East Kalimantan Indonesia

Current REDD+ Program Progress

Greenhouse Gas Emissions Reduction Strategy
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To address the need to develop environmentally-friendly economy, the provincial government of East Kalimantan has developed three main approaches, in cooperation with Kaltim Hijau1, the National Council on Climate Change (DNPI), the Nature Conservancy (TNC), WWF, and Mulawarman University.

The ongoing second phase, i.e. the “Implementation of Basic Preparedness”, has started since mid-August and will be completed in February 2011. The phase focuses on supporting REDD+ preparedness in East Kalimantan with the main targets being enhancing spatial planning skill and capacity, developing pilot projects in various industrial sectors (e.g. oil palm and forestry) in various districts, and designing the Regional Council on Climate Change (DDPI) structure.

The approach used (Figure 2) focuses on CO₂ emission reduction, improved economic growth, adaptation to climate change risks and institutional requirements necessary for the implementation of the related initiatives. As part of this strategy, East Kalimantan has identified emission reduction opportunities through combination of mitigation activities and investment in high value-added but low carbon economic activities.

The strategy has identified that the 2005 CO₂ emission in East Kalimantan stood at 255 MtCO₂e, primarily caused by deforestation, land use, land-use change, and forestry – LULUCF, and the decomposition of peatland.

In addition, five main industrial sectors (agriculture, oil palm, forestry, coal and oil-gas) have been identified as the primary focus to improve economic growth as well as reducing emission.

The five sectors accounted for 75 percent of the province’s total GDP, 89 percent of the total emission and 41 percent of formal employment.

With regard to REDD+, the forestry sector also received considerable attention. Although only accounting for 5 percent of the GDP and 6 percent of formal employment, the sector was one of the highest emitters, accounting for 18 percent of the provincial total emission in 2005 (Table 1). However, many communities, in particular the indigenous Dayak, rely on forest products for construction purposes, food and medicine.

The potential emission reduction that has been identified among the five priority industrial sectors in 14 districts/cities across the province is estimated to be 184 Mt CO₂e, representing 90 percent of the province’s estimated emission reduction potential.

Emission reduction can be achieved either at a moderate cost, i.e. less than USD5 per t CO₂e on average, or at a high cost, e.g. through re-purchase of oil palm concessions. The benefit of the distribution of emission sources as shown in Figure 3 is to help decision makers to be able to quickly identify the main opportunity for emission reduction in the province and in each industrial sector. For example, an opportunity to reduce emission in the forestry sector is to implement reduced impact logging in West Kutai.

The five main initiatives covering 75 percent of the total CO₂e emission potential of the province are: 1) implementation of zero burning (47 Mt CO₂e), 2) reduced impact logging (34 Mt CO₂e), 3) utilization of critical land for plantation expansion (25 Mt CO₂e), 4) reduced decomposition of peatland through rehabilitation and conservation (18 Mt CO₂e) and 5) reforestation and conservation of slightly degraded forestland (12 Mt CO₂e). Although all the initiatives require different approaches, they have something in common: higher efficiency in land use.

REDD-Related Regulations

Given that most of the province’s largest emission comes from conversion of forests and peatland, the most important regulation-related issue is how to settle disputes over land status and land ownership as well as optimizing land allocation through better spatial planning. Collaboration between the national and regional governments hence becomes important given the interjurisdiction nature of land status and spatial plans.

Besides, each collaboration needs to be supported by detailed technical analyses, which accurately assess the current land allocation and the economic-benefit potential of various land uses for different activities.

Graded Spatial Planning

Graded planning has significant impacts on environmentally-friendly sustainable development, and improving planning at all levels requires combination of both carbon and CO₂ emission as a direct reference.

Propeda (Regional Development Program) is a long-term strategic plan which describes infrastructure plan, investment in major economic developments, and long-term goals.

RTRWP (Provincial Spatial Plan) is a national spatial planning system which maps vast areas into forest classes (production forests, protected forests and non-forest areas), and which determines which land can be utilized.

Granting permits and licenses is the domain of district, provincial and national governmental agencies, which make important decisions on whether or where to locate in spatial plans concessions that may have significant impacts on emission.

Land use plan in licensed areas is determined by the owner and manager of the said areas as well as the stakeholders, who all make important decisions on land use that may impact carbon emission, social climate and biodiversity.

REDD+ Related Regulations
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Spatial Planning
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The current revision of East Kalimantan Spatial Plan uses the bottom-up approach and is focused on adjustment to regulatory requirements rather than on low carbon development and land use.

