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Research Report

Land-based investment and green development in Indonesia: Lessons from Berau district, East Kalimantan

Anne Casson
Yohanes I Ketut Deddy Muliastra
Krystof Obidzinski
Copyright Date: Jan. 1, 2015
Pages: 65
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Table of Contents

  1. (pp. viii-x)

    In the twentieth century, the world’s population grew fourfold, economic output 22 times and fossil fuel consumption 14 times (UNEP 2011). The resilience of a wide range of environmental systems is now being tested by the requirements of: a rapidly growing global population and increased levels of economic activity. This includes meeting the energy and food needs of 9 billion people in 2050. Thus the world faces twin challenges: expanding economic opportunities for a growing global population; and addressing environmental pressures that, if left unaddressed, could undermine economic development and growth (OECD 2011). These challenges are particularly relevant in forest-rich...

  2. (pp. 1-14)

    Indonesia has long promoted the extraction of natural resources to stimulate economic development and growth. During the Suharto era (1967–1998), logging and timber processing were encouraged in 5-year development plans known as REPELITA (Rencana Pembangunan Lima Tahun). Plantation developments were also promoted to increase agricultural production and food efficiency. Large-scale oil palm plantation developments were primarily encouraged in REPELITA IV (1994/5–1998/9) to stimulate employment, GDP growth and export revenue (Potter 1991; Byron 1993; World Bank 1994; Poffenberger 1997).

    In 2011, natural resource extraction and the expansion of agriculture, large-scale estate crops and timber plantations were emphasized in the...

  3. (pp. 15-26)

    This section describes a set of government and market-based initiatives that are often presented as elements of the emergent concept of green development in Indonesia. We focus on initiatives developed to counter CO2 emissions expected to result from land-based developments in Indonesia. It aims to describe an evolutionary process where REDD+-based initiatives are re-labeled as supporting “green” development. This section focuses on government-based initiatives that have been introduced to reduce GHG emissions and deforestation, including REDD+; biofuel development plans; Indonesia’s moratorium on primary forest and peatland conversion; the One Map Initiative; and national and regional action plans for reducing GHG...

  4. (pp. 27-37)

    In 2008, the provincial government of East Kalimantan created a REDD+ Working Group to trial and implement a REDD+ pilot program. They also declared their commitment to make East Kalimantan a ‘green province’ in December 2009 and to contribute to Indonesia’s national commitment of a 26% reduction in CO2 emissions by 202042 (DNPI and Government of East Kalimantan 2010; Berau REDD+ Working Group 2011). Five broad initiatives were put forward to improve land use and reduce CO2 emissions by a total of 135 million t C02 by 2030: zero burning reduced impact logging, reforestation and rehabilitation of forests, rehabilitation and...

  5. (pp. 38-43)

    The above chapter has revealed that Berau’s remaining forests and peatlands are threatened by numerous activities including logging, mining, timber and estate developments and the wood processing industry. However, the biggest threat to Berau’s forests is the spatial planning process. If the draft 2012 RTRWP is enacted, this spatial plan will allow 35,879 ha of primary forest and 318,944 ha of secondary forests to be allocated as APL land which can be cleared to make way for agriculture and estate developments (primarily oil palm). To date, 45% (190,475 ha) of the forest in the APL land has already been allocated...

  6. (pp. 44-45)

    Economic development from the extraction of natural resources and the conversion of forests to plantations and other land uses has had a significant impact on forests and GHG emissions. Global concern about human induced climate change has increased in recent years and prompted Parties to the United Nations Frameworks Convention on Climate Change (UNFCCC) to pledge that they will protect the climate system for the benefit of present and future generations of humankind in 2007. The Indonesian Government also committed to reduce GHG emissions by 26% by 2020 with national funding and up to 41% with international support in 2009....