JAKARTA - Indonesia has received the first payment of US$20.9 million or equivalent to Rp320 billion for emission reduction activities from deforestation and forest degradation (REDD+) in East Kalimantan.
The first payment was based on an agreement at the signing of the Emission Reduction Payment Agreement (ERPA) between the Government of Indonesia and the Forest Carbon Partnership Facility (FCPF) of the World Bank.
"This payment will build confidence in performance-based payment systems at the international and national levels as an important device to encourage climate change mitigation," said Head of the World Bank Representative for Indonesia and Timor-Leste Satu Kahkonen in an official statement quoted by Antara, Wednesday, November 9.
He also appreciates the decline in deforestation rates that Indonesia has successfully carried out over the past five years and strives to continue to support the transition to a green economy.
The existing agreement states that Indonesia will receive payments of up to 110 million US dollars or Rp1.6 trillion for emission reduction from verified deforestation and forest degradation.
Indonesia is the first country in the Pacific East Asia Region to receive payments from the FCPF program, which includes 13.5 percent of emissions reported by the Government of Indonesia during the 2019-2020 monitoring period. Payments in full will be made after the finalization of verification by third parties is completed.
The first payment will be used according to the plan in the Benefit Sharing Plan (BSP) document compiled by the Government of Indonesia and submitted to the FCPF in October 2021. Referring to the document, the distribution of benefits will be given in a consulative, transparent, and participatory manner, to ensure all relevant stakeholders can benefit from emission reduction payments.
Payments will be made to parties who contribute to emission reduction activities in East Kalimantan Province, from the Central level (KLHK), local governments, to the level of landed (community).
Minister of Environment and Forestry Siti Nurbaya assessed that this program provides opportunities for the government, civil society organizations, the business sector, and the community to jointly protect Indonesian forests, as well as recognition of Indonesia's success in reducing deforestation and forest degradation.
"This is just the first step. Our efforts to manage forests in a sustainable manner will continue to be carried out to achieve the emission reduction targets set out in the Paris Agreement, overcome the impacts of climate change, and put Indonesia on the green line of development," said Siti.
According to him, emission reduction in East Kalimantan has been achieved through several policy changes, including improving forest management and monitoring, restoring ecosystems such as peat and mangrove land, as well as a permanent moratorium for conversion of peatlands and primary forests.
Then, programs to provide clarity regarding land ownership and encourage livelihoods for rural communities through government social forestry programs and partnerships around conservation areas
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