1. REDD St rat egy: REDDI st rat egy will cover t he f ollowing main element s :

30 2. Analysis on privat e and inst it ut ional cost s f or sust ainable f orest management in product ion f orest s 3. Analysis on pul p and paper plant at ions and oil palm cost s conduct ed on f orest lands compared t o non-f orest lands

3. 1. REDD St rat egy: REDDI st rat egy will cover t he f ollowing main element s :

A. NATIONAL LEVEL A. 1. Tackling drivers of def orest at ion and degradat ion a. Prot ect ed areas : Develop more ef f ect ive conservat ion and management of Prot ect ed Areas b. Product ion f orest : • 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 c. Oil palm : Opt ions f or supplying requirement s of oil pal m indust ry d. Peat lands : Test ing st rat egies f or rest orat ion of peat lands A. 2. REDDI regulat ion 5 : Development of t echnical and inst it ut ional guidance t o implement t he REDDI A. 3. Met hodology : • Est ablishment of REL at t he nat ional level • Est ablishment of nat ional level MRV syst em A. 4. Inst it ut ion : • Est ablishment of Nat ional Regist ry • Inst it ut ional set t ing t o implement REDDI • Set t ing incent ive payment dist ribut ion mechanism • St akeholders communicat ions coordinat ion consult at ions • Capacit y building and inst it ut ional st rengt hening B. SUB-NATIONAL LEVEL : B. 1. PROVINCIAL LEVEL B. 1. 1. Met hodol ogy : • Est ablishment of REL at t he provincial level • Est ablishment of provincial level MRV syst em B. 1. 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. 1. 3. Demonst rat ion Act ivit ies DA : • Enhance DA t o represent dif f erent biogeographical condit ions • Enhance capacit y of local communit y groups, including adat communit ies t o engage in f orest management t hrough REDD act ivit ies

B. 2. DISTRICT LEVEL

5 Minist er of Forest ry Regulat ion PERMENHUT on REDD Annex 2c 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: