Indonesia finally signs forestry logging moratorium

Yahoo News 19 May 11;

JAKARTA (AFP) – Indonesian President Susilo Bambang Yudhoyono on Thursday signed a decree authorising a two-year moratorium on new logging concessions, under a billion-dollar climate deal with Norway.

"He signed it this morning," Agus Purnomo, presidential advisor on climate change, told AFP.

No details were immediately released about how the controversial moratorium would work in the massive archipelago, which is home to some of the world's last tracts of pristine jungle.

Indonesia is often cited as the world's third biggest emitter of greenhouse gases blamed for global warming, mainly as a result of clearing forests for pulp or to make way for oil palm plantations.

Yudhoyono agreed to implement a moratorium on new concessions in May last year in exchange for $1 billion in funding from Norway, under a UN-backed scheme designed to pay developing countries to preserve forests.

It was meant to take effect in January but has been delayed amid aggressive lobbying from the palm oil and paper industries, which have tried to limit the reach of the decree to "primary forests".

Environmentalists have said the moratorium must also apply to all natural and even degraded forests if it is to have any impact on Indonesia's greenhouse gas emissions.

Greenpeace Indonesia forest campaigner Bustar Maitar said the terms of the moratorium remained unclear.

"We don't know the details. If it only covers primary forests it is meaningless," he said.

Indonesia Finally Signs Forest Clearing Moratorium
Olivia Rondonuwu PlanetArk 20 May 11;

Indonesia's President Susilo Bambang Yudhoyono inked into law on Thursday a two-year moratorium on new permits to clear primary forests, part of a $1 billion deal with Norway that could spur projects to cut emissions and slow expansion of plantations.

The moratorium ordered a freeze on new permits to log or convert primary forests and peatlands -- worrying palm oil, timber and mining firms in Southeast Asia's biggest economy -- but not going far enough for environmentalists.

"We mean business when we say we would like to reform our forest and peatland management. There will be no new permits on 64 million hectares," Agus Purnomo, Indonesia's presidential advisor on climate change, told Reuters Television.

"We mean business in the sense that we are continuing to grow our economy, because we allocate 35 million hectares of degraded forest for agriculture, mining and other development uses," he said in an interview.

The moratorium was due to start on January 1 but has been delayed because of wrangling between government ministries over how much forest to include, a symbol of the long-running tension between a nationalistic business old guard and more internationally minded reformers in the government.

The dispute showed how difficult it will be for Indonesia to reach a target of slashing emissions by at least 26 percent by 2020 while still spurring economic growth, as the G20 member earns billions each year from cutting down forests.

Plantation and mining firms opposed the moratorium, which could slow the expansion of firms such as Astra Agro Lestari in the world's top palm oil producing nation, and delay coal and mining projects worth $14 billion by firms such as BHP Billiton.

The details of the final version are expected to be released on Friday. A previous draft seen by Reuters said it would exempt the extension of old permits, projects given permits in principle by the forestry ministry, and issuance of permits to log secondary non-peatland forests or convert degraded land.

The draft version also exempted projects to develop energy supplies such as geothermal power, as well a huge food plantation project in the lushly forested Papua province, since both energy and food security are seen as critical by Yudhoyono.

BILLION NOT ENOUGH

Andreas Prasetiya, head of investor relations at Gozco Plantations, said the palm oil firm had permits for 70,000 hectares out of a total 124,000 hectares, but the moratorium could affect the remaining 44 percent of its landbank, in a greenfield area on Borneo island.

"I don't see the benefits of it just yet. We are receiving a $1 billion contribution from the Norwegian government... two or three years ago maybe it seemed like big money, but with crude palm oil prices now, $1 billion doesn't seem like big money," he told Reuters.

"They say if your area is affected with the moratorium, they will give you another replacement area -- come on, let's be realistic. Everybody is competing for land -- who is going give up their land?"

The details will also be scrutinized by green groups and Norway, which has pledged $1 billion if Indonesia can reduce greenhouse gas emissions from deforestation. Norway's environment ministry was not immediately available for comment.

The moratorium's implementation will be a test of bilateral climate deals, after the five-month delay mirrored the inability of nations to agree a pact to limit global greenhouse gas emissions beyond 2012 at U.N. talks so far.

Forests soak up large amounts of carbon dioxide, the main greenhouse gas blamed by scientists for causing global warming.

DEVIL IN DETAILS

The fact that Yudhoyono actually managed to sign it was welcomed by some, hopeful it will be a catalyst to develop projects to reduce carbon emissions from the forestry sector.

"It's a stepping stone toward fixing long-standing problems of land conflict, forest governance and other issues," said Dharsono Hartono, whose firm is developing a project to protect a large area of carbon-rich peat swamp forest in Central Kalimantan on Borneo.

The forestry ministry has defined primary forest as forest that has grown naturally for hundreds of years, of which there is estimated to be around 44 million hectares in a sprawling tropical archipelago where illegal logging is common.