The proposed revision of East Kalimantan Spatial Plan is derived from the suggestions from 14 districts/cities across the province and is currently being assessed by an integrated team comprising national and provincial spatial experts. The districts/cities share a common desire to have an additional 1,380,000 ha of Non-Forestry Cultivation Areas (KBNK), making the total 6,700,000 ha for the 2010-2030 period. Currently, the team accommodates the desire by allocating 440,000 hectares of convertible production forest (HPK).

Referring to the proposed revision of the 2010-2030 East Kalimantan Spatial Plan, more than 2.5 million hectares of natural forests will be facing a threat of deforestation (Figure 8) and are estimated to emit 100 Mt CO₂e annually within a 20-year period (based on the carbon content of 210 ton per ha). As the province seeks to reduce the deforestation rate, it is necessary to revise the spatial planning approach in order to integrate low carbon elements.

Stakeholder Engagement
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The provincial government of East Kalimantan is committed to setting up a partnership with

WWF and two neighboring countries, Malaysia and Brunei Darussalam, in the framework of the Heart of Borneo (HoB) initiative. The initiative is a regional partnership in order to share equal responsibilities and roles among the three partnering countries to protect and sustainably develop the remaining forests in Kalimantan Island. The HoB initiative is focused on community involvement in REDD+.

Today, a remarkable feat has been accomplished in districts committed to the HoB. In West Kutai, people’s forests have been developed as a response to reducing illegal logging by local people and to settling disputes over land ownership. Kayan Mentarang National Park, which is located between Malinau and Nunukan districts, is the first national park in Indonesia to be managed in collaboration with the local people. This 1.4-million-hectare protected forest is also one of South East Asia’s pristine tropical forests, which demonstrates a sustainable natural resource management, supports beneficial development for the local people, as well as supporting ecotourism.

Berau District, on the other hand, is the center of the Berau Forest Carbon Program – BFCP) under the management of the Nature Conservancy (TNC) and the district government. TNC has a long history in facilitating effective collaborative management between communities and logging concessions, and between communities and governments in protected areas across Indonesia.

In the concession of PT Sumalindo in Berau, for example, the collaborative management approach has been successful in curbing illegal logging, reducing conflicts over access to land and rivers, and producing a benefit-sharing system to fund students’ scholarships and village health facilities.

Another NGO, the World Education, has been working for six years with the Punan Dayak tribe and other communities in the vicinity of Kelay in Berau District in projects focusing on Community-Based Natural Resources Management (CBNRM) and community development.

The provincial government of East Kalimantan is committed to strengthening people’s land management right in the future through continuous support for the district-level programs mentioned above, and through conversion of some of the production forests into people’s forests (HTR).

REDD Programs & Safeguards

REDD+ Programs

REDD strategy concept

GCF Member has a REDD Program now? 

Yes

GCF Member has been planning a REDD Program? 

Yes. The development of the Provincial REDD program is an ongoing and continuous process, requiring continual interaction with the Central Government and developing national and international policies while developing and adapting new and existing regional policies.

REDD strategies conceived or in process of conception to reverse deforestation and degradation

East Kalimantan has three core elements to its strategy for implementation of REDD which is integrated as a sub-set of its low carbon development strategy. These are:

1. Low Carbon Development Strategy

a. Identify the major emission sources in the provinces and industrial sectors

b. Identify the main emission reduction opportunities and actions that support sustainable livelihoods

d. Identify critical supporting elements

e. Analyze the costs of carbon reduction and alternative sustainable livelihoods

2. Implementation of General Readiness

a. Designing Unit Organization for Governor’s Green Delivery Unit

b. Identify Key Performance Indicators (KPIs) and reporting mechanisms for the implementation unit

c. Develop a detailed implementation plan and key performance indicators for each Regency

d. Identify sources of financing and proposals

e. Develop critical supporting elements

f. Basic MRV System, including baseline province

 - Integrated spatial plan

 - Financial distribution mechanism

 - Mechanism of community involvement

3. Pilot Project(s) for Low Carbon Development

a. Implementation of pilot projects once the implementation of general readiness is complete and funding sources have been secured.

b. Continue to build critical supporting elements (e.g. spatial planning, MRV, etc.).

