Index of /ProdukHukum/kehutanan

Forest Carbon Partnership Facility (FCPF)

Country submitting the R-Plan : Indonesia Date submitted (or revised): May 2009

R-Plan General Information:

1. General Information:

a. Name of submit t ing inst it ut ion and person:

Minist ry of Forest ry

Forest ry Research and Development Agency (FORDA)/ Secret aiat of IFCA,

Dr. Nur Masripat in

Tit le: Secret ary f or FORDA and Secret ary I of t he Working Group on Forest and Climat e Change

Cont act inf ormat ion

Address: Manggala Wanabakt i Building Block I, 11t h _{f loor, Jl. Gat ot Subrot o, Senayan,}

Jakart a, Indonesia

Telephone: + 62 21 5720192 Fax: + 62 21 5720189

E-mail : nurmasripat in@yahoo. com nur_masripat in@indo. net . id

if ca@dephut . go. id

Websit e : www. dephut . go. id, www. f orda-mof . org.

b. List aut hors of R-Plan, cont ribut ors t o t he R-Plan, and ot hers consult ed, and t heir organizat ions:

List of Aut hors : 1. Dr. Nur Masripat in 2. Dr. Ruf i’ ie

3. Dr. Kirsf iant i Ginoga 4. Dr. Ngaloken Gint ings 5. Dr. Chairil Anwar Siregar 6. Dr. Ruwanda Sugardiman 7. Ir. Ari Wibowo, M. Sc . 8. Ir. Belinda Arunawat i, M. Sc.

9. I. Wayan Susi Darmawan, S. Hut . , M. Si. 10. Ir. Saipul Rahman, M. Sc.

11. Ir. Ret no Maryani, M. Sc. 12. Ir. Achmad Pribadi, M. Sc. 13. Fit ri Nurf at riani, S. Hut . , M. Si. 14. Dyah Puspasari, S. Hut , M. Si.

List of Cont ribut or : 1. Dr. Hermawan Indrabudi

2. Dr. Wardoj o

Consult ed St akeholders :

1. Dr. Tahrir Fat honi, Direct or General of Forest ry Research and Development Agency (FORDA)

2. Mr. Wandoj o Siswant o, Adiviser t o t he Minist er of Forest ry and t he Chairman of t he Working Group on Forest and Climat e Change,

3. Mr. Wahj udi Wardoj o, Special St af f t o t he Minist er of Forest ry and Adviser t o t he Working Group on Forest and Climat e Change,

4. Mr. Soet risno, Direct or General of Forest Planning,

5. Working Group on Forest and Climat e Change, Minist ry of Forest ry (see Annex 2b f or t he list of WG-FCC )

6. Nat ional level St akehol ders t hrough public consult at ion on REDDI St rat egy-Readiness Plan-draf t Regulat ion on REDD in Jakart a, 25 March 2009 (see Annex 01 f or t he list of st akehol ders),

7. Provincial level st akeholders t hrough st akehol ders’ discussions in 4 Provinces, April 2009 (Sout h Sumat era, Riau, East Kalimant an, Sout h Sulawesi) (see Annex 02 f or t he list of st akeholders)

Not es : The names list ed here are limit ed t o t he people who direct ly involved or consult ed in t he preparat ion of t his R-Plan. However, t he cont ent s of t he R-Plan are as t he result s of ext ensive st akeholder communicat ions during IFCA st udies in 2007 and f ollow up processes up t o May 2009. The R-Plan should be considered as a living document which cont ains broad array of proposed act ions, and f urt her det ails of act ivit ies can be elaborat ed t hrough t ime t o accommodat e adj ust ment s wherever necessary. In t his regards, st akehol ders consult at ions on t he R-Plan/ act ivit ies f or t he count ry like Indonesia wit h complex socio-bio-geographical condit ions could also be carried out even during t he implement at ion of Readiness Plan.

c. This R-Plan was prepared by t he Minist ry of Forest ry Team who were involved in IFCA st udies in 2007, wit h t he aim t o provide l earning exercise and t horough underst anding t o t his core t eam of t he Minist ry of Forest ry on al l issues relat ing t o REDD, st art ing f rom developing R-Plan, implement at ion of t he R-Plan and t he REDDI impl ement at ion in t he f ut ure. In t his regards, t echnical assist ance was not request ed at t his st age.

d. IFCA st udies undert aken by GOI in t he run up t o COP 13 t hat were support ed by highl y qualif ied t echnical expert s f rom many int ernat ional part ners culminat ed in publicat ion of a report t it led “ REDDI : Reducing Emissions f rom Def orest at ion and Degradat ion in Indonesia. REDD Met hodology and St rat egies : Summary f or Policy Makers” , launched in conj unct ion wit h COP-13, and a consolidat ed report t it led : IFCA Consolidat ion Report : Reducing Emissions f rom Def orest at ion and Forest Degradat ion in Indonesia, MoFor, 2008. While t hese report s provide a comprehensive overview of Indonesia’ s emerging REDD St rat egies it is ant icipat ed t hat cont inued t echnical assist ance will be needed f or f urt her development of t he st rat egy and R-Plan implement at i on. Since Indonesia did not go t hrough R-PIN development , any ref erence t o R-PIN in t his t emplat e, Indonesia will ref er t o IFCA st udies (2007) report s and t he f ollow up records, inst ead of R-PIN.

2. Current country situation: Current count ry sit uat ion summary :

Indonesia is one of t he t hree largest t ropical f orest count ries. The use of f orest resources in Indonesia f ollows t he rules applied t o each of t he f our f orest f unct ions/ cat egories. First , conservat ion f orest , managed t o conserve biological diversit y, t he source of genet ic resources needed f or f ood crops, medicinal pl ant s, wood and non-wood f orest species domest icat ion. Second, prot ect ion f orest , import ant t o maint ain hydrol ogical f unct ion, wat ershed prot ect ion and soil conservat ion. Third, product ion f orest , provides t imber and non-t imber product s, and is managed t hrough select ive cut t ing f or nat ural f orest and clear cut t ing f or plant at ion f orest s. The f ort h cat egory is conversion f orest , f orest area which can be convert ed f or ot her land uses.

Around 48 million people live in and around Indonesia’ s f orest s. The Minist ry of Forest ry’ s Long Term Development Plan f or t he period 2006 – 2025 provides. Around 6 million Indonesians make t heir living direct ly f rom f orest s. The government has made ext ensive ef f ort s t o accommodat e communit y right s in f orest management t hrough f orest ry regulat ions and laws. Wood product s cont ribut ed signif icant ly t o Indonesia’ s economic growt h , empl oyment and export s, especially bet ween 1980s – 1990s. Foreign exchange earnings f rom f orest product export s were est imat ed as US$ 1. 2 billion in 1985. Since t hen t he composit ion of export ed f orest product s has shif t ed f rom logs t o processed product s such as sawn t imber, plywood, panels, f urnit ure and pul p and paper product s. By 2005 t he report ed level of f orest commodit y export s had risen t o US$ 5 bil lion

Along wit h def orest at ion problem in t he t ropics, Indonesia has lost approximat ely 1. 7 million ha of it s f orest per year during t he period of 1985 – 1997. The highest f orest lost occurred during 1997-2000, reaching t he f igure of 2. 8 mill ion ha per year. The l at est published dat a (MoF, 2007) showed t hat net f orest lost has decreased during 2000-2005, reaching about 1. 2 million ha. Hence, it is underst andable t hat t he volume of harvest ed wood product s decreased f rom 26. 2 million m3 in 1990 t o 11. 2 million m3 in 2005. The import ance of non wood f orest product s increased during t he same period (f ood product s, medicinal pl ant s, rat t an et c). According t o FAO (2005) it was report ed t hat t he volume of f uel wood declined f rom 357. 000 m3 in 1990 t o 171. 000 m3 in 2000 and only 79. 000 m3 in 2005.

Forest ry f aced considerable challenges in t he past t en years which demand f or ref ocus and reorient at ion of f orest policies. In t his regards, f orest ry sect or has set up f ive priorit y policies, namely : (1) combat ing illegal logging and it s associat ed illegal t rade; (2) f orest ry sect or rest ruct uring t hrough enhancement of t imber plant at ion and indust ry rest ruct uring; (3) f orest rehabilit at ion and conservat ion and; (4) st rengt hening t he economy of local communit ies and, (5) securing f orest areas. The f ive priorit y policies have been t ranslat ed int o short , medium, and long-t erm planning. The legal and policy f ramework already exist s which cont ribut e t o creat ing enabling condit ions f or climat e mit igat ion act ions, t hrough reducing emissions f rom def orest at ion and f orest degradat ion, sust ainable f orest management , f orest conservat ion, and t hrough enhancement of carbon st ocks f rom f orest rest orat ion, af f orest at ion and ref orest at ion.

Sust ainabilit y of f orest resources is crucial f or t he cont inuat ion of nat ional development . Sust ainable management of f orest resources is a f orm of mit igat ion and adapt at ion measures, which is survival issue f or Indonesia. As a count ry wit h t housands of island and high dependency on agricult ural sect or (agricult ure, f orest ry, f ishery, livest ock), Indonesia is vulnerable t o climat e change not only f rom environment al aspect but also economic and social.

3. Definition of obj ectives, approach, and responsibilities for the R-Plan process: The maj or obj ectives of the R-Plan: What is it designed to achieve?

St udying t he R-Plan guidelines, t he R-Plan requires a comprehensive process and int egrat ed undert aking, ext ensive st akeholders communicat ion, and in dept h analysis of cert ain issues rel at ing t o REDD as well as t o a broader issues of development . Indonesia’ s R-Pl an is int ended t o assist Indonesia in improving management of f orest resources according t o sust ainable principles. Those principles t ake int o account al ready well document ed benef icial social environment al and economic impact s of f orest conservat ion and sust ainable management . (Chapt er 2 of Indonesia’ s Long Term Devel opment Plan (2006 – 2025). In addit ion t o t hose benef it s, rising global awareness of t he f act t hat def orest at ion and degradat ion in t he t ropics account f or about 20 % of t ot al global carbon emissions has highlight ed t he pot ent ial of Indonesia’ s f orest s t o play a signif icant role in cont ribut ing posit ively t owards climat e change mit igat ion t hrough delivering real reduct ion of emissions f rom def orest at ion and f orest degradat ion and also t hrough increased carbon sequest rat ion, at t he same t ime all ow nat ional development cont inue in a sust ainable manner.

