direct, human-induced conversion of forested land to non-forested land. Effectively this definition means a reduction in crown cover from above the threshold for forest definition to below this threshold. Whereas degradation is defined as a direct, human-induced, long-term loss (persisting for X years or more) or at least Y% of forest carbon stocks [and forest values] since time T and not qualifying as deforestation. Degradation would represent a measurable, sustained, human-induced decrease in carbon stocks, with measured tree cover remaining above the minimum required to be considered as forest. Gross emissions assume removal of trees and most of the biomass and that all carbon is emitted. It does not include any reductions for the carbon sequestered in the vegetation of the replacing land use. However, net emissions assume removal of trees and most of the biomass and that all stored carbon is emitted, but allows for counting the carbon stocks on the area deforested as they are replaced. Where an area of natural forest is removed for the purposes of creating a plantation it may seem attractive to consider applying the concept of net deforestation because it is assumed that the level of emissions will be lower because of subsequent carbon sequestration as the plantation grows.

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reconstruct Padu Serasi agreement at a scale that is consistent with local government spatial planning, thereby it would be a harmony between the functional land use zoning that is required under local government spatial planning and the functional management of forest land.

Unplanned forest losses can be as a result of forest fires, forest encroachment, unsustainable levels of logging from legally permitted forest concessions, and illegal logging at small and large scales. As Indonesia‘s population continues to grow through the current long term plan projections towards 275 million, there is also going to be continuing pressure for land reform and reallocation of forest estate to support the growing numbers of people. The forest dependent people give high pressure into forest land since there is limited alternatives for their livelihood. They have very low income thereby they are heavily depend on forest products as their main source of livelihood. Schemes to improve livelihoods of forest-dependent people while reducing pressures on the forest had been failed in the past partly because they operate too close to the forest edge and serve more as magnets that attract and keep people close to or inside the forest rather than pulling them away towards less forest-dependent livelihood options. This can be overcome by addressing the problem on a larger scale. Poverty alleviation funds that draw people away from, rather than into, forests—such as through agricultural intensification in areas of good productivity and adequate infrastructure far from the forest frontier—have proven effective.

In addition to unplanned forest losses, the largest length of the boundaries of the production forests and the protected areas are more difficult to control and are therefore open to unplanned encroachment from local people or other commercial forest users, and subject to small and large scale illegal logging. The factors that combine to allow for illegal logging and encroachment particularly in protected forest are lack of enforcement, insufficient incentives for communities and governments for maintaining protected areas, and low capacity of institutions charged with managing the protected areas. It also occurred in production forest. The encroachment are conducted by neighbouring communities who may or may not be aware of the boundaries.

IV. REGULATORY FRAMEWORK TO TACKLE DEFORESTATION AND FOREST DEGRADATION CHALLENGES

Forestry faced considerable challenges in the past ten years which demand for refocus and reorientation of forest policies. In this regards, forestry sector has set up five priority policies, namely : (1) combating illegal logging and its associated illegal trade; (2) forestry sector restructuring through enhancement of timber plantation and industry restructuring; (3) forest rehabilitation and conservation and; (4) strengthening the economy of local communities and, (5) securing forest areas. The five priority policies have been translated into short, medium, and long-term planning. The legal and policy framework already exists which contribute to creating enabling conditions for climate mitigation actions, through reducing emissions from deforestation and forest degradation, sustainable forest management, forest conservation, and through enhancement of carbon stocks from forest restoration, afforestation and reforestation.

A number of regulations already exists which can contribute to creating enabling conditions for climate mitigation actions, through reducing emissions from deforestation and forest degradation, sustainable forest management, forest conservation, and through enhancement of carbon stocks from forest restoration, afforestation and reforestation, if they are successfully implemented. To provide illustration of the regulation exists, there are new spatial planning legislation in Act 26/2007 which requires local government to progressively revise their spatial plans and government regulation Government Regulation 6/2007 and its revision Government Regulation 3/2008 which provides a framework for licensing the use of forest land for a range of environmental services as well as timber products. Government Regulation 6 and Government Regulation 3 also accommodate a greater range of community interest through licenses for Community Plantation Forest (HTR), Community Forest (HKM), and Customary Forest (Hutan Adat). The forestry law, Act 41/1999 introduced a broader range of concepts of forest resources use than had previously existed.

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on these plans, however, because of the magnitude of the challenges which need to be tackled, the available domestic funds often far from adequate. Market failure for forest products and services (e.g. market of illegal forest products, A/R CDM) has also added the challenges in practicing SFM principles which can eventually contribute positively towards climate change mitigation.

The Government of Indonesia has acknowledged that a history of high deforestation and forest degradation rates are a consequence of inadequate forest governance, and the Ministry of Forestry has moved to address the issue explicitly through its long term strategic plan. The government also recognizes that illegal activities which impact on forests also derive from broader governance issues. These are pervasive or systemic problems that go beyond the sector, such as high levels of corruption and elite capture, ambiguous and conflicting laws and regulations, and poor performance of public institutions.

