Next USAID Indonesia Forestry Program July 7, 2014

1. Next USAID Indonesia Forestry ProgramJuly 7, 2014

2. Presentation Outline • USAID Program Cycles • USAID Indonesia Country Development Cooperation Strategies (CDCS) • Current USAID Indonesia Forestry Portfolios • Sector Assessment • What is new • Sector Approaches • Illustrative Activities • Time Line

3. USAID Program Cycle: Overview

4. USAID Indonesia: Country Development Cooperation Strategies (CDCS)

5. USAID Indonesia: Country Development Cooperation Strategies (CDCS)

6. USAID Forestry Program under Assistance Agreement with MenkoKesra

7. Sector Assessment: FOREST Mechanisms Findings • FOREST was developed through GOI consultations • FOREST mechanism performance variable, but improving • Significant need and opportunity exists to improve coordination among FOREST mechanisms for results • Programming gaps not being filled by current mechanisms, especially national level policy and support • Landscape approach addresses many GOI priorities • Challenging to link GOI national priorities to district-level • IFACS stretched across a large area with many landscapes (8) resulting in minimal impact

8. Land acquisition projection for Palm Oil • Indonesia highest deforestation rate in the world ; • The deforestation drivers: agriculture extension (Palm oil) • Palm oil area projected increase double in 2020 • The forestry sector contribution to GDP declined successively from 1.5% in 2001 to become 0.78% in 2012; About 60 Million Ha of State forest unmanaged • Indonesia forest fire and haze risk remain high. The fire alert 3 times compared last decade • Illegal mining uncontrolled: encroaches protecting area Current Challenges in the Forest Sector

9. Forestry Program Focus Area • Low land forest, high biodiversity resource, Orang Utan Habitat, Carbon pools • Strengthening USAID investment in IFACS landscapes • Potential opportunity to expand outside of these landscapes with private sector partnerships

10. Objective: Reduce land based greenhouse gas (GHG) emissions and conserve valuable biodiversity in carbon rich and biologically significant forest and ecosystems in partnership with private sector, communities, and the Government of Indonesia. Approaches Build on past USAID successes in spatial planning, local capacity building, forest governance, building multistakeholder processes. Continued landscape focus with increased coordination at Provincial and National levels. Increased emphasis on biodiversity through Conservation Areas. More emphasis on national policy engagement especially with Ministry of Forestry, Ministry of Agriculture, BIG, REDD Agency etc Private sector engagement Increased emphasis on communities Forestry Program Objectives and Overarching Approaches

11. Program Focus • Forest and Land Use Governance, Policy and Advocacy • Partnering with the Private Sector • Community Conservation, Participation and Livelihood • Protecting Key Species

12. 1. Forest and Land Use Governance, Policy and Advocacy • Strengthening District spatial planning, monitoring, enforcement, and other basic forest governance; • Improving District level Carbon Finance Readiness and alignment with provincial RAD-GRK and National MRV systems; • Support to sustainable palm oil policies, governance, monitoring and enforcement • Support to wildlife policies, governance, monitoring and enforcement • Building national and local coalitions for conservation

13. 2. Private Sector Partnerships • Develop new partnerships directly with private sector actors committed to sustainable forest uses and enterprises; • Support private sector-led commitments towards zero deforestation and  conservation of HCV; • Develop and pilot sustainable business models: forest production and palm oil; • Improve enabling environment for sustainable business practices.

14. 3. Community Conservation, Participation and Livelihoods • Activities: • Explore, enhance and apply models for community based and co-management conservation and management of forests; • Improve key stakeholders’ awareness and appreciation for forest and species conservation; • Develop citizen-based mechanisms for public input and monitoring of government decisions; • Establish co-management arrangements between communities, private sector and appropriate government entities; • TAs to communities to improve sustainable natural resources management practices • Strengthening sustainability of community livelihood program • Leverage village development and conservation program

15. 4. Protecting Key Species • Enhance conservation area (CA) performance, management and sustainable financing; • Capacity building program for CAs management-Sister Park Program through relationship with Department of Interior; • Using technology to monitor and enforce wildlife encroachment and poaching; • Improve opportunities for collaborative management strategies; • advocate, manage, and report on threats to CAs and other areas of high biodiversity; • Improve national incentives and policies for improving management of conservation areas and the species they harbor; • Reduce wildlife poaching and trafficking.

16. Planned USAID funded Forestry Projects • Follow-on to IFACS launched in first quarter of 2015 • National Policy and Advocacy Program • Public and Private Partnership (PPP) Program (Multiple) • Continued engagement with Department of Interior and US Forest Service. • Other

17. Time Line • Consultations • With Government: November 28, 2013; May 7, 2014 • With Partners: July 7, 2014 • With International Development Agency: Beginning of August, 2014 • Current FOREST Program ends first/second quarter of 2015 • New Forestry Program starts first/second quarter of 2015.

18. nidris@usaid.gov • hdagnes@usaid.gov • amicko@usaid.gov • estreed@usaid.gov