INDONESIA REDD NATIONAL STRATEGY AND READINESS PLAN

INDONESIA : CC relevance 1.Country land area : app. 187 millions ha, population : app. 230 millions 2.7 major islands (from total of > 16 thousands islands), > 300 tribes, 3.33 provinces, > 300 districts, autonomous governance system 4.±60 % of the country area are forest land/state forest (± 37 % of them are degraded at various levels) 5. Forest transition from the east (Papua : low historical DD) to the west (Sumatera : high historical DD, Java : forest cover increases) 6.The Law No. 41/1999 on Forestry and Law No. 5/1990 on Biodivesity Conservation are the main references for managing forest resources (u nder Forestry Law (UU) No. 41/1999, customary/adat right is recognized) 2

Forest & agric. industry dev. Pulp & paper plantation Estate crops plantation (oil palm, rubber, cocoa) Economic crisis Decentralization Moratorium on forest conversion Reduced AAC Law enforcement Improved forest management

Drivers of DD in Indonesia  Deforestation * : forest conversion for other land uses (planned), encroachment (unplanned)  Forest Degradation** : forest fire, unsustainable harvesting (including illegal logging) * : there is land use change (LUC) ** : no LUC Underlying causes : international market, other sectors’ development needs  need to be addressed ‘on’ and ‘off’ forest. 4

OBJECTIVE  Indonesia’s R-Plan is intended to assist Indonesia in improving management of forest resources according to sustainable principles.  Basis :  Indonesia’s Long Term Development Plan (2006 – 2025).  The fact that deforestation and degradation in the tropics account for about 20 % of total global carbon emissions has highlighted the potential of Indonesia’s forests to play a significant role in contributing positively towards climate change mitigation through delivering real reduction of emissions from deforestation and forest degradation and also through increased carbon sequestration, at the same time allow national development continue in a sustainable manner. 5

Approaches to achieve objectives Overall approach : putting REDD to the mainstream of sector and national planning (ongoing process coordinated by Ministry of Development Planning) Specific approach in REDD Readiness, covers a range of activities :  Analytical works (inc. REL/RL, MRV, Opp. Costs, Co-benefits, risks, etc)  Policy dialogue and stakeholders communication  Awareness raising, capacity building, shared learning  Institutional arrangement (incl. distribution of benefits and responsibilities at all levels)  Issues to be taken into account :  REDD Indonesia (national approach with sub-national implementation) demand a strong link between central and local government, and across sectors and stakeholders/actors (three pillars of governance : government, civil societies, private sectors).  Outcomes from negotiation process in COP and its relevant Bodies. 6

REDDI STRATEGY LEVELSTRATEGY CATEGORY NATIONAL1.Policy interventions to tackle drivers of Deforestation and Forest Degradation 2.REDD regulations (REDD Guidelines and REDD Commission) 3.Methodology (establishment of National REL and MRV system) 4.Institutional (National Registry, distribution of incentives/responsibilities, capacity building, stakeholders communication, coordinations among REDD institutions) 5.Analytical works (REL, MRV, Opportunity costs, Co-benefits, risks, etc) 7

REDDI STRATEGY (continued) LEVELSTRATEGY CATEGORY Provincial level1.Methodology (establishment of Provincial REL and MRV system) 2.Institutional (capacity building, stakeholders communication, coordinations among REDD institutions) 3.Demonstration activities, Voluntary carbon projects District level1.Methodology (establishment of District REL and MRV system) 2.Institutional (capacity building, stakeholders communication, coordinations among REDD institutions) 3.Demonstration activities, Voluntary carbon projects 8

9 CO 2 $ Reference Emission Level Strategy Monitoring Market/ Funding Distribution WG-FCC REDDI Guideline REDDI Committee REDDI READINESS FRAMEWORK Historical emission /future scenario Forest cover and carbon stock changes, National registry National approach, sub-national implementation Attractiveness, Source of fund Responsibilities and benefits Developed from IFCA study (2007) Awareness raising Capacity building Access to data Access to technology Stakeholders communication/coordination/ consultation IFCA 2007 recommendations : REDD strategy for 5 landscapes : Production forest, Conservation forest, Timber plantation, Peat land, Oil palm plantation (related to LUC)

ESTIMATED COSTS FOR READINESS STRATEGY CATEGORYESTIMATED COSTS (US $ MILLION) Methodology (Establishment of Reference Emissions Level/REL and Development of Monitoring-Reporting- Verification/MRV System) Regulations, institutions, and analytical works TOTAL : (excluding Demonstration Activities* and Policy interventions to tackle drivers of DD**) 10

