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FORCLIME

 Forests and Climate Change Programme
 Technical Cooperation (TC Module)
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FORCLIME

 Forests and Climate Change Programme
 Technical Cooperation (TC Module)
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FORCLIME

 Forests and Climate Change Programme
 Technical Cooperation (TC Module)

Comprehensive training programme on entrepreneurship and business development implemented

Coaching Putissibau 2

According to FORCLIME’s objectives both capacity development of Forest Management Units shall be supported and living conditions of rural communities be improved. This can be achieved through strengthening of qualifications needed e.g. entrepreneurial capabilities contributing to local stakeholders managing forest resources in a sustainable way. As a couple of social forestry schemes have been granted by the Ministry of Environment and Forestry and more will follow a growing number of local communities are legally entitled to manage these resources independently.

Since entrepreneurship is a broad field a comprehensive programme was needed to cover the most important aspects of the subject. This includes identification of suitable commodities, development of supply chains, means of processing and packaging, marketing of products and cooperation among likeminded farmers. At the same time any business setup should aim on sustainability in order to create long-term jobs and permanently generate income for the actors involved. To ensure a practical approach the training should include theory and practice and at the same time give support looking at individual concepts focussing on potentials existing locally by revising business ideas and providing coaching sessions.

The activity was basically aiming on three target groups:
1. As the ones to develop their own business and generate income local communities were addressed directly. Representatives of different villages should pick up useful knowledge to take home, implement individually but also as multipliers pass it on to other community members.
2. Forest Management units (FMU) are considered to function as public service providers giving technical support to local stakeholders in all matters affecting sustainable forest management and use of natural resources deriving from in and around their forests. For this kind of extension service comprehensive qualifications including entrepreneurial competencies are needed.
3. Teachers of the regional Government Forestry Training Centres (BDLHK) will be the responsible persons to in future regularly provide training to FMU-staff in order to equip them with knowledge needed to fulfil their consulting mission. They should specialize on certain topics to pass on the relevant knowledge and work as moderators supporting forest service extension officers.

The implementation of the training program was entrusted to an Indonesian consulting company, which has the necessary skills and experience. Because participants can usually be made available for a week at the most due to other commitments and obligations it was important to divide the further training measure into several consecutive modules that build on each other. Hence the entire series of training events consisted out of a one-week basic training workshop, follow up by a two-days coaching event that was implemented after several weeks only. For participants, who would later act as multipliers passing on their knowledge to others, a one-week advanced course was also carried out.

The components included different topics to deal with intending to enable participants to acquire basic knowledge and develop simple business models. During the basic workshop the following topics was dealt with:

  1. Entrepreneurship and establishment of forest-based commodity business.
  2. Value Chain Approach
  3. Rapid market assessment of selected non-timber forest products and
  4. Business Strategy and Business Plan.

Basic Tarakan 6

The last aspect should be further elaborated following the basic course. With regard to a commodity that is available in the participants’ home area a business plan should be developed and elaborated further. During a follow-up event (“coaching workshop”) this concept had to be presented and justified. The group of participants should then question the concept and point out any existing weak points in order to subject it to a reality check.

The last component of the training programme (“advanced training”) was following the train-the-trainer approach focussing on providing deeper insights in business related issues. This kind of knowledge should be given primarily to the representatives of the FMU and training centres in order to strengthen them in their intended role as advisers. The module included topics like:

  1. product development
  2. marketing (including web-based solutions) and
  3. organisational development.

The latter subject seems to be of utmost importance to promote cooperation and a common strategic orientation of producers of the same commodity. By setting up organizations like associations, cooperatives or any other type of joint platform representing the interests of its members it should be possible to strike a fair balance between the positions of producers and customers and to avoid any unfair dependencies.

