&GREEN JURISDICTIONAL ELIGIBILITY CRITERIA ASSESSMENT FOR THE REPUBLIC OF

March 2020

Prepared for:

&GREEN FUND PRINS BERNHARDPLEIN 200, 1097JB AMSTERDAM, NETHERLANDS

PT Hatfield Indonesia Plaza Harmoni Unit B5-B7 Jl. Siliwangi No.46 Bogor 16131 Indonesia

&GREEN JURISDICTIONAL ELIGIBILITY CRITERIA ASSESSMENT FOR THE REPUBLIC OF INDONESIA

Prepared for:

&GREEN FUND PRINS BERNHARDPLEIN 200 1097JB AMSTERDAM NETHERLANDS

Prepared by:

PT HATFIELD INDONESIA PLAZA HARMONI UNITS B5-B7 JL. SILIWANGI NO.46 BOGOR 16131 INDONESIA

MARCH 2020

AGRN10116-BG VERSION 5

TABLE OF CONTENTS

LIST OF TABLES ...... II LIST OF FIGURES ...... II LIST OF APPENDICES ...... II LIST OF ACRONYMS ...... III DISTRIBUTION LIST ...... VII AMENDMENT RECORD ...... VII

1.0 INTRODUCTION ...... 1

HIGH LEVEL OF SUMMARY ...... 1

JURISDICTIONAL SCOPE ...... 4 3.1 BACKGROUND: KEY ECONOMIC DATA AND MAPS ...... 5 3.2 NATIONAL AUTHORITY ...... 10 3.2.1 Planning and Budgeting ...... 10 3.2.2 Environment and Forestry Governance ...... 14 3.2.3 Summary of Jurisdiction Scope Analysis ...... 19

4.0 CHECKLIST JEC 1: SCOPE ...... 21

5.0 CHECKLIST JEC 2: AMBITION AND STRATEGY ...... 24

6.0 CHECKLIST JEC 3: PROGRESS ...... 35

7.0 CHECKLIST JEC 4: MONITORING, REPORTING AND VERIFICATION (MRV) ...... 41

8.0 CHECKLIST JEC 5: SOCIAL AND ENVIRONMENTAL SAFEGUARD ...... 45

&Green JEC Assessment Report i Hatfield Indonesia

LIST OF TABLES

Table 1 Key economic data for Indonesia and in the nine selected provinces...... 9

Table 2 The changes to authority under previous and new laws on local government in the forestry sector...... 11

Table 3 The authority of MOEF, provincial, districts, and municipal governments on licensing in forestry sector...... 12

Table 4 Regulations to promote cooperation between central and provincial government...... 14

Table 5 Deforestation rates from 1990 to 2017...... 17

Table 6 Global Forest Watch tree cover loss from 2010 to 2018 (million ha)...... 17

Table 7 BAU GHG emission levels and 2030 CM1 and CM2 projections...... 18

Table 8 Actual emission rates and reductions in forestry and other sectors from 2010 to 2017...... 19

LIST OF FIGURES

Figure 1 Forest cover (2018) in Indonesia with nine selected provinces indicated...... 6

Figure 2 Extent of deforestation (1990-2018) in Indonesia with nine selected provinces indicated...... 7

Figure 3 Peatland distribution (2018) in Indonesia with nine selected provinces indicated...... 8

Figure 4 Planning and budgeting mechanism and process at the national and provincial levels...... 12

Figure 5 Development plan national and subnational reporting mechanisms...... 13

Figure 6 The National Monitoring, Reporting, Verification (MRV) System...... 16

Figure 7 Comparison of forestry sector GHG emissions to BAU from 2010 to 2017 with emission reduction slope line...... 20

LIST OF APPENDICES

Appendix A1 Province Assessment and Selection Process

Appendix A2 Conservation and Protected Area Details in the Nine JECA Priority Provinces

Appendix A3 Subnational Plan and Strategic Action for GHG Emission Reduction in JECA Priority Provinces

Appendix A4 Regulations on Forests, Ecosystems, Protection and Land Use Management

Appendix A5 Historical Reference Level from Deforestation, Forest Degradation, Peat Decomposition, and Emission Projection in Indonesia

&Green JEC Assessment Report ii Hatfield Indonesia

LIST OF ACRONYMS

AFOLU Agriculture, Forestry and Other Land use AMDAL Analisis Mengenai Dampak Lingkungan (Environmental Impact Analysis) ATR-BPN Agraria dan Tata Ruang Badan Pertanahan Nasional (Ministry of Agrarian, Spatial and National Land Agency) BAPPEDA Badan Perencanaan Daerah (Agency for Regional Development) BAPPEDALDA Badan Pengendalian Dampak Lingkungan Daerah (State Ministry for Environmental) BAPPENAS Badan Perencanaan Pembangunan Nasional (National Development Planning Agency) BAU Business as Usual BLU Badan Layanan Umum (Public Service Agency) BPDLH Badan Pengelola Dana Lingkungan Hidup (Environment Fund Management Agency) BRG Badan Restorasi Gambut (Peatland Restoration Agency) BUR Biennial Update Report CA Cagar Alam (Nature Reserve) CBD Convention on Biological Diversity CITES The Convention on the International Trade of Endangered Species CM1 Counter Measure 1 (Unconditional) CM2 Counter Measure 2 (Conditional)

CO2e Carbon Dioxide Equivalent CSR Corporate Social Responsible DBH-DR Dana Bagi Hasil-Dana Reboisasi (Revenue Sharing from Restoration Fund) DG Directorate General EU European Union FCPF Forest Carbon Partnership Facility FFI Fauna and Flora International FLEGT Forest Law Enforcement Governance and Trade FMU Forest Management Unit FOLU Forestry and Other Land Use FORDA Forest Research and Development Agency FREDDI Funding Mechanism For REDD+ Indonesia FREL Forest Reference Emission Level GHG Gas House Green GOI Government of Indonesia GRK Gas Rumah Kaca (Green House Gas) HCS High Carbon Stock HCV High Carbon Value

&Green JEC Assessment Report iii Hatfield Indonesia

HCVF High Conservation Value Forest HD Hutan Desa (Village Forest) HKM Hutan Kemasyarakatan (Community Based Forest Management) HTHR Hutan Tanaman Hasil Rehabilitasi (Planted Forest from Rehabilitation Program) HTI Hutan Tanaman Industri (Industrial Forest Plantation) HTR Hutan Tanaman Rakyat (Community Forest Plantation) IBSAP Indonesian Biodiversity Strategy and Action Plan ICCTF Indonesia Climate Change Trust Fund ICRAF International Centre for Research in Agroforestry IEU CEPA Indonesia-European Union Comprehensive Economic Partnership Agreement IPCC Intergovernmental Panel on Climate Change IPHHK Izin Pemungutan Hasil Hutan Kayu (Timber Harvest Permits) IPPU Industrial Process Product Use ISPO Indonesia Sustainable Palm Oil IUCN Union for the Conservation of Nature IUPHHK Izin Usaha Pemanfaatan Hasil Hutan Kayu (Timber Utilization Permit) IUPHHK-RE Izin Usaha Pemanfaatan Hasil Hutan Kayu-Restorasi Ekosistem (Timber Utilization from Restoration Ecosystem Forest Permit) IUP RAP Izin Usaha Pemanfaatan Penyerapan dan/atau Penyimpanan Karbon (Carbon Sequestration and Stock Utilization Permit) JEC Jurisdictional Eligibility Criteria JECA Jurisdictional Eligibility Criteria Assessment KEE Kawasan Ekosistem Essensial (The Essential Ecosystem Area) KKI WARSI Komunitas Konservasi Indonesia Warung Informasi Konservasi KLHK Kementerian Lingkungan Hidup dan Kehutanan (Ministry of Environment and Forestry) KLHS Kajian Lingkungan Hidup Strategis (Strategic Environmental Assessment) KPA Kawasan Pelestarian Alam (Nature Conservation Area) KPH Kesatuan Pengelolaan Hutan (Forest Management Unit) KPHK Kesatuan Pengelolaan Hutan Konservasi (Conservation Forest Management Unit) LCD Low Carbon Development LGR Local Government Regulation LOA Logged Over Area LUCF Land use change and forestry LULUCF Land use Land Use Change Forestry MAB Man and Biosphere Program MOEF Ministry of Environmental and Forestry MPTS Multi-Purpose Tree Species MRV Monitoring, Reporting and Verification Mt Million Metric Ton

&Green JEC Assessment Report iv Hatfield Indonesia

NCCC National Council on Climate Change NDC National Determined Contribution NFMS National Forestry Monitoring System NGO Non-Government Organization NGHGEI National Greenhouse Gases Emissions Inventory NOAA National Oceanic and Atmospheric Administration PAA Performance Assessment Areas PCI Principles, Criteria, and Indicator PERDA Peraturan Daerah (Regional Regulation) PERGUB Peraturan Gubenur (Governor Regulation) PESONA Pengembangan Perhutanan Sosial Nusantara (The Archipelago of Social Forestry Development) PHPL Pengelolaan Hutan Produksi Lestari (Sustainable Production Forest Management) PPIKHL Balai Pengendalian Perubahan Iklim Kebakaran Hutan Lahan (Climate Change and Forest Fire Response Unit) PRISAI Prinsip, Kriteria, Indikator, Safeguards Indonesia (Principe Criteria Indicator Safeguard Indonesia) RAN-API Rencana Aksi Nasional – Adaptasi Perubahan Iklim (National Action Plan on Climate Change Adaptation) RAN-GRK Rencana Aksi Nasional – Gas Rumah Kaca (National Action Plan on Green House Gas) REDD+ Reduce Emission from Deforestation and Degradation RKU Rencana Kerja Usaha (Business Work Plan) RMTDP Regional Medium-Term Development Plan RPJMD Rencana Pembangunan Jangka Menengah Daerah (Regional Medium – Term Development Plan) RPJMN Rencana Pembangunan Jangka Menengah Nasional (National Medium – Term Development Plan) SEA Strategic Environment Assessment SIMONTANA Sistem Monitoring Hutan Nasional SIS-REDD+ Safeguards Information System REDD+ S-LK Sertifikat Legalitas Kayu (Certification of Timber Legality) SM Suaka Marga Satwa (Wildlife Sanctuary) SNC The Second National Communication S-PHPL Sertifikat Pengelolaan Hutan Produksi Lestari (Certification of Sustainable Production Forest Management) SRAP Strategi dan Rencana Aksi Propinsi (Provincial Strategy and Action Plan) SVLK Sistem Verifikasi Legalitas Kayu (Timber Legality Verification System) TAHURA Taman Hutan Raya (Grand Forest Park) TN Taman Nasional (National Park)

&Green JEC Assessment Report v Hatfield Indonesia

TWA Taman Wisata Alam (Nature Recreation Park) UKCCU United Kingdom Climate Change Unit UM Unit Management UNFCCC United Nation Framework Convention on Climate Change WACLIMAD Water Management for Climate Change Mitigation and Adaptive Development of Lowlands WPK Wilayah Penilaian Kinerja (Measurement Area of REDD+ Performance) WWF World Wide Fund for Nature VPA Voluntary Partnership Agreement

&Green JEC Assessment Report vi Hatfield Indonesia DISTRIBUTION LIST

The following individuals/firms have received this document:

Name Firm Hardcopies CDs Email FTP

Michael Schlup SAIL Ventures - -  -

Aris Wanjaya IDH Sustainable Trade - -  -

AMENDMENT RECORD

This report has been issued and amended as follows:

Issue Description Date Approved by

1 First draft version 2019-12-12

2 Second draft version 2020-01-29

3 Third draft version 2020-02-25

4 Fourth draft version 2020-03-04

5 Fifth draft version of &Green 2020-03-13 Jurisdictional Eligibility Criteria Assessment for the Republic of Indonesia Jim Webb Rio Rovihandono Project Director Project Manager

&Green JEC Assessment Report vii Hatfield Indonesia

1.0 INTRODUCTION

The objective of the &Green Fund is to catalyze investment in jurisdictions1 where local authorities are committed to reducing deforestation and are actively taking steps to work with the private sector, communities and civil society to protect forests and peatland. &Green is only able to invest when the country, region, or province where the investment is located meets the Jurisdictional Eligibility Criteria (JECs) of the &Green Fund.

This report document outlines the results of desktop assessment of the Republic of Indonesia relative to the five (5) criteria as set out in the JEC. Section 2 includes a high-level summary of the overall assessment findings of all five JECs while Sections 4 to 6 outline the assessment of JEC 1 to JEC 5. In addition, Section 3 provides a determination whether the Republic of Indonesia meets the &Green Fund objectives.

This Jurisdictional Eligibility Criteria Assessment (JECA) report has been developed by assessing the Indonesian setting which considers the presence of natural forests and peatlands as the main indicators related to the impact of development and the dynamics of existing policies and regulations at the national level to provide sustainable solutions. Since this JECA focusses on the country as the jurisdiction, a selection of nine provinces has been included to provide subnational insight on policies or measures that may support or could compromise national efforts due to potentially disproportionate representation of a province based on the select criteria (APPENDIX A1). Of note: this approach includes all three previously approved &Green jurisdictions in Indonesia – Jambi, South Sumatera, and West Kalimantan provinces. HIGH LEVEL OF SUMMARY

Analysis concludes that the Republic of Indonesia is the correct jurisdictional scope in accordance with the &Green Fund’s objectives. Since initiated through the Kyoto Climate Agreement in 1997, sustainable development policies led by the national level in Indonesia have improved the environmental and social governance within the country to reduce impacts on natural forests, peatlands and maintain land productivity. Government policies at the national level to support sustainable development through adaptation and measures to address climate change reflect a strong commitment to protect natural forests and peatlands.

JEC 1 – Scope

The Republic of Indonesia is the largest archipelagic nation in the world with a total terrestrial area of 188 million hectares (ha); forested areas of 93.9 million ha and non-forested areas of 94 million ha. Indonesia is the second largest mega-biodiversity country after Brazil with substantial, intact tropical forests that extend over 88.1 million ha.

Peatland ecosystems encompass approximately 14.9 million ha across 17 provinces although peatland is concentrated on three major islands: Sumatera (6.4 million ha or 43% of the total peatland), Kalimantan (4.8 million ha or 32.1%), and Papua (3.7 million ha or 24.7%)2.

1 The &Green Terms of Reference defines “Jurisdictions” as a national or subnational administrative unit with national or subnational governance structures endowed with the requisite political and decision-making authority to sustainably manage, preserve, and monitor forest and/or peatland natural resources. 2 Sistem Informasi Sumber Daya Lahan Pertanian [Internet]. 2011. Bogor: Balai Besar Penelitian dan Pengembangan Sumber Daya Lahan Pertanian; [updated 2017; cited 2019 October 11]. Available from: http://sisultan.litbang.pertanian.go.id/#

&Green JEC Assessment Report 1 Hatfield Indonesia

The Ministry of Environment and Forestry (MOEF) at the national and provincial levels manages 552 designated conservation areas – national parks, grand forest parks, and wildlife reserves - covering a total area of 27.4 million ha. These areas are home to 25 endangered species listed on the International Union for the Conservation of Nature (IUCN) Red List of Threatened Species and the GOI has established targets to increase the populations of these species by at least 10 percent from their 2013 baseline populations3.

Additionally, there are 16 biosphere reserves in total area of 27.6 million ha which have been established to manage interrelated protected areas, buffer zones and landscapes that support economic, social and cultural of communities surrounding the protected ecosystems and conservation areas. Details on these conservation areas in the nine provinces deemed most essential for Indonesia to reach its forest and peatland conservation targets are listed in APPENDIX A2.

As a mega-biodiversity country45, Indonesia plays a strategic role towards biodiversity preservation globally and this role has been developed in the 2015 to 2020 Indonesian Biodiversity Strategy and Action Plan (IBSAP). The government of Indonesia (GOI) has ratified several international agreements and conventions related to biodiversity, including the Convention on Biological Diversity (CBD), the UNESCO Man and Biosphere Program (MAB), the World Heritage Convention, the Convention on the International Trade of Endangered Species of Wild Fauna and Flora (CITES), and the Ramsar Convention (the Convention on Wetlands of International Importance as Waterfowl Habitat)6.

JEC 2 – Ambition and Strategy

The total unconditional national greenhouse gas (GHG) emissions reduction target for Indonesia by 2030 is 29% (CM1), and the conditional target is 41% (CM2). The emission reduction is relative to the emissions defined in a “Business as Usual” (BAU) or baseline scenario which is calculated using deforestation data from primary and secondary forests across the country between 1990 to 2012. The Forest Reference Emission Level (FREL) is calculated from this same data and the National Forest Inventory (NFI) to assess Indonesia's success in reducing GHG emissions in the forestry sector.7 The first National Determined Contribution (NDC) provides the baseline assumption used for a 2020 to 2030 scenario:

. BAU: an emissions scenario when the development trajectory does not consider action plan8 and mitigation policies. This is conservative scenario as there were existing policies when it was determined and reaching the counter measure targets will require additional policies or support.

. Counter Measure 1 (CM1) or unconditional: emissions scenario with mitigations and considers sectoral development targets.

3Murniningtyas, E., Darajati, .W., Sumarsja, E. S., editor. 2016. Indonesia Biodiversity Strategy and Action Plan (IBSAP) 2015 - 2020. : Kementerian Perencanaan Pembangunan Nasional/BAPPENAS 4Supriatna Jatna. 2018. Konservasi Biodiversitas Teori dan Praktik di Indonesia. Jakarta: Yayasan Pustaka Obor Indonesia . 5 Rosoman, G., Sheun, S.S., Opal, C., Anderson, P., and Trapshah, R., editor. 2017. Toolkit Pendekatan SKT. Singapura: Kelompok Pengarah Pendekatan SKT. 6 Ministry of Environmental and Forestry. 2018. The State of Indonesia Forest 2018. Jakarta: Ministry of Environmental and Forestry Republic Indonesia 7 Tingkat Emisi Rujuikan Deforestasi dan Degradasi Hutan (Forest Reference Emission Level) [Internet]. 2016. Jakarta: Direktorat Jenderal Pegendalian Perubahan Iklim; [updated 2020; cited 2020 March 01]. Available from: http://ditjenppi.menlhk.go.id/berita-ppi/2655-tingkat-emisi-rujukan-deforestasi-dan-degradasi-hutan-frel.html 8 Academic Script Presidential Decree. 2010. Rencana Aksi Nasional Penurunan Emisi Gas Rumah Kaca. Jakarta

&Green JEC Assessment Report 2 Hatfield Indonesia

. Counter Measure 2 (CM2) or conditional: emissions scenario with more ambitious mitigations and considers sectoral development targets when international support is applied.

Within these GHG emission reduction targets, the lion’s share is to be achieved by reductions of emissions from the forestry sector, i.e. as the result of a comprehensive mix of policies, strategies and regulations that aim to improve the protection of forests, reducing deforestation and peatland degradation as well as restoration. The emission reductions from the forestry sector, and related to that, the reduction of deforestation and peatland exploitation are ambitious, both in absolute terms but also relative to the contribution of other sectors to the targets: Compared to the BAU scenario for 2030, emissions from forestry are expected to be reduced by 69% (CM1) or 91% (CM2) respectively. This is equivalent to reaching an emission level from forestry related sources of 33% from 2010 levels (CM1) or 10% from 2010 levels (CM2).

JEC 3 - Progress

The GOI has enacted policies and regulations to minimize deforestation, forest degradation and peatland restoration as well as improved the capacity of key national and subnational stakeholders. These policies most recently include:

. Presidential Instruction 8/2018 – this regulation places a moratorium on the utilization of peatland and primary forests for palm oil concessions;

. Presidential Instruction No. 5/2019 – this regulation permanently suspends the granting of new permits in conservation forests, protected forests, production forests, and non-forest estates; and

. Presidential Decree No. 77/2018 - this regulation establishes a trust fund for the environment and forests to support climate change adaptation and mitigation program in the near future.

Building on these regulations, the GOI signed a policy national action plan on sustainable palm oil plantation for 2019 to 2024 and recently prepared a presidential regulation on the certification system for sustainable palm oil to strengthen current Indonesia Sustainable Palm Oil (ISPO) which needs presidential approval.

Progress on emissions reduction appears to have been substantial as initial emission reductions in 2010 were 7.34% below the baseline level although this decreased to -27.83% (i.e. an increase in emissions) in 2015 until reversing in 2017 to reach 17.54% (equal to 506.4 million metric ton (Mt) CO2e). This variability in emissions reductions remains strongly influenced by external conditions. Dry weather in 2015 resulted in a high incidence of wildland and peatland fires which increased emissions over the BAU scenario while unusually wet weather in 2017 enabled a significant reduction in emissions.

The GOI has implemented measures to reduce deforestation. Since 1990, deforestation rates peaked between 1996 to 2000 when the average annual rate was 2,255,196 ha9 to more recently when rates from 2015 to 2016 were 629,177 ha10 and from 2016 to 2017 were 480,011ha11. Additionally, the Badan Restorasi Gambut (BRG) stated that restoration and revitalization of peatland in 2017 encompassed 1.2 million ha in seven provinces.

9 National Forest Reference Emission Level for Deforestation and Forest Degradation, MOEF, 2016. 10 Deforestasi Indonesia, MoEF, 2017. 11 Deforestasi Indonesia, MoEF, 2018.

