1. Obj ectives and activities: Obj ectives for this component:

41 Component 6: Assess investment and capacity building requirements

6. 1. Obj ectives and activities: Obj ectives for this component:

To asses invest ment and capacit y building required t o t ackle driver of def orest at ion and degradat ion in Indonesia see Table 6. in component 3 The f ollowing est imat es of invest ment and capacit y building needs were based on t he recommendat ions of t he IFCA st udies 2007 IFCA Consolidat ion Report : Reducing Emissions f rom Def orest at ion and f orest Degradat ion in Indonesia, MoFor, 2008 www. dephut . go. id and www. f orda-mof . org Preliminary est imat es of t he invest ment and capacit y building required t o t ackle driver of def orest at ion and degradat ion such as t hose shown in Annex 6 and t hat will aim t o demonst rat e t hat Indonesia can successf ully achieve REDD, are likely t o be in t he order of US 4 billion. Most of t hat invest ment will come f rom privat e sect or oil palm, pulp and t imber companies and privat e sect or f inancial inst it ut ions. In addit ion t o subst ant ial grant aid f unding already provided by various bilat eral donors, t he Climat e Change Forest Invest ment Programme may also secure part of t he f unding needed t o “ kick st art ” t hese on t he ground invest ment s. Table 9. Invest ment and capacit y buil ding requirement s 2009 – 2012. Activity Est imated Cost US million Pot ent ial sources of funding Implement at ion of st rat egies f or more ef f ect ive conservat ion and management of Prot ect ed Areas 500 MOF Local Govt . Resources Leading Conservat ion agencies Bilat eral Donors The World Bank FIP Implement at ion of st rat egies f or more ef f ect ive management of Product ion Forest s 1000 MOF Privat e sect or companies Bilat eral donors World Bank FIP St rat egies f or f orest harvest ing and management t o suppl y t he requirement s of t he pulp and paper indust ry 1000 Privat e sect or companies MOF Local govt . resources Bilat eral donors The FIP Test ing st rat egies f or rest orat ion of Peat lands 500 Privat e sect or companies MOF Local govt . resources Bilat eral donors World Bank FIP St rat egies f or supplying t he 500 Minist ry of Agricul t ure 42 Activity Est imated Cost US million Pot ent ial sources of funding requirement s of t he oil pal m indust ry. Public Work The World Bank FIP Enhancement of t he capacit y of communit y groups, incl uding adat communit ies t o engage in f orest management t hrough REDD act ivit ies 500 MOF Minist ry of Home Af f airs Tot al 4. 000 Expected Outcome: 1. Invest ment needs def ined and implement ed 2. Human resource and inst it ut ional capacit y built at t he nat ional and sub-nat ional Provincial and dist rict levels Key Strategies to achieve outcome detail activities see Table ……. : 1. Implement at ion of st rat egies f or more ef f ect ive conservat ion and management of Prot ect ed Areas, 2. Implement at ion of st rat egies f or more ef f ect ive management of Product ion Forest s , 3. St rat egies f or f orest harvest ing and management t o suppl y t he requirement s of t he pul p and paper indust ry, 4. Test ing st rat egies f or rest orat ion of Peat lands, 5. St rat egies f or supplying t he requirement s of t he oil palm indust ry, 6. Enhancement of t he capacit y of communit y groups, including adat communit ies t o engage in f orest management t hrough REDD act ivit ies Partners and organizations involved: 1. Minist ry of Finance 2. Minist ry of Nat ional Development Planning 3. Minist ry of Forest ry 4. Minist ries relat ed t o l and use sect or 5. Local government Provinces and Dist rict s 6. Privat e sect or 43 Table 10. Schedule and Sequencing of activities: Schedule Key St rat egy Component and Activit y 2009 2010 2011 2012 Implementation of strategies for more effect ive conservat ion and management of Protected Areas : • Assess nat ional conservat ion plan • Complet ion of gazet t al • Invest ment in t raining and prof essional capacit y • Development of ef f ect ive management of prot ect ed areas, incl uding prot ect ion f orest in upper wat ersheds. • Development of col laborat ive management arrangement s and ecosyst em rest orat ion • Implement at ion of REDD demonst rat ion act ivit ies invol ving a range of prot ect ed area t ypes wit h dif f erent j urisdict ions Implementation of strategies for more effect ive management of Production Forests : • FLEG rel at ed init iat ives t o cont ain ill egal logging e. g. St r i ke For ce proposal s • Vol unt ary adopt ion by privat e sect or companies of ant i t imber t hef t measures. • Out come based independent cert if icat ion • Invest ment in Reduced Impact Logging • In col laborat ion wit h t he MOF and BRIK est ablishment . of a 1 million ha compensat ory f ast growing t imber plant at ion resource by small hol ders St rat egies for forest harvesting and management t o supply the requirements of the pulp and paper indust ry: • Creat e t ransit ion away f rom harvest ing nat ive mixed t ropical hardwoods t owards increased dependence on communit y and small hol der owned pulpwood plant at ions grown on degraded f orest and agricult ural lands e. g. al ang al ang grasslands, wit h a t arget of 1 mill ion ha of pl ant at ions over 5 years. Strat egies for supplying the requirement s of the oil palm industry : • Int roduce way t o avoid est abl ishment of new oilpal m pl ant at ion on f orest ed l and t hrough provision f or est ablishment by small holders of 1 million hect ares of new pl ant at ions on degraded l ands. • Rat ional ize t he relat ionships bet ween f orest land, especially t he f unct ional zone of convert ible f orest HPK and non-f orest l and subj ect t o land use decisions and spat ial planning by regional government s. Test ing strategies for rest orat ion of Peatlands • Building on t he success being achieved t hrough a cont inuing wat er resource management program. • Implement drainage design and f ire cont rol which has been proven ef f ect ive, 44 • Assess land management responsibilit ies bet ween l ocal and nat ional government s in relat ion t o f orest and non-f orest land on peat s. Enhancement of t he capacity of communit y groups, including adat communit ies to engage in forest management t hrough REDD activit ies . • Improve qual it y of lif e of low income f amil ies, living in or adj acent t o nat ural f orest s, t o prot ect t he right s of f orest dependent indigenous peoples and local communit ies, • Reduce ill egal logging, t hrough f . e. an ext ension of successf ul models such as t he Kecamat an Devel opment Scheme and t he Nat ional Program f or Communit y Empowerment PPMNM. Indicators of performance for this obj ective: • Invest ment needs def ined and implement ed • Human resource and inst it ut ional capacit y built at t he nat ional and sub-nat ional Provincial and dist rict levels 6. 2. Requirement: Attach your ToR for this component as a separate Annex 6.