Forest crime is a threat to governance as it undermines the rule of law, exacerbates social conflict, and threatens sustainable forest management The prevention, detection, and suppression of forest crimes continue to be hampered by corruption in the justice system at each step from criminal detection and investigation, through case preparation and prosecution, to adjudication and appeal. The sheer number and complexity of overlapping, inconsistent, and contradictory regulations in the forest sector provide ample opportunity for administrative corruption, as officials either sell their services as brokers to navigate the bureaucratic tangle or else take bribes to circumvent it.

Since 2000 the Indonesian government has been undertaking a comprehensive program to curb illegal logging under the umbrella of the Forest Law Enforcement National Strategy (FLENS). In addition, Presidential Instruction (INPRES 4/2005) directs 18 government bodies as well as local government officials to cooperate in action to eradicate illegal logging. Subsequent to the INPRES a number of high profile illegal operators have been arrested.

Recognizing the need for a multi-sector approach to improving governance, the Government of Indonesia has made the fight against corruption in all sectors a top priority, as demonstrated by the work of the independent Anti-Corruption Commission (KPK) and the special Anti-Corruption Court. Indonesia now has a law against money laundering (Act 25/2003), which is the first in the world that allows the proceeds of illegal logging to be investigated and used in prosecution. As a result of anti-corruption efforts there has been a major wave of prosecutions against illegal activities in many sectors, including forestry. The State Ministry for Administrative Reforms announced an ambitious goal to apply a nationwide system of good governance at the local government level by 2008. Over the last three years the Ministry of Forestry has issued regulations that create four new avenues for improved access and rights over forest resources in order to overcome the root cause of unplanned forest losses. These regulations embraces Collaborative Management in Protected Areas (Minister of Forestry Regulation No 19/2004), Community Forests (Government Regulation 6/2007), Community Forest Plantations (Government Regulation 6/2007), and Customary Forests (Government Regulation 6/2007).

V. REDD AND READINESS STRATEGY

1. REDD Indonesia (REDDI)

Deforestation became one of dominant topics in many forest-climate related forum especially after Stern Report on the Economic of Climate Change published and Stern’s campaign to all stakeholders in many countries including to policy makers. He emphasized on deforestation in developing countries that may contribute significantly to the global GHGs emissions and will continue to increase unless there is appropriate policy intervention. Based on WRI data (in Stern, 2006), deforestation contribute approximately 18 percent to the global GHGs and 75 percent of the emissions came from developing countries. Stern in his report and campaign called for immediate actions to reduce emissions from this sector and stressed out the importance of participation of international communities to help developing countries in reducing deforestation.

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national circumstances be accommodated in a fair and equitable manner considering the way forestry issues be addressed under climate convention.

Indonesia, prior to COP13, formed Indonesia Forest Climate Alliance in July 2007, an umbrella or forum for stakeholders’ communication/coordination/consultations on REDD related issues, including progress and outputs of the studies on REDD methodologies, strategy, financial/market analysis and incentive distributions. The REDD Indonesia /REDDI studies (2007) were coordinated by the Ministry of Forestry, involving both national and international experts, funded by WB, UK, Australia, and Germany. The progress and results of the studies were communicated through IFCA, involving the three pillars of governance (government institutions, private sectors, civil societies including academia) and international partners working on climate changes and forestry in Indonesia (see Figure 1 : IFCA process prior COP-13). A report entitled IFCA Consolidation Report : Reducing Emissions from Deforestation and Forest Degradation (MFor, 2008) can be accessed through www. forda-mof.org.

Figure 1. IFCA process in the National Climate Change Context prior COP-13

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Figure 2. REDD Indonesia Road Map

2. Readiness Strategy

IFCA studies 2007 recommended follow up works, namely : (1) build on initial framework designed by IFCA , (2) continue consultations and technical analysis, (3 test and implement pilot/demonstration activities with heterogeneous conditions, (4) conduct capacity building at all levels, (5) create credible national framework for verifiable emission reduction, and (6) deliver real reductions in GHG emissions. In order to follow up the outcomes of the IFCA studies 2007, COP-13 Decision and implement the REDDI Road Map, REDDI Framework was set up (see Figure 3).

Figure 3. REDD Indonesia Framework

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communications such as the use of MoFor website and e-mail communications to gather inputs from stakeholders. First, the Minister of Forestry issued a regulation on the implementation of REDD demonstration activities (PERMENHUT No. P. 68/Menhut-II/2008 ; see Annex 1) and a Decree on establishing the Ministry of Forestry Working Group on Climate Change/WG-FCC (SK.13/Menhut-II/2009; see Annex 2), and just recently Regulation on REDD (PERMENHUT No. P30/Menhut-II/2009; see Annex 3). The release of Regulation No. P 68/Menhut-II/2008 and P. 30/Menhut-II/2009 was intended to respond to the high interest from both international partners and national stakeholders to participate in -REDD activities, as well as to exercise outcomes of COP/SBSTA processes on REDD. The aim of the implementation of demonstration activities is to test and develop methodologies, technology and institution of sustainable forest management that endeavor to reduce carbon emission through controlling deforestation and forest degradation.