&Green JEC Assessment Report 3 Hatfield Indonesia

JEC 4 – Monitoring, Reporting, and Verification

The Directorate General (DG) of Climate Change in the MOEF manages a functional national MRV system that inventories GHG emissions from deforestation, forest degradation, and peatlands in Indonesia (APPENDIX A5). The MRV system is a transparent mechanism integrated into the national forestry management system and provides publicly accessible information. Periodic training at the subnational level is provided through the DG of Climate Change to ensure consistent tracking and reporting of GHG emissions to support reporting at the national level. Data from the national MRV is used to prepare the FREL, NDC, and Biennial Update Report (BUR) documents that are submitted to the UNFCCC Secretariat.

JEC 5 – Social and Environment Safeguard

In accordance with the Cancun Agreements from 201012, a framework on social and environment safeguards was established to mitigate and minimize potential negative impacts from the implementation of REDD+ activities on existing forestry plans and programs. The MOEF established the Principles, Criteria, and Indicator (PCI) framework and Safeguards REDD+ Information System (SIS-REDD+) based on a multi-stakeholder process in 2011 and 2012. Since piloting of the SIS-REDD+ in East Kalimantan and Jambi provinces started in 2013, activities now recorded in 11 provinces. Four of the nine priority provinces are included in these 11 provinces, namely: East Kalimantan, West Kalimantan, Riau, and Jambi. However, technical support such as training to conduct SIS-REDD+ for local stakeholders is needed. JURISDICTIONAL SCOPE

This section describes the governance, legislative and regulatory frameworks of the assessed jurisdiction as well as main decision-making structures at the national and select provincial levels.

The Indonesia JECA analyzes the national policies, strategies and regulations relative to the five &Green JECs. The analysis assesses various components, including the governance structures at the national level and the identification of key decision makers, and relevant socio-economic data.

To assess the impact of subnational policies at province level this study has selected nine provinces that were considered essential for Indonesia to reach its national targets due to the importance of their forests and peatlands and analyzed them more closely how their respective provincial policies and strategies support or counter the national policies.

These nine provinces are: 1) Riau, 2) South Sumatera, 3) Jambi, 4) Central Kalimantan, 5) West Kalimantan, 6) North Kalimantan, 7) East Kalimantan, 8) Papua, and 9) West Papua (APPENDIX A1).

The methodology used to select these provinces is provided in Appendix 1 and key economic details for the country and these selected provinces are listed in Table 1. The purpose of the analysis at provincial level was to establish the potential risk of Indonesia missing relevant targets and failing to meet international commitments due to key provinces not having the right policies, strategies, tools and targets in place to deliver their respective contributions to the national level.

While targets, ambition and strategy related to deforestation, as well as measuring progress in Indonesia are now set at the national level, the analysis detailed in Appendices A2 and A3 suggests

12 Cancun Agreements: https://unfccc.int/process-and-meetings/conferences/past-conferences/cancun-climate-change- conference-november-2010/cancun-climate-change-conference-november-2010-0

&Green JEC Assessment Report 4 Hatfield Indonesia

some variability between how national regulations are implemented at the provincial level and implies that further alignment between the governance levels will be necessary over time to ensure and improve consistency.

3.1 BACKGROUND: KEY ECONOMIC DATA AND MAPS

Indonesia has an estimated population of 270,625,568 which ranks number four in the world13. The total territory for the country encompasses 191,686,220 ha14 of which the terrestrial area consists of 93.9 million ha of forested area and 94 million ha of non-forested area. Of the terrestrial area, 120.6 million ha are state-owned forests. Not all areas classified as forests are forested due to various factors including encroachment and illegal logging. The country also has extensive mangrove ecosystems, high endemism and is home to numerous key flora and fauna species. Biodiversity management in Indonesia is currently guided by the 2015 to 2020 IBSAP.

The distribution of forest cover, deforestation and peatland across the country and in the nine priority provinces are illustrated in Figure 1, Figure 2, and Figure 3.Peatland ecosystems cover 7.9% of Indonesia’s total land area (Figure 3). As peatlands ecosystems are effective for absorbing and storing carbon dioxide, protecting them from wildfires is a key measure towards achieving Indonesia’s emission reduction commitments in the Paris Agreement. Approximately 40% of Indonesia’s total carbon emissions come from peatlands burned for palm oil and pulp wood plantations. In an effort to protect peatland ecosystems, the President of Indonesia established the Indonesian Peatland Restoration Agency (Badan Restorasi Gambut [BRG]) in 201615.

The palm oil industry sector employs more than 17 million people including smallholders and farmers with indirect education and health care effects on a population of 30 million people in 190 districts in 22 provinces16. Main agricultural products produced in , South Sumatra, Central, West, East Kalimantan, Aceh, and South Sulawesi provinces include rubber, coffee, cacao, tobacco, and wood products. Indonesia is the largest palm oil producer in the world, and the second largest global producer of rubber and coffee 17.

13 Worldometers [Internet]. 2019. American Library Association (ALA): Indonesia Demographic - Indonesia Population Live; [cited 2019 October 14]. Available from: https://www.worldometers.info/world-population/indonesia-population/ 14 Ministry of Environmental and Forestry. 2018. The State of Indonesia Forest 2018. Jakarta: Ministry of Environmental and Forestry Republic Indonesia 15Pickup Francine [Internet]. 2017. Why Indonesia Has to Save The Peatland. [Cited 2019 October 26]. Available from: https://www.id.undp.org/content/indonesia/en/home/presscenter/articles/2017/01/09/why-indonesia-has-to-save-the- peatland.html 16 Rismansjah.2018. Makalah Rancangan Perpres Kelapa Sawit, disampaikan di Hotel Sahira Bogor, 16 April 2018 17 Informasi Komoditi Online: Komoditas Unggulan Beberapa Provinsi di Indonesia [Internet]. 2019. Komoditi Online Guide; [cited 2019 October 10]. Available from: http://komoditi.co.id/komoditas-unggulan-beberapa-provinsi-di-indonesia/

&Green JEC Assessment Report 5 Hatfield Indonesia

Figure 1 Forest cover (2018) in Indonesia with nine selected provinces indicated.

&Green JEC Assessment Report 6 Hatfield Indonesia

Figure 2 Extent of deforestation (1990-2018) in Indonesia with nine selected provinces indicated.

&Green JEC Assessment Report 7 Hatfield Indonesia

Figure 3 Peatland distribution (2018) in Indonesia with nine selected provinces indicated.

&Green JEC Assessment Report 8 Hatfield Indonesia

Table 1 Key economic data for Indonesia and in the nine selected provinces.

Proportion Central West East North South of Selected Socio-Economic Attribute Indonesia Papua Riau Jambi West Papua Total Kalimantan Kalimantan Kalimantan Kalimantan Sumatera Provinces to Indonesia Provincial Area/Indonesian Territory (Terrestrial*) (million ha)18 (187.9*) 33.0 15.4 14.7 9.0 12.9 6.9 8.7 4.9 9.9 115.4 60.2% Number of Districts19 416 28 13 12 10 7 4 13 9 12 108.00 26% Number of Cities20 98 1 1 2 2 3 1 4 2 1 17.00 17.3% Population Density per km2 (2017)21 137 10 17 33 77 28 9 90 70 9 343 N/A Size of land cover (forest + non-forest) (million ha)22 88.01 24.8 7.2 5.5 1.5 6.5 5.6 0.7 1.02 8.8 61.8 70.2% Peatland area (million ha)23 14.9 2.6 2.6 1.6 3.9 0.16 0.17 1.28 0.60 1.03 14.1 94.7% Total deforestation 2015-2018 (million ha)24 1.9 0.11 0.26 0.22 0.12 0.26 0.08 0.05 0.11 0.04 1.2 64.1% Gross Domestic Product (GDP) at current market prices 2018 14,837,358 210,660 138,741 194,033 755,274 638,177 86,059 419,723 208,379 79,644 2,730,690 18.4% (billion rupiah)25 Per Capita Gross Domestic Product (GDP) at current market prices 55,987 63,404 52,154 38,794 110,827 174,882 120,126 50,144 58,365 84,958 753,654 N/A 2018 (thousand rupiah)26 Gross Domestic Product (GDP) at constant market prices 2010 10,425,316 159,729 94,596 130,584 482,087 464,823 57,826 298,569 142,995 60,454 1,891,663 18.1% (billion rupiah)27 Per Capita Gross Domestic Product (GDP) at constant market 39,339 48,075 35,560 26,108 70,740 127,390 80,716 35,670 40,052 64,487 528,798 N/A prices 2010 (thousand rupiah)28 Main Agricultural Non-Forest Products (ha) a) Palm oil (2017)29 14,030,753 66,563 1,500,948 1,553,932 2,776,440 1,046,746 251,689 1,166,421 887,228 98,355 9,348,322 66.6% b) Rubber (2017)30 3,659,129 3,741 281,232 366,897 349,803 70,875 1,412 837,431 378,926 0 2,290,317 62.6% c) Cacao (2017)31 1,732,002 40,950 2,017 11,296 6,339 7,902 7,926 11,315 2,264 11,753 101,762 5.9% d) Coffee (2017)32 1,253,796 11,227 1,674 11,580 4,505 2,893 1,733 263,339 27,446 506 324,903 25.9% e) Coconut (2017)33 3,653,167 125,616 28,757 106,650 510,925 21,742 1,393 66,556 119,069 21,204 1,001,912 27.4% f) Nutmeg (2017)34 180,205 0 0 85 0 133 0 0 11 15,317 15,546 8.6% g) Clove (2017)35 548,091 25 0 887 0 2 0 314 167 614 2,009 0.4% Palm Oil Plantation (million ha)36 16.38 0.11 1.78 1.81 3.39 1.28 0.23 1.47 1.13 0.06 11.27 68.79% Percentage of palm oil plantation to provincial area 8.54% 0.33% 11.55% 12.30% 37.64% 9.98% 3.40% 16.88% 23.16% 0.59% ---- 9.76%

18 Peta Interaktif KLHK [Internet]. 2019. Indonesia: Kementerian Lingkungan Hidup dan Kehutanan; [cited 2019 October 11]. Available from: http://geoportal.menlhk.go.id/arcgis/apps/Viewer/index.html?appid=8f491695fab04bb99d03962bbd747abd 19 Wikipedia Ensiklopedia Bebas. 2019. Daftar Kabupaten dan Kota di Indonesia; [cited 2019 October 15]. Available from: https://id.wikipedia.org/wiki/Daftar_kabupaten_dan_kota_di_Indonesia 20 Wikipedia Ensiklopedia Bebas. 2019. Daftar Kabupaten dan Kota di Indonesia; [cited 2019 October 15]. Available from: https://id.wikipedia.org/wiki/Daftar_kabupaten_dan_kota_di_Indonesia 21 Badan Pusat Statistik. 2019. Statistik Indonesia 2018. Indonesia: Badan Pusat Statistik 22 Peta Interaktif KLHK [Internet]. 2019. Indonesia: Kementerian Lingkungan Hidup dan Kehutanan; [cited 2019 October 11]. Available from: http://geoportal.menlhk.go.id/arcgis/apps/Viewer/index.html?appid=8f491695fab04bb99d03962bbd747abd 23 Sistem Informasi Sumber Daya Lahan Pertanian [Internet]. 2011. Bogor: Balai Besar Penelitian dan Pengembangan Sumber Daya Lahan Pertanian; [updated 2017; cited 2019 October 11]. Available from: http://sisultan.litbang.pertanian.go.id/# 24 Peta Interaktif KLHK [Internet]. 2019. Indonesia: Kementerian Lingkungan Hidup dan Kehutanan; [cited 2019 October 11]. Available from: http://geoportal.menlhk.go.id/arcgis/apps/Viewer/index.html?appid=8f491695fab04bb99d03962bbd747abd 25 Badan Pusat Statistik. 2019. Produk Domestik Bruto Indonesia Menurut Pengeluaran 2014-2018. Indonesia: Badan Pusat Statistik 26 Badan Pusat Statistik. 2019. Produk Domestik Bruto Indonesia Menurut Pengeluaran 2014-2018. Indonesia: Badan Pusat Statistik 27 Badan Pusat Statistik. 2019. Produk Domestik Bruto Indonesia Menurut Pengeluaran 2014-2018. Indonesia: Badan Pusat Statistik 28 Badan Pusat Statistik. 2019. Produk Domestik Bruto Indonesia Menurut Pengeluaran 2014-2018. Indonesia: Badan Pusat Statistik 29 Direktorat Jendral Perkebunan Kementerian Pertanian. 2017. Statistik Perkebunan Indonesia 2016-2018 (Kelapa Sawit). Jakarta: Sekretariat Direktorat Jendral Perkebunan 30 Direktorat Jendral Perkebunan Kementerian Pertanian. 2017. Statistik Perkebunan Indonesia 2016-2018 (Karet). Jakarta: Sekretariat Direktorat Jendral Perkebunan 31 Direktorat Jendral Perkebunan Kementerian Pertanian. 2017. Statistik Perkebunan Indonesia 2016-2018 (Cokelat). Jakarta: Sekretariat Direktorat Jendral Perkebunan 32 Direktorat Jendral Perkebunan Kementerian Pertanian. 2017. Statistik Perkebunan Indonesia 2016-2018 (Kopi). Jakarta: Sekretariat Direktorat Jendral Perkebunan 33 Direktorat Jendral Perkebunan Kementerian Pertanian. 2017. Statistik Perkebunan Indonesia 2016-2018 (Kelapa). Jakarta: Sekretariat Direktorat Jendral Perkebunan 34 Direktorat Jendral Perkebunan Kementerian Pertanian. 2017. Statistik Perkebunan Indonesia 2016-2018 (Pala). Jakarta: Sekretariat Direktorat Jendral Perkebunan 35 Direktorat Jendral Perkebunan Kementerian Pertanian. 2017. Statistik Perkebunan Indonesia 2016-2018 (Cengkeh). Jakarta: Sekretariat Direktorat Jendral Perkebunan 36 Menteri Pertanian.2019. Penetapan Luas Tutupan Kelapa Sawit Indonesia Tahun 2019.Keputusan Menteri Pertanian Nomor 833/KPTS/SR.020/M/12/2019. Jakarta: Kementerian Pertanian

&Green JEC Assessment Report 9 Hatfield Indonesia

3.2 NATIONAL AUTHORITY

3.2.1 Planning and Budgeting

Indonesia is a democratic unitary state with a three-tier administrative structure (national, provincial and local governments) and is made up of 34 provinces, 98 municipalities (Kota), and 416 districts (Kabupaten) and more than 70,000 villages. The country has parliaments at the city, district, provincial and central levels. In general, districts are governed by a regent (Bupati) and located in rural areas, municipalities are governed by a mayor (Walikota) and located in urban areas and provinces are governed by governors who serve as the central government’s representative.

The country has implemented wide-ranging decentralization measures to bring a measure of autonomy to Indonesia’s many culturally diverse regions37. Although drafted in 1999, regional autonomy legislation – Law No. 22/1999 (administrative decentralization) and Law No. 25/1999 (financial administration) – were implemented in 2001 to focus on empowering sub-provincial governments. The provincial government is responsible for coordinating functions among the district and city governments and performing certain roles that the district and city governments are unable to perform. The central government retained the responsibility for defense, justice, finance, monetary policy and development planning38.

As Law No. 22/1999 on regional government and Law No. 25/1999 on fiscal balance between central and regional governments were drafted without a well-developed transition and implementation process, a resultant increase in the issuance of land use permits at the subnational level required the central government to mediate. As a result, Local Government Law No. 23/2014 distributed most governmental functions between the central and provincial governments while the district and municipal governments retained the authority for several functions to a lesser extent than in the former Law No. 32/2004 (Table 2), resulting in overall improved land-use planning and associated permitting.

The forestry sector is an example where, under the previous law, authority was decentralized to the district level but under the new law, the authority to manage the forestry sector transferred from the district to the provincial government39. Under the 2014 Local Government Law the central and provincial governments share responsibility for the forest inventory, forest management (Table 2) and issuance of forest business permits (Table 3). However, residual issues of land use permit allocations remain from the earlier transition period and are important issues to be addressed in the context of policies to control deforestation activities and peatland development.

37 Mumbunan S, Ring I and Lenk T. 2012. Ecological Fiscal Transfers at the Provincial Level in Indonesia. Leipzig: Helmholtz – Zentrum für Umweltforschung GmbH - UFZ Permoserstr. 15 04318 Leipzig. 38 Green Keith [Internet]. 2005. Decentralization and Good Governance: The Case of Indonesia. [cited 2019 October 10]. Available from:https://mpra.ub.uni-muenchen.de/18097/1/Decentralization_and_Good_Governance The_Case_of_Indonesia.pdf 39 Steni Bernadius. 2016. Review of the New Local Government Law. Jakarta: Institut Penelitian Inovasi Bumi (INOBU)

&Green JEC Assessment Report 10 Hatfield Indonesia

Table 2 The changes to authority under previous and new laws on local government in the forestry sector40.

Law No. 32/2004 Authority Law No. 23/2014 Province District/Municipality

Forest inventory Conducting inventories of Conducting inventories of Provincial governments are given production forest, production forest, the opportunity to assist forest protected forest, and protected forest and planning by providing technical forest parks and forest parks, and considerations, such as proposing watershed areas that cut watershed areas in changes in forest area status and across several districts/ district/municipal areas functions, establishment of FMUs, municipalities and others

Designation of Providing technical Proposing the designation forest production considerations regarding of production forests, forests, the designation of protection forest, protected forest, production forest, conservation areas, conservation protection forest, wildlife reserves and forest and conservation areas, hunting area parks hunting park wildlife reserves and area hunting park areas

Forest area for Preparing and providing Proposing the special purposes technical considerations management of forest regarding the areas with special management of forest purposes for customary area for special purposes law communities, for customary law research and communities, research development, forestry and development, forestry education and training, education and training, and social and religious and social and religious institutions at the institutions at the district/municipal scale provincial scale taking into account the governor’s considerations

Forest Providing technical Proposing a change in Provincial government is conducting management or considerations for the status and function of the designation of forest functions in utilization change of forest area forest area and change of FMU, except for conservation forest status and function, land status from private management unit (KPHK) change of land status from land to forest area and Provincial government is conducting private land to forest area, utilization and exchange forest utilization in production and and use/exchange of of forest areas. protected forest areas, including: forest areas. Providing consideration 1.Utilization of forest area; Conducting the regarding the architecture 2.Utilization of non-timber-forest formulation of architecture and proposal to establish products; and establishment and management areas for proposing the designation protected forest and 3. Extraction of forest products; and of protected and production forests and 4.Utilization of forest area for production forest institution of forest environmental services, except for management unit (FMU) management areas. carbon storage sequestration. and providing technical District and municipal government consideration regarding responsible for the management of regional institution for Grand Forest Park (TAHURA) forest management

40 Steni Bernadus. 2016. Review of the New Local Government Law. Jakarta. Institute Penelitian Inovasi Bumi (INOBU)

&Green JEC Assessment Report 11 Hatfield Indonesia

Table 3 The authority of MOEF, provincial, districts, and municipal governments on licensing in forestry sector41.

Ministry of District or Provincial Permit or Authority Environment Municipal Government and Forestry Government

Business Permits for Timber Utilization in Natural Forest, Ecosystem Restoration Forest, Industrial Timber Plantation    (HTI), Reserved Areas for People’s Timber Plantation (HTR) and Plantation Forest from Rehabilitation (HTHR)

Business Permits for Non-Timber Forest Products Utilization    (IPHHK)

Business Permits for Timber Forest Product Extraction    (IPHHK)

Forest Area Lease Permits   

Approval for Principle for Forest Area Exchange   

Approval for Principle Forest Area Exchange   

At the national level, the Ministry of National Development Planning (BAPPENAS) provides guidance on mechanisms and procedures for planning and budgeting with the central and regional governments (Law No. 25/2004 on National Development Plan System) (Figure 4).

Figure 4 Planning and budgeting mechanism and process at the national and provincial levels.

To ensure monitoring and evaluation on planning and budgeting activities under Law No. 25/2004, government Regulation No. 39/2006 prescribes various reporting mechanisms (Figure 5).

41 Steni Bernadus. 2016. Review of the New Local Government Law. Jakarta. Institute Penelitian Inovasi Bumi (INOBU)

&Green JEC Assessment Report 12 Hatfield Indonesia

Figure 5 Development plan national and subnational reporting mechanisms.

&Green JEC Assessment Report 13 Hatfield Indonesia

3.2.2 Environment and Forestry Governance

The central government has taken important steps to respond to climate change through the establishment of and strengthening institutional arrangements that aim to achieve the national targets, coordinate with the provincial government and fulfil commitments on the global level. The central government has established policies and a national strategic plan to address biodiversity conservation, sustainable development, and climate change adaptation and mitigation (Table 4).

Table 4 Regulations to promote cooperation between central and provincial government.

