Jakarta, 27 August 2020 — Indonesia, with proposal titled  “REDD+ Results-Based Payment (RBP) for Results Period 2014-2016”, will receive a total funding from the GCF OF USD 103,8 million¹ which will be managed by Indonesia's Environmental Fund Management Agency (BPDLH). The GCF Board 26^th meeting, held between 18^th to 21^th of August 2020 approved Indonesia's REDD+ proposal, which record the highest valued funding approval under the GCF REDD+ RBP pilot programme, surpassing Brazil's proposal approval at USD96.5 million² under the same facility. The GCF REDD+ RBO Oilot programme strated in 2017 and will last until the end of 2022. Indonesia is the fifth country to access this pilot program valued up to USD500 million³.

REDD+ is a global initiative, designed to incentivize developing countries to address their common problems of deforestation and forest degradation, as the main contributor of green-house gases emission. Aside from this REDD+ RBP facility under GCF, others similar schemes are also available: such as Letter of Intent Indonesia – Norway about collaboration in reducing greenhouse gases from deforestation and forest degradation, and Forest Carbon Partnership Facility from the World Bank. In the National Determined Contribution target, 59% of our target comes from the land use sector. The REDD+ scheme itself is quite broad, which includes conservation effort, sustainable forest management, and enhancing carbon stock, in order to drive sustainable economic development which will increase communities’ livelihood. REDD+ also consider the participation from local, indigenous, and traditional communities as essential stakeholder, whose rights to live in or around the forest should always be guaranteed.

The proposal by the Ministry of Environment and Forestry (MoEF) presents the country’s REDD+ results for the period of 2014–2016, calculating a volume of around 20,3 million ton of carbon dioxide equivalent (tCO2eq) in emissions reduction. Currently, Indonesia is using the Forest Reference Level (FREL) method to identify sources of emission, which consistent with Intergovernmental Panel on Climate Change (IPCC) Good Practice Guidance for Land Use.

Indonesia will allocate the fund to improve the coordination mechanism, implementation, and architecture of REDD+, support decentralized sustainable forest management by Forest Management Unit (FMUs) and Village forests, as well as project management. The fund management from GCF and Norway by BPLDH also showcases international trust in BPDLH, touted as the leading national agency in driving environment funding.

In the implementation of this RBP, MoEF work together with the Ministry of Finance (MoF). MoEF will carry out project activities and produce outputs as agreed by both parties, and in accordance with the attended use of funds stipulated in the proposal. Those activities range from decreasing the rate of deforestation, forest fire controlling and monitoring, law enforcement, and supporting forest and land rehabilitation, as instructed by the President. MoF through BDLH will be responsible in managing, monitoring and perform evaluation of project performance to ensure effective use of GCF resources.

Minister of Forestry and Environment Siti Nurbaya said, “Our hard work for a decade to conserve forest and avoid deforestation finally bears some fruits with this results-based payment from Norway and GCF. Still, our effort could not stop here. This milestone will contribute in low emission development effort, and as mandated by the President, to start a community based environmental recovery efforts.”

Minister of Finance Sri Mulyani stated, “We are glad, Minister of Forestry and Environment with her teams succeed in gaining recognition valued at USD 103,8 million, even with a higher amount from Brazil with their Amazon (USD 96,5 million). We would like to thank MoEF for showing the world, that Indonesia is not only committed to climate change, yet also presenting a concrete achievement with this payment. The current momentum should become a reminder to increase the involvement and support from other actors related to this proposal from Indonesia submitted to GCF.”

Further, Minister of Finance told that the fund received by Indonesia could aid the state budget deliver climate change agenda. “This payment will help the state budget fulfilling the needs in climate finance. The result from climate budget tagging showed that there is gap between national demand in climate finance and the allocated state budget”. Sri Mulyani

Directorate General of Climate Change (DGCC) of MoEF leads the writing of proposal REDD+ RBP submitted to GCF, with many collaborations including international agency. Fiscal Policy Agency (FPA) of MoF acts as the National Designated Authority (NDAA) GCF, in reviewing and submitting the proposal, with helps from United Nations Development Program (UNDP) as GCF accredited entity and other developing partner, such as Global Green Growth Institute (GGGI).

The approval from GCF is good news. Nevertheless, Indonesia needs more climate change fund to achieve NDC target. Commitment from developed countries to distribute USD 100 billion per year until 2020 to support developing countries needs to be put into effect as soon as possible.

This press release is translated from the Ministry of Finance website.

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About the Directorate General of Climate Change

The Ministry of Environment and Forestry of the Republic of Indonesia

The Directorate General of Climate Change (DGCC) is a unit within the Ministry of Environment and Forestry of the Republic of Indonesia that deals with climate change, particularly in the implementation of mitigation, adaptation, reduction of greenhouse gas (GHG) emission, reduction and elimination of ozone depleting substances, resource mobilization, GHG inventories, monitoring, reporting and verification of climate change mitigation and forest and land fire control. The establishment of DGCC is a new hope for the implementation of well-managed climate change control activities in support of environmental and forestry development objectives. To learn more, see http://ditjenppi.menlhk.go.id/.

Contact:
Directirate General Climate Change
Ministry of Environment and Forestry of the Republic of Indonesia
Cell: +62 812 1257 3390 Phone: +62 21 5730144 Email: setditjenppi@gmail.com

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About the Fiscal Policy Agency - National Designated Authority for the GCF

The Ministry of Finance of the Republic of Indonesia

The Fiscal Policy Agency is an echelon I unit of the Ministry of Finance of the Republic of Indonesia with a strategic function as the formulator of fiscal and financial sector policies, having a scope of duties covering macroeconomic, state revenue, state expenditure, financing, financial sector, and international cooperation. More information, particularly related to the GCF funding, can be found on the NDA GCF website: https://fiskal.kemenkeu.go.id/nda_gcf/.

Contact:
NDA GCF Secretariate in Indonesia
Phone: +62 21 34831676 Email: ndagcf-indonesia@kemenkeu.go.id

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¹ https://www.greenclimate.fund/project/fp130
² https://www.greenclimate.fund/project/fp100
³ Setelah Paraguay, Chile, Ecuador dan Brazil