As the follow up of the release of Regulation No. P30/Menhut-II/2009, WG-FCC has to immediately finalizing draft REDD Commission (National Working Group on REDD) who will be tasked to oversee REDD implementation. The National REDD Working Group (NRWG) will consist of representatives from relevant sectors and stakeholders. As the members of the WG are high level official (Directorate General level), their duties are more dealing with strategic issues. To conduct their duties they will be backed-up and assisted by Technical Team, whose member at more technical level (Director level) and REDD Secretariat.

For the operationalization of Regulation No.P.30/2009, technical guidance for the five Annexes of the Regulation No.P.30/2009 is necessary, The REDD Commission and the FCC-WG facilitates the implementation of REDDI guideline. Table 1 describes responsible institution/s, stakeholders communications, and stakeholders involved for each component..

Table 1. Stakeholders communication for each component of REDDI framework

REDDI Component Responsible Institution/s Consultation and Outreach Activities*** Stakeholders Reference Emission Level (REL)

 Ministry of Forestry *  National Aeronautical and Space Agency (LAPAN)  Bakosurtanal

 Awareness raising

 Training, and shared learning

 Workshops/meetings /policy dialogue for input gathering , defining REL

 Expert gathering for exchanges of knowledges and experiences

 Web-based communications

 Ministry of Environment

 Ministries related to land use sector

 Local government

 National Council on Climate Change (DNPI)**

 Private sector

 Scientific institutions

 Civil societies (including CSOs, indigenous people and local communities)

 International partners (bilateral and

multilateral cooperation, international

organizations working in Indonesia)

REDDI strategy :

Elaborate further REDDI strategy developed in IFCA studies 2007 

adjusted wherever

 Ministry of Forestry

 Ministry of National Development Planning/BAPP ENAS,

 Workshops/meetings for input gathering to identify the most suitable REDDI strategies at the national and sub-national levels,

 Private sector

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REDDI Component Responsible Institution/s Consultation and Outreach Activities*** Stakeholders approach ‘national accounting with sub-national implementati on national circumstances and the national development priority.  Web-based communication

(bilateral and

Monitoring  Ministry of Forestry *

 National Aeronautical and Space Agency (Id. LAPAN)  Bakosurtanal  Ministries related to land use sector

 Workshops/meetings for input gathering for component 8

 Private sector

Market/funding  Ministry of National Development Planning/BAPP ENAS,

 Ministry of Finance*

 Other related institutions

 Workshops/meetings to design the most appropriate

institutional setting for REDDI financing.

 Meetings : Indonesia-international partners providing financial support for REDDI

Note : related to the work coordinated by BAPPENAS and Ministry of Finance ‘Climate Change Trust Fund’

 Private sector

 Academia

 Civil societies (including CSOs)

 Private sector

 International partners providing financial support for REDDI

Distribution of

incentives and  Ministry of National

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REDDI Component

Responsible Institution/s

Consultation and Outreach Activities***

Stakeholders

ENAS,

 Ministry of Finance

 Other related institutions

for REDDI distribution of incentives and responsibilities at all levels.

 Private sector

multilateral cooperations, international

Notes :

* Lead Institution;

** DNPI responsible for high level coordinating function. for overall issues on climate changes,

*** Format of activities, listed in the table will be adjusted to suit different needs of stakeholders at different levels.

In order to prepare infrastructure for the Indonesia’s REDD approach “National accounting with sub-national (provincial,/district/ management units with bundling) implementation”, the REDDI Framework (Figure 3) need to be further elaborated into detail activities and time frame for implementation as well as financial resources to carry out the activities. Table 2 depicts summary of REDDI strategy at the national and sub-national level, Table 3 describes activities and time frame per strategy category and key strategy component at the national and sub-national level, and Table 4 presents activities, estimated budget, sources/possible sources per strategy category and key strategy component at the national and sub-national level.

3. REDD-plus

REDD-plus was the term to refer to Bali Action Plan Paragraph 1 b (iii) ‘Policy approaches and positive incentives on issues relating to reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries.

The term was first used in AD HOC WORKING GROUP ON LONG-TERM COOPERATIVE ACTION UNDER THE CONVENTION at the Sixth session in Bonn, 1.12 June 2009 (see footnote 19 of the document FCCC/A WGLCA/2009/8, 19 May 2009 ‘In this document, actions under paragraph 1 (b) (iii) of the Bali Action Plan (issues related to policy approaches and positive incentives on issues relating to reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries) are referred to collectively as .REDD-plus’.

