REDD Preparation in Indonesia Wahjudi Wardojo Forestry Research and Development Agency (FORDA) Ministry of Forestry, INDONESIA

FOREST IN INDONESIA Source : Forest Planning Agency, MoF (2006) M ha (47 %)

home of mega biological diversity, one of the custodians of global peat land

source of income and other customary uses for forest communities employed around 5.4% of the country’s labor force, in early 1990s

BASIC POLICIES OF FOREST MANAGEMENT Based on Forestry Law (1999) and Conservation of Biodiversity Law (1990) Accommodating Philosophy of Eco Centrism and Anthropo Centrism Balancing between Sustainable Forest Management and Development Purposes

Expansion plantation for pulp /paper industry and estate crops (oil palm, rubber, cocoa) Economic crisis & Decentralization euphoria Moratorium on forest conversion, reduced AAC, law enforcement, improved forest management

Natural Forest Condition in 1980s

Natural Forest Condition in 2000

UNDERLYING CAUSES OF DEFORESTATION AND FOREST DEGRADATION Poor Governance at all Pillars: Government, Business, and Community Sectors Government e.g.: Ineffective law enforcement and control, insufficient participation and transparency, and ineffective forest management Business e.g. : rent seeking behavior Community e.g.: lack of institution capb Low global and regional commitments

FORESTRY SECTOR POLICY: FIVE PRIORITY POLICIES AND PROGRAMS ( ) Combating illegal logging Forest & land rehabilitation and forest conservation Forestry sector restructuring through enhancement of timber plantation and wood- based industries Community empowerment  Community forest) Securing forest land (strengthening the legal status of state forest land)

REDD Some 18% of GHG are caused by deforestation Climate regime does not yet provide developing countries with necessary funding to address it Participation in reducing emissions from deforestation and forest degradation (REDD) is voluntary Indonesia is interested to participate in REDD

Forest and Global Challenges We are facing two big challenges: climate change and food, energy, water scarcity (FEWS) In the context of climate change, forest can be as sink and source Forests need to adapt impact on climate change In the context of FEWS, forests could play important roles in solving this scarcity However, forests could also be threatened by this problems as demand for land will be significantly increase

Indonesia Forest Climate Alliance (IFCA) MoF experts, other government officials, CSOs, academician, national and International researchers; Financial and technical support from Australian Government, GTZ; UK-DfID, WB Kick-off meeting July 2007 followed by studies, national workshops, public consultation

Indonesia REDD ( REDDI) Road Map JanFebMarAprMayJunJulAugSepOctNovDec Post 2012 COP 13 Preparation Phase - Design Fine Tuning - System Establishment - Pilot Design * Analysis (Architecture and Strategies) * Communication/ Coordination/Consultations Carbon-Finance (Pilots) - Pilot /demonstration activities - Testing - Knowledge Management Full Implementation of REDD Workshop, SBSTA, UNFCCC, G8, Etc. COP14 COP13 COP15

KEY ELEMENTS of REDDI Emissions reference (baseline) Strategies to reduce emissions and to ensure their permanence Monitoring and verifying emissions reduction, and preventing leakage REDD market/ financing Payment distribution (mechanism and management)

FIVE KEY SECTORS WERE EXAMINED Natural Production Forest Protected Area Management Industrial Forest Plantation Forests and Peat lands, and Forest Conversion to Oil Palm

Basic Criteria for the Selection of Pilot/Demonstration Activities Availability of Information Biophysical Variation e.g. deep peat, and high carbon stocks Level of Threat, e.g. fire, encroachment, unplanned deforestation. Social Equity  pro-poor dimension Economic Variability Tenure : clarity over rights in land and forest Governance

Monitoring & Verifying Emissions Parameters to be monitored: Change in forest cover: using remote sensing technique Change in carbon stock: field measurement and modeling Base line: National, sub-national, or project- based ? National base line: generate larger financial flows and reduce overall risk, but involve higher transaction costs and greater inefficiencies

Financing and Market Fund-based Financing, through bilateral and multilateral cooperation Voluntary-based Financing, from CSO, and Private Sectors Market form of REDD is still uncertain It is expected to be large market for large forest in Indonesia

Payment Distribution The existing institutions should be strengthened to: receive and distribute fund track emission reduction credits adjust existing laws enforce law and resolve disputes ensure achievement in emission reduction handle contract and logistic to organize internal distribution mechanism A need to address rights, responsibilities and authority between local, national, and independent entities for sale and payment distribution

CONCLUDING REMARKS Indonesia forests play significant roles for social, economic, as well as environmental purposes for the national and global benefits. Forest land use planning allocates forest areas into conservation, production as well as convertible forests for development purposes in a balanced way. REDD mechanism offers options to reduce emissions from deforestation, and opportunity to receive benefits on the basis of carbon credits saved Indonesia is ready to implement REDD demonstration activities and share the result for further negotiation.