Basic Putussibau 4

All participants mainly originating from West Kalimantan and North Kalimantan got involved with high motivation during the sections of the training programme. Practical exercises with a high relevance to reality focussed on commodities available in the regions including honey, tengkawang (illipe nut), rattan as well as agarwood, cacao and eco-tourism. Since this is just a selection of potential products further research and development as a follow-up is needed. And although the training program was comprehensive and intensive comprising 7 (basic training and coaching) or 12 days (including advanced training), there is a need for further consultation. In future it will be one of the tasks of the Indonesian Forest Management Units to give this advice to the local communities in order not only to encourage production and create business opportunities for rural communities but also provide permanent consultation for necessary adjustments to changing business environments. For this they shall be updated and supported by the regional forest training centres (BDLHK) implementing further training events and transferring additional knowledge and essential information.

For more information, please contact:
Lutz Hofheinz, Strategic area manager, forest management unit development
Mohammad Sidiq, Coordinator North Kalimantan Province
Jumtani, Coordinator West Kalimantan Province

 

FORCLIME supports East Kalimantan Province developing the forestry plan

Forests in East Kalimantan

East Kalimantan province possesses an area of 16,732,065.18 hectare, with land area of 12,734,691.75 hectare. Based on the Land Use Plan (RTRW) of East Kalimantan, the forest area makes up to 8,380,308 hectare while the non-forestry area/areas for other purposes make up to 4,319,137 hectare. East Kalimantan possesses forest area with specific characteristic of humid tropical forest which comprised of various forest types, among others are coastal forest, low land dipterocarps forest, and mountain forests and contains of 5 ecosystems: freshwater swamp, karst, kerangas, mangrove, and peat swamp.

Based on the KPH design and post-development of province area, there are 18 KPH Production units, 2 KPH Protection units, 1 Provincial KPH Conservation unit, 1 District Conservation unit, and 5 conservation areas.

Provincial Level Forestry Plan of East Kalimantan

Provincial Level Forestry Plan (RKTP) is the plan containing instructions on macro spatial use, the potency of forest area for forestry development and non-forestry development using forest area, as well as the estimation of contribution of forestry sector in the province area for 20 years span. RKTP covers the whole aspect of forest maintenance including the forestry plan, forest management, research, development, education, training, and monitoring. Due to its long-term nature, RKTP also contains indicative macro instructions.

RKTP of East Kalimantan for 2011-2030 has been appointed through Governor Regulation of East Kalimantan in 2012. However, the progress of regional and forestry development has been very dynamic, and several policies related to spatial and forest management in general have been produced as well since then. Hence, there is a demand to synchronize and adjust the RKTP.

sampul RKTP

The underlying aspects urging the change of RKTP are elaborated as follows:

  1. The transition of authority in forestry sector based on UU 23/2014 on Regional Government, in which the district/municipality authority in forestry sector shifted to provincial authority;
  2. The establishment of North Kalimantan province based on UU 20/2012 causing the reduction on East Kalimantan province area;
  3. The development of National and Regional Action Plan on reducing GHG emission emphasized the contribution of forestry sector, one of which is strategy and action plan on emission reduction from forestry sector (SRAP);
  4. The enforcement of policy on national social forestry development and the issuance of Indicative Maps of Social Forestry Area through Decree of Minister of Environment and Forestry (SK.4865/MENLHK-PKTL/REN/PLA.0/9/2017);
  5. The issuance of Agrarian Reform policy due to Indicative Maps of Forest Area Allocation for Providing Land Object for Agrarian Reform (TORA) through Decree of Minister of Environment and Forestry (SK.180/MENLHK/SETJEN/ KUM.1/4/2017);
  6. Issuance of Peat Hydrological Unit through Decree of Minister of Environment and Forestry (SK.282/MENLHK/SETJEN/ PLA.1/6/2017);
  7. The appointment of land use planning of East Kalimantan province in 2016-2035 through Regional Regulation of East Kalimantan No. 1 Year 2016.

Revision of RKTP is authorized through Governor Regulation No. 55 Year 2018. The process of adjustment of RKTP is carried out by Provincial Forestry Service with support from its partners, including GIZ and Global Green Growth Institute (GGGI).

RKTP East Kalimantan is limited to the forest management in the forest area for the span of 2011 – 2030. The development of RKTP East Kalimantan is purposed to give instructions on the forest maintenance in the future, thus enabling to return the multifunction potency of forest and forest area as well as its utilization in sustainable manner for the prosperity of people in Indonesia, especially the people of East Kalimantan, and to give the real contribution in maintaining global environment.