How would the result of the process change current land use and other sectoral behavior, policies, or governance, so that reductions in deforestation and degradation can occur? The process will cover a broad range of act ivit ies st art ing f rom analyt ical works, policy dial ogue and st akehol ders communicat ions, shar ed learning, capacit y building and awareness raising, t o inst it ut ional arrangement s including dist ribut ion of incent ives and responsibilit ies at all levels. A number of of aspect s need t o be addressed appropriat ely across levels and demand f or a st rong link bet ween cent ral and local government s, f or example in det ermining met hodol ogy f or REDDI monit oring and it s impl ement at ion, as well as among sect ors, f or example in est ablishing ref erence emissions level (REL) and REDDI nat ional regist ry. The process will have t o also consider out comes f rom negot iat ions in COP and SBSTA, and so, involvement of int ernat ional part ners is crit ical in providing necessary expert ise, t echnology, access t o dat a/ inf ormat ion, and f inancial resources.

For which aspects of the R-Plan does the country seek external support? :

For t he aspect s which needs a comprehensive and in dept h anal ysis as t he basis t o undert ake act ivit ies under component described in t he R-Plan, f or example :

1. In dept h anal yses which can provide opt ions as t he basis t o det ermine ref erence emission level (REL),

2. In dept h analyses relevant t o REDDI approach ‘ nat ional account ing wit h sub-nat ional implement at ion’ , f or example, how t o make sure t echnically and met hodological consist ency bet ween regions at t he nat ional l evel and bet ween nat ional and sub-nat ional l evels, including pract ical models on how t o manage t his syst em over t ime. 3. In dept h anal ysis on f inancial aspect s (especially f or readiness phases), pot ent ial market s

f or REDD, and MRV issues under Bali Act ion Pl an which will af f ect REDD implement at ion. 4. Capacit y building at al l levels, access t o dat a/ inf ormat ion, t echnology t ransf er and know

how, shared learning.

5. Ident if icat ion of specif ic on t he ground invest ment and ot her act ivit ies t hat bet ween now and 2012 will lead t o emission reduct ions and sust ainable development . Translat ing t hese act ivit ies int o a f ormat t hat will provide a basis f or appraisal by int erest ed privat e and public invest ors.

Component 1: Land use, forest policy and governance quick assessment

1. 1. Executive Summary of the quick assessment paper:

Recognizing t he unique role of f orest in climat e st abil izat ion and as live support syst em, and considering problem in def orest at ion and f orest degradat ion, Indonesia has put f ive priorit y policies since 2000 as ment ioned in earlier sect ion, t o improve t he management of f orest resources and halt f urt her f orest decline.

According t o t he UNFCCC Decision 11/ CP. 7, def init ion of def orest at ion is t he direct , human-induced conversion of f orest ed land t o non-f orest ed land. Ef f ect ively t his def init ion means a reduct ion in crown cover f rom above t he t hreshold f or f orest def init ion t o bel ow t his t hreshold. Whereas degradat ion is def ined as a direct , human-induced, long-t erm loss (persist ing f or X years or more) or at least Y% of f orest carbon st ocks [ and f orest values] since t ime T and not qualif ying as def orest at ion. Degradat ion would represent a measurable, sust ained, human-induced decrease in carbon st ocks, wit h measured t ree cover remaining above t he minimum required t o be considered f orest . Furt hermore, it should be enlight en bet ween gross and net def orest at ion. Gross emissions assume removal of t rees and most of t he biomass and t hat al l carbon is emit t ed. It does not include any reduct ions f or t he carbon sequest ered in t he veget at ion of t he replacing land use. However, net emissions assume removal of t rees and most of t he biomass and t hat al l st ored carbon is emit t ed, but all ows f or count ing t he carbon st ocks on t he area def orest ed as t hey are replaced. Where an area of nat ural f orest is removed f or t he purposes of creat ing a plant at ion it may seem at t ract ive t o consider applying t he concept of net def orest at ion because it is assumed t hat t he level of emissions will be lower because of subsequent carbon sequest rat ion as t he pl ant at ion grows. Though gross emissions are higher t han net emissions and result in a higher REL, MoF concern on reducing gross emissions in order t o comply wit h IPCC Guidelines,

In t he case of Indonesia, def orest at ion can be cat egorized as pl anned and unplanned def orest at ion. Forest area under t he cat egory of ‘ convert ible f orest ’ and f orest ed non-f orest land (Id. Ar eal Penggunaan Lai n/ AOL) are allowed t o be convert ed t o ot her land uses, and so, def orest at ion in t hese area is under t he cat egory of ‘ planned def orest at ion’ . Planned def orest at ion as well as pl anned f orest losses most ly as a result of t he rapidl y growing of f orest pl ant at ion and pul p and paper indust ry. Since t he availabilit y of t imber f rom nat ural f orest s is decl ining, pulp and pl ywood producers and f urnit ure manuf act ures are increasingly t urning t o f ast growing t ree species, grown in plant at ions, as a source of raw mat erial. The st rat egic policy t o reduce planned def orest at ion is by allocat ing t he degraded and uncommercially unproduct ive land f or int ensive plant at ion silvicult ure. Oil palm plant at ion also cont ribut e t o t he planned f orest loss in Indonesia. Implement at ion of spat ial planning ef f ect ively, including law enf orcement on t hat , is one of t he ef f ort t o reduce f orest conversion int o oil palm pl ant at ion. Furt hermore, t o avoid unplanned f orest losses, MoF has opposed f urt her conversion of convert ibl e product ion f orest f or plant at ion crops, over and above t he agreed areas under t he Padu Ser asi . There have beensome ef f ort s t o reconst ruct Padu Ser asi agreement at a scale t hat is consist ent wit h local government spat ial pl anning, t hereby it would be a harmony bet ween t he f unct ional land use zoning t hat is required under local government spat ial planning and t he f unct ional land planning and management of f orest areas wit hin t he f orest land.

Unpl anned f orest losses can result f rom f orest f ires, f orest encroachment , unsust ainable levels of logging f rom legally permit t ed f orest concessions, and ill egal logging at small and large scales. As Indonesia‘ s populat ion cont inues t o grow t hrough t he current long t erm pl an proj ect ions t owards 275 million, t here is also going t o be cont inuing pressure f or land ref orm and reall ocat ion of f orest est at e t o support t he growing numbers of people. The f orest dependent peopl e give high pressure int o f orest land since t here is limit ed source of t heir livelihood. They have very low income t hereby t hey depend much on f orest product s as t heir

main source of livelihood. Schemes t o improve livelihoods of f orest -dependent people while reducing pressures on t he f orest have f ailed in t he past in part because t hey operat e t oo close t o t he f orest edge and serve more as magnet s t hat at t ract and keep people close t o or inside t he f orest rat her t han pulling t hem away t owards less f orest -dependent livelihood opt ions. This can be overcome by addressing t he problem on a larger scale. Povert y alleviat ion f unds t hat draw people away f rom, rat her t han int o, f orest s—such as t hrough agricult ural int ensif icat ion in areas of good product ivit y and adequat e inf rast ruct ure f ar f rom t he f orest f ront ier—have proven ef f ect ive. Inst rument s t hat may be applied include disbursement t hrough proj ect s, or block payment s t o local government s implement ing t he programs such as REDD.

In addit ion t o unplanned f orest losses, t he largest l engt h of t he boundaries of t he product ion f orest s and t he prot ect ed areas are more dif f icult t o cont rol and are t heref ore open t o unplanned encroachment f rom communit ies of local people or ot her commercial f orest users, and subj ect t o small and large scal e illegal logging. The f act ors t hat combine t o allow f or illegal logging and encroachment part icularly in prot ect ed f orest are a lack of enf orcement , insuf f icient incent ives f or communit ies and government s f or maint aining prot ect ed areas, and low capacit y of inst it ut ions charged wit h managing t he prot ect ed areas. It also occurred in product ion f orest . The encroachment are conduct ed by neighbouring communit ies who may or may not be aware of t he boundaries. Over t he last t hree years t he Minist ry of Forest ry has issued regulat ions t hat creat e f our new avenues f or improved access and right s over f orest resources in order t o overcome t he root cause of unpl anned f orest losses. These regulat ions embraces Collaborat ive Management in Prot ect ed Areas (MoF decree No 19/ 2004), Communit y Forest s (Government Regulat ion 6/ 2007), Communit y Forest Plant at ions (Government Regulat ion 6/ 2007), and Cust omary Forest s (Government Regulat ion 6/ 2007).

The f ive priorit y policies have been t ranslat ed int o long, medium and short t erm planning. Nat ional long-t erm planning (RPJN) and t he nat ional 5 year plan are t he guidance f or t he f orest ry sect or planning. The f ollowi ng t ime scale pl anning have been in pl ace, namely, Forest ry Long Term Development Plan, Road Map f or t he Revit alizat ion of Forest Indust ry, Five Year Forest ry Plan. Annual budget all ocat ion is based on t hese plans, however, because of t he magnit ude of t he challenges which need t o be t ackled, t he availabl e domest ic f unds of t en f ar f rom adequat e. Market f ail ure f or f orest product s and services (e. g. market of illegal f orest product s, A/ R CDM) has al so added t he challenges in pract icing SFM principles which can event ually cont ribut e posit ively t owards climat e change mit igat ion.

A number of regulat ions already exist s which can cont ribut e t o creat ing enabling condit ions f or climat e mit igat ion act ions, t hrough reducing emissions f rom def orest at ion and f orest degradat ion, sust ainable f orest management , f orest conservat ion, and t hrough enhancement of carbon st ocks f rom f orest rest orat ion, af f orest at ion and ref orest at ion, if t hey are successf ully implement ed. To provide illust rat ion of t he regul at ion exist s, t here are new spat ial planning legislat ion in Act 26/ 2007 which requires local government t o progressively revise t heir spat ial pl ans and government regulat ion PP 6/ 2007 and it s revision PP 3/ 2008 which provides a f ramework f or licensing t he use of f orest land f or a range of environment al services as well as t imber product s. PP 6 and PP 3 also accommodat e a great er range of communit y int erest t hrough licenses f or Communit y Plant at ion Forest (HTR), Communit y Forest (HKM), and Cust omary Forest (Hut an Adat ). The f orest ry law, Act 41/ 1999 int roduced a broader range of concept s of f orest resources use t han had previously exist ed.