The Agrarian Law of 1960 - Indonesian forestry jurisdiction and natural resource management. Guiding regulation for recognizing and awarding types of rights over land. - Functional

The Forestry Law of 1999 - Empowers the Department of Forestry to determine and manage Indonesia’s Kawasan Hutan (Forest Zone). Outlines forest function. - Functional

Permenhut No. 68/2008 - Describes the permission and approval procedures of REDD’s demonstration activities - Functional

Permenhut No. 30/2009 - Regulates procedures on the implementation of REDD including requirements that should be fulfilled by developers, verification and certifications, and terms and conditions of REDD’s implementing bodies - Functional

Permenhut No 36/2009 - Regulates the permission procedures of REDD projects through carbon sequestration and storage. It includes revenues sharing, application, collection, depositing, and utilisation procedures of revenues from REDD projects - Semi-functional / under review

Institutional Framework

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REDD+ Safeguards

Target population and rights recognition

Social groups reached by the REDD Program and number of people directly benefited

The social groups targeted for outreach by the REDD Program are a) indigenous peoples who have traditional ownership rights to land / forest areas impacted by the REDD Program and 2) social groups (who may or may not be indigenous peoples) who directly impact the land / forest areas through their daily activities (both legal and illegal, i.e. collecting firewood, logging, conversion to agriculture, grazing). Other social groups include those who rely on the supply of forest products to support their own industry (i.e. small-scale logging mills / manufacturers, agricultural industry, supply of meat). In this way the REDD Program is aimed at benefiting those social groups who directly impact the forest and those groups who act as part of the ‘supply-chain’ of forest products. The number of people directly benefiting is not able to be quantified at this time because the program itself is still under development / implementation phase characterized by pilot projects identified in point 13.   

Procedures taken by proponent and evidence that REDD Program acknowledges the rights and role of indigenous peoples and local communities

‘East Kalimantan Green’ vision, which was declared at the East Kalimantan Summit in 2010, has adopted a central tenet of improving the quality of life of East Kalimantan communities and indigenous peoples, including multi-stakeholder participation and acknowledgement of the rights and role of indigenous peoples and local communities. The East Kalimantan government is committed to strengthening the rights to and management of community and indigenous land through its various programs especially at a Regency level and also through the proposed conversion of large areas of production forest to community forest status. 

Needs identified for rights recognition improvement

There is a need for analysis of current legal frameworks (national and regional) to address rights recognition (incorporating land and carbon ownerships rights) in particular as it relates to local and indigenous communities and regional and special autonomy laws.  This framework would need to be harmonized across provincial and central government regulations and ensure that communities and indigenous peoples properly benefit from REDD+ activities. Benefits need to be fair and ‘real’ (i.e. real impact on local community and standard of living) and a transparent mechanism for distribution needs to be achieved. Furthermore, work is needed to find mechanisms and pathways for communities to be more involved in early stage project development, not simply as project beneficiaries. This should go hand in hand with rights recognition of communities over forest areas. Finally, a recognised procedure is needed to be able to acknowledge rights, such as participatory mapping supported by legal mechanisms, e.g. Hutan Desa and other mechanisms (Gubernatorial / Regency Decrees, sub-national legal mechanisms). There are still many challenges to overcome community needs / rights and the central government land classification / designation.  REDD can be used to strengthen community and indigenous rights recognition.

Land/forest tenure administration and relation with REDD

Legal support and protection of forest tenure

As outlined in Benefits Sharing, currently the only way to establish forest tenure which could be used to develop either voluntary or compliance REDD projects (i.e. establish long term carbon rights) is via the Central Government regulated system of land tenure licenses / permits.  

Clear responsibilities, capacity and authority for forest tenure administration

Authorities are devolved from the National Forestry Law and regulated by the system of land tenure licenses / permits outlined previously. In all cases permits granted by the Governor / Regent (Bupati) are subject to approval / recommendation by the Minister. Subsequently, in almost all cases, the final authority for forest tenure comes in the form of a Ministerial Decree (forest utilization license in the case of forest-based activities issued by the Minister of Forestry or land use permits for oil palm issued by the Minister of Agriculture).  

Actions planned or developed by governments to solve issues related to land tenure uncertainties within REDD priority areas - to be defined

Relation of forest tenure solving and REDD objectives/actions

The relation between forest tenure and REDD is central to REDD objectives / actions and importantly (being one of the objectives) equitable benefits sharing (as the process to establish tenure is reflected in the parties receiving benefits under the current mechanism). This point is also reflected in national vs. regional REDD objectives, in the sense that the current focus on meeting national emissions reductions should not be at the expense of meeting regional development. The harmonization of these factors is inherent in the Provincial Spatial Plan, although the impact of the impending (Norway-backed) moratorium will also need to be addressed in terms of REDD objectives / actions and the impact of the moratorium on tenure. 

