BPDLH distributes emission reduction incentives of IDR 1.7 trillion to East Kalimantan

Source: https://mataram.antaranews.com/amp/berita/262137/bpdlh-salurkan-insentif-pengurangan-emisi-rp17-triliun-ke-kaltim

The Environmental Fund Management Agency (BPDLH) distributed incentives of US$110 million or the equivalent of Rp.1.7 trillion to the Provincial Government of East Kalimantan for serious efforts to reduce greenhouse gas emissions within the framework of Reducing Emissions from Deforestation and Forest Degradation (REDD)+ and the Forest program Carbon Partnership Facility (FCPF).

The signing of the incentive payment agreement coincided with the Adipura award ceremony at the Manggala Wanabakti Building, Central Jakarta, Tuesday. "By signing a letter of internal regarding the potential for performance-based payments to reduce greenhouse gas emissions in East Kalimantan Province," said Main Director of BPDLH, Djoko Hendratto.

Currently, Indonesia has received the first payment of US$20.9 million or the equivalent of Rp.320 billion from the FCPF – Carbon Fund program out of a full payment of US$110 million which will be provided after finalization of verification by a third party as an independent auditor.

The first payment will be used according to the plan stated in the Benefit Sharing Plan document which has been prepared by the Government of Indonesia and submitted to the World Bank in October 2021.

Referring to the document, payments will be used to finance a responsibility cost of 25 percent, a performance cost of 65 percent as financing for emission reduction performance, and a 10 percent reward that will be given to villages that have a commitment to maintaining forest cover in the Province. East Kalimantan.

The Governor of East Kalimantan Province has submitted a Request for RBP Payment for the FCPF-Carbon Fund Program in the amount of IDR 110.46 billion which will be included in the APBD of East Kalimantan Province and eight districts/cities.

The scope of activities to be carried out includes reducing greenhouse gas emissions from deforestation and forest degradation, increasing institutional capacity, and human resources.

The Minister of Environment and Forestry, Siti Nurbaya Bakar said the signing of the cooperation was the first time for East Kalimantan Province to receive performance-based payments with beneficiaries down to the site level, namely 441 villages in seven districts and one city, "This can be applied to other provinces that have commitments to reduce emissions from deforestation and forest degradation," he said.

The success of reducing greenhouse gases through the REDD+ program demonstrates to the global world that green economic transformation has been carried out in Indonesia, because it can be a lever for economic growth and people's welfare while maintaining environmental quality.

This incentive is a form of international trust through the World Bank to the Indonesian government. The Governor of East Kalimantan, Isran Noor, claims that the Government of East Kalimantan has reduced carbon emissions by around 300 million tons of carbon dioxide equivalent and that the World Bank has assessed by 22 million tons of carbon dioxide equivalent.

He expressed his gratitude to the Minister of LHK Siti Nurbaya and the Director General of Climate Change Control of the Ministry of LHK Laksmi Dwanti for the agreement to pay incentives to reduce exhaust emissions which have been calculated in East Kalimantan.

"We are grateful that today an agreement has been signed for the payment of FCPF-CF incentives for East Kalimantan from the first payment signed by BPDLH, BPKAD of East Kalimantan Province, and districts/cities throughout East Kalimantan," said Isran.