Level Authority Category Regulation Central Government Provincial Government Biodiversity . Indonesian . BAPPENAS ensures . The provincial Conservation Biodiversity Strategic biodiversity conservation is government is Action Plan (IBSAP) adopted in the Long-Term responsible for the 2015 to 2020 Development Plan in all management and relevant national ministry conservation of offices and institutions. protected areas within . The DG of their boundaries. Conservation Natural . MOEF mandated that Resources and protected areas outside of . The provincial Ecosystem-MOEF existing conservation areas, government ensures Regulation within and outside the state- the conservation of No.8/KSDAE owned forests, are managed natural resources and /BPE2/KSA.4/2016 to maintain natural ecosystems are biodiversity. incorporated in the strategic environment assessment (SEA). Ecosystem . The Law No.32/2009 . Central government ensures . The provincial Protection the policy implementation of government is ecosystem protection, responsible for the . Government protected areas and management and Regulation No. management. conservation of 28/2011 . Peatland Restoration Agency protected areas within (BRG) developed an action their boundaries. . Government plan for sustainable peatland . Seven provincial Regulation No. management through a government have 57/2016 and rehabilitation and restoration supported the BRG by Presidential Decree program in priority areas. restoring 2.5 million ha No. 1/2016 . The GOI permanently stopped of peatland ecosystems issuing new permits for in Riau, Jambi, South Sumatera, West . President concessions in natural forests Kalimantan, Central Presidential and peatlands. Kalimantan, South Instruction No. Kalimantan, and Papua 5/2019 provinces with support from various donors including the Norwegian government, GIZ and I World Bank Group. Environment . Government . Central government monitor . The provincial Assessment Regulation No. and evaluate the government manage 46/2016 implementation of the Strategic provincial Environment Assessment environmental (SEA) to ensure the assessment and . Government sustainability of natural management including Regulation No. resources and to minimize managing and 27/2012 potential environmental risks at controlling high national level. conservation value . Central government ensure the areas outside the state- implementation of environment owned forest

&Green JEC Assessment Report 14 Hatfield Indonesia

Level Authority Category Regulation Central Government Provincial Government . The Ministry of Home impact assessment (EIA) is . The provincial Affairs Regulation No. measured and monitored at government also acts 7/2018 national level as supervisor and The Ministry of Home Affairs decision maker for monitor, evaluate and provide issuing environmental guidance for SEA permits and reviewing implementation to District and impact assessments Provincial. (AMDAL [EIA]). REDD+ . Presidential Decree . MOEF conducting the . The Provincial Implementati 16/2015 on the implementation of REDD+ from Government establish on establishment of the the GHG inventory through the Regional Plan on DG of Climate Change MRV to set out FREL and NDC GHG Emission in MOEF to develop and reporting to the United Reduction (RAD-GRK) National REDD+ Nation Framework Convention to measure the level of Strategy and MRV on Climate Change (UNFCCC). emissions and to framework which . BAPPENAS developed project the emission enables the GOI to guidance for mainstreaming reductions report on the NDC and REDD implementation and low . While up to 11 FREL carbon development initiative to provinces had a . Presidential Decree sectoral ministry and provincial regional committee for No. 61/2011 on the governments. REDD+ implementation National Action Plan (Papua, Central, East, for the Reduction of West Kalimantan, South Emissions of and West Sumatra, Greenhouse Gases Jambi, Aceh and South (RAN-GRK) Sulawesi), this committee currently exists in only West Sumatra and East Kalimantan provinces. Monitoring . President Decree No. . MOEF inventories GHG . N/A Reporting 71/2011 emissions, monitors the MRV and . MOEF Regulation No. system implementation once Verification P72/Menlhk/Setjen/ku annually to generate the FREL, m.1/12/2017 NDC, and Biennial Update Report (Figure 6). . MOEF Regulation No. P73/Menlhk/Setjen/ku . MOEF conducts an annual m.1/12/2017 review of the National Action Plan for GHG reduction to assess results from the energy, transportation, industrial process product use (IPPU), agriculture, forestry, and waste sectors. Land Use . Presidential Decree . Ministry of Economic Affairs is . Provincial and district Management No. 9/2016 implementing the One Map government should Policy to ensure utilization of provide regional land use data for development geospatial information strategy. that connect to the . The DG of Climate Change - national level. MOEF provide data on GHG inventory. Financial . Presidential Decree . MOEF, Coordinating Ministry of . Provincial government Support for No. 77/2018 Economy and Ministry of can propose funding in REDD+ Finance is assessing the climate change Implementati applicability and function of an adaptation and on . The governments of environmental trust fund mitigation projects once Indonesia and Norway (Badan Pengelola Dana the BPDLH is Letter of Intent in May Lingkungan Hidup [BPDLH]). functional. 2010 The BPDLH would finance climate change adaptation and

&Green JEC Assessment Report 15 Hatfield Indonesia

Level Authority Category Regulation Central Government Provincial Government mitigation (environment, forestry, renewable energy, carbon trade, and ecosystem services). . The DG on Climate Change conducted MRV and mitigation actions for reducing GHG emissions from deforestation and forest degradation on the “resulted based payment mechanism. . The government of Norway will provide results-based payments for actual emission reductions from deforestation (were 228,349,830 tCO2 – a reduction of 8,597,610 tCO2) and from forest degradation (were 42,743,041 tCO2 – an increase of 1,191,560 tCO2.) While emissions from forest degradation increased, the net reduction due to deforestation was 7,406,051 tCO2.

Figure 6 The National Monitoring, Reporting, Verification (MRV) System42.

42 Direktorat Jendral Pengendalian Perubahan Iklim. 2017. Laporan Inventarisasi GRK dan Monityoring, Pelaporan dan Verifikasi. Jakarta. Kementerian Lingkungan Hidup dan Kehutanan.

&Green JEC Assessment Report 16 Hatfield Indonesia

Progress Towards REDD+ Target and Commitments

Deforestation rates and emissions have varied between 1990 and 2017 (Table 5). Prior to submitting the first NDC to the UNFCCC, the highest deforestation rate of 2.25 million ha/year was recorded from 1996 to 2000. Following the submission, the highest deforestation rate of 1.09 million ha from 2014 to 2015 was predominantly due to forest fires. This later data does not include emission rates.

Table 5 Deforestation rates from 1990 to 2017.

% Deforestation Emissions Forest Deforestation Years cover (ha) to Forest Period Annual Rate Period Total Annual Rate Cover Total (ha) (ha/year) (tCO2e) (tCO2e/year) 1990 to 1996 1 n/a n/a 3,828,973 638,162 1,193,476,158 198,912,693

1996 to 2000 1 n/a n/a 9,020,783 2,255,196 2,948,024,748 737,006,187

2000 to 2003 1 n/a n/a 1,333,085 444,3627 428,854,857 142,951,619

2003 to 2006 1 n/a n/a 2,527,909 842,636 793,089,246 264,363,082

2006 to 2009 1 n/a n/a 2,741,459 913,820 859,201,887 286,400,629

2009 to 2011 1 n/a n/a 1,101,040 550,520 347,782,080 173,891,040

2011 to 2012 1 90,110,6003 0.87% 786,052 786,052 248,937,119 248,937,119

2012 to 2013 2 89,052,9003 0.82% 728,000 728,000 n/a n/a

2013 to 2014 2 88,323,0003 0.45% 397,400 397,400 n/a n/a

2014 to 2015 2 88,136,0003 1.24% 1,092,182 1,092,182 n/a n/a

2015 to 2016 2 86,626,0003 0.73% 629,177 629,177 n/a n/a

2016 to 2017 2 87,728,3003 0.55% 480,011 480,011 n/a n/a

1 Source: National Forest Reference Emission Level for Deforestation and Forest Degradation (emission not included peat decomposition), MOEF, 2016 2 Source: Deforestation Indonesia, MoEF, 2014,2015,2016,2017,2018. 3 Source: Recapitulation of forest cover in Indonesia, MoEF, 2011,2012,2013,2014,2015,2016,2017.

Global Forest Watch has also determined tree cover loss from 2010 to 2018 based on satellite imagery (Table 6) resulting in different deforested areas compared to the nationally reported data in Table 5.

Table 6 Global Forest Watch tree cover loss from 2010 to 2018 (million ha) 43.

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tree Cover Loss 1.3 1.5 2.2 1.1 1.9 1.7 2.4 1.3 1.2 (million ha)

Following the Paris Agreement, Indonesia strengthened its commitment to CO2e reductions with the first NDC submitted to the UNFCCC in November 2016. The NDC included an unconditional national target (CM1) of 29% or 834 MtCO2e and a conditional national target (CM2) of 38% or 1,081 MtCO2e over the BAU scenario by 2030 (Table 7). However, the Indonesian NDC states that the CM2 target is

43 Global Forest Watch: http/data.globalforestwatch.org/search

&Green JEC Assessment Report 17 Hatfield Indonesia

41% of the BAU scenario although the data in the table state 38%. The table in the NDC is replicated in Table 7. This discrepancy has not been explained in the NDC or other documents.

Table 7 BAU GHG emission levels and 2030 CM1 and CM2 projections44.

BAU CM1 CM2

Emission Emission Emission Emission % of % of Sectors 2010 2030 Level Reduction Level Reduction Total Total (MtCO2e) (MtCO2e) 2030 2030 2030 2030 BAU BAU (MtCO2e) (MtCO2e) (MtCO2e) (MtCO2e)

Forestry 647 714 217 4971 17.2% 64 6502 23%

Other 688 2,154 1,817 337 11.8% 1,723 432 15% sectors3

All sectors 1,334 2,869 2,034 834 29% 1,787 1,081 38%

1A decrease of 69% compared to 2030 BAU. 2A decrease of 91% compared to 2030 BAU. 3Other sectors are energy, waste, IPPU, and agriculture.

To meet these targets, various sector-specific mitigation actions have been identified in the National Action Plan for the Reduction of Emission of Greenhouse Gases while actual GHG emissions are reported by the DG of Climate Change, MOEF. The forestry and other sectors achieved reductions in emissions from 2010 to 2017 and emission reductions in 2017 in the forestry sector was impressive at 506.4 MtCO2e which exceeded the 2030 CM1 target of 497 MtCO2e (Table 8 and Figure 7). However, the forestry sector reductions were not consistent due to climatic events.

In 2014 and into early 2016, dry weather conditions and an El Nino event contributed to a severe fire seasons in Indonesia resulting in extensive forest and peatland fires 45. The net result in 2014 and 2015 was an increase in deforestation and emissions in the forestry sector (Table 5 and Table 8). The wetter weather pattern leading into a weak La Nina event in early 2018 resulted in fewer fires and a reduction in emissions. A trend line analysis, which indicates the progress over time, for the 2010 to 2017 emission reductions in the forestry sector produces a negative or declining slope; the red dotted line in Figure 7. This trend line indicates that because emission reductions are decreasing and becoming further away from the target, emission reductions are too ambitious and require additional land management and policy and planning to be reached, in particular to improve the resilience of forests and peatlands to climatic variability.

The progress in later years has been supported through the establishment of the Peatland Restoration Agency (BRG and policies to protect forests and peatlands (Presidential Instruction No. 5/2019) and improve palm oil plantation management (Presidential Instruction No. 8/2018) as well as policies on law enforcement. The Second BUR in 2018 looks at all sectors and indicates, for example, that while

emissions in the agricultural sector in 2016 were 117 MtCO2e which exceeded the BAU of 114 MtCO2e,

the forestry sector emissions of 635 MtCO2e was a reduction from the 764 MtCO2e BAU.

44 Direktorat Jendral Pengendalian Perubahan Iklim. 2017.Strategy Implementasi NDC. Jakarta. Kementerian Lingkungan dan Kehutanan. 45 NASA: Severe 2015 Indonesia Fire Season Linked to El Nino Drought. 2015; [cited 2020 January 21]. Available from: http://www.nasa.gov/feature/Goddard/2016/severe-2015-indonesia-fire-season-linked-to-el-nino-drought

&Green JEC Assessment Report 18 Hatfield Indonesia

Table 8 Actual emission rates and reductions in forestry and other sectors from 2010 to 201746.

Emission Years Sector Category 2010 2011 2012 2013 2014 2015 2016 2017

BAU 647 769 771 768 766 765 764 801 (MtCO2e)

Actual Emissions 434.79 616.34 694.98 607.33 979.42 1,569.06 635.45 294.61

(MtCO2e) Forestry Emission Reduction 212.212 152.664 76.022 160.672 -213.422 -804.064 128.552 506.389

(MtCO2e)

% of 2030 7.34 5.28 2.63 5.56 -7.39 -27.83 4.45 17.54 BAU

BAU 1,334 1,521 1,570 1,610 1,670 1,703 1,768 1,860 (MtCO2e)

Actual Emissions 1,116 1,354 1,478 1,349 1,767 2,372 1,457 1,151

(MtCO2e) All sectors Emission Reduction 218 167 92 261 -97 -669 311 709

(MtCO2e)

% of 2030 7.6 5.8 3.2 9.1 -3.4 -23.3 10.8 24.7 BAU

3.2.3 Summary of Jurisdiction Scope Analysis

Decentralization of power from the central government to the subnational level in 2004 created considerable social and environmental regulatory issues which resulted in increased rates of deforestation, forest degradation, and peatland degradation. However, under Presidential Instruction No. 8/2018 Palm Oil Moratorium, the government imposed measures on the issuance of new permits for forest concessions, strengthen regulatory control and seek to improve plantation productivity.

The GOI has implemented policies and regulations to support the sustainable development commitments stipulated in the NDCs and Paris Agreement. The NDCs outline strategies to cut emissions by establishing policies to prevent deforestation, and forest and peatland degradation and the GOI has established policies on sustainable forest and land use management, ecosystem protection as described in JEC2, JEC3 and in APPENDIX A4. By implementing a national MRV system to track commitments in reducing GHG emissions, the One Map Policy will positively encourage the effectiveness of spatial data management and collectively may result in a reduction of land conflicts at the subnational level. While GOI policies are guiding emission reductions in the right direction, reducing exposure to climatic factors and improving resilience to climatic events are needed.

46 Direktorat Jendral Pengendalian Perubahan Iklim. 2017. Nationally Determined Contribution Jakarta. Kementerian Lingkungan dan Kehutanan.

&Green JEC Assessment Report 19 Hatfield Indonesia

Figure 7 Comparison of forestry sector GHG emissions to BAU from 2010 to 2017 with emission reduction slope line.

1,000 20% Slope (m) = -0.4414 800

600 10%

400

200 0%

e 2 0

MtCO 2010 2011 2012 2013 2014 2015 2016 2017

-200 -10% % of % BAU 2030 -400

-600 -20%

-800

-1,000 -30% BAU (annual) GHG Emission Reduction % of 2030 BAU

GHG mitigation activities, including those in the forestry and agriculture sector and resulting in lower deforestation and forest degradation and peatland degradation, today are strategically driven from the national level, with lower jurisdictional levels overseeing implementation plans and strategies for the centrally defined strategy but not shaping the level of ambition and the targets. National policies are firmly tied into international obligations, and key responsibilities for overall achievement of the targets (NDCs) lie with national ministries who are also creating and managing their own agencies action nation-wide to catalyze implementation of the strategy on the ground. While policies provide suitable guidance, additional policies to mitigate climate change.

Therefore, based on the above analysis, it is concluded that for Indonesia the central level is a suitable level to analyze the jurisdiction against the &Green Jurisdiction Eligibility Criteria Assessment.

&Green JEC Assessment Report 20 Hatfield Indonesia

4.0 CHECKLIST JEC 1: SCOPE

Item Criteria Analysis Check References

1.1 Amount of Indonesia is the largest archipelagic nation globally with a total terrestrial area (forested OK 1. Ministry of Environmental and Forestry. 47 forest/peatland in and non-forested area) of 187.9 million ha. Of this terrestrial area, 120.6 million ha 2018. The State of Indonesia Forest 2018. the jurisdiction (64.1%) are designated as state-owned forested area. [1]. Indonesia has extensive Jakarta: Ministry of Environment and

intact forest and peatland ecosystems that are under pressure from land use Forestry, Republic Indonesia.

conversion to agricultural, plantation and other developmental activities. Draining and 2. Ritung W.S, Suparto H.S. 2004. Sebaran burning in peatland ecosystems accounts for approximately 40 percent of Indonesia’s Gambut dan Kandungan Karbon di total carbon emissions. Sumatera dan Kalimantan. CCFPI and Forest CIDA. (Maps of Area of peatland According to the 2017 MOEF data on land cover classification, total forested and non- distribution and carbon content in Sumatra forested areas in Indonesia consist of (Figure 1) [1]: and Kalimantan). However, according to Forest Reference Emission Level (2016), a. Forested area: 93.9 million ha (approximately 26.7 million ha are no longer this peatland areas in West Kalimantan is forested due to various factors including illegal logging and encroachment). slightly different. In this document, this 48 - Primary forest : 46.1 million ha. peatland area is 1,681,882 ha according to - Secondary forest49: 43.1 million ha. the Ministry of Agriculture (2011). - Plantation forest50: 4.7 million ha. 3. Sistem Informasi Sumber Daya Lahan b. Non-forested area: 94 million ha. Pertanian [Internet]. 2011. Bogor: Balai Besar Penelitian dan Pengembangan According to the 2017 MOEF data on forest functions, the total forested areas in Sumber Daya Lahan Pertanian; [updated Indonesia state-owned forests include [1]: 2017; cited 2019 October 11]. Available 51 a. Conservation forests : 22.1 million ha. from: b. Protection forests52: 29.7 million ha. http://sisultan.litbang.pertanian.go.id/#.

47 Indonesia’s forested areas are categorized into three different functions: production forest (Hutan Produksi – HP), protection forest (Hutan Lindung – HL) and conservation forest (Hutan Konservasi – HK) and can include primary forests, secondary forests, plantation forests and non-forested areas. 48 Primary forest is largely undisturbed forests based on three class: primary dryland forest, primary swamp forest, and primary mangrove forest. 49 Secondary forest is largely disturbed forests based on three class: secondary dryland forest, secondary swamp forest, and secondary mangrove forest. 50 Plantation forests are all planted forest areas including plantations for reforestation. 51 Conservation forest is a forested area with unique characteristics and mainly functions to conserve the diversity of plants and animals and their ecosystem within the area. 52 Protection forest is a forest area whose main function is to provide buffer to regulate water, prevent floods, control erosion, prevent sea water intrusion and maintain soil fertility.

&Green JEC Assessment Report 21 Hatfield Indonesia

Item Criteria Analysis Check References c. Limited production forest53: 26.8 million ha. 4. Direktorat Inventarisasi dan Pemantauan d. Permanent produc tion forest54: 29.2 million ha. Sumber Daya Hutan Direktorat Jenderal Planologi Kehutanan dan Tata Kelola e. Convertible production forest55: 12.8 million ha. Lingkungan. Kemeterian Lingkungan 56 Activities that contribute to deforestation include unplanned felling of natural forest Hidup dan Kehutanan. 2017. Deforestasi timber concessions; the conversion of forested areas including agricultural expansion Indonesia Tahun 2016-2017. Jakarta: (estate crops), mining, plantations and transmigration, unsustainable forest Kemeterian Lingkungan Hidup Republik management, illegal logging, encroachment and illegal land occupation in forested Indonesia areas, and forest fire. [1] 5. Badan Restorasi Gambut. 2019. Laporan Peatland Tiga Tahun Restorasi Gambut. Jakarta: Peatland in Indonesia is distributed across 17 provinces covering 14,869,909.52 ha Badan Restorasi Gambut. (Figure 3) [1][2][3]. 6. Why Indonesia Has to Save The Peatland: Badan Restorasi Gambut [BRG]57 identifies priority areas for peatland restoration in https://www.id.undp.org/content/indonesia seven provinces (Riau, Jambi, Central Kalimantan, South Kalimantan, West /en/home/presscenter/articles/2017/01/09 Kalimantan, South Sumatra and Papua) in the National Strategic Action Plan. These /why-indonesia-has-to-save-the- areas total 2.5 million ha which includes 332,766 ha in conservation areas, 1,410,926 peatland.html ha in concession areas, and 748,818 ha in other ecosystem units (production, protection forest and other land purposed/APL) for 2015-2020. [5] Land use changes in peatlands ecosystems from draining and burning results in approximately 40 percent of Indonesia’s total carbon emissions which poses risks to community livelihoods and threatens biodiversity.[6]

53 Limited Production Forest is a forested area whose main function is to produce forest products. 54 Permanent Production Forest is a forested area with specific characteristics including sloped land, soil type and precipitation intensity. The areas are located outside protected areas, sanctuary reserve forests, natural conservation forests and hunting parks. 55 Convertible Production Forest is a forested area that can be converted to uses other than forestry.

56 The Minister of Forestry Regulation No. 30/2009 defines deforestation as the “permanent alteration from a forested area into a non-forested area as a result of human activities” While, forest degradation is a deterioration of forest cover quantity and carbon stock during a certain period of time as a result of human activities. 57 The government of Indonesia also enhanced law enforcement on the ground and reinforced rehabilitation and restoration for degraded peatlands by establishing the BRG through President Regulation No. 1/2016. To select its priority areas, BRG used three criteria, 1) burned area in 2015; 2) peat dome; and 3) shallow peat cultivation to identify and select priority areas.