Along wit h t he implement at ion of t he f ive priorit y policies, f orest lost has decreased signif icant ly. Based on t he Minist ry of Forest ry dat a, f orest lost has decreased f rom 1. 7 million ha per year bet ween 1985 – 1997 and t he highest f orest lost of 2. 8 million ha per year during 1997-2000, t o 1. 2 million ha per year during 2000-2005.

The necessary condit ion t o enable sust ainable f orest management , including t he f ormulat ion and implement at ion of f orest policies and pract ices is good governance. Recognizing t he need f or a mult i sect or approach t o improving governance, t he GoI has made t he f ight against corrupt ion in all sect ors a t op priorit y, as demonst rat ed by t he work of t he Independent Ant i Corrupt ion Commission (KPK) and t he Special Ant i Corrupt ion Court . GoI also has a law against money l aundering (UU 25/ 2003) which allows t he proceeds of illegal logging t o be invest igat ed and used in prosecut ion. The st at e Minist ry f or Administ rat ive Ref orms announced a goal t o

appl y a nat ionwide syst em of good governance at t he l ocal government level by 2008. To address t he t ransparency and account abilit y considered in good f orest governance, Direct orat e General of Forest Planning, MoF has built t he new Forest Monit oring and assessment syst em (FOMAS/ FRIS/ NCAS) using new remot e sensing t echnologies. Ot her init iat ive t hat aimed t o st rengt hen communit y access t o cust omary land is designat ion such as “ village f orest ” , “ communit y f orest ” and HTR. These designat ions promot e an int erest ed management presence on land t hat has become de f act o open access where communit ies have not had t he legal aut horit y or means t o prevent out siders ent ering t he f orest . Since 2005, GoI has been undert aking a comprehensive program t o curb illegal logging under t he umbrella of t he Forest Law Enf orcement Nat ional St rat egy (FLENS). In addit ion, President ial Inst ruct ion (INPRES 4/ 2005) direct s 18 government bodies as well as local government of f icials t o cooperat e in act ion t o eradicat e illegal l ogging.

There are several act ion pl ans t hat MoF commit t ed t o undert ake f or improving good f orest governance in Indonesia as f ollow : 1) Buil ding Conf idence and Readiness by implement ing t he Minist ry of Forest ry‘ s disclosure policy and invit e public review of t he maps and inf ormat ion prepared by t he FOMAS proj ect and advanced t o FRIS and NCAS, act ivat ing t he nat ional case-t racking syscase-t em wicase-t hin case-t he Miniscase-t ry of Forescase-t ry in coordinacase-t ion wicase-t h police and prosecucase-t ors, launching a high-level, int er-agency st r i ke f or ce under President ial aut horit y t o invest igat e and prosecut e t op ringleaders and f inanciers of illegal logging and associat ed crimes, 2) St rengt hening Account abilit y by requiring disclosure and divest it ure by cabinet members of f orest -relat ed f inancial holdings and ot her business int erest s t o reduce t he pot ent ial f or polit ical int erf erence and conf lict -of -int erest , eliminat ing t he use of f orest ry revenues as a source of f unding f or polit ical part ies, making corporat e and local government eligibilit y t o part icipat e in REDD condit ional on meet ing specif ic st andards and indicat ors of good governance, considering a public declarat ion of principles and pract ices t hat polit icians, polit ical part ies, and business associat ions should commit t o in support of good f orest governance and achievement of REDD obj ect ives, seeking compliance t hrough incent ives and enf orcement wit h policies and regulat ions requiring f orest concession holders t o impl ement pl ans which reduce t imber t hef t and environment al damage f rom f ire and logging pract ices, 3) Saf eguarding REDD Payment s and Market s by considering adopt ing nat ional f inancial sect or regulat ions requiring enhanced due diligence procedures f or Polit ically Exposed Persons (PEPs) t o curt ail t he f inancial act ivit ies of PEPs involved in f orest -rel at ed corrupt ion and crime, enhancing cooperat ion wit h Indonesia‘ s maj or int ernat ional part ners in f orest t rade and invest ment t o st rengt hen FLEG ref orms, t ackling j udicial ref orm and ant i-corrupt ion ef f ort s in t he j ust ice syst em t hrough case-t racking and public scrut iny, consumer act ion, and inst it ut ional capacit y-building

As not ed earlier t here are also underlying issues of inst it ut ional inf rast ruct ure and human resources capacit y, which need t o be improved t o ensure t hat posit ive out comes can be achieved. Furt hermore, government ef f ort s in enhancing commercial plant at ion in degraded f orest land and ot her programmes t o improve f orest cover have not been able t o balance t he rat e of f orest loses. And so, prot ect ing t he remaining f orest is urgent ly needed, f acilit at ed by policy int ervent ion which enable Indonesia t o reduce emissions f rom f orest losses and achieve her development obj ect ives. Hence, REDD Indonesia need t o be designed t o support t hese t wo f old obj ect ives.

1. 2. Partners and organizations involved

The paper was writ t en by t he Minist ry of Forest ry t eam (see General Inf ormat ion). Dat a f rom various sources are used, including t he Minist ry of Forest ry and relat ed inst it ut ions, out put s of REDD Indonesia st udies in 2007 conduct ed under t he umbrel l a of Indonesia Forest Cl imat e Alliance (IFCA) and ot her sources. At t his st age, dat a and inf ormat ion gat hering most ly rely on relevant document s and st udy report s wit h a number of f ocus group discussions and workshops. Even t hough t his R-Plan was prepared by t he MoF t eam onl y , t here have been ext ensive st akeholders processes on REDD t hroughout t he count ry f or t he past t wo years where t he t eam members act ively part icipat ed.

1. 3. Land use, forest policy and governance quick assessment paper (See Annex 1)

IFCA st udies (2007) report have produced a report t hat cover quick assessment on l and use, f orest policy and governance. The report can be accessed t hrough www. f orda-mof . org

Component 2: Management of Readiness

2a. Convene a national REDD working group to coordinate REDD activities, and how REDD will be integrated into the existing land use policy dialogue

2a. 1. Design of the Working Group: a. Rat ionale

Design of t he REDD working group shall be unique t o each count ry, t aking int o account nat ional circumst ances and inst it ut ional set t ing in t he respect ive count ry. In t he case of Indonesia, t here have been a number of REDD and climat e changes relat ed working groups est ablished bot h at t he nat ional and provincial/ dist rict level. The Minist ry of Nat ional Planning is coordinat ing a working group dealing wit h t he preparat ion of Indonesia’ s Road Map on Climat e Changes and Minist ry of Finance coordinat es a Focus Group Discussion on climat e change f inancial aspect s. A number of provinces and dist rict s has also est ablished REDD Working Groups. Wit hin t he Mi nist ry of Forest ry, working group on f orest and climat e changes (WG_FCC) has long been est ablished which is now f ocusing on REDD issues. Process t owards est ablishment of Nat ional Working Group on REDD has been st art ed since 2008, coordinat ed by t he Minist ry of Forest ry as t he inst it ut ion responsible in f orest ry sect or and t he leading inst it ut ion in UNFCCC negot iat ion on f orest relat ed agendas including REDD.

Ext ensive st akeholders’ consult at ion/ communicat ion has been carried out in preparat ion of REDD gui del i nes and nat i onal REDD wor ki ng gr oup since 2008, coordinat ed by t he Minist ry of Forest ry, t hrough meet ings at dif f erent levels and elect ronic communicat ions such as t he use of MoFor websi t e and e-mail communicat ions t o gat her input s f rom st akeholders. First , t he Minist er of Forest ry issued a regulat ion on t he implement at ion of REDD demonst rat ion act ivit ies (PERMENHUT No. P. 68/ Menhut -II/ 2008 ; see Annex 2a) and a decree on est ablishing t he Minist ry of Forest ry Working Group on Climat e Change/ WG-FCC (SK. 13/ Menhut -II/ 2009; see Annex 2b), and j ust recent ly Regulat ion on REDD (PERMENHUT No. P30/ Menhut -II/ 2009; see Annex 2c).

The release of Regulat ion No. P 68/ Menhut -II/ 2008 and P. 30/ Menhut -II/ 2009 was int ended t o respond t o t he high int erest f rom bot h int ernat ional part ners and nat ional st akeholders t o part icipat e in -REDD act ivit ies, as well as t o exercise out comes of COP/ SBSTA processes on REDD. The aim of t he impl ement at ion of demonst rat ion act ivit ies is t o t est and develop met hodologies, t echnology and inst it ut ion of sust ainable f orest management t hat endeavor t o reduce carbon emission t hrough cont rolling f orest def orest at ion and degradat ion.

The obj ect ive of implement at ion of demonst rat ion act ivit ies of reduct ion of emission f rom def orest at ion and degradat ion is t o obt ain f orest management design relat ed t o reduct ion of carbon emission f rom def orest at ion and degradat ion.

The Regulat ion Set s-Out t he f ollowing it ems : (a) Def init ions, (b) Aims And Obj ect ives, (c) Locat ion And Proponent , (d) Applicat ion And Approval Procedure, (e) Concluding St ipul at ions

The main int ent ion of t he regulat ion is t o set -up ent ry point f or t he invest or. The regulat ion was designed as an ent ry point f or t he int erest ed part ies t o develop DA-REDD.

The Working Group on Forest and Cl imat e Change (WG-FCC) based on t he Regul at ion No. P. . No. 13 carry out t he f ollowing t asks :

a) Provide input s t o t he Minist er of Forest ry on t he policies, st rat egies, programs, and act ivit ies on climat e change cont rol in t he Minist ry;

b) Assist t he Minist er of Forest ry in conduct ing t he dut ies of cont rolling climat e change consist ing of adapt at ion, mit igat ion and t ransf er of t echnol ogy act ivit ies in t he Minist ry; c) Assist t he Minist er in evaluat ing policies on climat e change adapt at ion, mit igat ion and

t ransf er of t echnol ogy wit hin t he Minist ry; and

d) Manage dat a and inf ormat ion on climat e charge in t he Minist ry.

Review of proposal f or Demonst rat ion Act ivit ies is also t he t ask of t he Working Group on Forest and Climat e Change.