The objectives of RKTP East Kalimantan are:

  1. To be one of the references for developing forestry plan in the smaller scopes, such as: Strategic Plan and Working Plan of Local Government Agencies, and Short-Term and Long-Term Forest Management Plans;
  2. To be one of the references of policy formulation and development programs of forestry sector in East Kalimantan; and 
  3. To be one of the references in monitoring and assessing the effectiveness and efficiency of achieving the forestry development programs in East Kalimantan.

FORCLIME Support

FORCLIME Technical Cooperation Module has actively contributed in the process of developing the revision of RKTP 2011-2030, such as in preparation (coordination meeting, discussion meeting); conducting public consultation; and providing experts (GIS experts for spatial analysis, consultant to assist the writing and editing process); facilitating the governor regulation making process; and printing the RKTP document. Furthermore, FORCLIME supports the dissemination process of RKTP-related policies such as Governor Regulation 55/2018 on the Revision of Annex for the East Kalimantan Governor Regulation 19/2012 on Provincial Level Forestry Plan of 2011-2030 to the related stakeholders.

For further information, please contact:
Suprianto, Technical Advisor for Sustainable Forest Management
Wandojo Siswanto, Strategic Area Manager for Forest Policy
Kasmiyati, Forestry Service of East Kalimantan

Supporting the development of the SDG Roadmap at the Ministry of Environment and Forestry

MoEF SDG roadmap

Sustainable Development Goals at the Ministry of Environment and Forestry

Indonesia's commitment to implement the Sustainable Development Goals is realized by the issuance of the Presidential Regulation on SDGs (Perpres) Number 59 of 2017, which specifies the Implementation of the Achievement of the Sustainable Development Goals. The regulation was created in a participatory manner, involving all parties.

As a follow-up to the Presidential Regulation, the Ministry of Environment and Forestry (MoEF) issued Decree Number: SK.346 / MENLHK / SETJEN / SET.1 / 8/2018 on 9 August 2018, which concerns the Establishment of a Working Group for Sustainable Development Goals at the Ministry of Environment and Forestry. The decree aims to streamline and optimize the achievement of integrated and coordinated Sustainable Development Goals within the Ministry of Environment and Forestry.

 

FORCLIME’s support

The Ministry of Environment and Forestry's Planning Bureau, supported by FORCLIME, is the driver of the SDG Working Group. The Working Group met every Thursday from June to September in 2018. At each meeting, the WG members discussed the SDG Achievement Target Matrix, which is delivered by two work units (Echelon 2 level). The meeting series produced the main input for MoEF’s input on SDGs which was later compiled and developed as the Roadmap of Sustainable Development Goals of the Ministry of Environment and Forestry.

FORCLIME Technical Cooperation (TC Module) had an active role in the process of drafting the Decree of the Minister of Environment and Forestry as mentioned above, from the preparation up to its provision.

Furthermore, FORCLIME will support the Implementation Team, Working Group and Expert Team for Sustainable Development Goals of 2017-2019 at the Ministry of Environment and Forestry to mainstream Sustainable Development Goals into environmental and forestry development plans.

 

The SDG Road Map of the Ministry of Environment and Forestry

The MoEF SDG Roadmap Draft refers to the 2015-2019 SDG National Action Plan document, attached to the BAPPENAS Regulation Number 7 in 2018. It is stated in the National Action Plan that MoEF activities match to 7 objectives, namely Goal 3 (Good Health and Well-being); Goal 6 (Clean Water and Sanitation); Goal 9 (Industry, Innovation and Infrastructure); Goal 11 (Sustainable Cities and Communities); Goal 12 (Responsible Consumption and Production); Goal 13 (Climate Action); and Goal 15 (Life on Land). In the National Action Plan of SDGs, the MoEF is the main driver in achieving Goals 12, 13, and 14 as well as co-supervisor for objectives 6 and 11. These objectives are included in the pillars of environmental development.