&Green JEC Assessment Report 22 Hatfield Indonesia

Item Criteria Analysis Check References

1.2 Quality of The GOI is responsible to maintain quality of forest and peatland nationwide through OK 1. Exploitasia I. 2019. Konservasi forest/peatland in protecting landscapes, conserving biodiversity and avoiding deforestation as well as Keanekaragaman Hayati. Jakarta: the jurisdiction by developing strategic partnerships with key stakeholders to ensure and sustain its Kementerian Lingkungan Hidup dan ecological functions. After Brazil, Indonesia is known as a mega-biodiversity country Kehutanan. with significant tropical forests, one of the largest peatland areas, extensive mangrove 2. Man and Biosphere. 2019. 16 Biosphere ecosystems and high endemism and key biodiversity of flora and fauna. Reserve di Indonesia, Bogor: UNESCO. The efforts of GOI in managing forest and peatland across the jurisdiction:

1. There are 556 conservation areas within the country comprised of: 219 nature reserves (Cagar Alam – CA), 72 wildlife sanctuaries (Suaka Marga Satwa – SM), 118 nature recreation parks (Taman Wisata Alam – TWA), 11 hunting parks (Taman Buru), 28 grand forest parks (Taman–Hutan Raya - Tahura), 54 national parks (Taman Nasional – TN), and 54 nature conservation areas (Kawasan Pelestarian Alam – KPA). [1] 2. Indonesia has 16 UNESCO-recognized biosphere reserves totaling 27.6 million ha: Cibodas-, Komodo Island-East NusaTenggaInjung Puting-Central Kalimantan, Lore Lindu-, Siberut Island-West Sumatra, Leuser Montain-Aceh, Giam Siak Kecil-Bukit Batu-Riau, Wakatobi-South Sulawesi, Bromo-Tengger Semeru Arjuno-East Java, Taka Bonerate Selayar Island, South Sulawesi, Belambangan-East Java, Betung Kerihun Danau Sentarum-Kapuas Hulu-West Kalimantan, Berbak-Sembilang-South Sumatra & Jambi, Rinjani -West Nusa Tenggara, Togean-Tojo Una Una-Central Sulawesi, Saleh Moyo Tambora, West Nusa Tenggara58. [2]

58 Under the jurisdiction of UNESCO, Biosphere Reserves have interrelated zones that aim to fulfil three complementary and mutual reinforcing functions: the core zone of protected ecosystem that links to a buffer zone and social culture as well as economic zone for human development.

&Green JEC Assessment Report 23 Hatfield Indonesia

5.0 CHECKLIST JEC 2: AMBITION AND STRATEGY

Item Criteria Analysis Check References 2.1 Quantitative The GOI set an unconditional GHG emission reduction target of 29% (Counter Measure OK 1. Ministry of Environmental and Forestry. target against 1 [CM159]) and a conditional target of up to 41% with international support (Counter 2016. First Nationally Determined historic rates of Measure 2 [CM260]) by 2030 as outlined in Indonesia first NDC [1][2][3]. However, there Contribution Republic of Indonesia. gross is a discrepancy on the CM2 target of 38% or 41% based on numbers in the 2016 NDC. Jakarta: Directorate General of Climate deforestation Shorter timelines or intermediate milestones for emission reductions have not been Change. The Ministry of Environment and established. Forestry Indonesia. The NDC [1] uses GHG emission data from 1990 to 2012 as the basis for the BAU 2. Ministry of Environmental and Forestry. scenario to determine GHG emission reductions. Based on the 2030 projection in the NDC 2016, National Forest Reference for the CM1 scenario, the forestry sector is the most important sector for achieving Emission Level for Deforestation and emission reductions which, for the sector, is 17.2% or equivalent to 497 MtCO2e of BAU Forest Degradation: In the Context of conditions (2,869 MtCO2e) while in the CM2 scenario the sector is projected to reduce Decision 1/CP.16 para 70 UNFCCC emissions by 23% or equivalent to 650 MtCO2e against reference period [1][2], i.e. 59% (Encourages developing country Parties relative to the total national target. Other sectors projected to contribute to GHG emissions to contribute to mitigation actions in the reduction are the energy sector (11%), agriculture (0.32%), industry (0.1%), and waste forest sector): Post Technical (0.38%) [1]. Assessment by UNFCCC. Jakarta: The historic rate of gross deforestation (1990-2012) that was used in developing the FREL Directorate General of Climate Change. is credible in that it represents the policy dynamic to measure performance of areas The Ministry of Environment and Forestry (country) in implementing REDD+ activities. Based on available data, during 22 years the Indonesia. cumulated gross deforestation is estimated at 31.4 million ha and to have produced 3. Ministry of Environmental and Forestry. emissions of approximately 9,020 MtCO2e [2]. 2017. KLHK. Buku Strategi Implementasi The national FREL document [2] details the deforestation,forest degradation and peat NDC. Jakarta: Directorate General of decomposition rates for Indonesia from 1990 to 2012, (APPENDIX A5): Climate Change Ministry of Environmental and Forestry Average Annual Rate Emission Equivalent Attribute (ha) (MtCO2e) 4. Ministry of Environmental and forestry Forest degradation 507,486 58 Regulation No.P.70/MENLHK/SETJEN/KUM.1/12/20 Deforestation 918,678 293 17 to Procedures for Implementing Peatland decomposition 212,207 59 Reducing Emissions from Deforestation and Forest Degradation, Role of Conservation, Sustainable Management

59 Counter measure 1 (CM1) or unconditional: scenario to reduce emission with in-country effort. 60 Counter measure 2 (CM2) or conditional: scenario to reduce emission with support from another country

&Green JEC Assessment Report 24 Hatfield Indonesia

Item Criteria Analysis Check References The forward-looking BAU scenario puts annual deforestation rate for 2013 to 2020 at of Forest and Enhancement of Forest 0.920 million ha/ year or 6,440,000 million ha during the period. [1][3]. In total, Carbon Stocks approximately 37.8 million ha will be deforested between 1990 and 2020. 5. Ministry of Environmental and Forestry. The first NDC was based on [1]: 2018. Indonesia Second Biennial Update Assumption for deforestation rate: Report. Jakarta: Directorate General of Climate Change Ministry of Environmental 1) BAU scenario for 2013-2020 assumes: and Forestry a) Deforestation rate of 0.920 million ha/year; and b) CM1 and CM2 scenarios assume the rate of planned and unplanned 6. Yayasan Madani Berkelanjutan. 2018. deforestation would not exceed 0.450 million ha. Mengurai Benang Kusut Penghitungan 2) BAU scenario for 2021-2030 assumes: Deforestasi Indonesia. Jakarta: Yayasan a) Deforestation rate of 0.820 million ha/year; and Madani b) CM1 and CM2 scenarios assume the rate of planned and unplanned 7. Yayasan Madani Berkelanjutan. 2019. deforestation would not exceed 0.325 million ha. Perkembangan NDC Indonesia di Sektor Assumption for wood production: Kehutanan. Jakarta: Yayasan Madani 1) Rate of wood extraction from sustainable natural forest ranges from 20 to 35 8. Kementerian Lingkungan Hidup dan m3/ha. Kehutanan. Direktorat Jenderal 2) Target for wood production from natural forest under CM1 and CM2 scenarios Pengendalian Perubahan Iklim. Direktorat is based on the National Forestry Planning (Rencana Kehutanan Tingkat Inventarisasi GRK dan Monitoring, Nasional/RKTN) (MoF, 2011), while the BAU is higher, using data from the Pelaporan, Verifikasi. 2018. Laporan Association for Indonesian Forest Concessionaire (APHI). Inventarisasi Gas Rumah Kaca, 3) The rate for establishing forest estates (plantation) under the BAU scenario Monitoring, Pelaporan, dan Verifikasi follows historic data, with 63% of the area available for planting (Assumption Nasional Tahun 2018. Jakarta: from APHI, 2007). Kementerian Lingkungan Hidup dan 4) Zero waste and all wood from these areas would be useable. Kehutanan. 5) Utilization of wood from oil palm and rubber trees at the end of its cycle is at medium rate or about a half of total. Assumption for growth rate: 1) Growth rate of plants in ton of C/ha/year for natural forests is based on a growth rate in m3/ha/year with the conversion factors of: a. Biomass Expansion Factor (BEF): 1.4 (Ruhiyat, 1990) b. Wood density for natural forest: 0.7 ton/m3 2) Industrial plantation (HTI) rate in ton C/ha/year is based on wood production volume in m3/ha, with BAU, CM1 and CM2 scenarios in 2010 at 120 m3/ha and

&Green JEC Assessment Report 25 Hatfield Indonesia

Item Criteria Analysis Check References 2050 at 200 m3/ha with technological intervention. The change every 10 years and correction factors are: a. BEF: 1.4 (IPCC Default) b. Wood density for HTI: 0.4 t/m3 3) Six year rotation. Rehabilitation survival rate: 1) Peatland restoration achieves 90% survival rate and the area of peat restoration reaches 2 million/ha by 2030. 2) Land rehabilitation achieves 90% survival rate and almost all unproductive lands have to be rehabilitated (about 12 million/ha in total). By 2030 the rehabilitation rate (plantation) would be 800,000 ha/year (the historical ratee is approximately 270,000 ha). Currently, the government can only finance rehabilitation of 200,000 ha per year which means that private sector and donor funding is required to achieve the target. [1] Gross deforestation described in the FREL is the process of converting natural forest cover into another land cover category that only occurs once in a specific area. The emission reference in the FREL uses data from 1990 to 2012 for several reasons [8]: 1. The national FREL submitted to the UNFCCC Secretariat uses this reference period. 2. Availability of transparent, accurate, complete, consistent, and comparable land cover data on the National Forestry Monitoring System (NFMS) which has been stored in the NFMS website (www.nfms.dephut.go.id) connected to the one map GIS website (www.tanahair.indonesia.go.id). 3. This period of historical deforestation 1990-2012 (22 years) is representative in that it includes various political mandates and economic and social conditions that would have influenced the forestry sector. MOEF Regulation No. 70/2017 notes that REDD+ activities will only be recognized on areas that were still covered by natural forests at the end of 2012; these areas are called the Performance Assessment Areas (PAA) or Wilayah Penilaian Kinerja (WPK) for REDD+ [4][6]. Consequently, any carbon conservation initiative, including voluntary

&Green JEC Assessment Report 26 Hatfield Indonesia

Item Criteria Analysis Check References allocated protected areas such as HCS and HCV61 62 areas, will only be considered as an achievement in meeting the NDC target if the site is located within the WPK.[4] 2.2 Ambition Based on the first NDC, contribution from the land use and forestry sector will be a OK 1. Kementerian Lingkungan Hidup dan critical component of the NDC target. The emission reductions from the forestry sector, Kehutanan. Direktorat Jenderal and related to that, the reduction of deforestation and peatland exploitation are Pengendalian Perubahan Iklim.Direktorat ambitious, both in absolute terms but also relative to the contribution of other sectors to the targets: Compared to the BAU scenario for 2030, emissions from forestry are Inventarisasi GRK dan Monitoring, expected to be reduced by 69% (CM1) or 91% (CM2) respectively. This is equivalent to Pelaporan, Verifikasi. 2018. Laporan reaching an emission level from forestry related sources of 33% from 2010 levels (CM1) Inventarisasi Gas Rumah Kaca, or 10% from 2010 levels (CM2). Monitoring, Pelaporan, dan Verifikasi The BAU scenario is conservative as stated in the NDC as the BAU is an emissions Nasional Tahun 2018. Jakarta: scenario that does not consider mitigation policies in the development trajectory. It is Kementerian Lingkungan Hidup dan implied that when the GOI set the BAU scenario, policy measures were already in place. Kehutanan. The BAU scenario is not realistic for achieving the emission reduction target without extra support from the GOI to support existing policies with other means such as the CM1 2. Yayasan Madani Berkelanjutan. 2018. scenario (improve effective coordination, synergy and better plan such as establishment Mengurai Benang Kusut Penghitungan the REDD+ agency, BRG to handle and manage peatland, enforcement policy and task Deforestasi Indonesia. Jakarta: Yayasan force, One Data policy on land use management) and CM2 scenario with international Madani support. 3. Ministry of Environmental and Forestry. The CM1 and CM2 targets respectively require substantial emission reductions as a result 2018. The State of Indonesia Forest 2018. of improved forest protection and management, reduction of deforestation and peatland Jakarta: Ministry of Environmental and degradation rates and forest and peatland restoration. Compared to the 2030 BAU Forestry Republic Indonesia scenario for forestry, reductions are 69% and 91% respectively for these targets, with the BAU scenario taking into account only a minor increase in emissions from the sector compared to 2010 emission levels. Furthermore, the forestry sector is – compared to other sectors – expected to achieve a real net reduction, from 647 MtCO2e in 2010 to 801 MtCO2e in 2017 (BAU) or 217 (CM1) and 64 (CM2) MtCO2e in the 2030 target scenario (other sectors will increase emissions from 688 MtCO2e in 2010 to 1,817 (CM2) or 1,723 (CM2) MtCO2e. Therefore, the achievement of emission levels set for the Indonesian NDC depend to a large extent on the forestry sector. Historic data shows that the relative reductions on an implied target trajectory are achievable, however emissions are subject to high variability due to climatic variation. Climatic variation is responsible for exceeding the calculated pro-rata targets on the target

61 High Conservation Value (HCV) area is a forest / land area that contains high conservation value (6 key values) and voluntarily protected by the area utilization permit holder. More information can be seen at: https://hcvnetwork.org/

&Green JEC Assessment Report 27 Hatfield Indonesia

Item Criteria Analysis Check References trajectory in addition to management and policy measures. [1]: Emissions reduction from the forestry sector in 2017 was 506.7 MtCO2e due to changes in deforestation, forest degradation and peatland fire rates. This amount is 17.54% below the 2017 pro-rata BAU scenario versus the total emission reduction target reference in the CM1 scenario which is 17.2%. [1][2][3]. Climatic influence (hot weather and a lack of precipitation) from 2014 to early 2016 however resulted in substantial emission increases while high precipitation rates in late 2016 and in 2017 resulted in substantial emissions. 2.3 …equaling or Not applicable, but target setting at the subnational level is not yet consistent with the N/A 1. Hardiansyah et.al. 2017. Strategi dan exceeding national strategy. Rencana Aksi (SRAP) REDD+ Kalimantan national targets Target setting at subnational level is not consistent, and a number of provinces that have Barat (Edisi Revisi). set targets have not maintained records to assess their progress in achieving the targets. 2. Pemerintah Provinsi Kalimantan Timur. Additionally, each province calculates their emission reductions using different reference 2018. Revisi Rencana Aksi Daerah periods and land cover maps that make it difficult to compare with the national target. Penurunan Emisi Gas Rumah Kaca Other provinces have not established provincial targets and their contribution to the Provinsi Kalimantan Timur 2010 -2030. national target cannot be assessed. The status of GHG emission reduction, and whether Kalimantan Timur: Pemerintah Provinsi they have set targets and are monitoring them from nine selected provinces is provided Kalimantan Timur in the matrix (APPENDIX A3). [1][2][3][4][5] 3. Pemerintah Provinsi Jambi. 2013. Strategi Recently, in 2019 the DG of Climate Change has set out the FREL for subnational (34 dan Rencana Aksi REDD+ Provinsi Jambi provinces) as stipulated on the Decision Letter no. SK.8/PPI/IGAS/PPI.2/3/2019 that aim 2012 – 2032. Jambi: Provinsi Jambi to optimize the inventory of GHG emissions from subnational level to be measured with a 4. Pemerintah Provinsi Sumatera Selatan. consistent methodology. [6] 2018. Rencana Aksi Daerah (RAD) Penurunan Emisi Gas Rumah Kaca

(GRK) Provinsi Sumatera Selatan Tahun 2010-2030. Pa lembang, Indonesia: Pemerintah Provinsi Sumatera Selatan. 5. Bappeda Provinsi Riau. 2012. Rencana Aksi Daerah Gas Rumah Kaca (RAD G RK). Provinsi Riau: Bappeda Provinsi Riau. 6. DG Climate Change Ministry of Environment and Forestry Decission Latter Number 8/2019 to set Terget FREL Sub National. SK8/PPI/GAS/PPI.2/3/2019 2.4 Feasible strategy The NDC includes the strategy in reducing GHG emissions from the forestry sector which 1. Badan Restorasi Gambut. 2019. Laporan covers the effort on meeting the REDD+ commitment from avoiding deforestation and Tiga Tahun Restorasi Gambut. Jakarta: forest-peatland degradation, promoting better implementation on sustainable forest

&Green JEC Assessment Report 28 Hatfield Indonesia

Item Criteria Analysis Check References management, land rehabilitation and peatland restoration, including a financial Badan Restorasi Gambut. mechanism. BAPPENAS will establish an NDC implementation program which requires 2. Yayasan Madani Berkelanjutan. 2020. sectoral coordination. The monitoring and evaluation of the implementation as well as Madani Update: RPJM 2020-2024 to review and adjustment of emission targets will be conducted every five years by MOEF Omnibus Law. Jakarta: Madani (2021), with the next evaluation and adjustment is in 2020. 3. Ekawati, S., Subarudi, Budiningsih, K., BAPPENAS developed the National Action Plan on GHG Emission Reduction (RAN-GRK) Sari, G.K. & Muttaqin, M.Z. 2019. Policies and National Action Plan on Climate Change Adaptation (RAN-API)63. Progress of these affecting the implementation of REDD+ in plans includes [1][2][3][4]: Indonesia (cases in Papua, Riau, and 1. The GOI has initiated the Low Carbon Development (LCD), improving Central Kalimantan). Elsevier, Forest environment index, and disaster and climate resilience as the priority agenda on Policy and Economics, 108, November the National Medium-Term Development Plan [RPJMN] for 2020-2024 through 2019, 101939. Presidential Regulation 18/2020 4. Ministry of Environment. 1990. The First 2. To sustain the LCD initiatives, BAPPENAS signed an MOU with the United National Communication to Climate Kingdom. BAPPENAS will introduce these initiatives the provincial government Change Convention. the Ministry of so that it is incorporated into the Regional Medium-Term Development Plan Environment of Republic of Indonesia. (RMTDP) 5. Yayasan Madani Berkelanjutan. 2018. 3. Indonesian Law No. 16/2016 ratifies the Paris Agreement and addresses the Mengurai Benang Kusut Penghitungan GOI’s commitments to reducing emissions. Deforestasi Indonesia. Jakarta: Yayasan Madani National Based on the NDC strategy, the GOI implemented measures through policies, regulations 6. Kementerian Lingkungan Hidup dan and partnership/engagement to reduce GHG emissions from forestry sectors: Kehutanan. Direktorat Jenderal Pengendalian Perubahan Iklim.Direktorat A. Reducing deforestation and forest degradation: Inventarisasi GRK dan Monitoring, 1) Moratorium of Palm Oil (Presidential Instruction No. 8/2018) Pelaporan, Verifikasi. 2018. Laporan a. This moratorium expired in 2019. However, the Ministry of Agriculture Inventarisasi Gas Rumah Kaca, and the Coordinating Ministry of Economy have prepared the draft Monitoring, Pelaporan, dan Verifikasi national action plan on sustainable palm oil. It is awaiting signing by the Nasional Tahun 2018. Jakarta: President of Indonesia along with the draft Presidential Instruction of Kementerian Lingkungan Hidup dan ISPO. [5][6][7] Kehutanan. b. The Coordinating Ministry for Economic Affair established a working 7. Ministry of Environmental and Forestry. team to collaborate with WWF, Yayasan KEHATI and Auriga to confirm 2018. The State of Indonesia Forest 2018. palm oil plantation boundaries and reconcile the provincial data with the Jakarta: Ministry of Environmental and MOEF from April 2019 as noted in Ministry of Agriculture Forestry Republic Indonesia

63 https://www.BAPPENAS.go.id/files/1713/7827/1229/UPDATE_ON_INDONESIAs__CLIMATE_CHANGE_MITIGATION_AND_ADAPTATION_PLAN.pdf

&Green JEC Assessment Report 29 Hatfield Indonesia

Item Criteria Analysis Check References No.833/KPTS/SR.002/12/2019. This working team is no longer active. 8. Ministry of Agriculture No. [8] 833/KPTS/SR.002/M/12/2019 c. Presidential Instruction No. 6/2019 signed on November 22, 2019 on the 9. Yayasan Madani Berkelanjutan. 2019. national plan for sustainable palm oil from 2019 to 2024 that aims to Perkembangan NDC Indonesia di Sektor boost planters’ production capacity and capability and to settle and Kehutanan. Jakarta: Yayasan Madani legalize the status of palm oil plantations. 10. https://www.tropicalpeatlands.org/event/it 2) Moratorium on Concessions in Primary Forest and Peatland (Presidential pc-soft-launching/ Instructions No. 10/2011, No 6/2013, No.8/2015, No. 8/2016, No.6/2017, and 11. Peraturan Direktur Jenderal Pengelolaan No.5/2019). During the implementation of moratorium 2011 to 2017, this Hutan Produksi Lestari No. policy has protected primary forest and peatland amounted 66.3 million ha P9/PHPL/Set/Kum/1/11/2018 Under the latest instruction, new licenses will not be issued [9]. 12. Ministry of Environment. 2005. The 3) Policy on Peatland Protection (Government Regulation No. 57/2016): Second National Communication Under regulates the use of peatlands (peatland ecosystem management). This the United Nation Framework Convention policy also mandates the governments at all levels to develop integrated on Climate Change. The Ministry of peatland protection and management actions and to restore/rehabilitate the Environment of Republic of Indonesia. degraded peatland [9][10]. 13. https://inilah.com/news/2491437//ekonom 4) Indonesia enacted fire management regulations to prevent wildland fire and i.inilah.com/.../klhk-siapkan-masterplan- involve as many stakeholders as possible [7]: rehabilitasi-lahan-kritis a. Hotspot monitoring system using an integrated approach with Landsat 14. Ministry of Environmental and Forestry. satellite imagery, hotspot monitoring with NOAA and Terra Aqua 2016. First Nationally Determined imagery, and subnational forest fire monitoring data. This integrated Contribution Republic of Indonesia. monitoring of hotspots is conducted in coordination with the MOEF, Jakarta: Directorate General of Climate National Meteorology and Geophysics Agency, Indonesian National Institute for Aeronautics and Space, and the National Disaster 15. Directorate GHG Inventory and Management Agency. Monitoring Reporting Verification. 2019. Emission Reduction Report for The b. Improved coordination of key stakeholders in the district and provincial Indonesia-Norway Partnership. DG of governments with the Manggala Agni (Forest Fire Troops under MOEF), Climate Change. the military and policing agencies, NGOs, village administrations, and private sector in establishing early fire response systems and response 16. Wijaya, A., Chrysolite, H., Ge, M., units at the concessions and in the villages. Wibowo, CK., Pradana, A., Utami, A.F. & Austin, K. 2017. How can Indonesia B. Implementing better sustainable forest management. achieve its climate change mitigation 1) Policy on Sustainable Forestry (MOEF Regulation No. 30/2016). In 2018, goal? An analysis of potential emissions MOEF conducted a review and evaluation to improve the implementation of reductions from energy and land-use forest management policy that requires that all forestry concession holders policies. Working Paper. World