Regul at ion No. 30/ Menhut -II/ 2009 provides guidance on REDD act ivit ies st art ing f rom prerequisit es f or locat ions and part icipat ions, rules and procedures f or approval, est ablishment of REL, monit oring, report ing and verif icat ion, t ime f rame, right s and obligat ions, incent ive dist ribut ion and liabilit y, t o roles of government al all levels (nat ional, provincial and dist rict levels). .

b. Design of t he Nat ional Working Group

Prior t o COP13, Indonesia f ormed Indonesi a For est Cl i mat e Al l i ance in July 2007, an umbrella or f orum f or st akeholders’ communicat ion/ coordinat ion/ consult at ions on REDD relat ed issues, including progress and out put s of t he st udies on REDD met hodologies, st rat egy, f inancial/ market anal ysis and incent ive dist ribut ions. The REDD Indonesia / REDDI st udies (2007) were coordinat ed by t he Minist ry of Forest ry, involving bot h nat ional and int ernat ional expert s, f unded by WB, UK, Aust ralia, and Germany. The progress and result s of t he st udies were communicat ed t hrough IFCA, involving t he t hree pillars of governance (government inst it ut ions, privat e sect ors, civil societ ies including academia) and int ernat ional part ners working on climat e changes and f orest ry in Indonesia (see Figure 1 : IFCA process prior COP-13).

Figure 1. IFCA process in t he Nat ional Climat e Change Cont ext prior COP-13

Along wit h t he preparat ion f or COP-13, Indonesia set up a road map f or REDD which includes readiness and t ransit ion (capacit y buil ding, demonst rat ion act ivit ies, and ot her REDD relat ed init iat ives) f rom 2007 t o 2012, and f ull implement at ion f rom 2013 or when REDD mechanism in pl ace ( see Figure 2: REDDI Road Map).

Foll owing up t he road map and in line wit h t he decision of COP 13 on REDD and rel evant element of Bali Act ion Plan (Policy approaches and posit ive incent ives f or REDD), st akeholders’ communicat ion at t he nat ional and sub nat ional (provincial and dist rict ) levels cont inue t o be carried out in various f orms (e. g. f ocus group discussions, workshops, awareness raising and t raining). The Minist ry of Forest ry, t he government inst it ut ion responsibl e in f orest ry sect or, as a leading inst it ut ion f or REDD, has f ocuss t he ef f ort s in building synergy among many inst it ut ions and organizat ions working on REDD, as t o minimize unnecessary duplicat ion and repet it ion of act ions which may result in inef f iciency in resource use and inef f ect iveness of t he act ions. Throughout 2008, t he FCC working group has f acilit at ed awareness raising and t raining f or local government s, NGOs, and ot her st akeholders, as well as involved in relat ed f ocus group discussions. At t he sub nat ional level, publ ic consut at ions have been conduct ed in Java, Sumat era, Kalimant an, Sulawesi and West Papua. The out come of t hese processes have st imulat ed a number of provincies and dist rict s t o est ablish REDD Working Group.

Figure 2. REDDI Road Map

Alt hough t he set up and f ocus of t he working group may vary f rom region t o region, t hey share common obj ect ives, t hat is t o disseminat e relevant inf ormat ion on REDD and assess readiness of t he provinces/ dist rict s t o implement REDD.

As t he f ol low up of t he release of Regulat ion No. P30/ Menhut -II/ 2009, WG-FCC has t o immediat ely f inalizing draf t REDD Commission (Nat ional Working Group on REDD) who wil l be t asked t o oversee REDD implement at ion. The Nat ional REDD Working Group (NRWG) will consist of represent at ives f rom relevant sect ors and st akeholders. As t he members of t he WG are high

level of f icial (Direct orat e General level), t heir dut ies are more dealing wit h st rat egic issues. To conduct t heir dut ies t hey will be backed-up and and assist ed by Technical Team, whose member at more t echnical level (Direct or level) and REDD Secret ariat . The member of NRWG are represent at ives of :

1. Minist ry of Foret ry; 2. Minist ry of Environment ; 3. Minist ry of Foreugn Af f airs;

4. Minist ry of Nat ional Development Planning; 5. Minist ry of Agricult ure

6. Minist ry of Home Af f f airs; 7. Minist ry of Trade

8. Minist ry of Public Works 9. Minist ry of Finance

10. Minist ry of Mining and Mineral Resources 11. Minist ry of Economic

12. Nat ional Landuse Agency

13. Nat ional Commision on Climat e Change (NCCC) 14. Local Government where REDD act ivit ies are l ocat ed 15. Represent at ive f rom Civil Societ ies.

The voice of each NRWG member wil l be on behalf of inst it ut ions t hey represent . For example, represent at ive f orm Minist ry of Finance will t ake a lead on issues relat ed t o Government revenue f rom REDD and Dist ribut ion of benef it ; Issues on land use will be discussed and consult ed among Nat ional Land Use Agncey, Minist ry of Home Af f airs , Minist ry of Forest ry and ot her relat ed sect ors.

It is recognized t hat in overall climat e change issues, bot h adapt at ion and mit igat ion (REDD is only one among many mit igat ion measures), st rong coordinat ion among responsble gevernment inst it ut ions and ot her relevant st akehol ders at t he nat ional and sub nat ional l evel s is crucial. The Nat ional Council on Climat e Change (NCCC), chaired by t he Precident wit h relat ed Minist ers as t he members, was set up t o handle high level coordinat ion on climat e change issues especially on t he cross sect oral issues. There is also t he Minist ry of Nat ional Development Planning who is responsible in coordi nat ing all sect ors development pl anning in order t o achieve nat ional devel opment obj ect ives. As t he implement at ion of nat ional policies and programmes is dist ribut ed t o all sect ors and each sect or play role as a leading inst it ut ion in UNFCCC negot iat ions relat ed t o t he sect or, in t he case of REDD, f ormul at ion of policies and programmes is coordinat ed by t he Minist ry of Forest ry. Any cross-sect oral issues relat ed t o REDD will be handle t hrough appropriat e channel of coordinat ions which NRWG could play signif icant role.

As highlight ed earlier, t he REDD guidelines (Regulation No. P. 30/ Menhut-II/ 2009 will allow broader act ivit ies relat ed t o REDD be implement ed, and are in an int egrat ed manner. It set s-out t he f ol lowing it ems:

• Locat ion, proponent s and requirement s

• Procedures t o apply REDD, review and approval • Right s and obligat ory

• Timef rame

• REL, monit oring and report ing • Verif icat ion and cert if icat ion • Incent ive Dist ribut ion and liabilit ies • Type of REDD act ivit ies

2a2. How would the REDD debate be linked and integrated into the overall land-use and forest dialogue?

As st at ed in earlier sect ion on t he import ance of building synergy among many inst it ut ions and organizat ions working on REDD and t he f act t hat REDD is onl y one among a number of mit igat ion measures, t he debat e on REDD shall be an int egral part of overall f orest dialogue and ot her land-based sect ors dialogue wherever necessary. The dialogue will also t ake advant ages of ongoing processes such as dial ogue in t he preparat ion of l ong-t erm Nat i onal For est Pl anni ng, Second Nat i onal Communi cat i on, and Road Map on Cl i mat e Change t his year.

IFCA st udies (2007) analyzed t he invest ment cost of a broadly based int egrat ed f orest , agricult ure, rural development and f orest indust ry sect or program, designed t o creat e a sust ainable f orest management regime which maximizes Indonesia’ s f orest carbon resources is est imat ed at in excess of $ 4 billion wit hin t he next 5 years (most of it f rom privat e invest ment s; see Annex 6 f or Component 6). REDD-relat ed f inancial resources could make a very signif icant cont ribut ion t o meet ing t he cost s t o be f aced by provincial and dist rict government administ rat ions, f orest communit ies and privat e sect or, during t he t ransit ion period bef ore revenues f rom sust ainable f orest resource management come on st ream. REDD-relat ed incomes could also support a subst ant ial invest ment in peat land rest orat ion and broadly-based, rural and village level f orest ent erprises. Such an invest ment could result in alt ernat ive and sust ainabl e livelihoods f or many of Indonesia’ s 10 million lowest income f amilies who current ly survive on uncont rolled harvest ing of f orest and expansion of slash and burn agricult ure.

2a3. Type, schedule and sequencing of activities to be developed by working group:

In preparat ion f or t he COP13, Indonesia f ormed t he Indonesi an For est Cl i mat e Al l i ance in July 2007, t o analyze how a REDD scheme could operat e as a pract ical carbon emission reduct ion mechanism. The IFCA a f orum/ umbrell a f or communicat ion/ coordinat ion/ consult at ion of st akeholders working on f orest and climat e changes in Indonesia. The IFCA is coordinat ed by t he Minist ry of Forest ry, consist ed of government s, privat e sect ors, and civil societ ies, scient if ic inst it ut ions, and int ernat ional part ners. The IFCA process in 2007 was support ed by government s f rom Aust ralia, Germany and t he Unit ed Kingdom under t he coordinat ion of t he World Bank. Universit ies and Int ernat ional Research Organizat ions f rom inside and out side Indonesia have also cont ribut ed t heir expert ise. These include CIFOR and ICRAF, The Aust ral ian Greenhouse Of f ice, t he Aust ralian Nat i onal Universit y, Winrock Int ernat ional, t he World Resources Inst it ut e, URS, Ecosecurit ies, The Nat ure Conservancy, WWF, Sekal a and Wet lands Int ernat ional.

Under t he direct ion of t he MoF, Forest Research and Development Agency (FORDA) nine IFCA working groups were brought t oget her t o produce t echnical working papers bet ween August and December 2007. A t ot al of 60 nat ional and int ernat ional expert s in all aspect s of f orest ry and climat e change have part icipat ed in t he preparat ion of t echnical papers which address t he element s of t he suppl y chai n necessary t o produce carbon credit s f rom REDD proj ect act ivit ies. During bot h periods in August and in Oct ober, t he writ ing workshops have culminat ed in f ocus group meet ings wit h count erpart s f rom t he Minist ry of Forest ry and nat ional workshops where ideas developed in t he working groups have been t ried out and enhanced by input f rom t he broad audience of st akeholders int erest ed in t he f ut ure of a REDD scheme in Indonesia.

IFCA out put s were int egral part s of t he mat erial present ed f or discussion by t he Minist ry of Forest ry at a paral l el event at UNFCCC COP13 on t he 6-7 December 2007 t o of f iciall y l aunch Indonesia's REDD roadmap. The event was at t ended by more t han 400 part icipant s f rom local and int ernat ional government s, t he privat e sect or, civil societ y, donors and academia. It f eat ured a number of present at ions on t he role of communit y f orest ry, conservat ion, ecosyst em rest orat ion, and f ire management in ef f ort s t o implement REDD. There was also discussion concerning issues of governance t hrough enhanced f orest monit oring and law enf orcement . Prior t o COP 13, in Oct ober, t he IFCA launched it s websit e t o f urt her enhance it s out reach nat ionally

and int ernat ionall y and t o build a venue f or a developing dat abase and exchange of inf ormat ion and ideas. The sit e provides f or an online publ ic clearinghouse f or t he most up-t o-dat e inf ormat ion, and a col laborat ive Wi ki f or IFCA members.

