Indonesia’s collaboration with Norway to prevent deforestation and forest degradation (formalized in a Letter of Intent signed on 26 May 2010) calls for a two year moratorium on granting forest and peat land concessions, but public officials have been quick to clarify that existing concessions will remain free for exploitation by their respective license-holders.
The message delivered to the media by both President Susilo Bambang Yudhoyono and Director General of Forest Production Development at the Minister of Forestry, Hadi Daryanto - separately - is essentially that although no further concessions are permitted from 1 January 2011, that does not affect the rights of existing concession-related license-holders to clear forest and peat areas, and develop them as planned.
The Letter of Intent, which mandates the concession moratorium period, incorporates the fundamental tenets of the international Reducing Emissions from Deforestation and Forest Degradation (REDD) framework, which brings together developed and developing countries in collaboration to support large reductions in the destruction of biomass. Forests and peat lands store great amounts of carbon, which links their destruction to Indonesia’s considerable greenhouse gas emissions.
Norway has pledged USD 1 billion per year to support Indonesia to move through a series of stages, each stage with specific targets to be met, as structured by the REDD program. The funds are disbursed only on the condition of demonstrable action, creating an incentive for meeting each target.
In the first and second stage, the funds will be contingent upon Indonesia’s success in policy reform, measurement capacity building, enforcement, and pilot projects, among other things. During this period, Indonesia must suspend forestry concessions.
In the third stage, Indonesia must demonstrate substantial emissions reductions - proportional to its promise to cut emissions by at least 26% by 2020 - by way of preventing deforestation and forest degradation, and increasing efficiency in the utilization of resources. As such, the REDD project serves as Indonesia’s ‘road map’ to meeting pledged emissions cuts.
According to the Directorate General at the Minister of Forestry, Indonesia contains some 43 million hectares of primary forest, 48.5 million hectares of secondary forest, 21.07 million hectares of swamp forest, and 16 to 27 million hectares of tropical peat lands (Bisnis.com, 6/6).
Currently, 2.489 million hectares of forest or peat land have been conceded to holders of Business Operation Licenses for Natural Forests, and Business Operation Licenses for Industrial Plantation Forests (‘IUPHHK HA,’ and ‘IUPHHK HTI’ respectively). Those concessions can continue to be developed throughout the moratorium, when policy will be formulated to address further concessions.
President Yudhoyono has suggested that in the future, concessions will be tailored to maximize the use of already-degraded forest land, rather than prime forest and peat lands containing both more carbon and biodiversity.
For further reading, see also ILD No. 159 3/6/2010
This Indonesian Legal Brief is based upon research conducted by the hukumonline team.
Indonesia’s collaboration with Norway to prevent deforestation and forest degradation (formalized in a Letter of Intent signed on 26 May 2010) calls for a two year moratorium on granting forest and peat land concessions, but public officials have been quick to clarify that existing concessions will remain free for exploitation by their respective license-holders.
The message delivered to the media by both President Susilo Bambang Yudhoyono and Director General of Forest Production Development at the Minister of Forestry, Hadi Daryanto - separately - is essentially that although no further concessions are permitted from 1 January 2011, that does not affect the rights of existing concession-related license-holders to clear forest and peat areas, and develop them as planned.
The Letter of Intent, which mandates the concession moratorium period, incorporates the fundamental tenets of the international Reducing Emissions from Deforestation and Forest Degradation (REDD) framework, which brings together developed and developing countries in collaboration to support large reductions in the destruction of biomass. Forests and peat lands store great amounts of carbon, which links their destruction to Indonesia’s considerable greenhouse gas emissions.
Norway has pledged USD 1 billion per year to support Indonesia to move through a series of stages, each stage with specific targets to be met, as structured by the REDD program. The funds are disbursed only on the condition of demonstrable action, creating an incentive for meeting each target.
In the first and second stage, the funds will be contingent upon Indonesia’s success in policy reform, measurement capacity building, enforcement, and pilot projects, among other things. During this period, Indonesia must suspend forestry concessions.
In the third stage, Indonesia must demonstrate substantial emissions reductions - proportional to its promise to cut emissions by at least 26% by 2020 - by way of preventing deforestation and forest degradation, and increasing efficiency in the utilization of resources. As such, the REDD project serves as Indonesia’s ‘road map’ to meeting pledged emissions cuts.
According to the Directorate General at the Minister of Forestry, Indonesia contains some 43 million hectares of primary forest, 48.5 million hectares of secondary forest, 21.07 million hectares of swamp forest, and 16 to 27 million hectares of tropical peat lands (Bisnis.com, 6/6).
Currently, 2.489 million hectares of forest or peat land have been conceded to holders of Business Operation Licenses for Natural Forests, and Business Operation Licenses for Industrial Plantation Forests (‘IUPHHK HA,’ and ‘IUPHHK HTI’ respectively). Those concessions can continue to be developed throughout the moratorium, when policy will be formulated to address further concessions.
President Yudhoyono has suggested that in the future, concessions will be tailored to maximize the use of already-degraded forest land, rather than prime forest and peat lands containing both more carbon and biodiversity.
For further reading, see also ILD No. 159 3/6/2010
This Indonesian Legal Brief is based upon research conducted by the hukumonline team.
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