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RI-US sign debt swap deal to save forests
To lessen debt: US ambassador to Indonesia Cameron R
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To lessen debt: US ambassador to Indonesia Cameron R. Hume (left) and the Finance Ministry’s director general of debt management Rahmat Waluyanto (right) jointly sign the debt-for-nature swap (DNS) — Tropical Forest Conservation Act (TFCA) agreement between the United States and Indonesia to save Sumatra forests, witnessed by Forestry Minister M.S. Kaban (center) at Manggala Wanabakti, Jakarta. JP/Wendra Ajistyatama
Indonesia and the United States signed Tuesday a so-called debt for nature swap (DNS) agreement, in which the US will transfer funds paid by the government to a trust fund to finance forest conservation programs in Sumatra.
The total amount of funds, accumulated from a principal debt of US$19.6 million plus interest in eight years and augmented by contributions from NGOs, would reach US$30 million.
The NGOs are US-based Conservation International Foundation and Kehati Foundation from Indonesia, each contributing $1 million to the trust fund.
The funds will be used to finance conservation programs in Batang Gadis National Park in North
Sumatra, Bukit Tigapuluh National Park in Central Sumatra and Way Kambas National Park in
Lampung.
“The conservation will cover a total forest area of 7 million hectares in the three regions. This will also support the conservation of endangered species such as Sumatran tigers, orangutans, and elephants,” said Forestry Minister M.S. Kaban at the signing ceremony.
Representing the US government, ambassador Cameron R. Hume said the agreement marks the 15th Tropical Forest Conservation Act, following agreements with, among others, Bangladesh,
Belize, Botswana, Colombia and Costa Rica.
The act was initiated in 1998 to offer eligible developing countries options to relieve certain official debt owed to the US government while at the same time generating funds in local currency to support tropical forest conservation.
Deforestation, burning trees and peat swamps, contributes about 80 percent of Indonesia’s carbon emissions.
Indonesia is the world’s third biggest greenhouse gas producer, a World Bank 2007 report says.
Hume said that the DNS agreement consists of three agreements, namely the debt reduction agreement between the US and Indonesian governments, the swap fee agreement between the US
government and the two NGOs as the administrators of the forest conservation programs, and a forest conservation agreement between the Indonesian government and the two NGOs.
“Funds generated by the DNS program will help Indonesia protect critical forest habitats in
Sumatra.”
Kehati’s Executive Director Damiyanti Buchori said Kehati and the Conservation International Foundation would be responsible for the implementation of the forest conservation programs
under the supervision of an oversight committee chaired by government representatives from both countries.
“The oversight committee will consist of seven members from the two foundations and representatives from both governments.”
Damiyanti said other countries, namely Germany and Italy, were considering granting Indonesia with the same DNS scheme.
“And perhaps the US will also provide Indonesia with similar facilities for marine conservation as its Congress has passed an act for marine conservation.”
“But this could take several years,” she said, adding the DNS agreement for forest conservation was initiated in 2007.