&Green JEC Assessment Report 30 Hatfield Indonesia

Item Criteria Analysis Check References obtain sustainable forest management certification. [7]. Following is the latest Resources Institute development of the policy: 17. Ministry of Environment. 2005. The a. The series of stakeholder consultation on improvement of performance Second National Communication Under evaluation of forest management have been conducted in July – the United Nation Framework Convention September 2019 to get inputs for the implementation of MOEF on Climate Change. The Ministry of Regulation No. 30/2016 under collaboration with Multi-stakeholder Environment of Republic of Indonesia. Forestry Program Phase 4 funded by UKCCU. 18. Peraturan Menteri Keuangan No. b. The MOEF has been reported the progress of FLEG VPA 230/PMK.07/2017 tentang Penggunaan, implementation (i.e. impact assessment, to EU representative on the 7th Pemantauan, dan Evaluasi Dana Bagi Joint Implementation Committee meeting Indonesia – EU on FLEGT Hasil Sumber Daya Alam Kehutanan VPA on 18 November 2019, Jakarta Dana Reboisasi. 2) Social Forestry (MOEF Regulation No. 83/2016) has seen significantly 19. https://inilah.com/news/2491437//ekonom progress under the establishment of the DG of Social Forestry and i.inilah.com/.../klhk-siapkan-masterplan- Partnership in 2014. [7]. Social forestry as of June 2019 encompassed 3.1 rehabilitasi-lahan-kritis million ha which consisted of village forests (50%), community forests (25%), 20. https://m.foresthints.news/community- community timber plantations (13%), and forestry partnerships (11%) with based-carbon-credit-schemes-legally- customary forests in Jambi, Central Sulawesi, South Sulawesi, West possible Kalimantan, , West Java, and East Kalimantan provinces. 21. Forest hints.new. 2010 Government 3) Policy on Land Clearance and Management for Plantations Without Burning Policy News: Community Based Carbon (Minister of Agriculture Regulation No. 5/2018): mandates all estate crop Credit Scheme Legally Possible. concession holders to maintain environmental sustainability and not to use 22. Ministry of Environmental and Forestry. fire for land clearing and land management 2017. KLHK. Buku Strategi Implementasi 4) Policy on Incentives Measure (Minister of Environment and Forestry NDC. Jakarta: Directorate General of Regulation No. 39/2016 on the Revision to the Ministerial Regulation No. Climate Change Ministry of Environmental 9/2013): provides support and incentives for the rehabilitation of degraded and Forestry land and forests, and supports the use of unproductive lands through the

planting of multi-purpose tree species (MPTS) under an agroforestry system. 5) To improve best practices in timber concessions the MOEF has enacted DG of Sustainable Forest Production Management on the guidance application of low impact technical harvesting. This regulation is for the holder of the timber utilization permits in natural forest. The Reduce Impact Logging regulation aims to reduce impacts from harvesting activity for ecological and social aspects and to achieve higher productivity. This

&Green JEC Assessment Report 31 Hatfield Indonesia

Item Criteria Analysis Check References regulation will also be used by the conformity assessment body (auditor) in assessing performance on sustainable forest management [11] 6) The establishment of Forest Management Unit (KPH). The KPH is one of the key policies to improve the management of land and forest resources. Under this policy, none of the forests in Indonesia are open access which normally expose them to a high risk of illegal activities and lead to deforestation and forest degradation. About 531 KPHs have been established covering a total area of 84 million ha. However, the management capacity of KPH still requires empowerment. [12][13] 7) Prior December 2017, Conformity Assessment Body (independent auditor) has awarded Sustainable Forest Product Management Certificates (Sertifikat PHPL [S-PHPL]) and Timber Legality Certificate (Sertifikat Legalitas Kayu [S-LK] to unit management (UM) for their operations based on forest type as follows [7]: a. S-PHPL to 91 UMs and S-LK 37 UMs which cover 6.8 million ha in planted forests; b. S-PHPL to 3 UMs which cover 2.4 million ha in PERHUTANI (state forest enterprises in Java); c. S-LK to 113 units or timber utilization permits; d. S-LK to 190 community enterprise/groups which cover 272,800 ha in private forests; e. S-LK to 1,291 units of primary industry; f. S-LK to 1,530 units of secondary industry; g. S-LK to 179 units of timber depo; h. S-LK to 101 units exporters non-producer; and i. S-PHPL to 123 UMs and S-LK to 49 UMs which cover 13.4 million ha in natural forests. C. Land rehabilitation and peatland restoration activities are conducting under [1][7]: 1) MOEF prepared Master Plan of land rehabilitation for 2020 to 2030 with the objective that by 2030 all degraded lands would be rehabilitated; 2) Government Regulation No. 57/2016 (in conjunction with Government Regulation No. 71/2014) on peatland protection and management; 3) Government Regulation No. 46/2016 on the Procedure on the implementation of strategic environment assessment;

&Green JEC Assessment Report 32 Hatfield Indonesia

Item Criteria Analysis Check References 4) Government Regulation No. 76/2008 on forest rehabilitation and reclamation; 5) MOEF Regulation No. P.6/Menlhk/Setjen/Kum.1/2/2019 on the disposition to the Governors of Riau, Jambi, South Sumatera, Central Kalimantan, West Kalimantan, South Kalimantan and Papua in order to implement peatland restoration from the fiscal year 2019; and 6) MOEF Regulation No. P.10/Menlhk/Setjen/Kum.1/3/2019 on the designation of peat dome based on the peatland hydrological area and its management. D. Financial mechanism for sustainability: 1) Presidential Decree No. 77/2018 established a trust fund to support the inclusion of climate change adaptation and mitigation measures in development plans and their implementation which also supports the NDC implementation strategy [5][14]. 2) Indonesia – Norway Cooperation on the REDD+ implementation. Indonesia has developed a baseline for result-based payments as agreed in an MRV protocol with the government of Norway. The MOEF submits a report to the government of Norway that documents emission reductions from avoided deforestation and forest degradation. The first report submitted in May 2019 resulted in a results-based payment from the government of Norway.[15] 3) As reported from the Government Policy News in November 2019, the Minister of the MOEF stated that the ministry will develop another 4 million ha for social forestry over the next five years, and 2.53 million ha of state forest for the land reform program by 2024. The ministry will also develop a forest-based carbon credit and trading scheme through social forestry. [16][17][20][21] 4) Since 2017, the Ministry of Finance has permitted revenue sharing from the Reforestation Fund (Dana Bagi Hasil-Dana Reboisasi [DBH-DR]) at the subnational level to support forest and peatland rehabilitation, mitigation and adaptation of climate change, and for managing forest and peatland fires. The total DBH-DR fund for 2018 amounted to USD 121,213,308. [18][19] To address challenges in achieving national GHG emission targets, the MOEF launched a NDC implementation strategy in 2018 to optimize the contribution on GHG emission reductions from all sectors [6][8][9] and key relevant stakeholders, building on and coordinating previously decreed regulations and strategies further discussed below. The

&Green JEC Assessment Report 33 Hatfield Indonesia

Item Criteria Analysis Check References NDC implementation strategy has three phases: 1) preparation, 2) implementation, and 3) monitoring and reporting. While MOEF is responsible for delivery of the strategy, BAPPENAS is responsible for reporting the results towards the national target. There are nine program areas identified in the strategy [22]: 1) Establishing ownership and commitment from the government, private sector, civil society organizations, and financial institutions; 2) Institutional development and improving capacity of human resource; 3) Creating an enabling environment, through relevant policy and regulation; 4) Communication and Networks development; 5) One GHG Data Policy; 6) Policy, plan, and program intervention development; 7) NDC implementation guideline development; 8) NDC implementation; and 9) NDC monitor and review.

&Green JEC Assessment Report 34 Hatfield Indonesia

6.0 CHECKLIST JEC 3: PROGRESS

Item Criteria Analysis Check References

3.1 Timely progress The GOI has made progress to manage deforestation, forest degradation and peatland OK 1. Directorate General of Climate towards rehabilitation through policies instruments and mitigation action. The MOEF has also Change. 2016. National Forest milestones of the published regulations and documents related the progress of forestry sector in GHG Reference Emission Level for strategy… emission reduction, that can access by public through official web of DG of Climate Deforestation and Forest Degradation Change, MOEF64. The updated NDC and progress of national effort on National in the Context of Decision 1/CP.16 Communication and BUR will be reported in 2022. para 70 UNFCCC. The Ministry National Environment and Forestry Republic of Indonesia. According to Indonesia’s Second National Communication of 2010, national GHG emissions were estimated to be 1.8 GtCO2e in 2005. This represented an increase of 0.4 2. Directorate of Climate Change. 2019. GtCO2e compared to 2000. Most emissions (63%) were the result of land use change and Emission Reduction Report for the peat and forest fires, with combustion of fossil fuels contributing approximately 19% of Indonesia-Norway Partnership. The total emissions. Based on Indonesia’s first BUR submitted to UNFCCC in January 2016, Ministry of Environment and Forestry national GHG emissions were 1.453 GtCO2e in 2012 which represented an increase of Republic of Indonesia. 0.452 GtCO2e from 2000. The main contributing sectors were land use change and 3. Ministry of Environment. 2005. The forestry (LUCF) including peatland fires (47.8%) and energy (34.9%). Second National Communication The FREL for REDD+ was submitted to the UNFCCC Secretariat in December 2015, Under the United Nation Framework covering deforestation and forest degradation and peat decomposition. Since that, policy Convention on Climate Change. The measure has been enacted to protect natural forest and peatland ecosystem through Ministry of Environment of Republic of moratorium policy and improve governance of sustainable forest management and palm Indonesia. oil plantation 4. https://tirto.id/brg-1.2-juta-hektar- The energy sector in Indonesia has embarked on a mixed energy use policy, low carbon lebih-lahan-gambut-sudah- development initiatives and also established the development of clean energy sources as direstorasi-pada-2017-cCrN a national policy directive. Collectively, these policies will eventually put Indonesia on the 5. Badan Restorasi Gambut. 2019. path to de-carbonization. Both from forestry and energy sector contribution is 28.2% of Laporan Tiga Tahun Restorasi CM1 scenario (29%). Gambut. Jakarta: Badan Restorasi In 2017, emission reduction from forestry sectors achieved a reduction of 17.54% or 506.7 Gambut. MtCO2e due to changes in deforestation, forest degradation and peatland fire rates. 6. Ministry of Environmental and Between 2015 and 2019, Indonesia took significant steps to reduce emissions in the land Forestry. 2018. The State of Indonesia use sector by instituting a moratorium on the clearing of primary forests and by prohibiting Forest 2018. Jakarta: Ministry of

64 http://ditjenppi.menlhk.go.id/peraturan-perundangan.html

&Green JEC Assessment Report 35 Hatfield Indonesia

Item Criteria Analysis Check References conversion of its remaining forests through reduced deforestation and forest degradation, Environmental and Forestry Republic restoring ecosystem functions an implementing sustainable forest management. Indonesia As of December 2017, the BRG restored peatland totaling 55% of its target listed in the National Strategic Action Plan 2015 to 2020. As the BRG had restored peatland totaling 93,000 ha in seven provinces, revitalized 1,180,446 ha of peatland through villages

participation programs and rewetted 103,476 ha.[4][5]

Mitigation action through land rehabilitation and peatland restoration:

1) Rehabilitation activities on degraded land during 2011 to 2013 successfully restored 3 million ha. The MOEF set a rehabilitation target of 5.5 million ha from 2015 to 2019 which require USD 2.9 billion. However, the budget allocation from government for this period is likely to only achieve 200,000 ha per year. [4][5] 2) During 2016, BRG has conducted rewetting, revegetation and revitalization and successfully restored 679,901 ha of peatland (27.2% from the National Strategic Action Plan target) in seven provinces. The BRG is also working on awareness campaigns in 75 villages and developed 5,900 wells, more than 2,000 canal gates, and constructed 42 artificial water catchments. [4][5] 3) Through the Indonesia Climate Change Trust Fund (ICCTF) in 2010 and 2011, BAPPENAS piloted projects related to sustainable peatland management in four provinces, i.e., Central Kalimantan, South Kalimantan, Jambi, and Riau. From 2012 to 2014, BAPPENAS piloted projects related to sustainable management of degraded peatland to mitigate greenhouse gas emissions and optimize crop productivity in five provinces, i.e., Papua, West Kalimantan, Jambi, Riau, and Central Kalimantan. The progress on the implementation of sustainable forest management practices as follows: 1) Policy on Sustainable Forest. The Ministry of Environment and Forestry Regulation No. 30/2016 (in conjunction with MOF No.38/2009) has a long history of revision to improve Standard and Guide to Evaluation of Sustainable Production Forest Management Performance and Timber Legality Verification for Concession Holder or Private Forest through multi-stakeholder consultations since its applied in June 2019. 2) Social Forestry (MOEF Regulation No. 83/2016): Policy on forest management system employed by the community to improve their livelihoods and life quality as well as developing the forest potentials under the schemes includes: community

&Green JEC Assessment Report 36 Hatfield Indonesia

Item Criteria Analysis Check References forest (hutan kemasyarakatan); village forest (hutan desa); forest partnership (kemitraan kehutanan); customary forest (hutan adat). Government has allocated 12.7 million ha for Social Forestry [6].  From 2007 to 2013, a range of regulations were promulgated to support the role of communities in forest management, with regulations related to Community Forests (HKm), Village Forest (HD), Forestry Partnerships (Kemitraan Kehutanan) and Community Plantation Forest (HTR).  From 2007 to 2014, the process of granting legal access to forest resources to communities was relatively slow, with few permits being issued. Those that were issued covered a total area of 449,104 ha, of which 78,072 ha were HD, 153,725 ha were HKm, 198,595 ha were HTR, and 18,712 ha were Forestry Partnership.  From 2015 to 2018, permits issued to enable communities to manage forests increased by 1,272,540.83 ha, of which: i. Village forest 821,412.6 ha. ii. Community forest: 267,178.07 ha. iii. Community plantation forest: 70,742.78 ha. iv. Forest partnership: 72,318.13 ha. v. Social Forestry Utilization Permits 16,510.90 ha. vi. Customary forest: 24,378.34. The progress of Indonesia towards its commitment on Climate Change is demonstrated a significant milestone. Before the ratification process, Indonesia has long history and achievement important milestone to commit in reducing GHG emission and engage to climate change convention, among other through:  Indonesia ratified the UNFCCC through Act No. 6/1994 concerning the Ratification of United Nations Framework Convention on Climate Change. As a non-Annex I party, Indonesia is not obligated to reduce GHG emission. However, Indonesia is taking part in the effort to stabilize GHGs and reports the main sources of GHG emissions and climate-change related activities to the UNFCCC. [1][2]  First National Communication under Ministry of Environment in 1999 had presented the Intended Nationally Determined Contribution which one of the most important parts of the content was the first National Greenhouse Gases Emissions Inventory (NGHGEI) for the year 1990.[1]

&Green JEC Assessment Report 37 Hatfield Indonesia

Item Criteria Analysis Check References  The Second National Communication under the MOEF in 2000, presented the NGHGEI for the period 2000 to 2005. [3]  Indonesia has also ratified the Kyoto Protocol through Act No. 17/2004 on the Ratification of Kyoto Protocol to the United Nations Framework Convention on Climate Change.  Indonesia has adopted the Doha Amendment to the Kyoto Protocol on 6 August 2014 and submitted it to the UNFCCC Secretariat on 30 September 2014.  In May 2010, the governments of Indonesia and Norway signed a Letter of Intent to protect the remaining natural forests and reduce GHG emissions from deforestation and forest degradation. Under this agreement, the government of Indonesia receives performance-based payments.

3.2 …measurably on The GOI has made significant progress in reducing deforestation through a combination OK 1. Direktorat Inventarisasi dan a trajectory of improved planning, anticipation and better coordination between the central Pemantauan Sumber Daya Hutan towards the government, provincial government and concessioner holders. The BRG manages Direktorat Jenderal Planologi

targets for peatland restoration and MOEF is committed to support land rehabilitation. The GOI also Kehutanan dan Tata Kelola reduced enacted effective policy mitigation in protecting natural forest and peatland ecosystem. Lingkungan. Kementerian Lingkungan deforestation Prior to the first NDC and the determination of CM1 and CM2 targets, the highest average Hidup dan Kehutanan. 2017. annual deforestation rate was 2.26 million ha from 1996 to 2000. After the first NDC, the Deforestasi Indonesia Tahun 2016- 2017. Jakarta: Kementerian highest annual deforestation rate was 1.09 million ha from 2014 to 2015 and the lowest annual deforestation rate was 397,400 ha from 2013 to 2014. [5][6] [7] Lingkungan Hidup Republik Indonesia

In 2014 and into early 2016, dry weather conditions and an El Nino event contributed to 2. Direktorat Inventarisasi dan

severe fire seasons in Indonesia resulting in extensive forest and peatland fires. The net Pemantauan Sumber Daya Hutan result in 2014 and 2015 was an increase in deforestation and emissions which emitting Direktorat Jenderal Planologi CO2 is 213.422 MCO2e in 2014 and 804.064 MtCO2e. Kehutanan dan Tata Kelola Lingkungan. Kementerian Lingkungan In 2016 the GOI ratified the Paris Agreement and in 2017 the MOEF launched the NDC Hidup dan Kehutanan. 2017. Implementation Strategy to strengthen Indonesia’s commitment in reducing GHG Deforestasi Indonesia Tahun 2014- emissions which included support to the BRG Action Plan (2015 to 2020), Presidential 2015. Jakarta: Kemeterian Lingkungan Instruction No. 5/2019 to protect forests and peatlands, Presidential Instruction No. 8/2018 Hidup Republik Indonesia. to improve palm oil plantation management, as well as policies on law enforcement. 3. Direktorat Inventarisasi dan During the FREL and BAU scenario reporting period of 1990 to 2012, deforestation rates Pemantauan Sumber Daya Hutan vary from a peak in 1996 to 2000 with an average annual rate of 2.25 million ha to a low Direktorat Jenderal Planologi between 2011 to 2012 of 786,052 ha. More recently, the MOEF reported a deforestation Kehutanan dan Tata Kelola rate between 2016 to 2017 at 480,011 ha (Table 5). Lingkungan. Kementerian Lingkungan

&Green JEC Assessment Report 38 Hatfield Indonesia

Item Criteria Analysis Check References Under the Indonesia – Norway Cooperation on REDD+ implementation, Indonesia has Hidup dan Kehutanan. 2017. made progress in reduced emissions by 7,406,051 tons CO2 from deforestation and by Deforestasi Indonesia Tahun 2015- 1,191,560 tons CO2 from forest degradation. [13] 2016. Jakarta: Kementerian For restoration within concession areas, there are 99 industrial forestry plantation Lingkungan Hidup Republik Indonesia concessions operating in peatland areas in the provinces of Riau, South Sumatra, and 4. The Peatland Restoration Agency of West Kalimantan encompassing 2.59 million ha. Out of these 99 companies, 83 of them the Republic of Indonesia. 2019. Three have revised or rezoned peatlands as protected areas in their business work plan Years of Peatland Restoration in (Rencana Kerja Usaha [RKU]) and 45 companies have submitted a restoration plan to Indonesia Report. Jakarta MOEF. [8] 5. https://www.liputan6.com/bisnis/read/3 992347/gandeng-bappenas-papua- barat-dukung-pembangunan-rendah- karbon 6. Direktorat Jendral Perhutanan Sosial dan Kemitraan Lingkungan. 2018. Dampak Perhutanan Sosial, Perspektif Ekjonomi, Sosial dan Lingkunga. Kementerian Lingkungan Hidup dan Kehutanan. 7. Direktorat Jendral Pengendalian Perubahan Iklim. 2018. Indonesia Second Biennial Update Report Under the United Nations Framework Convention on Climate Change. Kementerian Lingkungan Hidup dan Kehutanan. 8. Presidential Regulation No. 1/2016 concerning BRG 9. Wijaya, A., Chrysolite, H., Ge, M., Wibowo, CK., Pradana, A., Utami, A.F. & Austin, K. 2017. How can Indonesia achieve its climate change mitigation goal? An analysis of potential emissions reductions from energy and

&Green JEC Assessment Report 39 Hatfield Indonesia

Item Criteria Analysis Check References land-use policies. Working Paper. World Resources Institute 10. Direktorat Jenderal Pengendalian Perubahan Iklim 2020. Peta Jalan NDC Mitigasi: Peluang dan Tantangan. Kementerian Lingkungan Hidup dan Kehutanan. Jakarta 11. Kementerian Lingkungan Hidup dan Kehutanan. 2018. Status Hutan dan Kehutanan Indonesia.2018. Kementerian Lingkungan Hidup dan Kehutanan Republik Indonesia. 12. Direktorat Jendral Perhutanan Sosial dan Kemitraan Lingkungan. 2018. Dampak Perhutanan Sosial, Perspektif Ekonomi, Sosial dan Lingkunga. Kementerian Lingkungan Hidup dan Kehutanan. 13. Directorate of Climate Change. 2019. Emission Reduction Report for the Indonesia-Norway Partnership. The Ministry of Environment and Forestry Republic of Indonesia