Recognition of communities and indigenous peoples’ rights

The recognition of communities and indigenous people’s rights is considered a top priority within Provincial REDD development. It is also an extremely complex issue given its relationship to the National Forestry Law and lack of clarity regarding recognition of traditional rights in the Indonesian legal context. It is widely hoped that through development of FPIC mechanisms the recognition of community and indigenous people’s rights will be able to be strengthened.  

Participation of communities and indigenous peoples in forest tenure definition

Forest tenure definition is established by the Forestry Law 41 in 1999 (Forestry Ministry (Central Government)). Under this law, community / indigenous forest is incorporated as a sub-set of State (national) Forest. There are various NGO’s and community groups active in lobbying this definition and asserting stronger participation of communities and indigenous people’s groups in this definition and its impact on REDD (and REDD’s alternatives). 

Definition of legal aspects related to property and rights to forest carbon in REDD project areas.

As outlined in Benefits Sharing, rights to land are administered by the Central Government and are required prior to establishing rights to forest carbon under regulation P.36. Currently, voluntary REDD project developers are using ‘Utilisation of Wood Forest Produce’ (IUPHHK) licenses to establish carbon rights (although none have yet sold verified carbon credits) and it is widely agreed (although not yet established) that legislated community (Hutan Rakyat) and indigenous ownership (Hutan Adat), both by Ministerial Decree, could be used to establish both property and carbon rights for communities under a voluntary scheme. 

Conflict resolution measures in place - to be defined

Needs identified - to be determined

Transparency and participation mechanisms

What actions have been taken to guarantee free, prior and informed consent? - to be defined

Briefly describes mechanisms for consultation and continuous participation addressed

One of the tasks for the East Kalimantan REDD Task Force is to coordinate a multi-stakeholder process. The Task Force is currently working with bodies and organizations such as: TNC, Sekala, Bappeda, University of Mulawarman, WWF, GTZ, Forclime, and the Department of Forestry to ensure appropriate levels of consultation and participation. However, the Task Force recognizes that the capacity to improve multi-stakeholder consultation and participation should be improved, and is working on innovative and effective ways to involve as many organizations and stakeholders as possible in order to achieve a wide range of contributions.    The Regional Forestry Council, which oversees provincial government forestry policy, is also active in multi-stakeholder participation ranging from government agencies, NGO’s, academia, and importantly, community and indigenous peoples groups and representatives. The Regional Forestry Council declared ‘East Kalimantan Green’ vision at the East Kalimantan Summit in 2010, central to which is improving the quality of life of East Kalimantan communities. 

Information on transparency of REDD program - to be defined

Needs identified for improvement in participation and transparency - to be determined

Benefit sharing mechanisms

Describe the broad picture of how REDD program addresses social and economic well-being of forest dependent communities 

Currently, the REDD program is seeking to find the best ways through which to address the social and economic well-being of forest dependent communities. FPIC is a key part of this, but so too is certainty on national policy and international carbon markets. Without certainty on carbon markets (and supporting national regulations) it will not be possible to say that REDD can address the economic well being of forest dependent communities as it will not be possible to value the communities principle ‘asset’ (carbon). Naturally, social and economic wellbeing are interlinked, with pathways to support social wellbeing needing to be supported by economic drivers / mechanisms. 

Description of the PES or benefit sharing mechanisms currently in place or planned (concrete elements)

Currently, the only legislated benefit sharing mechanism in Indonesia is as outlined in Forestry Ministry Decree P.36/Menhut-II/2009 (Central Government) which stipulates the procedures for granting business licenses for the utilization of absorption and/or storage of carbon in production forest and protected forests. This license must be held in order to establish carbon rights and cannot be held as an independent license – it must be held in addition to a separate license (outlined in the below table as permits) through which the license-holder establishes an underlying right to the land itself. The first 4 license types are ‘Utilisation of Wood Forest Produce’ (IUPHHK) licenses including natural forest logging (HA), plantation forests (HT), ecosystem restoration (RE – note: this can also be used for PES), and community plantation forest (HTR). Points 5-8 refer to legislated community and indigenous ownership (note this ownership is not inherent / automatic – community / indigenous groups would need to attain Ministerial Decree in order to establish a legal right to the land which could be used to ascertain carbon rights under P.36 (with the possible exception of Papua and Aceh, although this is ongoing). 

Note that P.36 is currently under review pending additional input from the Ministry for Finance. No distributions have as yet been made under this scheme. 

