Supporting sustainable management of forest resources through economic and policy instruments to reduce emissions and deforestation and to improve the management of fire.
The SLMP provides technical assistance, capacity building, advisory services, results-based payments, and grant-funding to enhance the GoI’s vision to improve inclusive and sustainable management of forests through an integrated approach targeted at public, private, and civil society actors. This includes supporting the implementation of integrated fire management, the building of sustained capacity to reduce deforestation and supporting the use and implementation of key policy and economic incentive mechanisms.
Making landscape decisions based on the costs that arise from the degradation of natural assets and improving incentives for critical ecosystem services can lead to reductions in deforestation and emissions. Robust incentive mechanisms at the national, subnational, and local levels can complement and strengthen existing emissions reduction efforts. Results-based payments, ecological fiscal transfers at the provincial and district levels, functioning domestic carbon markets, and the implementation of payments for water services can complement existing regulatory approaches.
On top of incentive mechanisms, to support sustainable forests management, the SLMP through the Forest Investment Program (US$22.42 million, started in 2016) supports the GoI to strengthen the institutional and local capacity for decentralized sustainable forest management that generates improved forest-based livelihoods through the establishment and operationalization of forest management units (KPH)
The Dedicated Grant Mechanism (DGM) project (US$6.33 million, Dedicated Grant Mechanism, started in 2017) supports the inclusion of Indigenous Peoples and Local Communities (IPLC) in forest management. The DGM aims to enhance the capacity of participating IPLC to strengthen forest tenure security and improve their economic well-being, while supporting Indonesia's efforts to reduce greenhouse gas emissions.
Jurisdictional Performance-based Emission Reductions Programs
The World Bank supports the Gol in promoting the reduction of greenhouse gas emissions from the forest and land-use sector through jurisdictional performance-based emission reductions programs.
The Forest Carbon Partnership Facility (FCPF) (up to US$110 million, started in 2020). The first large-scale jurisdictional results-based REDD+ program in Indonesia, aims to lower rates of deforestation and forest degradation across 12.7 million hectares of land rich in tropical rainforests and biodiversity in East Kalimantan.7
The BioCarbon Fund Initiative for Sustainable Forest Landscapes (BioCF ISFL) (up to US$85 million, started in 2020) promotes the reduction of greenhouse gas emissions from the forest and land-use sector through sustainable agriculture and climate-smart land-use planning, policies and practices in Jambi. The project will support community-based participatory land mapping, and the conservation and enhancement of biodiversity. The project takes a landscape approach to reducing emissions and improving livelihoods, and is working with GoI to strengthen policies and institutions to enhance effective land management regulation and enforcement, focusing on harmonizing policies and approaches across sectors. The project is also designed to provide payments and incentives for verified emissions reductions.