RI, US begin discussion on second debt-for-nature deal

Indonesia and the United States have begun discussions toward conclusion of a second debt-for-nature agreement under the US Tropical Forest Conservation Act (TFCA) to finance tropical forest conservation.

The US Embassy said in press statement made available Friday that the US Treasury Department had provisionally set aside over US$19 million for the treatment of eligible debt.

The initial discussions began this week in Jakarta between representatives of the US and Indonesian governments.

"This is an important symbol of our partnership with Indonesia on issues of climate change and the environment. It is a practical way we can work together to protect critical forests and mitigate climate change," US Ambassador to Indonesia Cameron R. Hume said in the statement.

Both countries signed the first agreement, in which the US will transfer funds paid by the government to a trust fund to finance forest conservation programs in Sumatra,  in June last year.

In the first DNS deal, 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, reached US$30 million.

The funds was to 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.