The devil may be in the implementation as well as the details, in a country where institutional corruption is rampant and legal enforcement often weak.

Nils Hermann Ranum, head of policy at the Oslo-based Rainforest Foundation, estimated the presidential plan only extended protection to an extra 16 million hectares and fell far short of past commitments if it covered just "primary" forests.

"It looks like Indonesia is now making a serious limitation of the scope of the moratorium," said Ranum.

(Editing by Neil Chatterjee and Daniel Magnowski)

Moratorium issued to protect primary forests, peatland
Adianto P. Simamora The Jakarta Post 20 May 11;

President Susilo Bambang Yudhoyono on Thursday finally signed a policy banning the conversion of primary forest and peatland for two years as part of a government pledge to combat climate change through reducing deforestation.

With the presidential instruction, all local authorities should stop issuing forestry permits, including for plantation and mining companies eyeing businesses in primary forest and peatland areas.

“The moratorium will apply to 64 million hectares of forests across the country,” Agus Purnomo, the President’s aide on climate change issues, said Thursday.

The announcement came after Yudhoyono met with editors of US media outlets at the Presidential Palace.

Agus, who is also secretary-general of the National Council on Climate Change, said the instruction included a map showing the areas that would be affected by the moratorium.

However, most of the 64 million hectares twice the size of Great Britain is located in areas already protected by the 1999 Forestry Law.

“We are double protecting these protected areas since in fact many of these areas are still prone to deforestation. We hope the moratorium will help better protect the forests,” Agus said.

He said businesspeople could still expand into the 34 million hectares categorized as degraded forest areas.

The presidential decree still allows the exploitation of peatland with a depth of less than three
meters.

Indonesia has the world’s third-largest expanse of forest with 120 million hectares of rainforest, 40 million of which are protected forest and conservation areas that cannot be exploited for commercial purposes.

The two-year moratorium is part of Indonesia’s pledge to stem deforestation in a US$1 billion deal with the Norwegian government made in May 2010.

According to a letter of intent with Norway, Indonesia is required to stop issuing new permits for exploiting natural forests and peatland within two years.

In return, Indonesia would receive money based on the total amount of carbon emissions reduced within the two years.

The moratorium was to have been implemented earlier this year, but officials including from the Forestry Ministry and the presidential taskforce on reducing emissions from deforestation and forest degradation (REDD Plus) were divided over the definition of natural forests as stipulated in the deal.

The REDD taskforce led by Kuntoro Mangkusubroto wanted the moratorium imposed on both primary and secondary forests as well as peatland.

Forestry Minister Zulkifli Hasan said secondary forests should remain open to commercial exploitation to aid the country’s economic development.

The differences led to a four-month delay in drafting the regulation, drawing criticism from businesses.

Dharsono Hartono, the president director of ecosystem restoration firm PT Rimba Makmur Utama, praised the presidential instruction as it would clarify the rules for doing business in forest areas.

“We hope this moratorium gives use breathing room leading to governance reform of sustainable natural resources-based businesses,” he told The Jakarta Post.

Indonesian Environmental Forum (Walhi) senior campaigner Teguh Surya said the government had betrayed its promise to protect forests by only banning the conversion of primary forests and peatland rather than all naturals forests.

“The President ignored input from civil society who care about conserving forests and threw its support to big businesses, such as palm oil plantations,” he told the Post.

SBY Signs Decree on 2-Year Deforestation Moratorium
Fidelis E Satriastanti Jakarta Globe 19 May 11;

President Susilo Bambang Yudhoyono has finally signed a two-year moratorium on the conversion into logging concessions of almost half of the total forest cover in Indonesia.

The moratorium is part of a bilateral agreement with Norway in which Indonesia will receive $1 billion to launch activities under the United Nations-backed Reducing Emissions From Deforestation and Forest Degradation (REDD Plus) program.

Agus Purnomo, a presidential adviser on climate change, said the moratorium applied to all peatlands and primary forests that had not been reserved for any purpose and for which no permits had been issued.

Agus said 64 million hectares of Indonesia’s 130 million hectares of total forest cover was protected by the moratorium, which took effect after Yudhoyono signed the decree on Thursday.

The adviser said that although existing laws already protected primary forests, the decree was needed to reinforce anti-logging measures.

“This is to make [the law] stronger. Primary forests, if touched, will mean violating the decree and there will be legal consequences,” Agus said.

The moratorium had originally been expected to take effect on Jan. 1, but it was delayed pending the decree’s signing.

The plan received a push from Norway, which sent a letter to the national government saying peatland and primary forests should not be logged.

However, Agus said logging could still continue in secondary forests, those regrown after being damaged by fires or logging.

Environment Minister Gusti Muhammad Hatta said in March that even before a decree was signed, a moratorium had already been in place.