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Table 2. Summary of REDD Indonesia Strategy

3

Level Strategy Category Key Strategy Component

NATIONAL LEVEL

1. Tackling drivers of deforestation and degradation :

a. a. Protected area (conservation

forest and protection forest) 1.1. Develop more effective conservation and management of Protected Areas (conservation forest and protection forest)

b. Production forest 1.2. Develop more effective management of Production Forests

1.3. Options for forest harvesting and management to supply the requirements of pulp and paper industry

c. Oil palm 1.4. Options for supplying the requirements of the oil palm industry.

d. Peat land 1.5. Testing strategies for restoration of peatlands

2. REDDI regulation4 _{2.1. Development of technical and institutional guidance to implement the REDDI}

2.2. Establishment of National REDD Committee/REDD National Working Group

3. Methodology 3.1. Establishment of REL at the national level

3.2. Establishment of MRV system at national level

4. Institution 4.1. Establishment of National Registry

4.2. Institutional setting to implement REDDI

4.3. Setting incentive/payment distribution mechanism

4.4. Stakeholders communications/ coordination/ consultations 4.5. Capacity building and institutional strengthening

SUB NATIONAL LEVEL

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Level Strategy Category Key Strategy Component

PROVINCIAL LEVEL

1. Methodology 1.1. Establishment of REL/RL at the provincial level (shall be consistent with national REL)

1.2. Establishment of MRV system at provincial level

2. Institution 2.1. Stakeholders communications/ coordination/ consultations

2.2. Capacity building and institutional strengthening

3. Demonstration Activities (DA) 3.1. Enhance DA to represent different bio-socio-geographical conditions at 28 provinces (existing at 4 provinces : East Kalimantan, Central Kalimantan, South Sumatera and East Java)

3.2. Enhance capacity of local community, including adat communities to engage in forest management through REDD activities.

DISTRICT LEVEL 1. Methodology 1.1. Establishment of REL/RL at the district level (shall be consistent with provincial and national REDD)

1.2. Establishment of district level MRV system

2. Institution 2.1. Stakeholders communications/ coordination/ consultations

3. Demonstration Activities 3.1. Implement Demonstration Activities at district level or management unit (with bundling to district level wherever possible)

3.2. Enhance capacity of community, including adat communities to engage in forest management through REDD activities

ALL LEVELS Relevant Analysis Analyze costs of alternative land uses

Analyze environmental and socio-economic impacts of REDD Evaluate potential additional benefits of REDD

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Table 3. Schedule of Activities for Readiness at the National and Sub-national Level

Level and Strategy

Category Key StrategyComponent Activities ResponsibleInstitution/s

Schedule

2009 2010 2011 2012

NATIONAL LEVEL 1. Tackling drivers of deforestation and degradation : b. Protected area

(conservation forest and protection forest)

a.1. Develop more effective conservation and management of protected areas

1.

Review of national conservation plan DG of Forest Protection

and Nature

Conservation, Local Govt,

2.

The completion of legal gazettal process of

protected area boundaries (conservation forest and protection forest).

DG of Plannnology, Local Govt.

3.

Investment in training and professional capacity

MoForestry; CSOs, Private Sectors;

4.

Development of effective management of protected areas, including protection forest in upper watersheds.

DG of Forest Protection and Nature

Conservation, Local Gov.

5.

Arrangemant of collaborative management and ecosystem restoration

Conservation, local Gov.

6.

Implementation of REDD demonstration

activities involving a range of protected area types.

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Level and Strategy Category

Key Strategy

Component Activities

Schedule

2009 2010 2011 2012

7.

Training and professional capacity building for Protected Area (Conservation & Protection forests) Forest Management Unit (FMU/ KPHK & KPHL) Managers

DG of Forestry Planning, DG of Forest Protection and Natural Conservation, Centre of Education and Training

b. Production Forest b.1. Develop more

effective management of Production Forests

1.

FLEG and VPA related initiatives to contain

illegal logging (e.g. Strike Force proposals)

Conservation and DG of Production Forest

2.

Establishment of production forest

management unit

DG of Production Forest, DG of Forest Planning

3.

Voluntary adoption by private sector companies of anti timber theft measures.

DG of Production Forest,

4.

Outcome based independent certification

5.

Investment in Reduced Impact Logging DG of Production

Forest,

6.

Establishment of 1 million ha compensatory

fast growing timber plantation resource by small holders.

DG of Production Forest, BRIK

7.

Training and professional capacity building for Production Forest Management Unit (Production FMU/KPHP) Managers

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

b.2. Options for forest harvesting and

management to supply the requirements of pulp and paper industry

8.

Create transition away from harvesting native mixed tropical hardwoods towards increased dependence on community and small holder owned pulpwood plantations grown on degraded forest and agricultural lands ( e.g. alang alang grasslands), with a target of 1 million ha of plantations over 5 years.

