COUNTRY PERSPECTIVES ON GOVERNANCE FOR REDD+ INDONESIA. Brazzaville, Republic of Congo 23 October 2012

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COUNTRY PERSPECTIVES ON GOVERNANCE FOR REDD+ INDONESIA Brazzaville, Republic of Congo 23 October 2012 MAS ACHMAD SANTOSA Head of Working Group Legal Review and Law Enforcement REDD+ Task Force, Indonesia

TABLE OF CONTENTS Chapter I Chapter II Chapter III Chapter IV Chapter V Chapter VI Chapter VII Chapter VIII Chapter IV Chapter X Chapter XI Introduction The Importance of REDD+ Presidential REDD+ Task Forces Moratorium Policy on New Licenses REDD+ National Strategy Institutional Arrangements Legal Review and Law Enforcement Anti-Corruption Measures Pilot Province Program Development Participatory Government Assessment Conclusion 1

Introduction 2

INDONESIA S COMMITMENT We are devising a policy that will reduce our emissions by 26 percent by 2020 from BAU (Business As Usual). With international support we can reduce emissions by as much as 41 percent We will change the status of our forest from that of a net emitter sector to a net sink sector by 2030 President Susilo Bambang Yudhoyono at the G20 Summit in Pittsburgh, 2009

In May 2010, Indonesia and Norway signed a Letter of Intent (LoI) to support REDD+ through a contribution of USD 1 billion to be paid based on verified emissions LETTER OF INTENT

3 PHASES OF LOI Current focus Preparation Phase, 2010 Strategic design and framework Develop national REDD+ Strategy Establish REDD+ Agency Design funding Instrument Develop independent Measuring, Reporting and Verification (MRV) system Develop scope of moratorium Select pilot province Transformation Phase, 2011-13 Implementation Launch funding instrument Launch MRV system at subnational level Implement programs in first and second pilot province (2011 and 2012) Enforce 2-year moratorium on new concessions on forest and peat land Develop degraded land database Establish REDD+, MRV, and FI agencies Contributions for verified emissions, 2014 - beyond Pay-for-performance Continue emissions reduction program Submit programs for independent review and verification Submit verification for UNFCCC reference level $ 30 mil $ 170 mil $ 800 mil

Presidential REDD+ Task Forces 6

REDD+ IS A CROSS SECTOR ISSUE REQUIRING A CROSS-MINISTRY APPROACH The new REDD+ Task Force includes members from 10 different Ministries and agencies UKP-PPP SKP Sekretariat Kabinet

DEVELOPMENT STAGE OF THE TASK FORCE LOI Preparation Phase 2010 Transformation Phase 2011-13 Contributions for verified emissions, 2014 - beyond Type of work Design Build Implement Responsible entity (s) Task Force REDD+ I UKP4 Task Force REDD+ II REDD+ Agency Main Activities Develop national agency and institution based on designs from previous phase Refine strategic elements and formulate provincial action plans based on national strategy Implement strategic, no-regret initiatives jointly with stakeholders, including local government and communities (eg. Moratorium) Carry out mainstreaming and synchronization of planning into existing development mechanisms, such as Economic Development Corridors as well as Medium Term National Plan

THE 10 WORKING TEAMS ARE LEAD BY EXPERTS FROM GOVERNMENT AND NON-GOVERNMENT AGENCIES Chair of Task Force Kuntoro Mangkusubroto Cluster 1: Strategy and Planning Cluster 2: Institutional Building 1 REDD+ National Strategy Mubariq Ahmad 2 Mainstreaming REDD+ to National Planning Lukita Tuwo 3 REDD+ Agency Agus Purnomo 4 Funding Instrument Agus Sari 5 MRV Arief Yuwono Cluster 3: Tactical Implementation Cluster 4: Overall support 6 Pilot Province Iman Santoso 7 Monitoring of Moratorium Nirarta Samadhi 8 Legal Review & Law Enforcement Mas Achmad Santosa 7 Communications & Stakeholder Engagement Chandra Kirana 10 Knowledge Management & Support Roy Rahendra

Governance Issues 10

ENFORCEMENT: UPSIDES & DOWNSIDES > The existence of integrated enforcement team based on INPRES No. 4/2005 helps to improve coordination among law enforcement agencies; > The existence of REDD+ Task Force to be a host of Joint Enforcement Team for natural resources related crimes; > The Supreme Court s Plan will establish certified judges who can deal with environmental and natural resources related court cases; > The acknowledgment of the existence of widespread corruption within judicial system led to the establishment of Presidential Task Force on Combatting Judicial Mafia and national and sub-national strategies on anti-corruption which outlines the plan to improve the integrity systems within the judicial system and bureaucracy. > The existence of guidelines on multi-door approach fin handling NR related crimes for enforcement officers endprsed by ACC, FIU, AGO, MoF, MoE and Police > Widespread corruption in the judicial system; > Lack of capacity & capability to conduct creative enforcement in forest area (including using corruption and money laundering provisions to prosecute intellectual perpetrators); > Politico-business nexus is widespread which potentially blocks effective enforcement practice or capacity. 11