In 2008 t he IFCA process has cont inued wit h f urt her review of t he draf t document s and t he opport unit y t o complet e a more det ailed analysis of hist oric pat t erns of def orest at ion. The f eedback f rom t hese sessions has allowed a clearer exposit ion of t his synt hesis. Consolidat ion Report which f ocuses more clearly on development and implement at ion of t he REDD process prior t o 2012 has been complet ed, and f urt her works at various levels have been carried out . Table 1 shows examples of st akeholder communicat ions f or REDD preparat ion which was t aken pl ace during 2008.

Table 1. REDD st akehol der communicat ions in Indonesia during 2008 (MoFor records)

No Location/ Time/ Activit ies

Organizing

Inst it ution(s) Participant s Scope/ focus

1 Bogor/ January/ out reach seminar

IPB Government s represent at ives, privat e sect ors, NGOs, Universit y lect urers and st udent s, research inst it ut ions

• Post COP-13 UNFCCC : responding Bali Act ion Plan and COP decision on REDD 2 Samarinda, Berau, Bal ikpapan/ January and March/ st akehol ders communicat ion

Local Government - Minist ry of Forest ry- TNC-GTZ

Local government

inst it ut ions, MoFor, NGOs, Universit ies and research inst it ut ions

• Awareness raising on t he REDD progress post COP-13,

• Facil it at ion in t he est ablishment of working Group on REDD in East Kalimant an

3 Jakart a/ February /

out reach seminar

Universit y of Indonesia

Government s

represent at ives, privat e sect ors, NGOs, Universit y lect urers and st udent s, research inst it ut ions

• Climat e change issues in general,

• REDD challenges and opport unit ies was one of t he t opic.

4 Semarang/ April/ out reach

seminar

Rel igious l eaders – Minist ry of Forest ry

Rel igious l eaders, Minist ry of Forest ry represent at ives, local government s and ot her st akeholders

• Impact of Climat e changes and rel igion, • Opport unit ies under CC

regimes 5 Sulawesi (al l

provinces) / February-April

NGOs-Local Government -Minist ry of Forest ry

Government s

represent at ives, privat e sect ors, NGOs, Universit ies and research inst it ut ions, local communit y groups

Awareness raising and st akehol ders consult at ions: preparing REDD

impl ement at ion incl uding IFCA st udy result s and f oll ow up

6 Yogyakart a/ Mei/ seminar

Gadj ah Mada Universit y-Minist ry of Forest ry

Universit y lect urers and st udent s

Tackl ing CC issues in f orest ry in Indonesia

7 Pakanbaru/ June/ st akehol ders consult at ion

NGOs-Local government -Minist ry of Forest ry

Government s

represent at ives, privat e sect ors, NGOs, Universit ies and research inst it ut ions, local communit y groups

Awareness raising and st akehol ders consult at ions : preparing REDD

impl ement at ion including IFCA st udy result s and f oll ow up

8 Jakart a/ July/ RED D conf erence

TNC Indonesia Al l TNC of f ices, Government s represent at ives, privat e sect ors, NGOs, Universit ies and research inst it ut ions, local communit y groups

Sharing l essons learned f rom init iat ives relat ing t o REDD

No Location/ Time/ Activit ies

Organizing

Inst it ution(s) Participant s Scope/ focus

st akehol ders consult at ions

Forest ry represent at ives, privat e sect ors, NGOs, Universit ies and research inst it ut ions, local communit y groups, int ernat ional part ners

consult at ions on draf t government regul at ion (PERMENHUT) on REDD • Draf t PERMENHUT was

al so post ed in IFCA Websit e (Minist ry of Forest ry websit e) bef ore and af t er consult at ion process

• Input s/ comment s were al so received t hrough email and ot her means of communicat ions 10 Palangkaraya/ Oc

t ober/ st akehol ders consult at ions

Local government _ Wet land Int ernat ional

Government s

represent at ives, privat e sect ors, NGOs, Universit ies and research inst it ut ions, local communit y groups, int ernat ional part ner (Aust ralia-KFCP)

• Awareness raising on REDDI progress • St akeholders

consult at ions on draf t regulat ion (PERMENHUT) on REDD by MoFor represent at ive. • Est abl ishment of REDD

Working Group in Cent ral Kalimant an 11 Papua/ Oct ober/

out reach workshop

Local government -Minist ry of Forest ry

Government s

represent at ives, privat e sect ors, NGOs, Universit ies and research inst it ut ions, local communit y groups

• Awareness raising and st akehol ders

communicat ions on REDD and A/ R CDM

12 Bogor/ November /

t raining f or MoFor regional f orest conservat ion of f icers

Minist ry of Forest ry

MoFor regional f orest conservat ion of f icers

• Forest and climat e change issues : adapt at ion and mit igat ions (including A/ R CDM, REDD, and ot her f orest -based PES) 13 Jakart a and

ot hers/ periodic/ workshops

Minist ry of Forest ry

Government s

represent at ives, privat e sect ors, NGOs, Universit ies and research inst it ut ions (depending on t he t opic and f ocus of t he workshops)

• Devel opment of Forest Resource Inf ormat ion Syst em (FRIS) and Nat ional Carbon Account ing Syst em (NCAS) Î Indonesia-Aust ralia cooperat ion 14 Jakart a and

ot hers/ on request s

Government inst it ut ions/ ot hers

Government s

represent at ives, privat e sect ors, NGOs, Universit ies and research inst it ut ions, local communit ies, int ernat ional part ners (depending on t he t opic and f ocus of t he event s)

Facil it at ion by t he Minist ry of Forest ry in t he REDD workshops/ awareness raising/ t raining and ot hers (by WG-FCC/ FORDA/ IFCA Secret ariat )

15 Jakart a/ periodic / Focus Group Discussion

Minist ry of Finance

Relat ed government inst it ut ions, privat e sect ors, NGOs, Universit ies and research inst it ut ions

• Financial aspect s of climat e changes • REDD is one of t he f ocus 16 Jakart a and

ot hers/ coordinat ing meet ings or consult at ions

Rel at ed government inst it ut ions (MoFor/ MoE/ MoFA/ MoF/ Bappenas/ ot h

Government s

represent at ives, privat e sect ors, NGOs, Universit ies and research inst it ut ions, local communit y groups, int ernat ional part ners

• All climat e change issues,

• Forest ry is one of t he nat ional CC st rat egic issues,

No Location/ Time/ Activit ies

Organizing

Inst it ution(s) Participant s Scope/ focus

er minist ries)/ Nat ional Council on CC/ Int ernat io nal part ners

f ocus.

Series of meet ings and ot her f orm of st akehol der communicat ions on t he R-Plan development (considering t he availabilit y of GoI f unding f or t hat purpose) have been carried out f or t he last t wo mont hs at t he nat ional level (25 March 2009) and sub-nat ional level (in April 2009) in f our provinces (Sout h Sumat era, Riau, East Kalimant an, and Sout h Sulawesi). The consult at ion in Jakart a (nat ional level) was done t oget her wit h st akehol ders consult at ion on REDD Nat ional Framework, draf t regulat ion on REDD, and draf t regulat ion on REDD Commission. At t he sub-nat ional level, t he f our provinces were select ed t o represent dif f erent f orest condit ions and challenges, dif f erent level of awareness on t he issues, and t he readiness of local inst it ut ions t o host t he consult at ions wit hin t he available t ime f rame. The Sect ion below depict s maj or comment s which were received f rom 25 March consult at ion, while comment s f rom consult at ions at t he provincial levels can be seen in Table 2.

Stakeholder Consultation on REDDI Framework-draft Regulation on REDD-draft Regulation on National REDD Commission - Readiness Plan : maj or comments and responses

I. Maj or Comments

General :

1. The Draf t of REDD Guideline should urgent ly be f inalised and issued, because it wil l be our main ref erence t o implement Demonst rart ion Act ivit ies t oward REDD f rom eit her volunt ary and mandat ory market .

2. Cross sect or t eam is needed t o agree upon carbon asset and benef it dist ribut ion.

3. Regulat ion on nat ional st rat egy of REDD should be priorit ized as ref erence f or preparing t his guideline

4. Posit ion on Nat ional st rat egy of REDD should be clear.

5. Mainst reaming Climat e Change issues int o Nat ional Forest ry Plan should be f ormulat ed. 6. Role of f oreign part ner should be opt imalised under clear cont rol f rom government .

Technical :

1. Def init ion on f orest f rom UNFCCC should be added.

2. Def init ion of def orest at ion should be re-f ormul at ed t o avoid compl ain when f orest pl ant at ion companies conduct l and clearing and land preparat ion on unproduct ive licensed f orest ares.

3. Def init ion of f orest degradat ions lacks t he aspect s of change of qualit y in f orest composit ion (

4. Def init ion of f orest (and def orest at ion) is not consist ent wit h UNFCCC t erminology 5. Locat ion crit eria : f or adj acent REDD l ocat ions, bundling should be encouraged.

6. It woul d be usef ul t o prepare simple and easy t empl at e f or Implement at ion pl an of REDD, t o avoid broad variat ions of REDD submission (Could be put on annex)

7. REL and Monit oring need t o be det ailed in annex

9. Ref erence Emission level s on dif f erent implement at ion levels have t o be consist ent wit h nat ional REL, t he procedure t o ensure so is not elaborat ed (APPENDIX 5). Appendix 5 and 6 needs f urt her scrut iny

10. How shoul d a dist rict -level ref erence emission level (REL) be developed ? 11. GL-AFOLU is more comprehensive t han IPCC guideline or GPG-LULUCF. 12. MRV should be put in annex as a pract ical guideline t o implement REDD

13. Import ant t hat regulat ion now all ows bundling of proj ect s by dist rict government : Art icle 3 (2). Will t his involve creat ing a single proj ect , or j ust st reamlining applicat ion f or separat e proj ect s wit h separat e ref erence levels?

14. There is signif icant f orest carbon out side f orest est at e, but it as not clear f rom t he regulat ion how APL could be included, and t heref ore whet her a dist rict -scale approach is really possibl e

15. Programmat ic as well as sit e-based emission reduct ion approaches.

16. Eligible areas? Not all land in dist rict will meet proj ect -based eligibilit y crit eria, but can cont ribut e t o emission reduct ions.