3.3 Verifiable N/A – to be determined upon re-assessment. N/A N/A improvement of the enabling environment

&Green JEC Assessment Report 40 Hatfield Indonesia

7.0 CHECKLIST JEC 4: MONITORING, REPORTING AND VERIFICATION (MRV)

Item Criteria Analysis Check References

4.1 Transparent The national MRV system is considered operational and functionally transparent to OK 1. Presidential Decree 61/2011 on the system monitor emissions from deforestation and forest degradation. The MRV system is National Plan for Reduction of Emission operational managed centralized by the MOEF and linkage with the subnational level allows frequent of Greenhouse Gases (RAN-GRK) data updates, reconciliation and analysis of data and better knowledge management to 2. Presidential Decree 71/2011 on support political decision-making processes of the central government. Implementation of a National Greenhouse The MRV system establishes a baseline from the GHG emission inventory for Gases Inventory deforestation and forest degradation to report on the national emission levels referenced 3. Presidential Decree 19/2010 on the to a defined performance measurement area (wilayah pengukuran kinerja [WPK]). Data Establishment of REDD+ Task Force from the national MRV is used to prepare the FREL, NDC, and BUR documents that are 4. Presidential Decree 62/2013 on submitted to the UNFCCC Secretariat in compliance with the principles of clarity, Establishment of REDD+ Agency transparency and understanding from the 2006 IPCC Guidelines. The Indonesian MRV system is managed by the MOEF in compliance with national policies and regulations 5. Presidential Decree 16/2013 on the on GHG inventory, emission reduction and standards for measurement and reporting. Establishment of Directorate General [1][2][3][4][5][6][7]. Climate Change Ministry of Environment and Forestry The MRV system is uses land cover data to support the development of the FREL and NDC. The land cover data is part the National Forest Monitoring System (NFMS) or 6. P.73/Menlhk/Setjen/Kum.1/12/2017 on Sistem Monitoring Hutan Nasional (SIMONTANA) which are accessible via the NFMS the guideline of implementation and website: http://nfms.dephut.go.id/ or http://nfms.klhk.go.id and links to the One Map Web reporting on GHG inventory GIS at http://tanahair.indonesia.go.id. 7. P.72/Menlhk/Setjen/Kum.1/12/2017 At the subnational level, the Forest Research and Development Agency (FORDA)- guidance on implementation of MOEF collaborated with the Forest Carbon Partnership Facility (FCPF) to establish an measurement, reporting, verification to online carbon monitoring system in 13 provinces although the website currently lacks GHG emission resources data on carbon monitoring. [8] 8. Ministry of Environmental and Forestry. 2016. National Forest Reference Emission Level for Deforestation and Forest Degradation in The Context of Decision1/CP.16 para70 UNFCCC 2016.Jakarta: Ministry of Environmental and Forestry Republic Indonesia.2016

4.2 Progress Implementation of MRV system is considered complete. The MRV system is integrated OK 1. P.73/Menlhk/Setjen/Kum.1/12/2017 on towards with the National Forestry Management and uses the land cover maps from the NFMS the guideline of implementation and implementation to measure emission reductions as determined in the FREL to develop the NDC. The reporting on GHG inventory

&Green JEC Assessment Report 41 Hatfield Indonesia

Item Criteria Analysis Check References of the MRV MRV is managed under DG on Climate Change, MOEF which coordinates subnational 2. Ministry of Environmental and Forestry. system activities for measuring, reporting and verification with support from donor agencies and 2017. Laporan Inventarisasi GRK dan other partnerships. Monitoring, Pelaporan, dan Verifikasi. To ensure that the MRV system reliably monitors deforestation and GHG emissions on 2017. Jakarta: Ministry of Environmental agriculture, forestry and land use, it has been integrated into the National Forestry and Forestry Republic Indonesia. 2017 Management, National Forest Inventory, Indonesian Carbon Accounting System, 3. Ministry of Environmental and Forestry. National Forest Monitoring System, National Registration System, National Spatial Data 2018. Laporan Inventarisasi GRK dan Infrastructure, Forest Resources Balance Sheet. [1] Monitoring, Pelaporan, dan Verifikasi. The MRV system is a reliable foundation to develop the FREL, NDC, and BUR; 2018. Jakarta: Ministry of Environmental documents which demonstrate progress towards implementation of the MRV system: and Forestry Republic Indonesia. 2018  NDC Report - The first NDC pledging to reduce emissions by 26% through national 4. Ministry of Environment and efforts and 41% with international support by 2020 was submitted in 2015 to the Forestry.2015. First Biennial Update UNFCCC Secretariat before the COP-21 Paris. In 2016, Indonesia submitted the Report to UNFCCC. 2015.Jakarta: second NDC increasing the national target to 29% based on a BAU scenario and Ministry of Environmental and Forestry 41% with international support by 2030. [2][3] Republic Indonesia. 2015  FREL Report - The first FREL was established in 2014 in collaboration with the 5. Ministry of Environment and REDD+ Agency and MOF. To improve the reference baseline the second FREL was Forestry.2018. Second Biennial Update established by the Second National Communication65 (SNC) to develop emission to UNFCCC Report. 2018.Jakarta: projections from land use, land use change and forestry (LULUCF). Ministry of Environmental and Forestry Republic Indonesia. 2018.  Biennial Update Report (BUR) - The first BUR on the national inventory of anthropogenic emissions by sources was published by the DG of Climate Change 6. Ministry of Environmental and Forestry. in 2015. The second BUR was submitted to the UNFCCC Secretariat in 2018 while 2016. National Forest Reference the third BUR will be submitting in 2020. [4][5] Emission Level for Deforestation and Forest Degradation in The Context of The MRV system has been expanded to include GHG emission reduction efforts from Decision1/CP.16 para70 UNFCCC Non-Party Stakeholders (NPS) including local communities, private sector, municipals, 2016.Jakarta: Ministry of Environmental NGOs and indigenous peoples’ communities. The development of a validation system and Forestry Republic Indonesia.2016 and carbon accounting on grass-root and community-based activities and village climate projects follows the DG of Climate Change Regulation No. P5/2017 which allows for 7. Pemerintah Provinsi Sumatera Selatan. MRV as well as the development of the One Data GHG Policy.[6][3] The One Data GHG 2018. Rencana Aksi Daerah (RAD) Policy is part of the nine pillars of the NDC system that consists of: (a) maintaining Penurunan Emisi Gas Rumah Kaca ownership and commitment; (b) capacity building; (c) enabling environment; (d) (GRK) Provinsi Sumatera Selatan Tahun framework and communication network development; (e) one data GHG policy; (f)

65 The SNC is the responsible institution that has authority to communicate with the Secretariat of the UNFCCC. The SNC is managed under the Ministry of Environment in 2019 funded by Global Environment Fund through UNFP. The SNC present the National Greenhouse Gases Inventory for the period 2000 to 2005

&Green JEC Assessment Report 42 Hatfield Indonesia

Item Criteria Analysis Check References development policy, plan, program intervention; (g) NDC implementation guideline 2010-2030. Palembang, Indonesia: development; (h) NDC implementation; and (i) Monitoring and Review NDC.[6] Pemerintah Provinsi Sumatera Selatan. To improve subnational capacity and GHG inventory reporting, there are several 8. ditjenppi.menlhk.go.id/berita-ppi/3416- capacity building programs for Balai Pengendalian Perubahan Iklim Kebakaran Hutan peningkatan-peran-sub-nasional-dalam- Lahan (PPIKHL) or Climate Change Response Unit and Forest and Land Fires Agency penguatan-pelaporan-inventarisasi-grk- and other international project support. [3][7][8] Examples of implementation of MRV at nasional.html the subnational level include: 9. Pemerintah Provinsi Kalimantan Barat.  South Sumatra - MRV is implemented by Dinas Lingkungan Hidup (Environment 2017. Strategi dan Rencana Aksi (SRAP) Agency) and the Dinas Kehutanan Provinsi (Forestry Province Office) as the lead REDD+ Kalimantan Barat. Kalimantan agencies with support from the World Agroforestry Center-ICRAF. [7] Barat: Pemerintah Provinsi Kalimantan  West Kalimantan - MRV is implemented by the REDD+ Working Group. [9] Barat  East Kalimantan - MRV is implemented in collaboration between World 10. Bappeda Provinsi Kalimantan Timur. Agroforestry-ICRAF and GIZ with Dinas Lingkungan Hidup (Environment Agency) 2018. Rencana Aksi Daerah (RAD) as the lead agency. [10] Penurunan Emisi Gas Rumah Kaca (GRK) Provinsi Kalimantan Timur Tahun  Jambi - MRV has been implemented by Satuan Tugas Persiapan REDD+ (REDD+ 2010-2030. Palembang, Indonesia: task force) since 2013 with support from KKI WARSI (a local NGO); Flora and Bappeda Provinsi Kalimantan Timur. Fauna International (FFI), World Agroforestry Center-ICRAF and the Zoological 11. Perbatakusuma, E.A, Ridwansyah, M, Society of London-Indonesia Program, Jambi University. [11] Irfan, A.,Akiefnawati, R., Widodo, W.,  Papua - MRV is implemented by Badan Pengelolaan Sumberdaya alam dan Kurniawan, D., Primadona,E., Shakti, M., Lingkungan Hidup (Natural Resource and Environment Agency) and the University Andrian, I, Erwin, D., Lindawati, dan of Papua. [12][14] Alfiansyah (Eds.) 2013. Strategi dan  West Papua - MRV is implemented by a collection of governmental agencies Rencana Aksi Provinsi (SRAP) REDD+ including: BAPPEDA, BAPPEDALDA, Mining and Energy Agency, Agriculture Provinsi Jambi 2012 -2032. Provinsi Poultry and Food Security Agency, Industry Agency, Cooperative and Trade Jambi: Dokumen Utama. Komisi Daerah Agency, and Forestry and Plantation Agency. [13] REDD+. 12. Pemerintah Provinsi Papua. 2013. RAD Emisi GRK Provinsi Papua Barat Tahun 2013-2030. Papua: Pemerintah Provinsi Papua 13. Pemerintah Provinsi Papua Barat. RAD Emisi GRK Provinsi Papua Barat Tahun 2013-2030. Papua Barat. Pemerintah Provinsi Papua Barat.

&Green JEC Assessment Report 43 Hatfield Indonesia

Item Criteria Analysis Check References 14. Ekawati S., et.al. Policies Affecting the Implementation of REDD+ In Indonesia (cases in Papua, Riau and Central Kalimantan). 2019. Forestry and Environment Research, Development and Innovation Agency. Bogor.2019

&Green JEC Assessment Report 44 Hatfield Indonesia

8.0 CHECKLIST JEC 5: SOCIAL AND ENVIRONMENTAL SAFEGUARD

Item Criteria Analysis Check References

5.1 Safeguards In accordance of the Cancun Agreements, the GOI developed policy and issued OK 1. UNFCCC [internet]. 2011. Decisions against social regulations for the development of safeguards to mitigate social and environmental risks adopted by the Conference of the Parties. and associated with the implementation of the REDD+ program and Indonesia’s forest plan [cited: 2019 November 6]. Available from: environmental and programs and made these documents publicly available66. https://unfccc.int/documents/6527 risks Indonesia developed its own process to respond to the seven safeguards listed in 2. Aurora L. 2016. Safeguards Information associated Appendix I of Decision 1/Conference of Parties 16 with respect to mitigation action in System for REDD+ in Indonesia: Moving with the the forest sector through the development of a web-based REDD+ safeguards towards an Operational SIS REDD+. DG strategy in information system supporting REDD+ implementation in Indonesia. [1] Climate Change Ministry of Environment place Following a multi-stakeholder process in 2011 and 2012 that included national and Forestry. Jakarta workshops, regional consultations and focus group discussions as well as analysis of 3. Ekawati S., et.al. 2019. Policies Affecting existing regulations, the MOEF with support from GIZ – Forclime developed a framework the Implementation of REDD+ in Indonesia of Principles, Criteria and Indicators (PCI) for REDD+ safeguards implementation [2]. (cases in Papua, Riau and Central The resultant system for providing information on safeguards in REDD+ implementation Kalimantan). 2019. Forestry and (SIS-REDD+) is based on seven Principles directly adopted from Decision 1/CP.16 of Environment Research, Development and 2010, as well as 17 Criteria and 32 Indicators67. Innovation Agency. Bogor.4. Darmawan A, As a guideline of environmental and social safeguards implementation, the GOI Sinaga AC. 2015. Towards REDD+ implemented several regulations [3] as follows: Integrity: Opportunities and Challenges for Indonesia. Center for International Forestry  Law No. 32/2009 regarding Environmental Protection and Management released Research (CIFOR) and Chr. Michelsen by the GOI prior to the Cancun Agreements; Institute (CMI).  Presidential Decree No. 16/2015 regarding the move of the National Council on

Climate Change (NCCC) and the REDD+ Agency to the MOEF - Directorate General of Climate Change;  Law No. 16/2016 regarding the Ratification of the Paris Agreement to the United Nations Framework Convention on Climate Change; and  Presidential Decree No. 77/2018 regarding Environmental Management Funds. In addition to these four regulations, Indonesia has 16 policies related to the implementation of environmental and social safeguards and several ministerial level regulations or decrees from the Directorate General of Climate Change66.

66 Detail of regulations can be seen at http://ditjenppi.menlhk.go.id/peraturan-perundangan.html 67 Detail of safeguards principles, criteria, and indicators can be seen at http://182.253.224.163/assets/lampiran/lampiran_5a2f676de1c27_2017-12-12_12-21-49.pdf

&Green JEC Assessment Report 45 Hatfield Indonesia

Item Criteria Analysis Check References In SIS-REDD+, the provision of safeguards implementation information is designed to be delivered from a project site to SIS management in the districts, to the provinces, and finally to the national level [2]. The SIS-REDD+ was established to promote transparency and ease of access to safeguards information using two components that were designed to support each other:  A database to manage data and information on safeguards implementation; and  Web-platform present and display the information on safeguards implementation (http://ditjenppi.menlhk.go.id/sisredd/).

5.2 Progress The GOI has made progress on implementation of the safeguard system since inception OK 1. UNFCCC [internet]. 2011. Decisions adopted in 2013 although increased awareness and capacity strengthening at the subnational by the Conference of the Parties. [cited: 2019 level is still needed. The support for international donors requires the social environment November 6]. Available from: assessment and support for capacity building of the stakeholder embedded with https://unfccc.int/documents/6527 government agencies. 2. Aurora L. 2016. Safeguards Information The SIS-REDD+ was piloted in East Kalimantan and Jambi provinces in 2013 but has System for REDD+ in Indonesia: Moving since been expanded to 11 provinces under various forestry projects68. SIS-REDD+ was towards an Operational SIS REDD+. DG designed to build upon existing instruments and systems as well as the collective Climate Change Ministry of Environment and knowledge from various stakeholders while accommodating the diverse conditions in Forestry. Jakarta Indonesia. While SIS REDD+ provides useful information on Indonesia safeguards 3. Ekawati S., et.al. 2019. Policies Affecting the activities, the number of activities is limited in all but COP16 Safeguard 1 (see figure Implementation of REDD+ in Indonesia 69 below) . (cases in Papua, Riau and Central Provinces where REDD+ safeguard activities have been recorded in the SIS REDD+ Kalimantan). 2019. Forestry and Environment include: Research, Development and Innovation 1. West Sumatra (3 activities); Agency. Bogor.4. Darmawan A, Sinaga AC. 2015. Towards REDD+ Integrity: 2. Jambi (14 activities); Opportunities and Challenges for Indonesia. 3. Riau Islands (1 activity); Center for International Forestry Research 4. West Kalimantan (23 activities); (CIFOR) and Chr. Michelsen Institute (CMI). 5. East Kalimantan (1 activity); 6. Jakarta (1 activity); 7. West Java (1 activity);

68 Detail information of province list can be accessed on: http://182.253.224.163/index/export_kegiatan_provinsi 69 More information about the figure can be accessed on: http://ditjenppi.menlhk.go.id/sisredd/

&Green JEC Assessment Report 46 Hatfield Indonesia

Item Criteria Analysis Check References 8. East Java (4 activities); 9. West Nusa Tenggara (4 activities); 10. South Sulawesi (1 activity); and 11. West Sulawesi (1 activity).

As a complementary initiative, the national REDD+ Agency worked with various stakeholders (GOI, NGO, and academics) to develop the Prinsip, Kriteria, Indikator, Safeguards Indonesia (PRISAI) or the Indonesian Safeguards, Indicators, Criteria and Principles. PRISAI has three additional principles compared to the PCI framework for SIS-REDD+: i) clarifications of the status of tenure and land use rights, ii) improvement of forest governance, and iii) fair REDD+ benefit sharing. The safeguards in PRISAI had been used as a basis for implementing site-specific REDD+ projects in Indonesia and still can be used as guidelines for national safeguards. [1] [2][3]

&Green JEC Assessment Report 47 Hatfield Indonesia

Item Criteria Analysis Check References In addition to these safeguards at the national level, development of safeguard information at the subnational level has been conducted in East Kalimantan and Jambi provinces. In these two provinces, safeguards have been integrated into the Strategic Environmental and Social Assessment (SESA) document70. Both provinces developed the SESA document to obtain result-based payments from a World Bank funding scheme. There are series of training and capacity building had been conducted to strengthen the implementation of Social Environment Safeguard into the local stakeholder which cover three priority provinces: West Kalimantan, East Kalimantan, Central Kalimantan. This initiative is funded by the Forest Carbon Partnership Facility – The World Bank and includes: . Training for REDD+ SIS operationalization in Pontianak (West Kalimantan, on Juni 2019, number of participants 40 persons). . Workshop on Benefit Sharing Mechanism in Balikpapan, East Kalimantan (on October 31, 2018, number of participants 50 persons). Workshop on Benefit Sharing Plan Document in Balikpapan, East Kalimantan (on April 25, number of participants 60 persons). . Public consultations of safeguards documents for districts level in Samarinda, East Kalimantan (on May 21, 2019, number of participants 50 persons) and in Balikpapan, East Kalimantan (on May 23, 2019, number of participants 30 persons). . Socialization of Capacity Strengthening and Facilitation of Forestry Mitigation Action through REDD+ Procedures to Support NDC Implementation in Palangkaraya, Central Kalimantan (September 28, 2018) and Padang, West Sumatera (November 22, 2018).

70 Detailed SESA document from East Kalimantan and Jambi can be accessed on: http://ditjenppi.menlhk.go.id/peraturan-perundangan.html

&Green JEC Assessment Report 48 Hatfield Indonesia

APPENDICES

Appendix A1

Province Assessment and Selection Process

APPENDIX A1 PROVINCE ASSESSMENT AND SELECTION PROCESS

Provincial Selection Methodology

PTHI determined that three important provincial-level parameters should be assessed (Table A1.1).

Table A1.1 Provincial parameters and rationale.

No. Parameter Rationale Data Source

1 Presence and size &Green targets jurisdictions with peatlands. Peta Lahan Gambut Skala of peatland (in 1:250.000 (BBSDLP, 2011), hectare)

2 Size of forest cover Provinces with large forested areas can have a Ministry of Environment and (in hectare) greater influence or contribution to the Forestry Geoportal (Peta

deforestation rate. Interaktif KLHK

3 Deforestation rate Provinces with high deforestation rates and Ministry of Environment and from 2015 to 2018 large forested areas could disproportionately Forestry Geoportal (Peta

(in hectare) influence the national targets for reductions in Interaktif KLHK deforestation.

PTHI collected data from the sources listed in Table A1.2 and then followed the following three steps:

. Step One – The provinces were ranked based on the size of peatlands within the province.

. Step Two – The provinces were ranked based on: a) the size of the forest cover, and 2) the amount of deforestation from 2015 to 2018.

. Step Three – The provinces with a ranking of 5 or more in all parameters listed in Step Two were identified as the provinces to include – as needed - in the Indonesia JECA.

The nine provinces represent:

. 94.69% of the peatland area (14,080,254.86 ha of 14,869,910 ha nationwide).

. 70.25% forest cover (57,753,472.67 ha of 88,066,391 ha nationwide).

. 64.12% of the total deforestation (991,341.63 ha of 1,970,690 ha nationwide).

&Green JEC Assessment Report A1-1 Hatfield Indonesia

Table A1.2 Provincial Selection Data.