Describe evidences for participation of stakeholders in the development of the mechanisms

P.36 was widely hailed as the first benefit sharing mechanism legislated by any national government. However, it is widely considered that the mechanism could have benefitted further from more comprehensive stakeholder participation, both from within Government itself and affected stakeholder groups. As mentioned above, this regulation is currently under review.  

Needs identified

A comparison of different benefit sharing mechanisms being discussed / developed internationally. This would be most effectively done by coordination of the GCF Secretariat with GCF members. Important points would include more detailed analysis of the realities of potential beneficiaries (i.e. ‘on the ground’) and technical mechanisms on the checks and balances on the flow of REDD funds and benefits.

Environmental

Ecosystem Services

East Kalimantan is bestowed with numerous riversheds with the Mahakam being the most famous river. The watersheds create many brackish rivermouths with their distinct flora and fauna ecosystems. The most important and beneficial flora species for the riparian communities is nipa palm, which they use as foodstuff (brown sugar, palm sugar, granulated sugar), firewood and marine ecosystem-supporting trees. Its utilization has yet to be optimized, however. Turning the species into an industrial plant which can generate economic benefits is a big challenge. A quite promising prospect to utilize the species for the local welfare is processing it into alternative sweeteners (brown sugar, palm sugar, palm syrup, and granulated sugar).

Biodiversity

Forest types in Kalimantan include mangrove forests, peat swamp forests and freshwater swamp forests, Sundaland heath forests, lowland Dipterocarpaceae forests, ulin (ironwood) forests, forests in limestone and ultra alkaline soil, hilly Dipterocarpaceae forests and several formation of montane forests. Kalimantan has more than 3,000 trees, including 267 Dipterocapaceae species, more than 2, 000 orchid species, more than 1,000 fern species, and more than 146 rattan species and is the distribution center of Nepenthes.

East Kalimantan contains 133 mammal species, representing 60% of the Kalimantan/Borneo Island’s total (222 species). Of the 222 species, 44 are endemic. All the Kalimantan primate species are found in East Kalimantan, i.e. 11 species from 5 families. Kalimantan also has 479 bird species (including migratory birds) – 37 of which are endemic, 141 frog species (6 families), 9 families of Lacertilia, 7 families of Chelonia and 133 types of terrestrial snakes.

Financing

Audit & Reviews

The GCF Knowledge Database will provide links to relevant audits and reviews of REDD related activities in GCF states and provinces. In addition to making this information available as part of the database, the information generated through relevant audits and reviews will be used to update and improve the quality of the information in the database and to provide feedback to GCF states and provinces as they move forward in developing programs to reduce emissions from land use and deforestation.

[For now, this is the same on each state/province page.]

Registry

Forest types in Kalimantan include mangrove forests, peat swamp forests and freshwater swamp forests, Sundaland heath forests, lowland Dipterocarpaceae forests, ulin (ironwood) forests, forests in limestone and ultra alkaline soil, hilly Dipterocarpaceae forests and several formation of montane forests. Kalimantan has more than 3,000 trees, including 267 Dipterocapaceae species, more than 2, 000 orchid species, more than 1,000 fern species, and more than 146 rattan species and is the distribution center of Nepenthes.

East Kalimantan contains 133 mammal species, representing 60% of the Kalimantan/Borneo Island’s total (222 species). Of the 222 species, 44 are endemic. All the Kalimantan primate species are found in East Kalimantan, i.e. 11 species from 5 families. Kalimantan also has 479 bird species (including migratory birds) – 37 of which are endemic, 141 frog species (6 families), 9 families of Lacertilia, 7 families of Chelonia and 133 types of terrestrial snakes.

Financing

Audit & Reviews

The GCF Knowledge Database will provide links to relevant audits and reviews of REDD related activities in GCF states and provinces. In addition to making this information available as part of the database, the information generated through relevant audits and reviews will be used to update and improve the quality of the information in the database and to provide feedback to GCF states and provinces as they move forward in developing programs to reduce emissions from land use and deforestation.

[For now, this is the same on each state/province page.]

Registry

East Kalimantan is bestowed with numerous riversheds with the Mahakam being the most famous river. The watersheds create many brackish rivermouths with their distinct flora and fauna ecosystems. The most important and beneficial flora species for the riparian communities is nipa palm, which they use as foodstuff (brown sugar, palm sugar, granulated sugar), firewood and marine ecosystem-supporting trees. Its utilization has yet to be optimized, however. Turning the species into an industrial plant which can generate economic benefits is a big challenge. A quite promising prospect to utilize the species for the local welfare is processing it into alternative sweeteners (brown sugar, palm sugar, palm syrup, and granulated sugar).

Sources