1. 2. Expect ed Out come: 1. Who will lead and coordinat e t he design and organizat ion of t he REDD-St rat egy:

31 B. 2. 1. Met hodol ogy : • Est ablishment of REL at t he dist rict level • Est ablishment of dist rict level MRV syst em B. 2. 2. Inst it ut ion : • St akeholders communicat ions coordinat ion consult at ions • Capacit y building and inst it ut ional st rengt hening B. 2. 3. Demonst rat ion Act ivit ies : 1. Implement Demonst rat ion Act ivit ies at dist rict level or management unit . 2. Enhance capacit y of communit y groups, incl uding adat communit ies t o engage in f orest management t hrough REDD act ivit ies

C. RELEVANT ANALYSIS

• Analyze cost s of alt ernat ive land uses • Analyze environment al and socio-economic impact s of REDD • Evaluat e pot ent ial addit ional benef it s of REDD • Assess t rade-of f s and risks t o sust ainabl e development • Assess risks of t he REDDI st rat egy 3. 1. 1. Obj ect ives of t he REDD St rat egy: To provide direct ion f or REDDI impl ement at ion which can deliver real reduct ion of emissions f rom def orest at ion and f orest degradat ion measurabl e, report able, verif iable according t o int ernat ional st andard UNFCCC relevant decisions, at t he same t ime provide source of revenue t o support nat ional development and sust ainable management of f orest .

3. 1. 2. Expect ed Out come:

Equit able and cost ef f ect ive REDD designed, t aking int o account sect oral and nat ional development goals. 3. 1. 3. Who will lead and coordinat e t he design and organizat ion of t he REDD-St rat egy: Minist ry of Forest ry as t he leading inst it ut ion f or Nat ional REDD Working Group 3. 1. 4. T he process how t he REDD st rat egy will be developed, what element s will be analyzed and what st akeholders will be involved: 1. Init ial REDDI st rat egy was developed t hrough int ensive inf ormal and f ormal meet ing such as discussions, seminars, workshops during t he IFCA st udies in 2007. Furt her elaborat ion of some key st rat egy init iat ives in Table 3 will be carried out t o provide a usef ul basis f or designing REDDI st rat egy t hat enable t he implement at ion of REDDI approach wit h ‘ nat i onal account i ng and sub-nat i onal i mpl ement at i on’ . Comprehensive works on t ackling driver of def orest at ion and f orest degradat ion t o cover broader aspect s and needs f or nat ional development , inst it ut ional and human resource capacit y building, and st akeholders coordinat ion will be part of t he design process of REDDI st rat egy. 2. The process will involve subst ant ial anal yt ical work, which will be part of t he relevant component see Table 6. , various f orms of meet ings f rom very t echnical and scient if ic meet ings t o very pract ical aspect s relat ed t o implement at ion of t he st rat egy on t he ground, policy processes at t he nat ional and sub-nat ional level s. 3. The process will be coordinat ed by Minist ry of Forest ry, in collaborat ion wit h Minist ry of Environment , Minist ry of Nat ional Development Planning BAPPENAS. Depending on t he 32 aspect s act ivit ies t o be carried out , t he process will involve at least t he f ollowing st akeholders : Minist ries relat ed t o land use sect or, Minist ry of Finance, Local government , Nat ional Council on Climat e Change DNPI, privat e sect or, scient if ic inst it ut ions, civil societ ies incl uding NGOs, indigenous people and l ocal communit ies, and int ernat ional part ners bilat eral and mult ilat eral cooperat ions, int ernat ional organizat ions working in Indonesia Tabel 6. Schedule and Sequencing of act ivit ies: Level and St rat egy Cat egory Schedule Level and Strategy Cat egory Key St rat egy Component Act ivities 2009 2010 2011 2012 NATIONAL LEVEL 1. Tackling drivers of deforestat ion and degradat ion : Prot ect ed area • Develop more ef f ect ive conservat ion and management of Prot ect ed Areas Det ail act ivit ies in t he Component 6 Product ion Forest • Develop more ef f ect ive management of Product ion Forest s • Opt ions f or f orest harvest ing and management t o supply t he requirement s of pulp and paper indust ry Det ail act ivit ies in t he Component 6 Oil Pal m • Opt ions f or supplying t he requirement s of t he oil palm indust ry. Det ail act ivit ies in t he Component 6 Peat l and • Test ing st rat egies f or rest orat ion of peat l ands Det ail act ivit ies in t he Component 6

2. REDDI regulation