Peatland Area Forest Cover 2018 Total Deforestation (2015-2018) Weighted Value in No. Provinces % of % of % of Value of Value of forest Value of Total Area (ha) Rank Area (ha) Rank Area (ha) Rank JECA Total Total Total peatland cover deforestation Value 1 Riau 3,866,330.53 1 26.00% 1,532,588.26 15 1.74% 116,782.23 4 5.93% 5 1 3 9 Y 2 Central Kalimantan 2,654,819.37 2 17.85% 7,237,195.39 3 8.22% 259,953.50 2 13.19% 4 2 5 11 Y 3 Papua 2,635,509.17 3 17.72% 24,849,352.31 1 28.22% 109,557.82 6 5.56% 4 5 3 12 Y 4 West Kalimantan 1,679,679.88 4 11.30% 5,475,404.53 6 6.22% 219,579.33 3 11.14% 3 2 5 10 Y 5 South Sumatera 1,276,451.53 5 8.58% 794,380.22 19 0.90% 55,277.38 13 2.80% 2 1 2 5 Y 6 West Papua 1,032,098.55 6 6.94% 8,820,557.75 2 10.02% 43,746.51 16 2.22% 2 2 1 5 Y 7 Jambi 603,847.66 7 4.06% 1,020,238.26 17 1.16% 110,843.35 5 5.62% 1 1 3 5 Y 8 North Sumatera 258,708.49 8 1.74% 1,655,748.56 14 1.88% 44,457.87 15 2.26% 1 1 1 3 N 9 Aceh 215,418.24 9 1.45% 3,002,637.72 8 3.41% 60,105.56 10 3.05% 1 1 2 4 N 10 North Kalimantan 170,015.10 10 1.14% 5,631,866.95 5 6.40% 85,576.72 8 4.34% 1 2 2 5 Y 11 East Kalimantan 161,503.07 11 1.09% 6,503,286.37 4 7.38% 262,197.08 1 13.30% 1 2 5 8 Y 12 South Kalimantan 104,832.71 12 0.70% 705,682.02 21 0.80% 59,742.33 12 3.03% 1 1 2 4 N 13 West Sumatera 100,568.40 13 0.68% 1,877,186.06 13 2.13% 42,744.50 17 2.17% 1 1 1 3 N 14 Lampung 49,060.39 14 0.33% 274,950.42 26 0.31% 12,492.69 24 0.63% 1 1 1 3 N 15 Bangka Belitung Island 44,848.19 15 0.30% 224,780.47 28 0.26% 10,701.32 26 0.54% 1 1 1 3 N 16 Riau Island 8,184.89 16 0.06% 248,383.12 27 0.28% 24,190.71 21 1.23% 1 1 1 3 N 17 Bengkulu 8,033.35 17 0.05% 656,279.48 23 0.75% 26,149.85 20 1.33% 1 1 1 3 N 18 Central Sulawesi 0.00 0.00% 3,815,794.98 7 4.33% 96,379.85 7 4.89% 1 1 2 4 N 19 Southeast Sulawesi 0.00 0.00% 1,879,622.66 12 2.13% 65,583.01 9 3.33% 1 1 2 4 N 20 North Maluku 0.00 0.00% 1,969,960.84 10 2.24% 59,760.87 11 3.03% 1 1 2 4 N 21 South Sulawesi 0.00 0.00% 1,330,206.67 16 1.51% 46,805.17 14 2.38% 1 1 1 3 N 22 West Nusa Tenggara 0.00 0.00% 763,822.26 20 0.87% 40,516.11 18 2.06% 1 1 1 3 N 23 Maluku 0.00 0.00% 2,978,563.95 9 3.38% 36,447.90 19 1.85% 1 1 1 3 N 24 East Nusa Tenggara 0.00 0.00% 1,920,070.19 11 2.18% 17,303.19 22 0.88% 1 1 1 3 N 25 West Sulawesi 0.00 0.00% 806,571.06 18 0.92% 14,069.03 23 0.71% 1 1 1 3 N 26 Gorontalo 0.00 0.00% 679,370.01 22 0.77% 11,813.62 25 0.60% 1 1 1 3 N 27 North Sulawesi 0.00 0.00% 556,322.20 24 0.63% 9,546.19 27 0.48% 1 1 1 3 N 28 East Java 0.00 0.00% 456,256.77 25 0.52% 8,497.69 28 0.43% 1 1 1 3 N 29 Bali 0.00 0.00% 91,900.50 30 0.10% 7,828.84 29 0.40% 1 1 1 3 N 30 West Java 0.00 0.00% 172,896.77 29 0.20% 6,507.50 30 0.33% 1 1 1 3 N 31 0.00 0.00% 62,205.76 32 0.07% 3,931.84 31 0.20% 1 1 1 3 N 32 Banten 0.00 0.00% 71,849.65 31 0.08% 1,017.45 32 0.05% 1 1 1 3 N 33 DI Yogyakarta 0.00 0.00% 87.03 34 0.00% 582.56 33 0.03% 1 1 1 3 N 34 DKI Jakarta 0.00 0.00% 372.26 33 0.00% 0.00 34 0.00% 1 1 1 3 N 14,869,909.52 100% 88,066,391.45 100% 1,970,689.57 100% Legend: Provinces with peatland area Provinces with no peatland area 9 selected provinces in JECA Not selected provinces in JECA

&Green JEC Assessment Report A1-2 Hatfield Indonesia

Appendix A2

Conservation and Protected Area Details in the Nine JECA Priority Provinces

APPENDIX A2 CONSERVATION AND PROTECTED AREA DETAILS IN THE NINE JECA PRIORITY PROVINCES

Table A2.1 Conservation and protected area details in the nine JECA priority provinces

Conservation / Protected Area (ha)71,72 Peatland73 (ha) Social Forestry (ha) Grand Forest Park Province National Park (ha) Biosphere Reserve (ha)74 Wildlife Reserve/ Protected Forest*/ Natural Reserve** (ha) & % of province & % of (TAHURA) (ha) & % to area province area & % of province area & % to province area province area & % of province area

75 Zamrud 31,480 0.35% Giam Siak Kecil Bukit Batu 705,270 7.82% Syarif Hasim 6,172 0.07% Tasik Belat 2,529 0.03% 3,866,330.50 87,613.30 Riau Tesso Nilo76 81,793 0.91% - - - - Kerumutan 120,000 1.33% (43%) (1%) Bukit Tiga Puluh77 144,223 1.60% ------

Sembilang 202,896 4.18% - - Sutan Thaha Syaifudin 15,830 0.33% Durian Luncuk II 41.37 0.00%

Berbak 162,700 3.35% ------603,847.70 182,330.60 Jambi Bukit Tiga Puluh 143,223 2.95% ------(12%) (4%) Bukit Dua Belas78 54,780 1.13% ------

Kerinci Seblat79 1,424,650 29.33% ------

Berbak Sembilang80 205,100 2.35% Berbak-Sembilang 3,819,837 43.78% - - Dangku 31,752 0.36% South 1,276.451.5 105,367.70 Bukit Barisan Selatan81 324,000 3.71% - - - - Bentayan 19,300 0.22% Sumatra (15%) (1%) ------Padang Sugihan 75,000 0.86%

Kutai 198,629 1.54% - - Bukit Soeharto 61,850 0.48% Muara Kaman Sedulang 62,500 0.48%

East ------Padang Lumay** 5,000 0.04% 161,503.10 152,661.30 Kalimantan ------Teluk Apar** 46,900 0.36% (1%) (1%)

------Teluk Adang 61,900 0.48%

71 KLHK. 2016. Informasi 521 Kawasan Konservasi Region Kalimantan - Sulawesi. Jakarta: KLHK DirJen KSDAE

72 KLHK. 2016. Informasi 521 Kawasan Konservasi Region Maluku – Papua. Jakarta: KLHK DirJen KSDAE

73 Balai Besar Litbang Sumberdaya Lahan Pertanian (BBSDLP) tahun 2011, http://sisultan.litbang.pertanian.go.id/#

74 Man and Biosphere. 2019. 16 Biosphere Reserve di Indonesia, Bogor: UNESCO

75 BBKSSA Riau [Internet]. 2017. Taman Nasional Zamrud; [cited 2019 November 25]. Available from: http://www.bbksdariau.id/index.php?r=post-detail&id=18&token=47f1842dabae282e79deac6e9e1fb605

76 KLHK TN Tesso Nilo [Internet]. 2019. Pelalawan Indonesia:TN Tesso Nilo;[updated 2019; cited 2019 November 25]. Available from: http://tntessonilo.com/

77 KLHK TN Bukit Tiga Puluh [Internet]. 2017. Indragiri Hulu Provinsi Riau Indonesia:TN Bukit Tiga Puluh;[updated 2017; cited 2019 November 25]. Available from: http://tnbt.ksdae.menlhk.go.id/page/sejarah

78 KLHK TN Bukit Bukit Dua Belas [Internet]. 2017. Soralangun Provinsi Jambi Indonesia:TN Bukit Dua Belas;[updated 2017; cited 2019 November 25]. Available from: https://www.tnbukitduabelas.id/

79 KLHK TN Kerinci Seblat [Internet]. 2017. Sungai Penuh Provinsi Jambi Indonesia:TN Kerinci Seblat;[updated 2017; cited 2019 November 26]. Available from: https://tnkerinciseblat.or.id/

80 Kehati-TFCA [Internet].2016. Jakarta Indonesia: Ekosistem Sembilamg – Taman Nasional Berbak;[Updated 2016; cited 2019 November 26]. Available from: http://tfcasumatera.org/bentang_alam/ekosistem-sembilang-taman-nasional-berbak/

81 Kehati-TFCA [Internet].2016. Jakarta Indonesia: Taman Nasional Bukit Barisan Selatan;[Updated 2016; cited 2019 November 26]. Available from: http://tfcasumatera.org/bukit-barisan-selatan/

&Green JEC Assessment Report A2-1 Hatfield Indonesia

Conservation / Protected Area (ha)71,72 Peatland73 (ha) Social Forestry (ha) Province National Park (ha) Biosphere Reserve (ha)74 Grand Forest Park Wildlife Reserve/ Protected Forest*/ Natural Reserve** (ha) & % of province & % of (TAHURA) (ha) & % to & % of province area & % to province area & % of province area area province area province area

Bukit Baka Bukit Raya 181,090 1.23% - - - - Bukit Tiong Kandang* 4,279 0.03%

Gunung Palung 90,000 0.61% - - - - Muara Kedawangan** 149,079 1.01%

Danau Sentarum 132,000 0.90% - - - - Mandor** 3,080 0.02%

Betung Karihun 800,000 5.43% - - - - Lho Pat Foen Pi** 7.8 0.00%

------Gunung Nyiut Penrissen** 140,000 0.95%

West ------Gunung Raya Pasi** 3,700 0.03% 1,679,679.90 378.305.0 Kalimantan ------Karimata** 77,000 0.52% (11%) (3%)

------Bukit Bengkawan* 2,157 0.01%

------Engkalan* 2,956 0.02%

------Segumon* 3,775 0.03%

------Bukit Belungai* 3,261 0.02%

------Paret Kaya* 1,900 0.01%

Bukit Baka Bukit Raya 181,090 1.18% - - - - Bukit Tangkiling** 2,061 0.01% Central 2,654,919.40 194,862.60 Sebangau 568,700 3.70% - - - - Parawen I dan II** 5,885 0.04% Kalimantan (17%) (1%) Tanjung Putting 300,040 1.95% - - - - Bukit Sapat Hawung** 239,000 1.56%

North 170,015.10 62,417.90 Kayan Mantarang 1,360,500 10.55% ------Kalimantan (2%) (1%)

Wasur 0.00% - - - - Enarotali** 300,000 0.91%

Lorentz 0.00% - - - - Pegunungan Cycloops 22,500 0.07% 2,635,509.20 90,509 Papua Teluk Cendrawasih 68,200 0.21% - - - - Peg. Wayland 300,000 0.91% (8%) (0%)

------Bupul 126,810 0.38%

------Pegunungan Arfak** 68 0.00%

------Biak Utara 6,138 0.06%

------Waigeo Barat** 153,000 1.55%

West ------Salawati Utara** 57,000 0.58% 1,032,098.60 40,648.00 Papua ------Pulau Supiori** 42,000 0.42% (10%) (0%)

------Batanta Barat** 10,000 0.10%

------Pegunungan Wondiboy** 73,022 0.74%

- - - - - Yapen Tengah** 59 0.00%

&Green JEC Assessment Report A2-2 Hatfield Indonesia

Appendix A3

Subnational Plan and Strategic Action for GHG Emission Reduction in JECA Priority Provinces

APPENDIX A3 SUBNATIONAL PLAN AND STRATEGIC ACTION FOR GHG EMISSION REDUCTION IN JECA PRIORITY PROVINCES

Regional involvement action in reducing GHG emissions in forestry sectors (forest and peatland) include: [8]

1. Baseline preparation - Local governments must establish baselines in accordance with the framework and methodology established by the relevant technical ministries. The central government must also identify maps and classifications of land use, review national land use frameworks that are adapted to the IPCC Guideline 2006, analyze satellite imagery using "wall to wall systems" and interpret historical data on changes in national land use.

2. Mitigation Scenario - The role of the provincial working groups in preparing the mitigation scenarios is to coordinate the inputs prepared by the working group of districts and cities including activities that could potentially reduce GHG or support activities, mitigation costs of each program, activity, etc. Then compile some mitigation scenarios consisting of these potential activities.

3. Proposed Mitigation Action - The provincial government, especially the land-based Working Group, coordinates the preparation of drafting mitigation action based on mitigation scenarios that best suit the characteristics and the capacity of the region.

4. Measurement, reporting, and verification (MRV) - The provincial government through Regional Planning and Development Agency (Badan Pembangunan dan Perencanaan Daerah [Bappeda]) is tasked to coordinate and collect the implementation report of mitigation actions carried out by implementing agencies in various districts and cities; the compiled report is submitted to BAPPENAS. The main tasks for implementation of the activities include carrying out mitigation actions, measuring and recording GHG emission reduction from each mitigation action performed, recording the flow and amount of funds used, recording co-benefits or negative impacts (if any), and programs capacity building and institutional. The process and report on the implementation of each mitigation action carried out at the provincial level as well as in the districts and cities is ready to be verified by an independent auditor.

The capacity empowerment in regards of the implementation of REDD+ to the relevant stakeholder in the subnational include:

1. The socialization of this regulation related to development FREL for subnational had been conducted in 2018 in five provinces: Central Kalimantan, East Kalimantan, North Kalimantan, Jambi, and South Sumatra. REDD+.

2. SIS-REDD+ training has been conducted in West Kalimantan province while public consultations on safeguards has been conducted in East Kalimantan province with supported from the Forest Carbon Partnership Facility.

&Green JEC Assessment Report A3-1 Hatfield Indonesia

Table A3.1 Subnational target, risk analysis, plan and strategic action for GHG emission reduction, in Nine JECA Priority Provinces

Historical GHG emission Target Emission Provinces References BAU Projection Indication on National Level Target & Strategy Progress Risk Analysis level Reduction

Riau Subnational Average GHG emission period Average annual N/A N/A . A REDD+ Task Force was . SIS-REDD+ was The corruption in forestry action plan on 2006 – 2011: peatland projection rate emission No applicable government data established through Riau Governor implemented to record the sectors involved the GHG emission 635,591.70 tCO2e; non- 2006-2021: Decree No. Kpts. 833/VII/2011 on collective knowledge from governors, will jeopardize reduction (RAD- peatland 135,979.36.36 tCO2e 29,341,608.53 tCO2e/ July 21, 2011 juncto Riau Governor various stakeholders in the the commitment to maintain Penurunan Historical emission: year; Decree No. 369/IV/2012 on April project related to REDD+ sustainable development Emisi GRK) 20, 2012; goals particularly for land use . Peatland 2006 – 2011: Projection 2012 – 2016: Riau 2012 change and forest fire. Two 2,756,434.77 tCO2e 147,865,426 tCO2e/ year . The Action Plan of Greenhouse . FREL emission allocation giant companies in Riau Projection 2017 – 2021: Gas Emission (RAD-GRK) was (ton CO2e): Deforestation . Peatland forest 2006 -2011: have significant impact on 159,387,594 tCO2e/ year finalized; and 932,636; Degradation 2,863,711 tCO2e land use change in their . The REDD+ SRAP was developed. 165,066 . Non peatland 2006-2011: concessions. In addition,

2,590,008 tCO2e Riau have three national parks and one Biosphere that protect forest and peatland ecosystem which need to be monitor closely by public.

Jambi Strategy Action Average GHG emission period Average annual The quantitative target Compared to the national level . Strategy and Action Plan, GHG . SIS-REDD+ was To maintain the emission Plan GHG 2008 – 2012: 4,779,471.4 projection rate emission for reducing emission emission reduction targets (must Emission Reduction on Jambi implemented to record the reduction and protection Emission tCO2e; 2008-2030: 5,002,489.2 from deforestation and decreased -70% of BAU Province Year 2013; and Governor collective knowledge from forest, provincial Reduction Jambi province has opportunity tCO2e/ year; forest degradation is condition in 2030), Jambi Regulation Jambi Province No. 36 various stakeholders in the government has prepared (SRAP- to reduce GHG emission more REL cumulative period 30% of Business-as- province's emission reduction on GHG Emission Reduction project related to REDD+ the Forest Carbon Penurunan than 55 MtCO2e among other 2008 – 2030: Usual (BAU) emissions targets from the forest-related Jambi Province. goals (14 activities) Partnership Facility funded Emisi GRK), 47.3 MtCO2e from peatland, 121,858,826 tCO2e/year (FREL) period 2005 - sector (from deforestation and . This safeguard information by the World Bank to assist Jambi period 2030, that is 57 to 74 forest degradation) to achieve - Emission Reduction LULUF, and conservation by GHG emission Jambi has been integrated into 2012 to-2032 MtCO2e 30% of BAU is not likely to meet Program in Jambi 2030 or an average of 1.58 province on 2005 was 57 strategic environment and (2013) national targets jurisdiction through Bio- MtCO2e per year, by properly MtCO2e or 3% equivalent social assessment (SESA) Carbon Initiatives for integrating domestic (CM1) and from total emission of document sustainable forest international (CM2) policy Indonesia . FREL emission allocation landscape. The readiness (ton CO2e): Deforestation stage now is in establishing 4,776,961; Degradation the Strategic Environment 40,118 and Social Assessment

South Subnational Average GHG emission period Average annual GHG emission N/A . Strategy and Action Plan, GHG . FREL emission allocation To deal with the sustainable Sumatera action plan on 2000 – 2011:5,208,277.6 projection rate emission reduction target with No applicable government data Emission Reduction on South (ton CO2e): Deforestation development, the provincial GHG emission tCO2e 2011 – 2030: 19,392,943 the BAU scheme, Sumatera Province Year 2010 – 4,833,693; Degradation government has established reduction (RAD Historical emission: tCO2e/ year; which is 2020; 283,458 green growth scenario Penurunan 2,354,406,642.98 tons which will include the effort 2000 – 2003: 8,982,632 tCO2e Reference emission level . Governor Regulation of South Emisi GRK) cumulative period 2011 of CO2e in 2013. Sumatera No. 34/2012 on GHG in maintaining emission 2003 – 2006: 31,823,912 Sumatera to 2030: 386,465913 The quantitative Emission Reduction South reduction from development tCO2e Selatan Period tCO2e/year projection CO2 Sumatera Province; and sector, particularly in 2010 to 2030 2006 – 2009: 10,035,740 AFOLU sectors. Projected emissions from emission reduction . Governor Decree of Sumatera (2018) tCO2e all sectors are estimated 2016 to 2030 from Selatan No. 212/KPTS/DLHP/2017 2009 – 2011: 6,448,220 tCO2e at around 43.7 million peatland is -5.85% that on the establishment of climate equivalent to 21.6 tons of CO2e change working group South million tCO2 Sumatera Province. No CO2 emission reduction data from forestry sector

&Green JEC Assessment Report A3-2 Hatfield Indonesia

Historical GHG emission Target Emission Provinces References BAU Projection Indication on National Level Target & Strategy Progress Risk Analysis level Reduction

West Strategy Action Greenhouse gas emissions N/A The quantitative target Compared to the national level . Strategy and Action Plan, . SIS-REDD+ was To deal with sustainable Kalimantan Plan GHG from deforestation and forest for reducing emission emission reduction targets (must Implementation REDD+ West implemented to record the development, the provincial Emission degradation in period 2013 to from deforestation and decreased -70% of BAU Kalimantan Province Year 2013; collective knowledge from government has already Reduction 2016: 296,057 ha (2013), forest degradation is condition in 2030) West and various stakeholders in the established green growth (SRAP- 37,084 ha (2014), 47,514 ha 60% of Business-as- Kalimantan province's emission . Governor Regulation No 27 2012 project related to REDD+ scenario which will include Penurunan (2015), and 200,828 ha (2016) Usual (BAU) emissions reduction targets from the forest- on GHG Emission Reduction West goals (23 activities) the effort in maintaining Emisi GRK) or, on average, 145,371 (FREL) period 2012 – related sector (from Kalimantan Province. . FREL emission allocation emission reduction from West ha/year, 2030 deforestation and forest development sector, . The governor of South Sumatra is (ton CO2e) : Deforestation Kalimantan degradation), to achieve -60% of particularly in AFOLU The annual rates of forest member of Global Climate and 7,541,222; Degradation (2017). BAU is not likely to meet sectors degradation from 2013 to 2016 Forest have joined the program and 800,278 were 3,245 ha (2013), 5,490 ha national targets support the global commitment for (2014), 36,094 ha (2015), and better forest governance and 12,147 ha (2016) or an average sustainable development 14,244 ha/year, The total rate of forest degradation (mineral and peat forest) was still above the historic baseline of forest degradation of 10,837 ha/year