17. In t he medium and long-t erm, sub-nat ional ref erence-emission levels (wit hin a nat ional program) will probably need t o be subst ant ial ly dif f erent f rom proj ect -based approaches developed so f ar

18. Perf ormance st andards should be considered rat her t han “ business as usual” baselines f or guiding proj ect -level and even perhaps dist rict -level incent ives

Policy and Institution :

1. REDD shoul d have f undament al and broader purposes as a means t o improve f orest governance.

2. There is a need t o immediat ely issued support ing regulat ion t o back-up t his guideline. 3. What is t he argument behind t hat t he review of REDD proposals shoul d be f inisihed wit hin 30

working days

4. Crit eria on f orest governance should be ment ioned cl early and separat ed wit h ot her issues. 5. REDDShoul d be direct ed t o support SFM.

6. The draf t could be f urt her developed t o ant icipat e t he possibilit y of co-lat eral benef it s t hat is more import at nt t han t he carbon t rading it self .

7. GOI coul d pri orit ize development of guidance document s out side of t he regulat ions and hold workshops t o bot h develop t he guidance and disseminat e guidance t o avoid wast ed ef f ort and unreasonable expect at ions. Could ref er t o VCS and ot her ext ernal sources, or build on t hem if appropriat e

8. Dist inguishing benef it s f rom improved gover nance vs. improved management

9. At proj ect -level, non-f inancial incent ives will be ext remely import ant t ools, as will f inancial incent ives not direct ly linked t o carbon perf ormance

10. Diverse composit ion of REDD Commission is very posit ive: Decree on REDD Commission, Appendix 1.

11. Very subst ant ial coordinat ion and regulat ion, going beyond current draf t regulat ion, will be required f or t he f ollowi ng :

- Inclusion of areas out side of t he nat ional f orest est at e - Coordinat ion on det ermining sit es of oil palm

- Mining sect or int egrat ion int o REDD planning

- Clarif ying and st reamlining monit oring and oversight of HPHs

- Dat a sharing across each level and bet ween levels t o improve planning and decision-making

12. Could consider addit ional t ask f or REDD Commission t hat members proact ivel y ident if y opport unit ies and risks rel at ed t o alignment of inst it ut ions t hey represent wit h REDD

act ivit ies, and develop a mechanism f or addressing issues t hat are ident if ied: Decree on REDD Commission, Sixt h specif icat ion,

13. Incorporat ing learning more explicit ly int o t he draf t regulat ion : Get t ing st art ed is import ant , but can also acknowledge t hat changes may be needed due t o improved approaches

14. Regulat ion does a good j ob of creat ing cont ext f or st art ing REDD-I, but need t o realize t hat new, perhaps dramat ically bet t er, implement at ion approaches may be developed • Need t o avoid “ l ock-in” t o highly proj ect approach: proj ect approach can build on

exist ing carbon approaches, but t hese have high t ransact ion cost s

• Simplicit y should be sought wherever possible, and close alignment wit h exist ing f rameworks is key f or t his

• Harnessing demonst rat ion proj ect s f or more det ailed dat a collect ion t o buil d nat ional dat abase—small invest ment in dat a management could yiel d big result s: Appendix 5 (c)

15. The lessons learned on REDD in Indonesia will be ext remely import ant f or progressing negot iat ions on REDD in t he UNFCCC leading t o COP15 in Dec 2009.

16. This regulat ion on impl ement at ion procedures will be very usef ul f or st akeholders who are working t o develop demonst rat ion or commercial REDD act ivit ies, and we not e t here are now at l east 20 REDD act ivit ies in Indonesia at various st ages of development by government and donors, NGOs and t he privat e sect or.

• What is t he role of Provincial Government s under t his Regulat ion? Can Provincial Government s be REDD proponent s?

• Can Local (Dist rict ) Government s be REDD proponent s? Or can t hey be proponent s as Managers of FMUs (KPH)?

• Does t he Regulat ion cover areas where Local Government has issued permit s f or environment al services in Prot ect ion Forest (IUPJL)?

• If bot h concessions and FMUs (KPH) can be REDD proponent s, what happens if t here are concessions wit hin a KPH and bot h want t o be a REDD proponent ? Who will t ake precedence or will t he KPH and concession have t o be j oint proponent s?

• Verif icat ion and peat : Given t hat t here are no int ernat ionally agreed met hodologies f or measuring and monit oring peat GHG emissions, how can verif icat ion be done, ie. how will t he Independent Appraiser Inst it ut ions be able t o verif y emissions f rom peat swamp f orest s if ef f icient and credible met hodol ogies are st ill being developed? • Is it int ended t hat t he regulat ion will cover peat GHG emissions wit hin REDD act ivit y

f rameworks?

17. Role of Local Government is not clear. Minist ry of Finance is ready t o support f or preparing regulat ions relat ed t o t he Fiscal incent if . To dat e we don’ t have any regulat ion t o manage t he Cilmat e Change Fund. It should immediat ely prepared.

18. Art icles in draf t REDD Regulat ion :

• The t erms REDD cr edi t and REDD cer t i f i cat e and REDD i ncent i ve require def init ions. There seem t o be some inconsist encies in t he use of t hese 3 t erms. (CHAPTER 1 ARTICLE 1)

• The dif f erent iat ion bet ween aim and obj ect ive of REDD is not cl ear

• Bundling as such support s sub-nat ional act ivit ies e. g. dist rict s- or province-based approaches, however it is not clear how t he benef it -sharing is t han arranged (CHAPTER III: LOCATION AND REQUIREMENTS)

• The t ransparent work f low and t ime schedule f or processing REDD proposals, might creat e work overload f or t he commission given t he t asks st at ed. Depending on applicat ion t he proposed set up f or t he commission needs t o have suf f icient inst it ut ional resources f or t his t ask. (CHAPTER IV: PROPOSAL, ASSESSMENT AND APPROVAL PROCEDURES

• Role of independent appraiser might be f urt her def ined • Benef it sharing in general is not clear yet

• What is management of emission reduct ion in t he nat ional level? (CHAPTER IX: INCENTIVES DISTRIBUTION AND LIABILITIES)

• Ref erring also t o responsibilit ies of REDD proponent s (Art 17)

19. Prepaprat ion of t he guideline is not well arranged so as t o ensure t he act ive part icipat ion f rom Indigenous people. Indiegenous people is ‘right s-holders’ , and not ‘st akeholders’

ƒ The cont ains of t he guideline do not have breakt hrough f or adequat ely accomodat ing int erest of indigenous people.

ƒ The guideline is not f ully in-line wit h t he spirit of UUD 45 (art icle 18 and 28)

ƒ REDD wil cont inue cent ralist ic policy on f orest ry.

ƒ Posit ion of ’ Hut an Adat ’ in Forest ry Act (UU) 41 may creat e problem relat ing t o REDD. In REDD t here is commodit y, means t he owner must be clear f or t he purpose of t rading. If t here is carbon right , t here must be right upon t rees and l and right .

ƒ Most benef it f rom REDD will not go t o indigenous people.

ƒ Recomendat ion f rom localgovernment should be clearly def ined.

ƒ Regulat ion on benef it dist ribut ion should be immedi at ely prepared

20. Carbon f und coul d be an alt ernat ive source of f und, but we have t o consider t he opport unit y cost generat ed f orm REDD revenue.

II. Responses from Ministry of Forestry Working Group on REDD

1. Based on t he exist ing regulat ion, t he MoFOR prepares draf t REDD Guideline f or Indonesia int erest s since Climat e Change (CC) challenges can not be separat ed f rom challenges in achieving sust ainabl e f orest management as well as susat inable development issues.

2. All comment s and suggest ions will be accomodat ed wherever possible, t aking int o account relevant regulat ions, local and nat ional issues and int ernat ional requirement s, relevance of t he comment s t o t he t opic being consul t ed.

3. If regional government could be a proponent , t here will be conf lict of int erest as t he government f unct ion is t o regulat e and f acilit at e REDD implement at ion. If bundling will be proposed, t hey could be as a coordinat or (not a proponent ).

4. REDD Nat ional Working Group consist s of broader relat ed cross sect ors f or t ha shake of represent at iveness and consist of high level bureaucrat s t o ease access f or decision making process.

5. The Guideline is very import ant because of t wo reasons; f irst f or guiding impl ement at ion of REDDI f ramework and also t o respond t o t he high int erest of various part ies t o develop REDD proj ect in Indonesia.

6. We are also very concern on t he int erest s of all st akehoders, t hat is why we meet here t o discuss and gat her input s f or t he draf t regulat ion and ot hers.

7. Obj ect ives of dif f erent convent iona are not t he same eg. Convent ion on Biological Divesit y, Convent ion t o combat Desert if icat ion and Unit ed Nat ions Framework Convent ion on Climat e Change. It coul d be synergised each ot her but coul d not be merged.

8. Public awareness and saf eguarding wit h regard t o REDD implement at ion have already been accomodat ed in t he exist ing capacit y building pr oram; but it can not cover all of t he needs. Theref ore we need support f rom int ernat ional part ners.

9. Subst ance of t he draf t regulat ion will not be conf lict ing wit h t he exist ing regulat ion. It does not mean t o add t he complexit y, but rat her we need t he “ umbrel la’ of regulat ion f or REDD implement at ion.

Tabl e 2. Maj or comment s received during st akeholders consult at ions on R-Plan in April 20091

No Component / Sub-Component Point Raised

1 Land use, f orest policy and

governance quick assessment

•

Provincial and Dist rict Land use Planning should be _{immediat el y f inalised t o st rengt hen ef f ort s t o reduce} def orest at ion.

•

Dat a; ongoing def orest at ion; conversion f rom f orest int o non-f orest ry uses; ef f ect iveness of 5 priorit ies f orest pol icy

•

Riau have chance t o implement REDD because of high def orest at ion. Is RTRWP (spat ial pl anning) needed Riau Province t o impl ement REDD?

•

Based on Minist er of Agricult ure Regulat ion No. 15/ 2008, oil palm can be est ablished in peat land wit h dept h less t han 3 m

•

Def orest at ion in Riau was caused by 3 f act ors: oil palm est ablishment , pulp paper indust ry and indust rial plant at ion f orest . Many oil pal m pl ant at ions were est ablished in product ion f orest .

•

Concern about rat e of af orest at ion-ref orest at ion can not f ol low rat e of def orest at ion. For t hat reason, it is import ant f ocused on prevent ion of land encroachment and f orest f ire.

