FIP in Indonesia PILOT COUNTRY MEETING Washington D.C., 7 November - PowerPoint PPT Presentation

Country Report : FIP in Indonesia PILOT COUNTRY MEETING Washington D.C., 7 November 2010

Shrinking Forests of Kalimantan Source: UNEP/GRID-Arendal, 2007

26% Forest Loss in Sumatra (1990-2000) Source: www.sumatranforest.org

20.5 Conservation Forest Protection Forest 66.35 33.5 Production Forest MANAGED SUSTAINABLY ECONOMIC ECOLOGICAL SOCIAL/CULTURE 5

FOREST RESOURCES MANAGEMENT FRAMEWORK & PRINCIPLE SUSTAINABLE SFM SFM DEVELOPMENT

REDD+ IN FORESTRY DEVELOPMENT PERSPECTIVE R DEFORESTATION PLANNED (CHANGE IN LAND USE • PLAN, CONVERSION OF E PRODUCTION FORESTS DEGRADATION ALOCATED FOR NON-PORESTRY D SECTORS DEVLOPMENT) • LEGAL (PRODUCTION FORESTS ENCROACHMENT (ILLEGAL) • UTILIZATION) D • ILLEGAL : ILLEGAL ACTIVITIES • NATURAL DISASTERS (FOREST + FIRES) CONSERVATION SFM CARBON STOCK ENHANCEMENT • PLANNED (CHANGE IN LAND • ECONOMIC, SOCIAL, USE PLAN) ENVIRONMENTAL • PLANTATION FOREST DEVELOPMENT • CONVERTION OF ASPECTS • REHABILITATION/REFORESTATION PRODUCTION FORESTS • ALL FORESTS AREAS

Demonstr De onstration ation Acti tivities vities te terk rkait it RE REDD/ DD/RED REDD+ D+ FORCLIME: GTZ Merang: AusAID: Modul Keuangan € 20 Millions; 2010-16) ( € 1,445,255; 2008-11). AUD 30 Million Modul Teknikal € 7 Millions (2010-12) Berau Malinau Kapuas Hulu Heart of Borneo Jambi Kapuas Sulawesi Tengah Musi Banyuasin Lombok Tengah & Timur Meru Betiri Jember UNREDD: ITTO: USD 540,000 (2010- KOICA: KFCP: AUD 30 Million 12) USD 5 Million (2009-13) USD 2.2 Million (2010-11)

LINKS AMONG REDD+ INITIATIVES Bilateral/ UN-REDD FCPF FIP Multilateral Policy Support Analysis REL, MRV Policy Support Demonstration ? Pilot Capacity Facilitate dev New DA Activities (DA) Building C & R Policy Support INDONESIA Ministry of Forestry Working Group REDD+ Strategy Echelon I : DG. Planning, Echelon I: Echelon I: Echelon I : DG Forest DG. FORDA DG. Planning Set. Gen (?) Enterprise, Set.Gen. Set. Gen. .

FULL TRANSFOR- IMPLEMEN- READINESS MATION TATION FIP • BILATERAL/ REGIONAL • UN-REDD • FCPF

FIP IN INDONESIA • Indonesia was selected in the first round in 17 March 2010. • Several national consultations conducted, identifying potential fields of investment, such as:  ecosystem restoration,  small holder forest plantation,  FMU development,  SFM, and  forest plantation development.

FIP IN INDONESIA • Scoping Mission from 9-13 August 2010 • Mission meeting with Government:  finance,  climate change council,  national development planning,  environment, coordinating ministry of economic affairs) • Also with private sector, civil society, and int’l development partners.

FIP IN INDONESIA • Request for preparation grant under process with ADB, five national consultants to recruit • Will include private sector project, possibly on community forest development, involving IFC • Joint Mission scheduled for January 2010

Plans for FIP Joint Mission Process in Indonesia BEFORE THE MISSION DURING THE MISSION AFTER THE MISSION • • • Finalize preparation Discuss priorities, GOI and MDB internal grant, identify and coordination with GOI review and comments engage consultants and partners, policy and • Consult further with program integration • Mission TOR stakeholders, as needed • preparation and GOI, Consultations with all • MDBs Committee MDB and CIF approvals key stakeholders submission, and • • Identify GOI contact Site visits for potential response to comments points for mission project locations • Finalize FIS document • • Plan stakeholder Identify investments • Submit FIS to CIF Admin consultations (preparing project Unit according to agreed concepts) and • Identify links to FIP IP deadline implementation dedicated grant • Prepare GOI arrangements mechanism presentation Outputs: Outputs: Outputs: • Draft FIS • TOR for Mission • Letter of transmittal to • Plan for FIS completion • GOI mission request CIF/FIP Subcommittee and approval • • Preparation Grant GOI presentation to FIP • Assignment of Subcommittee • Background materials responsibilities

Schedule for Preparation of FIP Investment Strategy in Indonesia Time Frame Activity Principal Outputs Mid-August to Mid- Finalization of Preparation Grant TOR  Joint Communication on Scoping Mission  Preparation Grant TOR September 2010  Draft TOR for Joint Mission Mid-Sep, to Mid-Oct. Mobilization of Preparation Team  GoI Request for Joint Mission 2010  Preparation grant consultants fielded  Inception Report from Preparation Team Mid-Oct. to Early Nov. Preparation Team begins work and 2010 Update at FIP Meetings  GoI presentation to FIP Meetings  Background Materials for Joint Mission Mid-Nov. to Mid- Preparation of Documentation for Joint  Consultations prepared and scheduled January 2011 Mission  Joint Mission TOR approved  Overall Mission Schedule finalized Mid to End Jan. 2011 Conduct of FIP Joint Mission  Mission conducted  Consultations held  Draft FIS completed  Final FIS Document Early to Mid-Feb. 2011 Finalization and Submission of FIS  Letter of Transmittal Document  Presentation Materials for FIP Subcommittee Mid-Feb. to Early Review of FIS by FIP Subcommittee March 2011 Mid- March 2011 Presentation of FIS to FIP Subcommittee  Approved FIS (perhaps subject to adjustments)  Final FIS Document Incorporating FIP Subcommittee After Mid-March Refinement of FIS Document in response to FIP Subcommittee comments (if any) guidance  Plans for project design phase

Closing Remarks • Challenges – Administration process too slow – to link FIP, UN-REDD, FCPF, and other initiatives in the country – Keep the momentum • Recomendation – Funding mechanism needs clarity, both for public and private sector – Institutional arrangement needs clarity – Avoid unessasary delay