DG of Production Forest, local com, private sector

c. Oil Palm c.1. Options for

supplying the requirements of the oil palm industry.

1.

Introduce way to avoid establishment of new

oilpalm plantation on forested land through provision for establishment by small holders of 1 million hectares of new plantations on degraded lands.

MoAgriculture, local gov, private sector, small holders

2.

Rationalize the relationships between forest land, especially the functional zone of convertible forest HPK and non-forest land subject to land use decisions and spatial planning by local governments.

DG of Forest Planning, local gov.

d. Peat land d.1. Testing

strategies for restoration of peatlands

1. Building on the success being achieved through a continuing water resource management program.

MoPublic work, MoAgriculture, local gov, MoA,

2. Implement drainage design and fire control

which has been proven effective, MoPublic work, local gov, MoA, DG of Forest Protection and Nature Conservation 3. Assess land management responsibilities

between local and national governments in relation to forest and non-forest land on

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

peats. 2. REDDI regulation5 _{2.1. Development of}

technical and institutional guidance to implement the REDDI

Elaboration of the guidance (6 Annexes ) to the REDD regulation :

1.

Role of local government

WG-FCC (Pokja PI Dephut)

2.

Eligibility criteria for REDD activities

3.

Guidance for preparation of REDD proposal

4.

Guidance for assessment of REDD proposal

5.

Establishment of REL, guidance for monitoring and reporting

6.

Guidance for verification 2.2. Establishment of

National REDD Committee/ REDD National Working Group

1. Finalization of Decree on REDD Committee WG-FCC (Pokja PI

Dephut)

2. Working mechanism of REDD committee

3. Methodology 3.1. Establishment of

REL at the national level

1. Analitical work : approaches to determine REL/RL for REDDI

a. Historical trend (an average of past emissions)

1) Collection and analysis of deforestation and degradation data:

 Analysis of data on historic land cover trends

 Development of baseline forest

cover map

 Gather forest inventory data (area

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

change, biomass density) 2) Develop reference scenario of forest

cover change e.g. since 1990

3) Develop reference scenario of forest carbon stocks & change

4) Develop reference scenario of forest carbon degradation (change in carbon stocks) and change

DG of Forest Planning, FORDA and other research institutions

b. Modeling Future projection 1). Analyze development plans :

 Economic trend analysis & forecast (population growth, drivers of deforestation and forest degradation, policies and measures)

 Macroeconomic trends (global agricultural commodity, wood demand, biofuel projections)

2) Reference scenario projection into future:  Deforestation: forest area change  Degradation: biomass and carbon density

change.

 Develop historical trends extrapolation methods

 Adapt modeling tools for REDD

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

c. Hybrid approach (mixed modeling)

 Predict unplanned deforestation (and degradation) from average of historical emissions.

 Predict planned deforestation from spatial plans indicating forest conversation to other uses,

 Adapt modeling tools, incorporating historical emissions and emission projection arising from modeling.

2. Awareness raising, capacity building, technology transfer and know how, shared learning, access to data/information.

REDD Committee, WG-FCC

3. Policy dialogue and stakeholders

communication, to reach consensus/common understanding on REL to be established.

4. Mobilization of resources : human resources,

funding and organization REDD Committee, WG-FCC

3.2. Establishment of MRV system at national level

1a. Develop system (sub system of INCAS, sinergity IPCC guideline with REDD regulation),

1b. Colecting data

2a. Awareness raising, scientific dialogue,

capacity building REDD Committee, WG-FCC FORDA and other

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

Universities

2b. Participation of indigenous people REDD Committee,

WG-FCC, CSOs 3. Resource mobilization : human resources,

funding and organization

REDD Committee, WG-FCC,

4. Institution 4.1. Establishment of

National Registry

1. Assessment of legal and institutional setting

needed to implement REDD activities. REDD Committee, WG-FCC

2. Defining roles and responsibilities of government agencies, communities and the private sector in managing carbon assets.

3. Tracking implementation of REDD activities

and payments in a national carbon registry. REDD Committee

4.2. Institutional setting to implement REDDI

1. Definition of the scale of REDD activities, in this case elaborate REDDI approach ‘national accounting with sub-national implementation’, and how the approach can be effectively implemented in Indonesia.

FORDA and other research institutions

2. Elaboration on how activities at different scales will be implemented, monitored and reported.

4.3.

Setting

incentive/ payment distribution mechanism

1. Development of mechanism for management of interaction between international buyers and investors.

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

distribution (definition of who would be entitled to sell Emission Reductions or receive payments for Emission Reduction and definition of ownership and transfer of carbon rights).

