JAKARTA (TheInsiderStories) - World Bank and Indonesia’ environment and forestry ministry signed a landmark agreement on Forest Carbon Partnership Facility up to US$110 million, said the Fund on Tuesday (08/12). The funds to helped the country’ efforts to lower carbon emissions from deforestation and forest degradation between now and 2025
It said, Indonesia will receive results-based payments for reducing 22 million tons of carbon emissions in the province to help the country reach national climate and environmental targets. The secretary generala. Bambang Hendroyono, said the emission reductions program, aims to lower rates of deforestation and forest degradation across 12.7 million hectares of land rich in tropical rain forests and biodiversity.
The initiative will also support improved land governance and local livelihoods, and protect the habitat of numerous vulnerable and endangered species by improving forest licensing, increasing the number of small-scale plantations, and promoting community-based planning.
Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste, stated, “Indonesia has committed to cutting up to 41 percent of its greenhouse gas emissions with international support by 2030, as well as accelerating sustainable development in its national development plan. This agreement will provide unprecedented support to achieve these ambitious goals.”
In 2019, Indonesian government prepared funds of Rp2.1 trillion ($148.94 million) for the Environmental Fund Management Agency which was officially launched on Sept. 10. The funds will be used in the fields of forestry, energy and mineral resources, carbon trading, environmental services, industry, transportation, agriculture, marine, and fisheries.
“The initial balance of the agency’s principal fund is Rp2.1 trillion and with a cumulative commitment of Rp2.2 trillion, so we need to add new managed funds which we will later combine,” sai finance minister, Sri Mulyiani Indrawati, last year.
The minister explained the mainstreaming of climate change issues in the national development program has been and will continue to be carried out so that environmental and climate change issues are expected to be part of national development planning and implementation.
“Based on climate budgeting tagging conducted by Finance Ministry, there was an increase in state budget support in national programs related to climate change issues, amounting to Rp72.4 trillion in 2016 (3.6 percent), Rp95.6 trillion in 2017 (4.7 percent) and Rp109.7 trillion in 2018 (4.9 percent),” she noted.
Indrawati went on by saying that the government has a target in achieving its commitment to reduce emissions in the Nationally Determined Contribution of 29 percent on its own and 41 percent with international support.
For this reason, the government’ commitment to environmental protection and management is realized through the amount of the budget allocated for environmental management. Also, funding from developed countries related to environmental protection and management grows in line with the need for environmental funding in developing countries in line with the implementation of the Paris Agreement.
“Our commitment to being able to reduce carbon emissions by 29 percent with endless efforts and 41 percent with international cooperation can still be done. This is a challenge for all of us, both in government, business and private sectors and the other stakeholders,” she adds.
Therefore, the agency is expected to prioritize accountable fund management with international standard governance, so it can be a solution for developed countries to provide funding. The body is regulated through Finance Minister Regulation Number 137 of 2019, which is the mandate of Government Regulation Number 46 of 2017 concerning Environmental Economic Instruments and Presidential Regulation Number 77 of 2018 concerning Management of Environmental Funds.
“The existence of the agency can accelerate the operation of public service assistance for forest development financing that has been running in the past three years. Currently, there is no scheme for sharing the percentage of funds channeled for forestry and environmental recovery,” adds by the minister of environment and forestry, Siti Nurbaya Bakar.
Launched in 2008, The World Bank’ Forest Carbon Partnership Facility has worked with 47 developing countries across Africa, Asia, and Latin America and the Caribbean, along with 17 donors that have made contributions and commitments totaling $1.3 billion.
US$1=Rp14,100
Written by Editorial Staff, Email: theinsiderstories@gmail.com