Climate changes issues in forestry : international context Sink enhancement A/R CDM (Kyoto Protocol) Complicated rules and procedures  very few A/R CDM exist (none in Indonesia) Gap : SFM, Conservation of forest, increase of carbon (Bali Action Plan)  FIP (Forest Investment Programe) A/R non-CDM ??? Forest restoration ??? (REDD plus ?) REDD (UNFCCC/? KP? /other Protocol ?) ongoing process in negotiation (component : demonstration activities, capacity building & technology transfer, full implementation) 11

Demonstration Activities ** The costs of Demonstration Activities vary widely depending on the size and issues to be addressed/scope of activities  learning from existing DA : Id – Australia/KFCP, Id – Germany, Id –Korea, Id – ITTO, Id-TNC 12

MINITRY OF FORESTRY REPUBLIC OF INDONESIA Policy interventions to tackle drivers of Deforestation and Forest Degradation** 1. Develop more effective conservation and management of Protected Areas, 2. Develop more effective management of Production Forests 3. Options for forest harvesting and management to supply the requirements of pulp and paper industry 4. Options for supplying the requirements of the oil palm industry. 5. Testing strategies for restoration of peatland 6. Enhance capacity of local community, including adat communities to engage in forest management through REDD activities. Estimated Costs for 5 year phase REDD related investment up to 2012 : US $ 4 billion (Source : IFCA studies, 2007) 13

Where (financial and other) resources come from ? : existing and potential sources 1. Bilateral :  Existing : Australia (part of forest & CC cooperation), Germany (part of economic cooperation), Korea (part of R & D cooperation), Japan (TA)  others (?) 1. Multilateral : UNREDD ( USD 5,6 Million), FCPF (US 3,6 M requested), FIP (?), others (?) 2. International organizations (including international NGOs) : e.g. CIFOR (esp. research finding), ICRAF (esp. research finding), ITTO (DA : US $ ), CCAP, TNC, WWF, CI etc 3. Government of Indonesia  through national budget and expertise 4. National NGOs (and IPOs) 5. Private sector. 14

? We request from FCPF R-Plan Compone nt ActivitiesRequested budget (US $ 1000) 1Background Studies (follow up IFCA Studies) inc. further studies on drivers of DD and ways to address them 138 2Management of REDD, consultation, communication, participation491 3Design REDD Strategy : evaluate opportunity costs, risks, evaluate demonstration activities 652 4REDD implementation framework : assist institutional setting incl. national registry, institutional capacity building etc, 469 5Assessment of environmental and social benefits, and other co-benefits342 7Assist in developing REL/RL, data acquisition, background studies (coordinated activities : Australia - UNREDD - FCPF - others) 719 8Design MRV system (coordinated activities : Australia – UNREDD – FCPF – others)

Stakeholders consultations (the most challenging issue)  REDD : intensively since 2007 (FCC issues started from 1999)  REDD R-Plan :  Policy and scientific discussion (limited groups)  December 2008  National consultation (draft R-Plan was distributed, March 2009),  Sub-national (4 provinces, April – May 2009) Note :  the FCPF R-Plan is part of the national REDD strategy (the substance has been communicated since 2007/prior to COP-13),  National REDD strategy, FCPF-R-Plan, UNREDD-NJP, are living documents, consultations/communication are ongoing and will be one of the main parts of the process. 16

Response to TAP comments  The comments are constructive and clarifications have been done through ‘conference call’  We also thankful for the very good and clear presentation in the 1sd day of FCPF-PC3 meeting,  However, a number of improvement suggested by TAP can’t be done before we start the activities f.e. REDD strategy, Component 3 b, c, d, detail how Indonesia will establish reference scenario, MRV system, further assessment of drivers of DD etc  these are among activities we request for support. 17

Notes for TAP, FMT, PC, Observers  National REDD strategy should be considered as a living document, since the reason why is the National Strategy is not really clear to the TAP/FMT/PC  is not only because of the level of capacity of the country, but also there is no clear guidance yet from the COP what will be the REDD mechanism (under negotiation).  The demand for stakeholders consultation (inclusiveness etc)  country circumstances should be taken into account.  Indigenous People issues  shall take into account national legislation and the existing national efforts to address the issue.  Ownership of R-Plan  should not only be assessed from to composition of the R-Plan authors, but also how the process has been (and plan to be) managed. 18

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