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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
. Consider adopting national financial sector regulations requiring enhanced due diligence procedures for Politically Exposed Persons PEPs to curtail the
financial activities of PEPs involved in forest-related corruption and crime. . Enhance cooperation with ndonesia s major international partners in forest
trade and investment to strengthen FLEG reforms, such as improved wood tracking and control of log smuggling and money laundering, and link them to
regulation of REDD markets. . Tackle judicial reform and anti-corruption efforts in the justice system through
case-tracking and public scrutiny, consumer action, and institutional capacity- building to improve accountability and performance, especially at the district
level. . . Work with civil society organizations such as the Partnership for
Governance Reform to build broad public support for judicial reform and accountability.
5.5.4 Reforming the Institutions of Government
There are two areas where institutional reform would be valuable to the optimum implementation of REDD post
. . Both could be accommodate in REDD Demonstration Activities.
. Consider the formation of a National Forest Land Tenure Commission, possibly under the National Forestry Council DKN , to resolve land tenure disputes and
underlying legal and institutional conflicts. . The purpose of the commission would be to provide an independent agency,
operating which could set and supervise national standards and legal principles including local institutions and customary laws. Much of the
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work could be decentralized to local, multi-stakeholder institutions under the overall supervision of the National Commission, Various mechanisms and
approaches for joint management responsibility and governance, including community forests, forest co-management, conservation concessions, carbon
concessions, could be piloted in selected areas under REDD schemes, with special attention to the allocation, ownership and regulation of forest carbon
rights. . Consider a civil society partnership involving community organisations and
private enterprise to assist government in achieving the divesture of military forest-sector holdings
. The military is already required by law to divest itself of all business holdings and interests, many of which are in the forest sector.
The role of the partnership might include facilitating the transfer of assets to benefit small and medium-
sized forest-related industries, particularly those supporting the REDD system such as intensification of plantations on non-forest or degraded land, emerging
markets for environmental services, and reforestation initiatives including community-based CDM. This activity could be coordinated with the ongoing
program to restructure and revitalize the forest industry
.
n line with reforms in other parts of government such as the Ministry of Finance, the Ministry of Forestry may undertake institutional and management reforms to
bring its organizational structure, systems, and budgets into line with principles of good institutional governance, forest economics and ecology. Such reforms
could include: . results-oriented management,
. clarification of lines of responsibility and accountability, . transparency in decision-making such as on concession awards, development
of professional career-tracks, improvement of internal and external communications and data-sharing ; and
. appropriate decentralization of management authority to landscape-scale forest management units KP linking the Ministry of Forestry with local
government and local private and community stakeholders.
5.5.5 Building REDD Constituencies and Incentives
