Indonesia : Community-Focused Investments to Address Deforestation and Forest Degradation

Agriculture, natural resources and rural development /

With assistance from the Forest Investment Program (FIP) under Climate Investment Funds (CIF), the project will provide a $17 million grant to the Government of Indonesia to address institutional, technical, and capacity-related barriers for REDD+ implementation in West Kalimantan, one of the top five provinces contributing to GHG emissions with a mean deforestation rate of 132,500 ha per year.

The project forms a part of Indonesia''s forest investment plan and will complement projects by the World Bank and International Finance Corporation (IFC). The project will promote inclusive growth and environmental sustainability by investing in community-focused REDD+ activities (e.g., community-based land use planning, community-led forest monitoring and forest fire management, community-assisted forest regeneration and maintenance, community-based eco-tourism) in selected districts and/or forest management units (FMUs) to address deforestation drivers such as illegal logging, forest conversion to agriculture, and uncontrolled fires. The project will strengthen capacity of district and provincial governments in West Kalimantan, provide policy support to harmonize sub-national policies for carbon stock enhancement with national policies, and establish non-monetary incentives, safeguard systems and equitable and gender-responsive benefit sharing arrangements

The project will build on lessons from other REDD+ initiatives by the government and development partners such as Norway, Australia, Germany, Japan, and USA, and establish a sound base for performance-based REDD+ payments. By promoting sustainable forest management, the project will not only reduce GHG emissions and enhance carbon stocks but also provide livelihood co-benefits such as poverty reduction, improved quality of life for forest communities, protection of indigenous peoples' tenure rights, and enhanced conservation of biodiversity and ecosystem services.

Deforestation, forest degradation and unsustainable forest management account for up to 20% of greenhouse gas (GHG) emissions globally and up to 60% in Indonesia. Reducing emissions from deforestation and forest degradation, conservation and sustainable management of forests, and improvement of forest carbon stocks (REDD+) is thus critical to address climate change. Poor spatial planning, weak forest governance, and unclear land use rights continue to deplete forest assets and erode livelihood of local communities. As forests cover 70% of Indonesia's land area, the country's pledge to cut emissions by 29% from business as usual levels by 2030 with its own funds and by 41% with international support can be achieved only by protecting its forests.

The National Action Plan to reduce GHG emissions (released as a Presidential decree no. 61/2011 in September 2011) projects that total GHG emissions per year by 2020 would be 3.0GtCO2e, of which 1.6GtCO2e (53%) would be from LULUCF and peat lands. Therefore, reducing emissions from deforestation and forest degradation is critical to achieve the goals of National Action Plan to reduce GHG emissions, National REDD+ Strategy and West Kalimantan''s provincial action plan to reduce emissions.

Environmental and livelihood benefits increased.

REDD+ implementation in project areas of West Kalimantan province improved.

Community-focused and gender-responsive REDD+ pilot projects in Kapuas Hulu and Sintang districts implemented.

Provincial REDD+ strategy in West Kalimantan effectively implemented.

Subnational fiscal policies on REDD+ harmonized with national policies.

ADB will assist the EA in recruiting the consultants under the project implementation supporting unit (PISU) in accordance with the ADB's Guidelines on the Use of Consultants. The EA retains the responsibility for negotiating and signing the contract with the consulting firm, issuing the notice to proceed and supervising the consultant's services.

Individual consultant(s) will be recruited to assist in effective coordination and implementation matters.

All procurement will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).

Under the project, goods will be procured through national competitive bidding (NCB) procedures acceptable to ADB for packages up to less than $5,000,000 equivalent or where NCB are not feasible community participation method may be used up to $30,000. For packages of $100,000 equivalent or less, shopping method may be used. For goods of $3,000 or less, direct contracting may be used.