WG-FCC

4.4. Stakeholders communications/ coordination/ consultations

Awareness raising on REDD :

1. Collecting information on REDD and prepare material for consultation on REDD

REDD Committee, WG-FCC, CSOs

2. Disseminate/communicate key issues with

regard to REDD infrastructure REDD Committee, WG-FCC, CSOs

3. Select the relevant material for specific

purposes of consultation. REDD Committee, WG-FCC, CSOs

4. Conduct awareness raising on REDD at national and sub national level (provincial and district level) for various Stakeholder either for specific topic or general topic depending on the target group.

Establishing a channel through which beneficiaries can access information and participate in the design and implementation of REDD activities

1.

Prepare protocol communication flows to ensure that information could flow from the source to the target audience completely and immediately.

2.

Disseminate information from website and other form of communication channel.

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WG-Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

responsive to stakeholders’ concerns

1.

Disseminated draft of policies with regard to REDD through to the website and other means of communications to get feed back from stakeholder.

FCC

2.

Facilitate public consultation REDD Committee,

WG-FCC, CSOs Ensuring equitable outcomes of REDD policies

and activities, and increasing the chances of forest dwellers to get benefit from REDD revenue

1.

Conduct Rapid Assesment to get

first-information on the interest of forest dweller and indigenous people

2.

Safeguarding the formulation regulation on REDD revenues (led by Ministry of finance) which taking into account but not limited to the assesment result, to ensure that the forest dwellers will gain fair benefit

3.

Ensures that any policies formulation process will be conducted in transparent and accountable manner.

Supporting improvements in forest governance

1.

Ensures that any policies formulation process

will be publicly consulted through in transparent and accountable manner.

Improving the quality of decision-making processes by allowing the Civil Society to have voices and access to involve in the decision making process.

1. Involve the CS in decision making process

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

on particular issues at early stage of the process.

2.

Capacity building of CS in negotiation skill and other related knowledge.

Support assessment of program impacts and

possible risk mitigation measures. Independent Assessor

1.

Negotiation and finalization of REL REDD Committee,

WG-FCC

2.

Development and Establishment of a

Monitoring and Verification System.

DG of Forest Planning, REDD Committee WG-FCC,

3.

REDD Markets and Financing, Negotiation

and testing of Payment Distribution Mechanisms

 Identification of carbon marketing opportunities (buyers and sellers)

 Development of equitable payment and

distribution mechanisms with special reference to those that will benefit low income families.

 Financial mechanisms that will create financial and economic incentives that could create an enabling environment for bringing about changes in historical approaches to forest land use

management by leading private sector companies .

REDD Committee, WG-FCC, FORDA and other research institutions

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

REL at the provincial level (shall be consistent with national REL)

1. Analitical work : approaches to determine REL for sub national or provincial REDD (Historical trend or future projection) :

a. Historical trend

Research institutions, Provincial gov. (Provincial REDD Committee)

 Development of baseline forest cover

map

 Gather forest inventory data (area change, biomass density)

2) Develop reference scenario of forest cover change e.g. since 1990 3) Develop reference scenario of forest

carbon stocks & change

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

b. Future projection

1). Analyze development plans :

 Economic trends (agricultural commodity, wood consumption, biofuel projections)

2) Reference scenario projection into future:

 Deforestation: forest area change

 Degradation: biomass and carbon

density change.

 Adapt modeling tools for REDD

Provincial gov. (Provincial REDD Committee), CSOs 3. Policy dialogue and stakeholders

communication, to reach consensus/common understanding on REL/RL to be established.

Provincial gov. (Provincial REDD Committee), CSOs 4. Resource mobilization: human resources,

infrastructure for REL/RL and funding. Provincial gov. (Provincial REDD Committee), 1.2. Establishment of

MRV system at provincial level

1b. Colecting data

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

capacity building (Provincial REDD

Committee), CSOs 2b. Participation of indigenous people and local

communities Provincial gov. (Provincial REDD

Committee), CSOs 3. Resource mobilization: human resources,

infrastructure for monitoring and funding. Provincial gov. (Provincial REDD Committee), CSOs

2. Institution 2.1. Stakeholders

communications/ coordination/ consultations

Awareness raising on REDD :

Provincial gov. (Provincial REDD Committee) 2. Disseminate/communicate key issues with

regard to REDD infrastructure

3. Select the relevant material for specific purposes of consultation.

4. Conduct awareness raising on REDD through workshop, public consultation, FDG, training, with facilitation from national government. Establishing access of information and participation in designing and implementing REDD activities

1. Ensuring communication from the national level to the target audience completely and immediately

2. Disseminate information

Provincial gov. (Provincial REDD Committee)

Designing REDD policies and activities responsive to stakeholders’ concerns

1. Disseminate REDD related policies to get feed back from stakeholder.

2. Facilitate Public Consultation

Ensuring equitable outcomes of REDD policies

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

forest dwellers to get benefit from REDD revenue 1. Rapid Assesment to get first-hand

information on the interest of forest dweller including indigenous people.