 

Way Forward

The draft of the MoEF SDG Road Map has been completed and is ready to be signed by the Minister. The next step will be the dissemination and socialization to various related parties which will involve FORCLIME-TC in its implementation.

 

For further information please contact:
Wandojo Siswanto, Manager of Strategic Area Forestry Policy
Mohamad Rayan, Adviser for Crosscutting Issues and Conflict Management

Social Forestry: Partnership scheme in the management of ecotourism in Berau district, East Kalimantan

Social forestry is a government program which authorizes the right for communities to manage state forests, customary forests, and entitled forest for the purpose of improving community welfare, environmental balance, and socio-cultural dynamics. The authorization of forest management is conducted in the form of management permits on Village Forests (Hutan Desa/HD), Community Plantation Forests (Hutan Tanaman Rakyat/HTR), Community Forests (Hutan Kemasyarakatan/HKM), Customary Forests, and Forestry Partnerships. The technical guideline for developing social forestry is elaborated through the Regulation of Ministry of Environment and Forestry No. P.83/MenLHK/Sekjen/2016.

As of December 2018, Social Forestry in Berau district covers ± 69.447 hectare, making Berau the district which holds the largest area of Social Forestry in East Kalimantan involving: eight Village Forests; one Community Plantation Forest; and one Forestry Partnership.

FORCLIME supports the effort for accelerating the Social Forestry implementation in Forest Management Unit (KPH) Berau Barat, including Tembalang Waterfall Forestry Partnership as the effort to resolve land conflicts and improve community welfare.

Forest Management Unit (KPH) Berau Barat

KPH Berau Barat, located in Berau district, East Kalimantan, manages an area of ± 786.021 hectare based on the Minister of Forestry Decree No: SK. 674/Menhut-II/2011. The permit area includes 11 (eleven) Forest Timber Product Exploitation Permits – Natural Forest (IUPHHK-HA), one Forest Timber Product Exploitation Permit – Industry Plantation Forest (IUPHHK-HTI), and one Forest for Special Purpose (KHDTK) in Labanan. In addition, there is one more permit on Charcoal business (Perjanjian Karya Pengusahaan Batubara/PKP2B) from the national level and nine other permits from district level.

The area certainty of KPH Berau Barat is not strong yet. The function of forest areas (in KPH area) is generally still on the allocation stage neither boundaries nor delineation processes have taken place for neither functional borders nor physical borders for the KPH. Thus, there are several overlaps between IUPHHK and mining permits, between settlements (the old settlement and the transmigration settlement), and many other conflicts caused by tenurial matters.

Social Forestry in KPH Berau Barat

The Directorate General of Social Forestry and Environmental Partnership (DG PSKL) on behalf of the Minister of Environment and Forestry has signed the Decree No. SK.8868/MENLHK-PSKL/PKPS/PSL.0/12/2018 on Recognition and Protection of Forestry Partnership between Sadar Wisata Allo Malau Group with PT. Inhutani I Unit Labanan II. The purpose of the Forestry Partnership scheme is to assist the Kampung Tepian Buah community sharing revenues gained by the management of the waterfall tourism management, a waterfall which is located within the forest concession area owned by PT. Inhutani I Unit Labanan. This partnership scheme is referring to the Minister of Environment and Forestry Regulation No.P.83/Menlhk/setjen/Kum.1/10/2016 about Social Forestry.

The area of Tembalang Waterfall forestry partnership is located along Tembalang river. Within the area, there are 3 different waterfalls with a total area of + 225 hectare located in the concession area of PT. Inhutani I Unit Labanan (UMH Tepian Buah) and administratively located within Kampung Tepian Buah, Berau district, East Kalimantan. Based on the function of the area, the Tembalang waterfall forestry partnership lies within a Limited Production Forest (HPT) and is dominated by Dipterocarpacea spp. (a family of mainly tropical lowland rainforest trees used for timber production), and mostly primary and secondary forests. This area is at 150-200m above sea level, with a slope level of 3-15% and wavy topography.

Generally, the partnership includes agreements from each party to share the revenue from the waterfall management; monitoring and evaluation activities about the implementation of the waterfall tourism are conducted periodically.

