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REDD and Governance Challenges in Indonesia

REDD and Governance Challenges in Indonesia. Iman Santoso Center for Socio-economic and Policy Forest Research and Development. Indonesia’s Commitment.

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REDD and Governance Challenges in Indonesia

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  1. REDD and Governance Challenges in Indonesia Iman Santoso Center for Socio-economic and Policy Forest Research and Development

  2. Indonesia’s Commitment • September 2007: the President of Indonesia initiated a declaration of the world’s major tropical rainforest nations which undertakes to slow, stop and reverse forest loss • IFCA: a group of national/international experts on forest management, carbon and governance funded by the World Bank, the British, Australian & German Governments.

  3. Key elements examined by the IFCA A baseline • Strategies to reduce emissions & to ensure their permanence; • Means of monitoring & verifying emissions reductions, and preventing leakage; • REDD markets/financing; • Mechanisms to manage and distribute payments All element need better governance

  4. Governance Challenges Minimize deforestation and degradation • Spatial plan : implementation and leakages • Poverty, illegal activities & Law enforcement • FEWS and the role of forest: rational forest land allocation vs. optimal forest land uses • Infrastructures Get better Price & Market of Carbon • Opportunity cost : could it be compensated ? • Related costs : transaction costs • Price, Equality and Fair Benefits

  5. Spatial Plan • Act 1992 development oriented 2007 • Act 2008 gives first emphasis to environment safety • Macro plan at provincial and district level • Indicative land allocation (incl. forest areas) • Misperception: Review vs. Revision : state capture

  6. Spatial Plan • Planned and governed forest conversion (around 70% of oil palm plantations have replaced forest and resulted in above ground emission. • Unplanned and illegal conversion

  7. Poverty, Illegal Activities & Law Enforcement No sufficient job opportunity: subsistence agriculture Different perception on legality of timber Insecure Forest Land Tenure : conflict over land uses Administrative corruption Ineffective law enforcement

  8. Food, Energy and Water Scarcity • Forest areas covering 59% of total land • Some are indicated as suitable for food production and protect soil and water system • Micro and detailed soil assessment is needed • Forest management units have not been established

  9. Others • Technical capacity • Data availability • Independent assessor

  10. Compensate opportunity cost ? • The existing land uses are seen to be promising (Oil palm, pulp & paper ….. ) • High transaction and implementation costs of REDD • Time lag before payments are made • Long term perspectives

  11. Thank you Ministry of Forestry

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