ROLES OF FOREST AND FORESTRY IN INDONESIA

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2 ROLES OF FOREST AND FORESTRY IN INDONESIA Mega biological diversity and one of the custodians of global peat land, Source of income and other customary uses for people live in and surrounding forests. Employment opportunity ( e.g. direct employment of about 1.35 % of labor force or 5.4 percent including indirect employment, Had been the second back bone of national economic development 1980s 1990s and will continue as one of the prime movers of economic development.

3 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

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

5 FORESTRY SECTOR POLICY: FIVE PRIORITY POLICIES AND PROGRAMS ( ) 2009) 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)

6 Non-climate policy instruments 5 PRIORITY POLICIES ( ) Combating illegal logging and its associated trade CONTRIBUTION TO CLIMATE CHANGE MITIGATION AND ADAPTATION Reduce emission Forest & land rehabilitation and forest conservation Forestry sector restructuring Enhance sink, Reduce emission, Carbon conservation, enhance resilient Reduce emission, Enhance sink, Community empowerment Securing forest land Reduce emission, Enhance sink, Enabling conditions

7 Forest Degradation and Deforestation between Calculated based on satellite imageries 7

8 Vegetation map, presented in 1:250,000 scale map

9 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

10 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, as deforestation contributes around 18 % to the global GHGs emissions. 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 significantly increase

11 BALI COP-13 : BALI ACTION PLAN on mitigation Increase national/international actions on climate changes mitigation Nationally appropriate mitigation actions in developing countries in the context of sustainable development, supported by technology, funding, and capacity building measurable, reportable and verifiable, Policy approaches and positive incentives : REDD, roles of forest conservation, SFM, and efforts to increase carbon stocks in developing countries.

12 BALI COP-13 : DECISION ON REDD REDD is Reducing Emissions from Deforestation and forest Degradation in developing countries, Pilot/demonstration activities, Support from industrial countries (Annex II) on capacity building, technology transfer, and pilot/demonstration activities, Indicative guidance for pilot/demonstration activities.

13 REDD REDD is still in the negotiation process in COP-UNFCCC: (policy( approaches : REDeforestation and Degradation agreed in COP-13, positive incentives : market or non-market, methodological aspects and modalities, rules and procedures for REDD implementation), Effectiveness of REDD will very much depend on the commitment of Annex B countries (industrial countries ) to increase the target of emissions reduction.

14 Indonesia REDD (REDDI)( REDDI) Road Map 2007 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Post 2012 Preparation Phase * Analysis (Architecture and Strategies) * Communication/ Coordination/Consultations COP 13 - Design Fine Tuning - System Establishment -Pilot Design Workshop, SBSTA, UNFCCC, G8, Etc. Carbon-Finance (Pilots) - Pilot /demonstration activities - Testing - Knowledge Management Full Implementation of REDD COP13 COP14 COP15

15 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)

16 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 poor dimension Economic Variability Tenure : clarity over rights in land and forest Governance

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

18 OIL PALM DEVELOPMENT AND REDD Oil palm plantations have rapidly expanded over the past decade in Sumatera and Kalimantan Islands (est. 6 millions ha in 2006) Oil palm has conferred important economic benefits (foreign exchange, revenue, and employment) Oil palm is increasingly being planted on peat soil peat oxidation, subsidence, and large carbon emissions. Oil palm industry is expected to expand by another million ha by continued.

19 Continued. Almost half of the land allocated for oil palm development are forested and peat lands Future oil palm developments should be developed on degraded lands to reduce significant carbon emissions. REDD financing could potentially be developed to cover the opportunity cost of not converting forested lands and peat lands to oil palm

20 STRATEGIES TO REDUCE CARBON EMISSIONS FROM OIL PALM SECTOR Review the permit allocation for oil palm development. Reallocate forest and peat lands for carbon storage Review spatial plans to optimize degraded lands Increase yields of smallholders plantations Replant plantations that have exceed their economic lifespan Provide support for zero burning Improve water management in existing plantations lying on peat lands

21 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. In order to minimize emissions from deforestation, Indonesia has to review convertible forest allocated for development purposes, including for oil palm. Convertible forests on forested and deep peat lands has to be reallocated to degraded forest areas. REDD mechanism offers options to reduce emissions from deforestation, and opportunity to receive benefits on the basis of carbon credits saved

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