The forestry partnership has been going on for five years since the Decree was signed and can be extended as long as the validity of the business permit is issued for the IUPHHK-HA PT. Inhutani I Labanan. Furthermore, the extension is based on the result of the evaluation as well as the agreement from both parties. The partnership will be monitored yearly and evaluated every 5 years.

The agreed upon business revenue sharing scheme is as follows: The percentage of a net income of 40% is given to PT. Inhutani I Labanan and 60% to the community /POKDARWIS. The revenue is saved in a special account. The profit from the partnership is given at the end of the year to each party after operational/management costs have been deducted.

Support

FORCLIME supported the activities on the preparation and proposal development to obtain the legal basis for a Forestry Partnership on Tembalang Waterfall Management.

The above-mentioned activities include: area identification, area mapping, raising awareness on the Forestry Partnership scheme, participative mapping, assistance during the process of proposal development, assistance during the technical verification, assistance in preparing and processing the signing of the Forestry Partnership script, training to increase the KPH and community development, assistance in the coordination and communication process between two parties, and support in improving and institutional strengthening for KPH and community institutions.

Way Forward

After obtaining the legal basis, FORCLIME will keep supporting the Social Forestry activity in KPHP Berau Barat via the following activities:

  • Supporting the management plan development and institutional strengthening, including: Decree No. SK.8868/MENLHK-PSKL/PKPS/PSL.0/12/2018 on Recognition and Protection (KULIN) of Forestry Partnership between Sadar Wisata Allo Malau Group and PT. Inhutani I Unit Labanan II; support in the gazettement of the area boundaries; support in forest resource inventory; support in developing blocking; support in developing the management plan of the forestry partnership area; support in human capacity development for management planning and in institutional strengthening for the community institutions and KPH via training and study visits.
  • Supporting the business implementation, such as support in establishing the Social Forestry Business Group (KUPS); support in business plan development and partnership with other parties; support in human capacity development in business development for community and KPH via training and study visits.

For further information:
Suprianto, Technical Advisor for Sustainable Forest Management
Lutz Hofheinz, Strategic Area Manager for KPH Development
Hamzah, Head of Natural Resources Protection and Conservation, and Community Empowerment (KPH Berau Barat)

Supporting green funding mechanism

Indonesia ratified the Paris Agreement through Law 16 of 2017 and submitted the Indonesian NDC (Nationally Determined Contribution) to the UNFCCC on 24 September 2017. As outlined in the NDC, Indonesia has targeted to reduce GHG emissions up to 29% by 2030 in a business as usual (BAU) scenario and up to 41%, with international support. The focus sectors are Forestry, Energy, Agriculture, Industry and Waste Management. The NDC is mainstreamed through development plans at all levels (national, province, district, and village level). Funding sources for these development plans are budgeted at all respective levels and further sources, such as private sector and international funds are being tapped into.

The NDC funding is project based and sectoral based, the funds can be sourced from national and subnational sources, grants (multilateral and bilateral funding) and from other sources, including the private sector. Bilateral mechanisms are derived from Norway for REDD+, Germany for energy efficiency and Japan for energy efficiency and technology transfer through a Joint Crediting Mechanism (JCM). Multilateral funding is granted by the Adaptation Fund under the Kyoto Protocol; special climate change funds and the Least Developed Countries Fund managed by the Global Environmental Fund (GEF) and the Green Climate Fund (GCF) under UNFCCC for adaptation and mitigation. The access to the GCF is managed by the GCF Board and the Designated National Authority (DNA) in the Ministry of Finance. Furthermore, non-UNFCCC multilateral funding from multilateral development banks is available, such as from World Bank (BioCarbon Fund) and ADB (Climate Change Mitigation, Clean Energy Program, Funds and Partnerships).

