Successfully Reducing Emissions, East Kalimantan Provincial Government Gets IDR 1.7 T

Source: https://www.viva.co.id/siaran-pers/1579347-berhasil-kurangi-emisi-pemprov-kaltim-dapat-rp1-7-t

Governor of East Kalimantan Dr H Isran Noor with Minister of Forestry and Environment (LHK) Siti Nurbaya Bakar, and Satu Kahkonen (World) Bank witnessed the signing of an incentive payment agreement for East Kalimantan Province within the framework of REDD+ and the FCPF program.

The signing was carried out by the Main Director of the Environmental Fund Management Agency (BPDLH) Djoko Hendratto together with the Head of the East Kalimantan Provincial BPKAD, and the Heads of the BPKAD 8 (eight) districts/cities, namely Berau, Kutai Kartanegara, West Kutai, East Kutai, Mahakam Ulu, Paser, North Penajam Paser and Balikpapan City.

The signing of the FCPF incentive payment agreement was carried out at the moment of the 2022 Adipura Award which was held by the Ministry of Environment and Forestry at the Dr Soedjarwo Auditorium, Manggala Wanabakti Building, Jakarta, Tuesday (28/2/2023).

Governor Isran Noor expressed his gratitude to the Minister of Environment and Forestry Siti Nurbaya Bakar and the Director General of PPI Laksmi Dwanti for the agreement to pay incentives to reduce exhaust emissions that have been calculated in East Kalimantan. Isran Noor believes that in the future many other provinces that have reduced exhaust emissions will follow East Kalimantan's example.

"We are grateful that today an agreement has been signed for the payment of FCPF-CF incentives for East Kalimantan, from the first payment. Which was signed by BPDLH Ministry of Finance and BPKAD for East Kalimantan Province and regencies/cities throughout East Kalimantan," said Isran. "We are proud, just do it. Coordinate as soon as possible because the funds are already there, just waiting for a while to enter the regional treasury," added Isran.

East Kalimantan succeeded in reducing carbon emissions by around 30 million tons of CO2 equivalent and the World Bank assessed it by 22 million tons of CO2 equivalent. Governor Isran Noor gave his appreciation to the regencies/cities in East Kalimantan which won the Adipura 2022 award. Namely, the City of Balikpapan won the Adipura Kencana for the big city category, the City of Bontang won the Adipura for the medium city category, the City of Tanah Grogot and the City of Penajam won the Adipura for the small city category. "We are proud because there are regions in East Kalimantan that won the Adipura 2022 award, both in the small city, medium city and golden city categories. Good. Keep improving," he concluded.

President Director of the Environmental Fund Management Agency (BPDLH)
Djoko Hendratto KLHK Wold Bank's REDD+ Program through the FCPF by signing a letter of intention with potential performance-based payments for reducing greenhouse gas emissions in East Kalimantan Province on September 20 2017, then revised through LoI 12 October 2019.

With a potential fund of USD 110 million or IDR 1.7 trillion which will be paid to the Indonesian government through BPDLH to East Kalimantan Province. For the performance of reducing GHG emissions, the East Kalimantan Provincial Government accompanied by the Directorate General of Climate Change Control (PPI) has succeeded in demonstrating the performance and payment of the first RPP in the form of an advance payment and has been carried out by the World Bank. BPDLH has received USD 20.9 million or around IDR 313 billion and will be distributed to the East Kalimantan Provincial Government and 8 districts/cities in the amount of IDR 260 billion. Where IDR 110 billion will be through the APBD scheme and IDR 150 billion will be distributed to 441 villages through institutions appointed by the East Kalimantan Provincial Government. BPDLH as channeling of FCPF funds is expected to be able to ensure that the funds are managed according to their mandate and allocation in a transparent and accountable manner. The allocation of these funds is intended for the operationalization of the implementation of the FCPF program, incentives for parties that contribute to reducing emissions in the scope of East Kalimantan. And rewards for indigenous peoples (MHA) who carry out forest protection in East Kalimantan Province. Performance-based payment or Juridical-based Results Based Payment (RBP) in East Kalimantan Province is the first time this payment has occurred in Indonesia. The success of reducing GHG through the REDD+ program has shown the global world that green economic transformation has been carried out in Indonesia which can be a lever for economic growth and people's welfare while maintaining environmental quality.

This is a form of international trust through the World Bank to the Government of Indonesia. The Ministry of Environment and Forestry acts as the program manager at the national level. The Provincial Government of East Kalimantan as the administrator of the sub-national program. Regency/city government as benefit manager. And BPDLH acts as trusty.