Committee)

Supporting improvements in forest governance 1. Ensures that any policies formulation process

will be publicly consulted through in transparent and accountable manner

Improving the quality of decision-making processes by involving the Civil Society since early stage of the process.

1. Capacity building of CS in negotiation skill and other REDD related knowledge.

Provincial gov. (Provincial REDD Committee), CSOs

possible risk mitigation measures. REDD Committee, WG-FCC, Independent assessor

1. Development and Establishment of Monitoring and Verification System at local level : human resources, regulation and, organization.

Provincial gov. (Provincial REDD Committee) and National REDD Committee

2. REDD Markets and Financing,  Identification of carbon marketing

opportunities, Buyers and Sellers

Provincial gov. (Provincial REDD Committee) and National REDD Committee

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

 Creating financial and economic

incentives

Committee) and National REDD Committee

4. Strengthening spatial land use planning Provincial gov. and

Provicial office of Forest Planning, MoFor

5. Strengthening local government support, understanding and awareness of the urgency of FMU as enabling condition for sustainable forest management through raising

university's participation on FMU development

DG of Forestry Planning, Provincial Govt, University

3. Demonstration

Activities (DA) Enhance DA to represent different

bio-socio-geographical conditions at 28 provinces (existing at 4 provinces : East Kalimantan, , Central Kalimantan, South Sumatera and East Java)

Establish DA and apply indicative guidance for DA (Annex to the Dec. 2/CP13) and examine the outcomes

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

2.3.

Enhance

capacity of local community, including adat communities to engage in forest management through REDD activities

1. Improve quality of life from low income families, living in or adjacent to natural forests, to protect the rights of forest dependent indigenous peoples and local communities, through knowledge and skill enhancement.

Local gov., CSOs

2. Reduce illegal logging, through e.g an extension of successful models such as the Kecamatan Development Scheme and the National Program for Community

Empowerment (PNPM).

Local gov., CSOs, private sector

DISTRICT LEVEL

REL at the district level (shall be consistent with provincial and national REDD)

1. Analitical work : approaches to determine REL for district level REDD (Historical trend or future projection) :

a. Historical trend

DG of Forest Planning, Research Institutions, District gov.

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

 Development of baseline forest cover map

 Gather forest inventory data (area change, biomass density)

2) Develop reference scenario of forest cover change since 1990

3) Develop reference scenario of forest carbon stocks & change

4) Develop reference scenario of forest carbon degradation (change in carbon stocks) and change

b. Future projection

1) Analyze development plans :

 Economic trends (agricultural commodity, wood consumption, biofuel projections)

2) Reference scenario projection into future:

 Deforestation: forest area change

 Degradation: biomass and carbon

density change.

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

District gov. (District REDD Committee), CSOs

3. Policy dialogue and stakeholders

communication, , to reach consensus/common understanding on REL to be established.

4. Resource mobilization: human resources,

infrastructure for REL and funding. District gov. (District REDD Committee), CSOs

2.2. Establishment of district level MRV system

1b. Collecting data

DG of Forest Planning, research institutions, local government

2a. Awareness raising, scientific dialogue,

capacity building DG of Forest Planning, research institutions,

local government, CSOs

2b. Participation of indigenous people and local

communities Local government, CSOs

3. Resource mobilization: human resources,

infrastructure for monitoring and funding. Local government, CSOs

2. Institution 2.1. Stakeholders

communications/ coordination/ consultations

2. Disseminate/communicate key issues with regard to REDD infrastructure

3. Select the relevant material for specific

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

4. Conduct awareness raising on REDD through workshop, public consultation, FDG, training, with facilitation from provincial and national government

5. Conduct awareness raising on FMU through workshop and public consultation to support FMU development, particularly Model FMU with facilitation from provincial and national government

DG of Forestry Planning, District Governments

Establishing access of information and participation in designing and implementing REDD activities:

1. Ensuring communication from the national level to the target audience completely and immediately

2. Disseminate information

REDD Committee, WG-FCC, District gov. (District REDD Committee)

Designing REDD policies and activities responsive to stakeholders’ concerns

1. Disseminate REDD related policies to get feed back from stakeholder.

2. Facilitate Public Consultation

District gov. (District REDD Committee)

Ensuring equitable outcomes of REDD policies and activities, and increasing the chances of forest dwellers to get benefit from REDD revenue 1. Rapid Assesment to get first-hand information

on the interest of forest dweller including indigenous people.

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

Supporting improvements in forest governance 1. Ensures that any policies formulation

process will be publicly consulted through in transparent and accountable manner.

Improving the quality of decision-making processes by involving the Civil Society since early stage of the process.

1. Capacity building of CS in negotiation skill and other REDD related knowledge

possible risk mitigation measures. REDD Committee, WG-FCC, District REDD, Committee Independent Assessor,

1. Development and Establishment of Monitoring and Verification System at local level : human resources, regulation and, organization.