NDC

 

The most recent development regarding climate change financing is the establishment of the Public Service Agency (Badan Layanan Umum - BLU). The BLU is a Guiding Committee, which is composed of the Ministry of Environment and Forestry (KLHK), the National Planning Body (Bappenas) and the Ministry of Finance (Kementerian Keuangan). The BLU monitoring is organized by a team, which represents national governments (ministries and agencies) and non-government institutions. The beneficiaries could be government institutions, academics, researchers, CSOs and smallholders (Source: Ir. Achmad Gunawan Widjaksono, MAS, 5 September 2017).

 

What is FORCLIME’s contribution?

Prior to the merging of the State Ministry of Environment and the Ministry of Forestry, FORCLIME has supported Indonesian policy development processes regarding climate change via the Ministry of Forestry. The objective was to improve at least two elements of the REDD+ architecture (e.g. MRV, safeguards, and benefit sharing mechanisms) at national and sub-national level in coordination with relevant institutions.

During the period of 2009 to 2013, FORCLIME supported the development of the Ministry of Forestry decree on carbon licenses and its incentive mechanisms. However, the regulation is revoked, as it is lacking synchronization with the development of financing mechanisms in the Ministry of Finance.

FORCLIME, in cooperation with other German support programme, PAKLIM, supported the development of the Trust Fund Mechanism called Indonesia Climate Change Trust Fund (ICCTF) in 2009. GIZ contributed technical assistance on its development. The ICCTF is a nationally-managed trust fund that aims to contribute effectively and efficiently to mainstreaming climate change adaptation and mitigation funded activities in government planning and implementation across Indonesia (source: ICCTF website). Additionally, the task of ICCTF is to distribute the received funds to appropriate climate change activities. In 2015, ICCTF funded six programs in locations across Indonesia in line with its thematic focus in: Land-based mitigation, energy, resilience and adaptation.

Furthermore, FORCLIME contributed to the development of a policy brief about “Instruments and Mechanisms for Financing the Greenhouse Gas Emission Reduction Programmes”. The policy brief was developed by the Ministry of Finance, involving the Ministry of Forestry and supported by GIZ projects. The mechanism for financing the greenhouse gas emission reduction programmes  is using the trust fund mechanism as seen below in the graphic.

Mechnisme

 

Since December 2015, FORCLIME supported the Ministry of Environment and Forestry in various activities on REDD+ architectures such as the Safeguards Information System (SIS), the National Registry, the Forest Reference Emission Level (FREL) development and incentive mechanism. A study in Malinau district about a district financial mechanism at village level, called Gederma, was undertaken in collaboration with the University of Indonesia and the RCCC-UI (Research Center for Climate Change - Universitas Indonesia). The study concluded the possibility of fiscal transfer from the national government to village level.

On 4 to 8 September 2017, FORCLIME in cooperation with the University of Indonesia facilitated an exchange on green finance mechanisms between senior members of the Indonesian parliament, the Ministry of Finance, the Ministry of Environment and Forestry, BAPPENAS and the district governments of Berau (East Kalimantan), Kapuas Hulu (West Kalimantan) and Sigi (Central Sulawesi) with Indian senior experts in Dehradhun and New Delhi. The 17-person delegation spoke to the stakeholders involved in the 14th Financial Commission on the Indian landmark decision to include forest cover in the devolution formula, which specifies the amount of domestic funds transferred from central government to state level. Due to this decision, forest conservation has gained value within the financial transfer mechanism. As a result, an estimated six billion US dollars are being transferred yearly to local level as unconditional funds based on the performance of states in forest conservation. Due to the study tour to India, delegates gained a new perspective and understanding on how to justify transfer mechanisms for forest conservation. The delegates also gained an overview of fiscal policy formulation and governance.

 

Way Forward

FORCLIME will focus on further developments of fiscal mechanisms for green funding. Additionally, FORCLIME will convene a forum to discuss the possibilities for an enhanced fiscal mechanism and policies that will benefit districts and provinces.

This focus will be coordinated with the Ministry of Environment and Forestry via the Directorate General of Climate Change Control and relevant stakeholders for the activity implementation, such as the RCCUI, will be engaged.

For more information, please contact:
Wandojo Siswanto, Strategic Area Manager for Forest Policy
Mohammad Rayan, Advisor Crosscutting Issues and Conflict Resolution