East Subnational Actual forest status area in ha Forest cover area in ha Forest cover areal in ha N/A . Strategy and Action Plan, . SIS-REDD+ was To maintain the emission Kalimantan action plan on (2015): BAU scenario (2030): (2030): No applicable government data Implementation REDD+ East implemented to record the reduction and protection GHG emission . Protected forest: 1,743,020 . Protected forest: . Protected forest: Kalimantan Province Year 2012; collective knowledge from forest, the provincial reduction (RAD- ha 1,694,390 ha 1,695,688 ha . Governor Regulation East various stakeholders in the government has prepared Penurunan project related to REDD+ the Forest Carbon . Conservation forest: 160,637 . Conservation forest: . Conservation forest: Kalimantan Province No. 2/2011 on Emisi GRK) goals (1 activity) Partnership Facility funded ha 160,654 ha 162,536 ha Regional Climate Change Council East Kalimantan (Dewan Daerah Perubahan Iklim . This safeguard information by the World Bank to assist The reduction in GHG Emission projection BAU Emission projection Timur period [DDPI]); and has been integrated into Emission Reduction 2010 to 2030 emissions in the 2012 to 2015 scenario 2016 to 2030: target scenario 2016 to Program in East Kalimantan . Governor Regulation East strategic environment and (2018) period was 82% from the . Protected forest 2030: jurisdiction through Bio- Kalimantan No. 54/2012 on the social assessment (SESA) baseline level and the rate of 17,866,561 tCO2e . Protected forest Carbon Initiatives for Action Plan for GHG Emission document decline was far higher than the 11,312,812 tCO2e sustainable forest . Conservation forest Reductions. . FREL emission allocation target of 8% landscape. The readiness 13,073,970 tCO2e . Conservation forest (ton CO2e): Deforestation . The governor of East Kalimantan is stage now is in establishing 12,219,830 tCO2e 9,515,630; Degradation member of Global Climate and Forest the Strategic Environment 2,641,839 have joined the program and support and Social Assessment the global commitment for better forest governance and sustainable development

&Green JEC Assessment Report A3-3 Hatfield Indonesia

Historical GHG emission Target Emission Provinces References BAU Projection Indication on National Level Target & Strategy Progress Risk Analysis level Reduction

North Regional action Historical baseline- BAU GHG BAU Projection GHG BAU GHG reduction Compared to the national level . Strategy and Action Plan of GHG . FREL emission allocation . The provincial Kalimantan plan for GHG emission from forest and Emission (tCO2e): emission from forest emission reduction targets (must Emission Reduction on North (ton CO2e): Deforestation government adopted emission peatland (tCO2e): 2011-2030: 243,148,040 and peatland (tCO2e): decreased -70% of BAU Kalimantan Province Year 2013 – 9,908,485; Degradation what so called Ecological reduction for condition in 2030) North 2020; 1,831,977 Fiscal Transfer to ensure 2012: 13,885,490.88 2020: 4,125,626.36 North Kalimantan province's emission . Head of Nunukan District the protection on 2013: 13,737, 483.54 BAU Projection GHG 2021: 2,313,498 Kalimantan reduction targets from the forest- Regulation No. 59 2019, (amend mangrove and peatland 2014: 13,595.082.98 Reduction Emission 2022: 1,542,533 2010 to 2030 related sector (from Regulation No 15 2015) on the ecosystem will get (tCO2e): 2015: 13,458,230.87 2023: -200,310.93 deforestation and forest allocation of Village Fund that additional fund from 2016: 13,326,627.53 2011-2030: 147,146,156 2024: -1,915,014.73 degradation), to achieve -39.5% adopted Ecological Fiscal Transfer Stated budget allocation, of BAU is not likely to meet as incentive in protecting 2017: 13,199,996.81 2025: -3,601,603.14 for District (Transfer Anggaran national targets natural resources for Percentage between Kabupaten berbasis Ekologi 2018: 13,078,083.75 2026: -5,260,144.36 sustainable development. GHG Emission and [TAKE]); 2019: 12,960,652.36 2027: -6,890,745.68 reduction: -39.5% . Governor Regulation No.7/2019 on . The provincial 2020: 12,847,483.81 2028: -8,493,550.11 government now have the Action Plan for GHG Emission 2021: 12,738,374.69 2029: -10,068,733.20 Reductions in North Kalimantan collaboration with GIZ, GGGI and DG Peatland 2022: 12,633,135.56 2030: -11,650,500.10 Province; and Protection MOEF through . Governor Regulation No.6/2019 2023: 12,531,589.63 development Strategic that adopted Ecological Fiscal 2024: 12,433,571.60 Plan in Management and Transfer (Transfer Anggaran Revitalization of Delta 2025: 12,388,926.63 Provinsi berbasis Ekologi [TAPE] Kayan Sembakung that 2026: 12,247,509.37 that include forest fire, green public particularly manage the space, save and protect water 2027: 12,159,183.20 13 hydrologic area of resources, air polution prevenbtion 2028: 12,073,819.20 peatland and waste management. 2029: 11,991,296.77 2030: 11,911,500.5299

Central Subnational Historical Forest cover and lost Projection emission due Set target to reduce N/A . Forest or Wildland Fire Control . FREL emission allocation Kalimantan action plan on forest cover on period: to land cover changes emission on 2030 with No applicable government data through Central Kalimantan Local (ton CO2e): Deforestation GHG emission 2000 forest to other land use CM2 scenario: 282 Government Regulation (LGR) or 22,318,952; Degradation reduction (RAD- type on period: MtCO2e for all sectors (Peraturan Daerah [Perda]), LGR 1,631,368 . Forest area: 9,322,892 ha Penurunan 2006 – 2011: Scenario for reduce No. 5/2003; . Non-forest area: 6,082,613 Emisi GRK) 109,021,179.26 tCO2e emission all sector – . LGR No. 36/2012 on RAD-GRK; East Kalimantan ha 2012 – 2017: Central Kalimantan . LGR No. 16/2008 on Customary Tengah (2012) 2003 98,053,832.24 tCO2e case: Institution of the Dayak in the . Forest area: 9,148,843 ha 2018 – 2023: Scenario 1, do it now: Central Kalimantan; and . Non-forest area: 6,220,662 90,233,730.96 tCO2e low cost, barrier low to . Central Kalimantan Governor ha medium - can reduce Regulation (Peraturan Gubernur Lost forest cover 2000 – 2003: 56 MtCO2e/ year [Pergub]) No. 13/2009 on On Period 2011 to 2017 Scenario 2, start now: customary lands and rights on land 138,049 ha average: 46,016 ha emission level reduce: low to medium cost, in Central Kalimantan Province. 2006 10.06%, while on period barrier low to medium 2017 to 2023 emission . The governor of Central Kalimantan . Forest area: 8,974,039 ha can reduce 200 reduce: 7.98% is member of Global Climate and . Non forest area: 6,431,466 MtCO2e/year Forest have joined the program and

ha Scenario 3, explore support the global commitment for Lost forest cover 2003 – 2006: now: high cost, barrier better forest governance and 210,084 ha average: 70,268 ha high can reduce 100 sustainable development MtCO2e/year 2009

. Forest area: 8,752,717 ha . Non forest area: 6,652,788 ha Lost forest cover 2006 – 2009:

&Green JEC Assessment Report A3-4 Hatfield Indonesia

Historical GHG emission Target Emission Provinces References BAU Projection Indication on National Level Target & Strategy Progress Risk Analysis level Reduction 221,322 ha average: 73,744 ha

Papua Subnational Average land cover changes Historical emission level N/A N/A . LGR No. 18/2008 on Community  As of June 2019, Papua The GOI plans to establish action plan on period 2006 – 2011: from deforestation and No applicable government data Based Economy; provinces has signed the the South Papua Province 82 GHG emission Deforestation: 25,679.64 ha degradation: . LGR No. 21/2008 on Sustainable MOU for the LCD to within the existing Papua reduction (RAD- equivalent with 11,705,487.88 Period 2006 – 2011: Forest Management; adopt LCD on their Province and allocate Penurunan RMTDP and would has approximately 1.3 million ha tCO2e 49,305,951 tCO2e . LGR No. 22/2008 on the Natural Emisi GRK) set emission reduction in Merauke Papua under the Projection: 49,305,951 Resources Protection and Papua Period targets in their Regional Merauke Integrated Food tCO2e Management of Indigenous People 2013 to 2030 Degradation: 181,770.92 ha Medium-Term and Energy Estate (MIFEE) of Papua; equivalent with 36,112,229.27 Development Plans project to 36 companies. tCO2e Period 2011 – 2016: . LGR No. 23/2008 on Customary (RPJMD) which are in- Yayasan PUSAKA 46,184,989 tCO2e Right and Individual Rights of the line with the national speculates that the Customary Land; and Other Land Cover Change: Projection: 71,162,398.52 emission reduction establishment of South 16,429.76 ha equivalent with tCO2e . LGR No. 6/2008 on Environmental targets in the National Papua Province is being Conservation. Medium-Term driven by the demand for 1,488,233.85 tCO2e . The governor of Papua is member Development Plan land by palm oil plantations Period 2016 – 2021: of Global Climate and Forest have (RPJMN) and other agriculture Total: 22,880.32 ha or 43,463,273.43 joined the program and support the  FREL emission allocation commodities (soya bean, equivalent with 49,305,951.00 Projection: 52,061,706.32 global commitment for better forest (ton CO2e): corn, rice, and sugar cane). tCO2e governance and sustainable Deforestation The provincial government has signed the MOU with Result of emission development 21,817,505; BAPPENAS to adopt of low cumulative explain, In Degradation 10,530,808 carbon development 2020 Papua Province initiative in their Long-Term can contribute to reduce Development Plan which will emission 6.55% align with sustainable Mitigation for reduce development goal. emission Level in 2020: Stabilization stock carbon on forest . Pessimist scenario 103,726,788 tCO2e . Optimist scenario 518,633,943 tCO2e

Improving stock carbon on forest . Pessimist scenario 110,460,774 tCO2e . Optimist scenario 552,303,873 tCO2e

82 http://bit.ly/MADANI_Rembuk_Nasional

&Green JEC Assessment Report A3-5 Hatfield Indonesia

Historical GHG emission Target Emission Provinces References BAU Projection Indication on National Level Target & Strategy Progress Risk Analysis level Reduction

West Subnational Forest degradation area 2006 – Reference Emission N/A No applicable government data . Strategy and Action Plan of GHG . As of June 2019, West The provincial government Papua action plan on 2011: Level from Province Emission Reduction on West Papua Papua provinces has has signed the MOU with GHG emission 25,333.23 ha; net emission Spatial Plan (TRWP) Province Year 2013 – 2020; and signed the MOU for the BAPPENAS to adopt of low 83 reduction (RAD- 4,372,892.28 tCO2e/year 2020: . Governor Regulation West Papua LCD to adopt LCD on carbon development Penurunan their RMTDP and would initiative in their Long-Term Deforestation area 2006 – . Pessimist scenario Province No. 17 2013 on GHG Emisi GRK) has set emission reduction Development Plan which will 2011: 22,398,235 tCO2e Emission Reduction Province West West Papua targets in their Regional align with sustainable . Optimist scenario Papua. Barat Period 2,516.20 ha, net emission Medium-Term Development development goal. 67,254,792 tCO2e . The governor of West Papua is 2013-2030 554,953.66 tCO2e/year Plans (RPJMD) which are member of Global Climate and in-line with the national Forest have joined the program and emission reduction targets support the global commitment for in the National Medium- better forest governance and Term Development Plan sustainable development (RPJMN)

. FREL emission allocation (tCO2e): Deforestation 1,773,044; Degradation 4,797,818

83 http://bit.ly/MADANI_Rembuk_Nasional

&Green JEC Assessment Report A3-6 Hatfield Indonesia

Appendix A4

Regulations on Forests, Ecosystems, Protection and Land Use Management

APPENDIX A4 REGULATIONS ON FOREST, ECOSYSTEM, PROTECTION AND LAND USE MANAGEMENT

National Laws and Description Remarks Regulations Indonesia Laws (Undang Undang) Law No. Basic Regulation on Subject: Basic principles on entitlements, ownership, and utilization of 5/1960 Agrarian Principles national agrarian resources including provisions for rights to land, water and space, land registration, unlawfulness and provisions of the unlawfulness. Jurisdiction: National and provincial Relevant authority: Ministry of Agrarian Affairs and Spatial Planning, Ministry of Agriculture, Ministry of Environment and Forestry, Governor, Head of District

Law No. Biodiversity and Subject: Protection, conservation, and preservation, of flora and fauna 5/1990 Ecosystem biodiversity, and ecosystems as well as sustainable use of biological Conservation natural resources and their ecosystems to support community well- being and improve quality of human life. Jurisdiction: National and provincial Relevant authority: Ministry of Environment and Forestry, Ministry of Agriculture, Governor, Head of District

Law No. Environmental Subject: The protection and management of the environment must be 32/2009 Protection and a systematic and integrated effort to preserve the environment and Management prevent pollution and/or damage to the environment; development shall be continuous and combined with environmental, social, and economic development. Jurisdiction: National and provincial Relevant authority: Ministry of Environment and Forestry, Ministry of Agriculture, Governor, Head of District

Law No. Forestry Law Subject: General information and the principles of the national forestry 41/1999 sector including forest management, status, planning, administration, and function. Jurisdiction: National and provincial Relevant authority: Ministry of Environment and Forestry, Ministry of Agriculture, Governor, Head of District

Law No. Conservation of Land Subject: Conservation of land and water. 37/2014 and Water Civil engineer guidance for land and water conservation, construction, improvement of land and soil quality, rights and obligation of government and community and guidance on payment environmental service. Jurisdiction: National and provincial Relevant authority: Ministry of Agrarian Affairs and Spatial Planning National Land Agency (ATR-BPN), Ministry of Environment and Forestry, Ministry of Agriculture, Governor, Head of District

Law No. Plantation Subject: Definition, role, management of plantation, business scheme, 39/2014 Management land utilization for plantation, and nursery. Jurisdiction: National and provincial

&Green JEC Assessment Report A4-1 Hatfield Indonesia

National Laws and Description Remarks Regulations Relevant authority: Ministry of Agriculture, Ministry of Agrarian Affairs and Spatial Planning National Land Agency (ATR-BPN), Ministry of Environment and Forestry, Governor, Head of District

Law No.16 Ratification of Paris Subject: Government notification on the ratification of the Paris /2016 Agreement on the Agreement towards the convention on the UNFCCC framework for United Nations Climate Change. Framework Jurisdiction: National and provincial Convention on Relevant authority: Ministry of Energy and Mineral Resources, Climate Change Ministry of Agrarian Affairs and Spatial Planning National Land Agency (ATR-BPN), Ministry of Environment and Forestry, Governor, Head of District Government Regulations Government Wildlife and Subject: National guidelines for conservation sanctuary reserve area Regulation Conservation Area and wildlife sanctuary include definition, criteria for designated No. 28/2011 Management conservation area and roles management of the sanctuary. Jurisdiction: National and provincial Relevant authority: Ministry of Environment and Forestry, Governor, Head of District.

Government Guideline for Forest Subject: Definition, roles, management, function of forest area and Regulation Land Use Change, land use change, forest utility and land use change requirement. No. Utility and Function of Jurisdiction: National and provincial 104/2015 Forest Area. Relevant authority: Ministry of Environment and Forestry, Ministry of Agrarian Affairs and Spatial Planning National Land Agency (ATR- BPN), Ministry of Agriculture, Governor, Head of District.

Government Protection and Subject: Definition, role, function of peatland ecosystem management Regulation Management of includes technical criteria for cultivation in peatland areas as well as No. 57/ 2016 Peatland Ecosystem protection and conservation. Jurisdiction: National and provincial Relevant authority: Ministry of Environment and Forestry, Ministry of Agrarian Affairs and Spatial Planning National Land Agency (ATR- BPN, Ministry of Agriculture, Governor, Head of District Status: Applicable/ Amendment to Government Regulation No. 71/ 2014 concerning protection and management of peatland ecosystem. Presidential Decree Presidential The Peatland Subject: Establishes and outlines the organizational structure of the Decree No. Restoration Agency BRG, including roles and responsibility. 1/2016 (Badan Restorasi Jurisdiction: National Gambut [BRG]) Relevant authority: Directorate General on Ministry of Environment and Forestry, Directorate General on Ministry of Agriculture, Directorate General on Ministry of Internal Affairs, Governor Note: Valid for five-year period.

Presidential The Resolution on Subject: Provide policy direction of land and tenure resolution in Decree No. Land Entitlement in forested areas. 88/2017 the Forest Area Jurisdiction: National Relevant authority: Ministry of Environment and Forestry, Ministry of Internal Affairs, Ministry of Agrarian Affairs and Spatial Planning National Land Agency (ATR-BPN).

&Green JEC Assessment Report A4-2 Hatfield Indonesia

National Laws and Description Remarks Regulations Presidential Environment Fund Subject: Establish a trust fund management for sustainable Decree No. Management environmental, forest, peatland, landscape conservation and climate 77/2018 change mitigation and adaptation. Jurisdiction: National Relevant authority: Coordinating Minister for Economic Affairs, Ministry of Environment and Forestry, Ministry of Internal Affairs, Ministry of Finance, Ministry of Energy and Mineral Resources, Ministry of Agriculture, Ministry of Industry, Ministry of Communication, National Development Planning Agency, Ministry of Marine Affairs and Fisheries.

Presidential Agrarian Reform Subject: Policy to reduce inequality in the control and ownership of Decree No. land through the creation of a special task force to address agrarian 86/2018 issues. Jurisdiction: National and provincial Relevant authority: Coordinating Minister for Economic Affairs, Ministry of Environment and Forestry, Ministry of Internal Affairs, Ministry of Finance, Ministry of Agriculture, Ministry of Communication, National Development Planning Agency, Ministry of Agrarian, Spatial and National Land Agency (ATR-BPN), Ministry of BUMD, Ministry of Villages Development of Disadvantaged Regions and Transmigration, Ministry of Marine Affairs and Fisheries, Ministry of Cooperatives and Small & Medium Enterprises, Ministry of State Secretariat, Head of Presidential Office Staff, Cabinet staff, Attorney General, Commander of National Army, Head of Police Indonesia State. Presidential Instruction Presidential Moratorium on Subject: Suspends granting new permits in conservation forests, Instruction Termination on New protected forests, production forests, and non-forest estates and No. 5/2019 Permits and reduce emissions from forests and peatlands by improving the Governance governance of activities. Improvement for Jurisdiction: National and provincial Primary Natural Relevant authority: Ministry of Home Affairs, Ministry of Environment Forests and Peatland and Forestry, Ministry of Agriculture, Ministry of Agrarian Affairs and Spatial Planning National Land Agency (ATR-BPN), Ministry of Internal Affairs, Ministry of Public Works, Head of Geospatial Agency, Secretariat of Cabinets, Governor, Head of District. Note: This Presidential Instruction extends the previous moratoriums in Presidential Instructions No. 10/2011, No. 6/2013, No. 8/2015, and No. 8/2016.

Presidential Moratorium on Palm Subject: The evaluation of new permits of palm oil concessions and Instruction Oil New Permits and improving productivity of the existing palm oil plantation. No. 8/2018 Strengthen Legal Jurisdiction: National and provincial Aspect and Improving Relevant authority: Coordinating Minister for Economic Affairs, the Productivity. Ministry of Environment and Forestry, Ministry of Agriculture, Ministry of Agrarian Affairs and Spatial Planning National Land Agency (ATR- BPN), Ministry of Internal Affairs, Head of Investment Coordinating Boars, Governor, Head of District.

&Green JEC Assessment Report A4-3 Hatfield Indonesia

Appendix A5

Historical Reference Level from Deforestation, Forest Degradation, Peat Decomposition, and Emission Projection in Indonesia

APPENDIX A5 HISTORICAL REFERENCE LEVEL FROM DEFORESTATION, FOREST DEGRADATION, PEAT DECOMPOSITION AND CARBON EMISSION PROJECTION IN INDONESIA

Table A5.1 Historical deforestation, forest degradation and peat decomposition reference levels from 1990 to 2012 in Indonesia.84

Area per year (ha/year) FREL (BAU) 1990-1996 1996-2000 2000-2003 2003-2006 2006-2009 2009-2011 2011-2012

Deforestation 480,743 1,852,606 371,895 651,065 687,263 397,488 617,625

Forest Degradation 58,651 1,336,703 669,612 692,370 493,675 150,248 31,045

Peat Decomposition 163,222 425,555 84,958 219,153 253,902 163,796 174,861

Table A5.2 Historical annual carbon emission reference (1990 to 2012) and projections (2013 to 2020) in Indonesia85

Emission of Carbon (tCO2e/year) Historical Projection FREL (BAU) 1990-1996 1996-2000 2000-2003 2003-2006 2006-2009 2009-2011 2011-2012 2013 2014 2015 2016 2017 2018 2019 2020

Deforestation 198,912,613 737,006,187 142,951,619 264,363,082 286,400,629 173,891,040 248,937,119 293,208,910 293,208,910 293,208,910 293,208,910 293,208,910 293,208,910 293,208,910 293,208,910

Forest Degradation 7,676,560 162,396,173 73,690,805 78,596,482 59,226,954 18,511,560 5,920,802 58,002,762 58,002,762 58,002,762 58,002,762 58,002,762 58,002,762 58,002,762 58,002,762

Peat Decomposition 151,782,943 164,815,980 174,757,024 184,234,616 200,118,642 215,799,004 226,167,756 217,648,209 221,143,831 224,639,453 228,135,075 231,630,697 235,126,319 238,621,941 242,117,562

84 Directorate General of Climate Change. 2016. National Forest Reference Emission Level for Deforestation and Forest Degradation in the Context of Decision 1/CP.16 para 70 UNFCCC. The Ministry Environment and Forestry Republic of Indonesia. Page: 107 -111

85 Directorate General of Climate Change. 2016. National Forest Reference Emission Level for Deforestation and Forest Degradation in the Context of Decision 1/CP.16 para 70 UNFCCC. The Ministry Environment and Forestry Republic of Indonesia. Page 52

&Green JEC Assessment Report A5-1 Hatfield Indonesia