CORRUPTION WHY ANTI-CORRUPTION SAFEGUARD? The most recent published Rule of Law Index, using the factor of absence of corruption, Indonesia is ranked in the 47 from 66 countries surveyed. In the Asia Pacific region, Indonesia is ranked in the 12 th from 13 countries surveyed. Consequently if Indonesia does not succeed in eradicating corruption in Natural Resource Management and REDD+ phases, the goal of Natural Resource Management and REDD+ to reduce deforestation and forest degradation and to benefit the FDPs, Indigenous Peoples and local communities will not be achieved. INDONESIA S ONGOING EFFORTS AND INITIATIVES IN REDD+ Involvement of the Independent Anti-Corruption Commission (KPK): - To prosecute high-ranking civil servants and large corporations involved in forest-related corruption cases - To conduct a Corruption Risk Assessment (CRA) in the forestry sector - To work with the Ministry of Forestry (MoF) to reform its internal systems and business processes that are vulnerable to corruption Presidential Task Force on REDD+ with MoF/UKP4 has conducted (pre)- investigation of 63 mining and plantation companies operating in Central Kalimantan forest areas, to be further investigated by the police and the Anti-Corruption Commission Developing more transparent procedures in issuing permits Policy Framework on Free Prior Informed Consent (FPIC) in REDD+ has been issued by the Indonesia National Forest Council (DKN) Active engagement of the Civil Society in REDD+ policy-making processes including NGOs on anti-corruption

ANTI CORRUPTION MEASSURES Readiness phase Implementation phase Multi-stakeholder consultation to take place in all stages of the development of the national REDD+ framework, including national strategy legislations and regulations; All decision-making rules and individual decisions to be made publicly available for scrutiny in an accessible manner; Government policy on PRIA to be in place, including in the development of Presidential Instructions (Inpres) and Regulations (Perpres) and Ministerial (important) Decisions (Permen); Corruption risk assessment and corruption prevention measures to be integrated into National REDD+ Strategy; The role of media and the civil society to be strengthened in public monitoring and control. Ensure transparency in the MRV process; Assist NGOs who often assist customary communities with the land registration process; Expedite the delineation process and acknowledge the community forest areas (hutan adat); Establish accessible conflict resolution mechanisms to settle land tenure conflicts over the forest area; Improve public financial management, including strengthen transparency measures; Capacity building and transparency enhancement in land administration sector; Public notifications and call for public submissions for all rezoning applications and rezoning decisions; All applications to register carbon rights,and decisions to register such rights to be made publicly available.

Participatory Government Assessment A Demonstration on How Much More We Need To Do 14

PARTICIPATORY GOVERNMENT ASSESSMENT Participatory REDD+ Governance assessment is being done inclusively by UNDP Indonesia to obtain the baseline, where REDD+ Taskforce/UKP4 agreed to be its primary beneficiary PGA indicators framework has been established, consisting of three main components e.g. law and policy, actors capacity and performance, six- key forest management issues and six-key governance principles, developed by PGA expert panel members (government and non-government background) based on wide stakeholders inputs. The hypothesis is Strong and clear forest and REDD+ governance policy + adequate actors capacity = better forest and REDD+ implementation and performance

PGA CRITERIA Legal and Policy Framework Actor s Capacity (Government, CSO, IPs & business) Implementation Performance

PRELIMINARY PGA FINDINGS 22 critical indicators of the 120 PGA indicators set are highly prioritized to be addressed by central and sub-national government, with non-government actors support based on stakeholders views. The preliminary findings analysis show that indicators related to transparence, participation & equity are in the poor condition. The sub-national governments have not maximized their policy making authorities to create good forest governance regulations.

PRELIMINARY PGA FINDINGS 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 The Preliminary Index of Forest and REDD+ Governance per Province Preliminary Score: 0-5 0 Aceh Province Jambi Province West Kalimantan Province Central Kalimantan East Kalimantan Province Papua Province West Papua Province Central Sulawesi South Sumatra Province Riau Province Province

PRELIMINARY PGA FINDINGS 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 Preliminary Score: 0-5 The Preliminary Index of the Forest and REDD Governance Per PGA Components Law and Policy Government Civil Society Community Business Performance 0.50 0.00 Province

Conclusion 20

CONCLUSION REDD+ should be used as an entry point to protect our forest, to promote radical governance reform in NRM and to empower the forest dependent communities Promoting transparency, access to information and genuine public participation together with clean and responsive bureaucracy, coherent & even-handed legal framework and strong enforcement mechanisms these are some key factors that can promote good environmental governance and reduce corruption risks in natural resources management and during the REDD+ readiness and implementation 21

Thank You 22