•

HTI est ablishment is allowed in areas wit h growing st ock < 5 m3. On t he ot her hand, Riau Province has obt ained IPK t arget hundreds of m3. Where is policy posit ion of Minist ry of Forest ry now? Is it in conservat ion posit ion or economic posit ion?

•

Is t here special policy f or Riau Province in t erm of REDD implement at ion considering t hat t he RTRWP (spat ial planning) are in t he process of revision?

•

It is import ant t o make regulat ion t o reduce oil palm expansion in Riau order t o reduce def orest at ion in t his Province. .

•

REDD init iat ive should not inhibit t he implement at ion of mast er plan of Riau Province.

•

Land conversion especially in peat land should be st opped, as it has high st ock of carbon. On t he ot her hand, , regul at ion allow development of f orest plant at ion on peat l and

Management of Readiness: 2a. Convene Nat ional REDD

Working Group

•

Int erconnect ion among exist ing working group on REDD _{at all l evel shoul d be developed and st rengt hened.}

•

High level lobby bet ween nat ional and regional leader

as well as cross sect or leader is import ant . 2

2b. Prepare a REDD Consult at ion and Out reach Plan

• Common percept ion on REDD at high level of f icial s is import ant t o be developed, as REDD require l ong t erm commit ment f rom cross sect or, nat ional and regional level .

• Publ ic awareness on REDD is not only needed at

1 ;

No Component / Sub-Component Point Raised

t echnical level but it should be “ st rengt hened ” t hrough high level lobby.

• Scenario f or each landscape should be developed. • Mechanism , st rat egy and responsibil it y on REDD should

be clearl y def ined t o ensure t hat REDD is t rade of f wit h t he need t o convert t he f orest f or devel opment • Communicat ion and social izat ion of t he concept

• This Consult at ion should be f oll owed up wit h ot her consult at ion on more specif ic issues, relat ed t o REDD Design t he REDD st rat egy :

3a. Assess candidat e act ivit ies f or a REDD St rat egy

• DA-REDD sit es in t hose 5 landscape should be init iat ed. The act ivit ies on t hose sit es will cover f ive REDD inf rast ruct ure

• It is import ant t o incl ude ex-mining f orest st at e as t he sixt h l andscape of REDD coverage, since mining is a crucial land use issues in east Kal imant an.

• Small size privat e owned f orest should be included on t he REDD scheme.

• Communicat ion and socializat ion; select ion of act ivit ies and DA l ocat ions.

• The act ivit ies should be direct ed t o buil d t rust among various part ies

3b. Eval uat e pot ent ial addit ional benef it s of REDD, including biodiversit y conservat ion and rural livelihood

• It is crucial t o obt ain views f rom l ocal people on REDD • Mainst reaming REDD int o Regional Planning is very

import ant

• Financial and economical benef it s

• What is t he minimal size of f orest land t o implement REDD?

• How is t he relevance of oil palm wit h REDD?

• It is not agreed if landscape st rat egy of oil palm is implement ed f or REDD in Riau. One f act or of def orest at ion in Riau caused by conversion f orest land t o oil palm.

• What t ype of product ion f orest is used as REDD implement at ion?

• There is a risk t hat REDD will limit access f or indigenous people t o t he f orest .

3c. Trade-of f s Analysis • It is import ant t o assess how local people will get opt imum benef it f rom REDD scheme.

3

3d. Risk assessment of your REDD st rat egy

• Roles of local people in relat ion wit h roles of t he donor part ies (invest or)

4 REDD impl ement at ion f ramework • If displ acement happened in one locat ion, is it reducing incent ive in t he ot her l ocat ion ?

• Is oil pal m concessionaries who does not convert f orest land t o oil palm in order t o implement REDD will receive incent ive f rom REDD mechanism?

• Who are proponent s of REDD?

• How t o ensure t hat money l eakage in REDD incent ive dist ribut ion will not happen?

• REDD incent ive can be given t o communit y f or “ swakarsa prot ect ing” f or keeping and monit oring of conservat ion f orest .

No Component / Sub-Component Point Raised

• What t ype of incent ive f rom REDD mechanism?

• Who will f acilit at es REDD proposal by local communit y/ masyarakat adat ?

• How about regul at ion of income syst em t hat will be received by communit y, indust ry and ot her inst it ut ions? • Government should carry out survey carbon st ocks in t he nat ural f orest area, plant at ion f orest and oil palm. • Is non f orest area can be included in REDD mechanism? • How t o measure and analysis incent ive f or carbon value

in f orest area f or REDD mechanism?

• What is t he dif f erence bet ween assessment of carbon value as environment al service and carbon value as product f rom HTI?

• Clear mechanism f or REDD mechanism in product ion f orest as environment al service is needed.

• REDD scheme should be part of RAN-MAP t o st rent hen coordinat ion among rel at ed isnt it ut ion.

• Our posit ion should be clear, do we f ocus on carbon t rade f rom REDD, or REDD be used f or support SFM? • Pengelolaan Hut an Bersama Masyarakat (PHBM) and

Agrof orest ry is t he best model f or Forest management in REDD implement at ion

• Most of part iciapant s agree t hat REDD could pot ent iall y support t he ef f ort t o reduce def orest at ion and f orest degradat ion in order t o t o support SFM

5 Assess t he social and environment al impact s of

candidat e REDD st rat egy Act ivit ies

• The posit ive impact s f or l ocal peopl e are condit ionalit y f or successf ul REDD

• The impact s need t o be happened short l y af t er t he implement at ion f or communit y init iat ive

• Devel opment of plant at ion f orest and rest ruct uring f orest ry indust ry f or business init iat ive

• Impl ement at ion of sust ainable f orest management principl es wit h consist ent .

• Role of Rubber pl ant at ion, plant ed on t he unproduct ive land should al so gained compenast ion f rom carbon proj ect

• Hol ist ic and int egrat ed st udies should be conduct ed in Sout h Sumat era province t o provide signif icant impact s f or st akeholder

6 Assess invest ment and capacit y

building requirement s

•

Sharing capacit y f rom nat ional t o regional level should _{be generat ed.}

•

Capacit y building at regional level should be priorit ized

•

Capacit y t o def ine and measure REL; capacit y t o

conduct MRV; avail abil it y of inf ormat ion

•

Not only concern in emission, but also in land f ert ilit y , sust ainabil it y, land opt imizat ion and f ood securit y.

•

How t o get incent ive f rom degraded f orest ? How t o get

incent ive f rom exist ing f orest t hat has good condit ion? Masyarakat adat Bul uh Cina, Kab. Siak has kept f orest in 1000 ha during 20 years and also had SK Gubernur f or recognit ion t o t he l and.

No Component / Sub-Component Point Raised

•

How t he local communit y can involve in REDD mechanism?

•

MRPP-GTZ f unded proj ect in Merang Dist rict will f acilit at e Sumat era Provinces t o be ready f or REDD implement at ion

7 Devel op a ref erence scenario of

def orest at ion and degradat ion

•

The Minist ry of Forest ry should support regional l evel t o _{set -up baseline and ot her t echnical mat t er.}

•

Met hods on REL; act or or l egit imat e part y t o set t he REL

•

One of MRP-GTZ act ivit y is t o develop REL wit h Tier 3.

•

Inst it ut ional arrangement on REL need t o be set -up 8 Design and impl ement a

monit oring, report ing and verif icat ion syst em f or REDD : Provide t he capacit y t o monit or f orest sect or carbon emissions and ot her benef it s over t ime, in rel at ion t o t he Ref erence Scenario

Mechanisme on MRV wit h regard t o Nat ional -sub nat ional f low of input should be clearly def ined

2a4. Attach ToR or plan for component 2a as annex. See Annex 2a_f ramework TOR. .

2b. Prepare a REDD Consultation and Outreach Plan

2b1. Consultation and Outreach Plan under this component:

a. Include all maj or components of your R-Plan (e. g. , monitoring, etc. )

Indonesia is current ly working on each component of t he REDDI archit ect ure (see t he Figure 1). The concept of REDDI archit ect ure was developed prior COP-13 and was launched in a parallel event of t he COP-13. It can be seen f rom Figure 3 t hat t he f ive component s of REDDI archit ect ure are consist ent wit h maj or component s required f or t he R-Plan.

b. Who developed the Plan?

Since t he Nat ional REDD Working Group has not been est ablished yet (f inal izat ion), t he RPLAN was prepared by t he Minist ry of Forest ry Climat e Change Working Group, t aking int o account earlier processes on REDDI consult at ions and out reach and ot her ongoing process relevant t o REDDI. The RPLAN plan was consult ed t o ot her st akeholders f or f urt her improvement (see Table 2) .

c. What methods would be used (e. g. , workshops, survey, trainings, etc. )? What will be the format of the consultations, and what topics will they cover?

For t he operat ionalizat ion of each component in t he f ut ure in an int egrat ed manner, a regulat ion or REDDI guidel ine has been released on 1 May 2009 (PERMENHUT No. P. 30/ Menhut -II/ 2009). Technical guidance f or t he f ive Annexes of t he Regul at ion No. P. 30 will be prepared by REDDI Commission (Nat ional REDD-WG). Nat ional REDDI Working Group will f acilit at e t he implement at ion of REDDI guidel ine. Table 3 describes main act ivit ies t o be done in each

component , responsible inst it ut ion/ s, consult at ion and out reach act ivit ies, and st akeholders involved during t he readiness phase.

Table 3. St akeholders communicat ion f or each component of REDDI f ramework

REDDI Component and Activit ies

Responsible Institution/ s

Consult ation and

Outreach Act ivities*** Stakeholders

Ref erence Emission Level (REL) : see component 7

• Minist ry of Forest ry * • Nat ional

Aeronaut ical and Space Agency (LAPAN) • Bakosurt anal

• Awareness raising • Training, and shared

l earning

• Workshops/ meet ings/ p olicy dialogue f or input gat hering , def ining REL • Expert gat hering f or

exchanges of knowledges and experiences • Web-based

communicat ions

• Minist ry of Environment • Minist ries relat ed t o land

use sect or • Local government • Nat ional Council on

Cl imat e Change (DNPI)** • Privat e sect or

• Scient if ic inst it ut ions • Civil societ ies (incl uding

NGOs, indigenous people and local communit ies) • Int ernat ional part ners

(bilat eral and mult ilat eral cooperat ion, int ernat ional organizat ions working in Indonesia)

REDDI st rat egy : •Elaborat e

f urt her REDDI st rat egy developed in IFCA st udies 2007 Î •adj ust ed wherever necessary, t o suit t he REDDI approach ‘nat i onal account i ng wi t h sub-nat i onal i mpl ement at i on

see component 3

• Minist ry of Forest ry • Minist ry of

Nat ional Devel opment Planning/ BAPPEN AS,

• Minist ries relat ed t o land use sect or • Local

government

• Awareness raising • Training, and shared

l earning

• Workshops/ meet ings f or input gat hering t o ident if y t he most suit able REDDI st rat egies at t he nat ional and sub-nat ional level s, t aking int o account diversit y of sub-nat ional circumst ances and t he nat ional development priorit y.

