Jakarta (ANTARA) – Indonesia’s climate partnership with Norway has established a more equal, transparent, and results-based model of international cooperation for protecting tropical forests and tackling global climate change, the Ministry of Forestry said on Friday.
Senior Advisor to the Minister of Forestry for Climate Change Haruni Krisnawati said the partnership applies a Results-Based Payment (RBP) mechanism, under which payments are made only after Indonesia achieves independently verified greenhouse gas emissions reductions in the forestry and land-use sector.
The partnership began with the signing of a Letter of Intent (LoI) in Oslo in May 2010.
“The agreement opened the opportunity for results-based contributions of up to US$1 billion, subject to Indonesia’s verified emissions reductions in the forestry sector,” Haruni said in a statement issued in Jakarta.
She said implementation of the LoI faced institutional challenges and differing perspectives, prompting both countries to end the agreement in September 2021 and establish a new framework for cooperation.
“The end of the LoI did not mean the relationship had ended. Instead, it became an opportunity to build a more equal and mature partnership,” Haruni said during the launch of the book Earth Diplomacy: The Story Behind Indonesia’s FOLU Net Sink 2030.
Indonesia and Norway entered a new phase of cooperation by signing a Memorandum of Understanding (MoU) in September 2022, establishing a partnership based on mutual respect, mutual trust, and verified emissions reductions rather than development assistance.
Under the new framework, Indonesia has received four rounds of results-based payments totaling about US$216 million for verified emissions reductions in the forestry and land-use sector.
The first payment of US$56 million recognized emissions reductions achieved during 2016–2017. Norway subsequently approved US$100 million covering the 2017–2018 and 2018–2019 periods, followed by US$60 million for reductions achieved during 2019–2020.
The funds are managed by the Environmental Fund Management Agency (BPDLH) to support forest protection, ecosystem restoration, forest and land fire prevention, social forestry, community empowerment, and the welfare of communities living around forest areas.
Director of Fund Mobilization and Development at the Environmental Fund Management Agency, Endah Tri Kurniawaty, said the agency plays a key role in ensuring results-based payments are managed transparently, accountably, and effectively under Indonesia’s FOLU Net Sink 2030 strategy.
“BPDLH will continue collaborating and strengthening synergies to support environmental commitments by carrying out its mandate to manage environmental funds,” she said.
FOLU Norway Contribution Phase 1 Project Director Agus Justianto said Indonesia’s FOLU Net Sink 2030 is one of the country’s most ambitious national forestry strategies.
The program aims to ensure the forestry and land-use sector absorbs more greenhouse gas emissions than it generates by 2030 through reduced deforestation, peatland and mangrove restoration, forest rehabilitation, sustainable forest management, biodiversity conservation, and increased carbon stocks.
Ministry of Forestry Secretary General Mahfudz said environmental diplomacy has become an integral part of Indonesia’s development diplomacy.
He said Indonesia’s progress in reducing deforestation, improving forest governance, and advancing the FOLU Net Sink 2030 program has strengthened international confidence in the country’s commitment to fulfilling its obligations under the Paris Agreement.
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Translator: Subagyo, Martha Herlinawati Simanjuntak
Editor: M Razi Rahman
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