District gov. (District REDD Committee) and National REDD Committee 2. REDD Markets and Financing,

 Identification of carbon marketing opportunities, Buyers and Sellers)

District gov. (District REDD Committee) and National REDD Committee 3. Negotiation and testing of Payment

Distribution Mechanisms

 Creating financial and economic

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

4. Strengthening spatial land use planning District gov. and

Provicial office of Forest Planning, MoFor 5. Strengthening local government support,

understanding and awareness of the urgency of FMU as enabling condition for sustainable forest management through raising

university's participation on FMU development

DG of Forestry Planning, District Govt, University

3. Demonstration

Activities (DA) 3.1. Implement DA at district level or management unit (with bundling to district level wherever possible)

Establish DA and apply indicative guidance for DA (Annex to the Dec. 2/CP13) and examine the outcomes

District gov. (District REDD Committee) and Provincial and National REDD Committee

3.2. Enhance capacity of community, including adat communities to engage in forest management through REDD activities

1. Improve quality of life from low income families, living in or adjacent to natural forests, to protect the rights of forest dependent indigenous peoples and local communities, through knowledge and skill enhancement

Local gov., CSO

2. Reduce illegal logging, through e.g an extension of successful models such as the Kecamatan Development Scheme and the National Program for Community

Empowerment (PNPM).

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Level and Strategy Category

Key Strategy

Schedule

2009 2010 2011 2012

RELEVANT

ANALYSIS Analyze costs of alternative land uses 1. Analyzing social opportunity costs of poverty based, community based forest encroachment

2. Analyze the private and institutional costs for sustainable forest management in production forests

3. Analyze pulp and paper plantations costs conducted on peatlands compared to non-peat lands

4. Analyze oil palm plantations costs conducted

on peatlands compared to non-peatlands AARD and other research institutions

Analyze

environmental and socio-economic impacts of REDD

1. Review the current references and proposals

for REDD policies. FORDA and other research institutions

2. Obtain spatial reference of socio-economic

data (population, income, etc.) FORDA and other research institutions 3. Vulnerability assessment to determine likely

deforestation rates based on socioeconomics and environmental characteristics of the area.

Evaluate potential additional benefits of REDD

Identification and valuation of additional benefit

from REDD FORDA and other research institutions

Assess trade-offs and risks of REDD to sustainable

development

Determine the possible transaction costs associated with alternative policies for avoiding deforestation

Assess risks of the

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Table 4. Budget Requirement for Readiness Activities and Possible Financial Sources

Level and Strategy

Category Key StrategyComponent Activities Responsible Institution/s

Budget Required

(US $ 000)

Available (US $ 000)

Source Shortfall

(US$ 000)

Possible Source NATIONAL LEVEL

1. Tackling drivers of deforestation and degradation : a. Protected area (conservation forest and protection forest)

a.1. Develop more effective

conservation and management of protected areas

1.

Review of national

conservation plan

DG of Forest Protection and Nature Conservation, Local Govt,

500.000 500.000 MoFor.

Local Govt.

Leading Conservation Agencies,

Bilateral Donors

The World Bank (FIP)

2.

The completion of legal

gazettal process of protected area boundaries.

DG of Plannnology, Local Govt.

3.

Investment in training and professional capacity

MoForestry; CSOs, Private Sectors;

4.

Development of effective

management of protected areas, including protection forest in upper watersheds.

DG of Forest Protection and Nature Conservation, Local Gov.

5.

Arrangemant of collaborative management and ecosystem restoration

DG of Forest Protection and Nature Conservation, local Gov.

6.

Implementation of REDD

demonstration activities

involving a range of protected area types with different jurisdictions.

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Level and Strategy

Category Key StrategyComponent Activities Responsible Institution/s

Budget Required

(US $ 000)

Available (US $ 000)

Source Shortfall

(US$ 000)

Possible Source

7.

Training and professional

capacity building for Protected Forest Management Unit

(Protected FMU/KPHK)

Managers

DG of Forestry Planning, DG of Forest Protection and Natural Conservation, Centre of Education and Training

MoFor

b. Production Forest b.1. Develop more

effective management of Production Forests

1.

FLEG and VPA related

initiatives to contain illegal logging (e.g. Strike Force proposals).

DG of Forest Protection and Nature Conservation and DG of Production Forest,

1.000.000 1.000.000 MoFor

Private sector companies

Bilateral donors

World Bank (FIP)

2.

Voluntary adoption by private

sector companies of anti timber theft measures.

DG of Production Forest, DG of Forest Planning

3.

Outcome based independent

certification

4.

Investment in Reduced Impact

Logging

5.

Establishment of 1 million ha compensatory fast growing timber plantation resource by small holders.

DG of Production Forest, BRIK

6.

Training and professional

capacity building for

Production Forest

Management Unit (Production

DG of Production Forest Management, DG of Forestry Planning, Centre of

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