“We’ve banned the clearing of peatland and primary forests since the start of the year,” Gusti said. “We’ve already stopped issuing permits. The decree is only to provide legal certainty.”

Elfian Effendi, executive director of Greenomics, a forestry advocacy group, welcomed Yudhoyono’s decision.

“At this stage, we need to look at the political attitude of the president, who has given attention to forestry issues, even though the substance of the decree may not be perfect,” he said.

“We have to admit that not all leaders of country would want to take that step.”

Bustar Maitar, the head of Greenpeace’s forests campaign, also welcomed the decree, but he said the state should prove it can fully enforce the ban.

“We expect a meaningful moratorium which will protect Indonesian forests,” Bustar said on Thursday. “This should include the protection of all remaining natural forests, full protection of peatlands and a review of existing concession permits.”

Indonesia Forest Decree To Help CO2 Projects
David Fogarty PlanetArk 1 Jun 11;

A landmark forest protection ruling by Indonesia might be good for investors trying to save carbon-rich forests, but only if a ban is enforced and progress is made in using the market to save the environment.

President Susilo Bambang Yudhoyono signed an order this month imposing a two-year ban on new licenses to clear primary forests and peatlands, a key part of a $1 billion climate deal with Norway last year.

The decision, delayed by five months, has earned praise and concern from green groups but broad support from investors and analysts as a first step toward better protection and more transparent management of Indonesia's dwindling rainforests.

"The next two years are critical ... they have to set the stage for sustainable management in the long run," said Frank Sperling, senior adviser on climate risks, forests and carbon at WWF Norway.

The decision also bolsters a U.N.-backed program that aims to reward poorer nations for saving their forests by putting a price on the carbon stored in the soil and in trees. Forests soak up lots of planet-warming carbon dioxide and can play a major role in slowing the pace of climate change.

The program, called reduced emissions from deforestation and degradation (REDD), uses carbon offsets to reward projects that protect forests under threat of clearing. Each credit represents a tonne of carbon locked away.

Indonesia has about 40 REDD projects and the program could develop into a multi-billion dollar global market in forest carbon credits if nations agree on a new climate pact.

Bank of America-Merrill Lynch and Macquarie are investing in Indonesian REDD projects and firms such as Gazprom have committed to buy forest carbon credits.

"It's definitely a step forward for REDD because if you didn't have this, what you have is basically no moratorium on logging and you would have the peat being cleared," said Martijn Wilder, global head of Baker & McKenzie's environmental markets practice in Sydney.

The challenge is implementing the moratorium.

And that's where Indonesia has often fallen short because of lack of manpower, corruption and powerful oil palm, timber and pulp and paper companies pushing to expand their landholdings.

ENFORCEMENT

"There is no a clear system for monitoring, verifying and reporting the success and failure of the implementation of the moratorium except using the indicative map which will be revised six-monthly," said forest policy analyst Fitrian Ardiansyah.

As part of the presidential ruling, the government released a map of the areas to be protected. Agus Purnomo, special climate change adviser to the Indonesian president, told Reuters the area covered by the moratorium totalled 72 million hectares (180 million acres), out of the nation's total land area of 188 mln ha.

"Also, there is no clear indication for enforcement system so that the moratorium and the overall reform of land use and forestry can be achieved successfully," said Ardiansyah, of the Australian National University in Canberra. Failure to enforce the ban would undermine the deal with Norway, which is aimed at promoting efforts to protect Indonesia's forests and develop skills to measure, verify and report real emissions reductions from forest preservation.

That could scuttle a government program to develop a REDD framework that aims to support REDD investments nationally, several of which are nearing the issuance of credits.

With the lack of a global carbon market for REDD, investors rely on selling offsets on the unregulated voluntary carbon market in which corporates buy the credits to meet emissions reduction goals.

To boost prices and integrity, many REDD projects are applying for credits to be issued under the strict rules developed by the Washington-based Voluntary Carbon Standard (VCS), which has developed global benchmarks for offsets.

The 100,000 ha Rimba Raya project in Central Kalimantan developed by Hong Kong-based InfiniteEARTH hopes the moratorium will speed up the final government approvals to make it Indonesia's first REDD project to earn VCS offsets. The project aims to prevent 100 million tonnes of carbon emissions over 30 years.

Some investors say they fear the moratorium would deter new REDD investments because the ruling meant the VCS could not issue credits now that the two forest types were protected.

The VCS will only issue credits to projects that aren't common practice, need the additional income to be viable and, in the case of REDD projects, if the land is under threat of clearance. But it's not that simple, given the moratorium is for an initial two years and the threat of illegal clearing remains.

"When is common practice established- Unfortunately the experience of most countries shows that you don't stop land-clearing with the stroke of a pen," said Jerry Seager, director of program development at the VCS, told Reuters in an email.

"It takes time and a lot of on-the-ground effort to change established economic behaviors."

(Editing by Robert Birsel)