• Web-based communicat ions

• Minist ry of Environment • Minist ries relat ed t o land

use sect or • Nat ional Council on

Cl imat e Change (DNPI)** • Privat e sect or

• Scient if ic inst it ut ions • Civil societ ies (incl uding

NGOs, indigenous people and local communit ies) • Int ernat ional part ners

(bilat eral and mult ilat eral cooperat ion, int ernat ional organizat ions working in Indonesia)

Monit oring : see component 8

• Minist ry of Forest ry * • Nat ional

Aeronaut ical and Space Agency (Id. LAPAN) • Bakosurt anal • Minist ries

rel at ed t o land use sect or • Local

government

• Awareness raising • Training, and shared

l earning

• Workshops/ meet ings f or input gat hering f or component 8

• Expert gat hering f or exchanges of knowledges and experiences • Web-based

communicat ions

• Minist ry of Environment • Minist ries relat ed t o land

use sect or • Local government • Minist ry of Environment • Minist ries relat ed t o land

use sect or • Local government • Nat ional Council on

Cl imat e Change (DNPI)** • Privat e sect or

• Scient if ic inst it ut ions • Civil societ ies (incl uding

NGOs, indigenous people and local communit ies) • Int ernat ional part ners

c. In t he event t hat t he init iat or cooperat es wit h part ners and all or part of t he f unding comes f rom t he part ners, init iat ors must at t ach cooperat ion document . (2) The Minist er assigns Working Group on Climat e Change in t he Depart ment of

Forest ry t o conduct assessment on t he f easibilit y on t he demonst rat ion act ivit y applicat ion as ref erred t o in paragraph (1).

(3) Feasibil it y crit eria and indicat ors on demonst rat ion act ivit y implement at ion will f urt her be regulat ed wit h Minist erial Regulat ion.

(4) Based on t he assessment of t he Working Group on Climat e Change Cont rol in t he Depart ment of Forest ry, t he Minist er can approve, approve wit h condit ion or rej ect t he applicat ion of t he init iat or.

(5) The concept of approval or rej ect ion of t he Minist er as ref erred t o in paragraph (4) is prepared by t he Head of Working Gr oup on Climat e Change Cont rol in

Depart ment of Forest ry.

(6) Minist erial approval as st ipul at ed in paragraph (5) must list :

a. Det erminat ion of area and ext ent of demonst rat ion act ivit ies wit h a map showing t he borders of act ivit y locat ion.

b. The period should be no longer t han 5 years.

c. St ipulat ions relat ed t o t he risks and allocat ion dist ribut ion of revenue. CHAPTER V

CONCLUDING STIPULATIONS Art icle 6

This regulat ion is in f orce on t he dat e of t he enact ment

To have everybody knows, t his Minist erial Regulat ion is promulgat ed wit h it s placement in t he St at e Gazet t e of t he Republic of Indonesia

Promulgat ed in Jakart a

On December 11, 2008

MINISTER OF FORESTRY

H. M. S. K A B A N

Promul gat ed in Jakart a, On December 2008

Annex 2b. Supporting document for Component 2 DECREE OF MI NI STER OF FORESTRY NUMBER: SK. 13/ Menhut-I I / 2009

ON

WORKI NG GROUP ON CLI MATE CHANGE I N THE MI NI STRY OF FORESTRY THE MI NI STER OF FORESTRY

Considering : a. that as a response of the result of 13th Conference of Parties to The United Nations Framework Conventions on Climate Change on December 2007 in Bali, policies to save the rainforests need to be developed by promoting forestry sector climate change control;

b. That to improve the coordination in formulating,

implementing, evaluating and revising the policies of forestry sector climate change control, a Climate Change Working Group needs to be established within the Ministry of Forestry by the issuance of Decree of Minister of Forestry

Bearing in Mind : 1. Law Number 6 of 1994 on The Ratification of United Nations Framework Convention on Climate Change (State Gazette of the Republic of I ndonesia of 1994 Number 42, State Gazette Supplemental of the Republic of I ndonesia Number 3557), 2. Law Number 23 of 1996 on Environmental Management (State

Gazette of the Republic of I ndonesia of 1997 Number 68, State Gazette Supplemental of the Republic of I ndonesia Number 3699)

3. Law number 17 of 2004 on the Ratification of Kyoto Protocol to the United Nations Framework Convention on Climate Change (State Gazette of the Republic of I ndonesia of 2004 Number 72, State Gazette Supplemental of the Republic of I ndonesia Number 4403)

4. Law Number 41 of 1999 on Forestry (State Gazette of the Republic of I ndonesia of 1999 Number 167, State Gazette Supplemental of the Republic of I ndonesia Number 3888

5. Law Number 41 of 1999 on Forestry (State Gazette of the Republic of I ndonesia of 1999 Number 167, State Gazette

of 2004 on the Determination on Government Regulation I n Lieu of Law No. 1 of 2004 on Amendment on Law No. 41 of 199 on Forestry to be Law (State Gazette of the Republic of I ndonesia of 2004 Number 86, State Gazette of the Republic of I ndonesia Number 4412)

6. Law Number 5 of 1990 on Conservation of Biological Resources and Their Ecosystem (State Gazette of the Republic of I ndonesia of 1990 Number 94, State Gazette Supplemental of the Republic of I ndonesia Number 3419);

7. Government Regulation Number 44 of 2004 on Forestry Planning (State Gazette of the Republic of I ndonesia of 2004 Number 146, State Gazette of the Republic of I ndonesia Number 4452);

8. Government Regulation Number 6 Of 2007 on Forest Administration and The Formulation of Forest Management and Forest Utilization Plan (State Gazette of the Republic of I ndonesia of 2007 Number 22, State Gazette Supplemental of the Republic of I ndonesia Number 4696) as amended by Government Regulation Number 3 of 2008 (State Gazette of the Republic of I ndonesia of 2008 Number 16, State Gazette Supplemental of the Republic of I ndonesia Number 4814); 9. Government Regulation Number 38 of 2007 on the Division of

Governmental Affairs Between the Government, Provincial Government and Regency/ Municipal Government (State Gazette of the Republic of I ndonesia of 2007 Number 82, State Gazette of the Republic of I ndonesia Number 4737);

10. Presidential Regulation Number 46 of 2008 on the National Council on Climate Change;

11. Regulation of the Minister of Forestry Number P.13/ Menhut-I Menhut-I / 2004 on the Organization and Work Procedure of the Ministry of Forestry, as several times improved, last by Number P.64/ Menhut-I I / 2008

HAS DECI DED

To enact :

FI RST : To form a Working Group on Climate Change in the Ministry of Forestry

SECOND : The duties of the Working Group on Climate Change in the Ministry of Forestry are as follows:

a. To provide inputs to the Minister of Forestry on the policies, strategies, programs and activities on climate change control in Ministry of Forestry;

b. To assist the Minister of Forestry in conducting the duties of controlling climate change consisting of adaptation,

mitigation and transfer of technology activities in the Ministry of Forestry

c. To assist the Minister of Forestry in evaluating policies on climate change control consisting of adaptation, mitigation and transfer of technology activities in the Ministry of Forestry

d. To manage data and information on climate change control consisting of adaptation, mitigation and transfer of

technology activities in the Ministry of Forestry

e. Facilitate stakeholders’ initiatives in mitigation , covering Clean Development Mechanism and Reducing Emissions from Deforestation and Forest Degradation.

THI RD : The organization of Working Group of Climate Change in the Ministry of Forestry is as follows:

Directors : 1. Secretary General of the Ministry of Forestry

2. Director General of Forestry Planning 3. Director General of Forest Protection and

Natural Conservation

4. Director General of Land Rehabilitation and Social Forestry

5. Director General of Forest Product Development

6. Director General of Forestry Research and Development Agency

7. I nspector General

Chair : Senior Adviser of the Minister on Partnership Secretary 1 : Secretary of Forestry Research and

Development Agency

Secretary 2 : Director of Forest Area Planning, Directorat General of Planology

Members : 1. Secretary to Directorate of Forestry Spatial Planning

2. Secretary to Directorate General of Forest Protection and Natural Conservation 3. Secretary to Directorate General of Land

Rehabilitation and Social Forestry

4. Secretary to Directorate General of Forest Product Development

6. Head of Financial Bureau

7. Director for Natural Forest Development 8. Director for Plantation Forest Development 9. Director for Environmental Services

Utilization and Natural Tourism

10. Director for Riverbed Area Management 11. Director for I nventory and Monitoring

of Forest Resources

12. Director of I nternational Cooperation Centre FOURTH : To support the ease in implementing the duties of Working Group

on Climate Change in the Ministry of Forestry formed by the Secretariat and Sub Working Group of Working Group on Climate Change in Ministry of Forestry

FI FTH : The duties, membership formation, work organization,

appointment and termination of Working Group sub members as referred to in part Four is determined by the Chief of Working Group on Climate Change in Ministry of Forestry

SI XTH : The Chair of the Working Group on Climate Change in the Ministry of Forestry shall report their work result once every 3 (three) months to the Minister of Forestry through the Secretary General

SEVENTH : Before Echelon I and Echelon I I in Directorate General of Forestry Planning are appointed, membership in the Working Group on Climate Change in Ministry of Forestry is assigned to Echelon I and Echelon I I who have similar duties and functions with ones in the new organization.

EI GHT : All funding necessary for the implementation of the duties of Working Group on Climate Change in the Ministry of Forestry is borne by the Budget of the Department of Forestry

NI NTH : Ministerial Decree No. 445/ Menhut-I I / 2008 on the Working Group on Climate Change in the Ministry of Forestry is cancelled. TENTH : This Regulation shall come into effect on the date of its

enactment

Enacted in: Jakarta

On January 12, 2009

Minister of Forestry Copy according to the original

Head of Legal and Organization Bureau Suparno SH

NI P: 080068472