REDD and Governance Challenges in Indonesia

REDD and Governance Challenges in Indonesia

Iman Santoso

Center for Socio-economic and PolicyForest Research and Development

Indonesia’s Commitment

• September 2007: the President of Indonesia initiated a declaration of the world’s major tropical rainforest nations which undertakes to slow, stop and reverse forest loss

• IFCA: a group of national/international experts on forest management, carbon and governance funded by the World Bank, the British, Australian & German Governments.

Key elements examined by the IFCA

A baseline • Strategies to reduce emissions & to

ensure their permanence; • Means of monitoring & verifying

emissions reductions, and preventing leakage;

• REDD markets/financing; • Mechanisms to manage and

distribute paymentsAll element need better governance

Governance Challenges

Minimize deforestation and degradation• Spatial plan : implementation and leakages• Poverty, illegal activities & Law enforcement •FEWS and the role of forest: rational forest land allocation vs. optimal forest land uses•Infrastructures

Get better Price & Market of Carbon• Opportunity cost : could it be compensated ?• Related costs : transaction costs• Price, Equality and Fair Benefits

Spatial Plan• Act 1992 development oriented 2007• Act 2008 gives first emphasis to environment

safety• Macro plan at provincial and district level• Indicative land allocation (incl. forest areas)• Misperception: Review vs. Revision : state

capture

Spatial Plan

• Planned and governed forest conversion (around 70% of oil palm plantations have replaced forest and resulted in above ground emission.

• Unplanned and illegal conversion

Poverty, Illegal Activities & Law Enforcement

No sufficient job opportunity: subsistence agriculture

Different perception on legality of timber

Insecure Forest Land Tenure : conflict over land uses

Administrative corruption

Ineffective law enforcement

Food, Energy and Water Scarcity• Forest areas covering 59% of total

land• Some are indicated as suitable for

food production and protect soil and water system

• Micro and detailed soil assessment is needed

• Forest management units have not been established

Others • Technical capacity• Data availability• Independent assessor

Compensate opportunity cost ?• The existing land uses are

seen to be promising (Oil palm, pulp & paper ….. )

• High transaction and implementation costs of REDD

• Time lag before payments are made

• Long term perspectives

Thank you

Ministry of Forestry