GOI REGULATIONS

E&S Indicators Summary of Issues Data Sources Timeline for Monitoring species population

 Community-based monitoring efforts are not optimised

 Lack of clear conservation guidelines

plantation HGU

Numbers of

cases/frequency and severity of Contamination and Pollution

 Use of pesticides in agriculture and plantation sector

 Small-scale civil/construction works and waste management

 Environmental agency (Province)

Quarterly

Numbers of cases indicating risks of Leakages and reversals

 Shifting carbon emissions to other areas or provinces

 Lack of participation in fire

control/prevention resulting in increased carbon emission

 DGCC

 DDPI

Annually

POLICY AND REGULATION FRAMEWORK

(National Forest Estate). This regulation is also used as the basis for the recognisiton of customary forest;

 Law No. 6/2014 on Villages. This law potentially has major implications for the forestry sector by expanding the authority of villages to manage their own assets and natural resources, revenue and administration. It reallocates a specific portion of the state budget to village administrations, providing all of Indonesia’s villages with annual discretionary funding for making local improvements that support poverty alleviation, health, education and infrastructure development;

 Law No. 23/2014 on Regional Governance. This law effectively weakens Indonesia’s system of regional autonomy by withdrawing authority over natural resource management (including forestry) from district and city governments and shifts it to provincial and national-level governments;

 Law No. 26/2007 concerning Spatial Planning. It amends Law No. 24/1992 (Spatial Planning Act) in the context of decentralization, urbanization and other factors. It grants authority over spatial planning to provincial governments (pemerintah propinsi) and district governments (pemerintah kabupaten and pemerintah kota). Provision of this authority is not stipulated within previous spatial planning laws. It also provides some new ways for enhancing development control, including zoning, planning permits, implementation of incentives and disincentives, administration and criminal sanction. Law No. 26/2007 also acknowledges the importance of public participation in spatial planning;

 Law No. 18/2013 on the Prevention and Eradication of Forest Degradation. This law strengthens law enforcement by providing additional legal certainty and defining the penalties for those engaged in forest destruction. It clearly defines which activities are banned for individuals and organized groups who log in forests, as well as for organizations involved in the illegal timber trade and officials engaged in the falsification of permits;

 Government Regulation (PP) No. 27/2012 concerning Environmental Permit, Regulation of the Minister of Environment No. 16/2012 concerning Guidelines for Preparing Environmental Documents (AMDAL, UKL/UPL, and SPPL);

 Ministry of Environment and Forestry Regulation No. P.83/2016 concerning on Social Forestry;

 Ministry of Environment and Forestry Regulations No. 31/2015 regarding private forests. This provides the procedure for recognition of customary forests by MoEF;

 Presidential Regulation (Perpres) No. 88/2017 concerning Resolution of Land Conflict within Forest Area (PPTKH);

 Ministry of Agrarian and Spatial Plan/Head of National Land Agency No. 6/2018 concerning a Complete and Systematic Land Registration (PTSL);

 Ministry of Agrarian and Spatial Plan/Head of National Land Agency No. 10/2016 concerning communal land titles; and

 Other applicable environmental standards on water quality, air quality, erosion control, etc.

The ERP activities will potentially involve and have an impact on indigenous peoples. The project should provide benefits to and manage its impacts on indigenous peoples. The GoI’s policy on indigenous peoples includes:

 Presidential Decree (Keppres) No. 111/1999 concerning Development of Isolated Indigenous Community (KAT) which provides a broad definition of indigenous peoples and the need for government assistance;

 UUD 1945 (Amendment) Chapter 18, clause #2 and Chapter 281 clause # 3;

 Law No. 41/1999 on Forestry (and Constitutional Court Decision No. 35/PUU-X/2012);

 Ministry of Home Affairs (MoHA) Regulation No. 52/2014 on the Guidelines on the Recognition and Protection of MHA (Masyarakat Hukum Adat);

 MoEF Regulation No.43/2013 regarding delineation and designation of forest areas under the jurisdiction of Forest Management Units; and

 Regulation of the Minister of Land Agency and Spatial Development No. 9/2015 on the Procedures to Establish the Land Communal Rights on the MHA Land and Community Living in the Special Area.

The above regulations will support the ERP, and no contradiction is foreseen in the regulatory framework. Implementation of Presidential Regulation No. 88/2017 must be carefully planned, so the modification of forest areas (e.g., into other use areas) and the Agrarian Reform Policy (TORA) will not cause deforestation or land degradation. Additionally, Constitutional Court Rule (Putusan Mahkamah Konstitusi [MK]) No. 35/2012 should be interpreted responsibly, so it does not provoke massive land claims within forest area.

Baseline data on forest areas (production, protection and ecosystem restoration) in Table 11 (Section 5.2) show that East Kalimantan Province consists of more than 30% forest area; therefore, according to Presidential Regulation No. 88/2017, resettlement will not be used as a measure for resolving conflicts over forest areas. Consequently, it is important that the forest tenurial conflict resolution team strengthens the strategy for social forestry and environmental partnership in production and protected forests. Additionally, the team may also refer to the Regulation of Director General (Peraturan Dirjen) KSDAE No. 6/2018, which provides specific guidelines for establishing partnerships with communities in protected areas such as nature reserves, wildlife reserves and national parks. Under community partnership and communidy development program, options may include validation of Village Land use Plan that regulates agro-forestry activities permissible in production forest. Village law should opt 92nviron cultivating plantation commodities (Palm Oil) in the forest estate, and promote NTFP if relevant

Summary of institutional and regulatory issues are provided in Table 23.

Table 23 Summary of institutional and regulatory issues for the ERP.

Regulation/Policy Issue Relevance to REDD+ Relevant E&S Risks Conflict resolution in

forest areas

Implementation of Presidential Regulation No. 88/2017, MoEF Regulation No.

FGRM and conflict resolution mechanism to ensure “clean-and- clear” conditions prior

 Access restrictions

 Overlapping land uses

Regulation/Policy Issue Relevance to REDD+ Relevant E&S Risks

P.84/2015 to implementation

Conflict resolution in non-forest areas (Other Use/APL)

Implementation of conflict resolution mechanism by the Estate Crops Agency and Environmental Agency does not allow concerted efforts on conflict resolutions in APL

FGRM and conflict resolution mechanism to ensure “clean-and- clear” conditions prior to the implementation

 Access restrictions

 Overlapping land uses

 Gender and social exclusions

FGRM Lack of regulation that

leads to an integrated FGRM mechanism (i.e., forest and other use areas)

FGRM and conflict resolution mechanism to ensure “clean-and- clear” conditions prior to implementation

 Unresolved conflicts and disputes

 Accumulation of conflicts and disputes Land for Agrarian

Reform Program

Requires careful interpretation of Presidential Regulation No. 88/2017

Preventing deforestation and degradation triggered by land conversion within forest area

 Forest conversion for agricultural practices

 Land grabbing

Provincial Regulation 1 of 2015 on customary land rights

Requires careful interpretation of the rule to avoid massive land claims

Preventing deforestation and degradation triggered by land conversion within forest area

 Abuse of MHA attribution for land claims

Commitment to emission reduction

Land based emissions are the largest contributor of GHG emissions in Indonesia

Designation of roles and responsibilities of DGCC (MoEF) on emission reduction

 Proper FREL and MRV application as objective measures of GHG emissions

6.2 REGULATORY ENFORCEMENT AND CAPACITY