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&Green Jurisdictional Eligibility Criteria Assessment for the Republic of Indonesia

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&Green Jurisdictional Eligibility Criteria Assessment for the Republic of Indonesia &GREEN JURISDICTIONAL ELIGIBILITY CRITERIA ASSESSMENT FOR THE REPUBLIC OF INDONESIA 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
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