Building Confidence and Readiness Strengthening Accountability

142 either sell their services as brokers to navigate the bureaucratic tangle or else take bribes to circumvent it. Since 2005 the Indonesian government has been undertaking a comprehensive program to curb illegal logging under the umbrella of the Forest Law Enforcement National Strategy FLENS. In addition, Presidential Instruction INPRES 42005 directs 18 government bodies as well as local government offi cials to cooperate in action to eradicate illegal logging. Subsequent to the INPRES a number of high profi le illegal operators have been arrested. As a deterrence to other forest criminals these actions are expected to continue to be effective in reducing illegal logging further improving the country’s capacity to generate REDD credits and to promote its credentials as a reliable international partner in carbon markets..

5.5 Challenges To Achieving Governance Readiness

The initiatives under FLEG represent significant progress towards increased transparency and accountability, improved law enforcement, and bringing forest-based industries into balance with sustainable wood supplies. There are additional actions proposed in this section to further improve forest governance, reduce corruption, and contribute to the success of REDD strategies. They are grouped under categories concerned with the need to build confidence among stakeholders and the potential markets; to strengthen accountability; to be able to safeguard the markets and payment distribution mechanisms; to reform specific government institutional practices and to build a broad constituency of interested REDD stakeholders to provide the external checks and balances that every management system requires. Many of the recommendations are explicitly or implicitly contained within the Ministry of Forestry Long Term Development Plan - ; and could be tested by incorporating them into REDD demonstration projects.

5.5.1 Building Confidence and Readiness

. mplement the Ministry of Forestry s disclosure policy and invite public review of the maps and information prepared by the FOMAS project and advanced to FRS and NCAS. . Field test the policy in REDD demonstration projects. . Activate the national case-tracking system within the Ministry of Forestry in coordination with police and prosecutors. Build case- tracking into the management of REDD demonstration projects with links to the national system and local enforcement efforts. . Launch a high-level, inter-agency strike force under Presidential authority to investigate and prosecute top ringleaders and financiers of illegal logging and associated crimes through joint efforts of the 143 Attorney General s Office, National Police, Ministry of Forestry, Ministry of Defense and the Coordinating Ministry for Politics, Law, and Security.

5.5.2 Strengthening Accountability

. Require disclosure and divestiture by cabinet members of forest-related financial holdings and other business interests to reduce the potential for political interference and conflict-of-interest. . Eliminate the use of forestry revenues as a source of funding for political parties or, require disclosure of such funding to ensure REDD financial flows and the allocation of forest concessions are independent of political interference and elite capture. . Make corporate and local government eligibility to participate in REDD conditional on meeting specific standards and indicators of good governance. . Consider a public declaration of principles and practices that politicians, political parties, and business associations should commit to in support of good forest governance and achievement of REDD objectives. . Seek compliance through incentives and enforcement with policies and regulations requiring forest concession holders to implement plans which reduce timber theft and environmental damage from fire and logging practices.

5.5.3 Safeguarding REDD Payments and Markets