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Norway gives Indonesia $1b to reduce deforestation
Indonesia and Norway signed a letter of intent to reduce deforestation here Wednesday, by which Norway will provide up to US$1 billion so that Indonesia can protect its forests
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ndonesia and Norway signed a letter of intent to reduce deforestation here Wednesday, by which Norway will provide up to US$1 billion so that Indonesia can protect its forests.
The letter was signed by Foreign Minister Marty Natalegawa and Norway’s Minister of Environment and International Development Erik Solheim at the guest house of Norway’s Prime Minister Jens Stoltenberg.
Speaking after the signing ceremony, Stoltenberg said Indonesia would establish a task force to ensure the grant was used appropriately.
“Monitoring the implementation is the key to be able to verify whether the grant [disbursement] is making progress and is really reducing deforestation,” he said.
He said that his government would adopt the model it used in Brazil in helping Indonesia to protect its forests.
Using the Brazilian model, the grant would be disbursed according to the progress of the projects financed, the prime minister said.
“We pay for the results, it is quite simple,” he added.
President Susilo Bambang Yudho-yono said Indonesia still faced many challenges and problems in terms of funds to reduce deforestation.
“We have to reduce poverty and increase the people’s living conditions, but we also have to protect our environment in facing climate change and global warming. These are twin aims, although we know we have to deal with this with or without international help,” he said.
Yudhoyono praised Norway for providing this contribution to Indonesia to reduce deforestation.
“With Norway’s contribution of course we can do better and reach better results. With this we can achieve what we are aiming for,” the President said.
Indonesia wants to reduce emissions below 26 percent by 2020 for the sake of Indonesians and the citizens of the world given Indonesia’s forests are like the lungs of the world, he added.
The President and his entourage arrived at Gardenmoen international airport, Oslo at 7 a.m. local time (12 p.m. Jakarta). Accompanying the President were First Lady Ani Yudhoyono, Environment Minister Gusti Muhammad Hatta, Forestry Minister Zulkifli Hasan, Marty, Youth and Sports Minister Andi Mallarangeng, Coordinating Economic Minister Hatta Rajasa and Investment Coordinating Board head Gita Wirjawan.
During the visit, the President will also attend the high-profile Oslo Climate and Forest Conference on Thursday to push implementation in reducing emissions from deforestation.
Zulkifli said earlier that the government would set up a multinational trust fund led by the President’s trusted aide Kuntoro Mangkusubroto as part of a bilateral agreement between Indonesia and Norway to reduce carbon emissions.
The $1 billion grant will be disbursed in phases with conditions and requirements including establishing of a trust fund and the choosing of which forests should receive first priority, he said.
“The Forestry Ministry has offered [forests] in Papua, East Kalimantan, Riau and Jambi. But sites will be chosen depending on MRV criteria that will be our responsibility. We will select [which forests] together with Norway,” he said.
MRV stands for measurable, reportable and verifiable, meaning every ton of emissions cuts will be carefully assessed by independent auditors.
Zulkifli said Kuntoro would lead the trust fund, whose members might also include the World Bank and other similar institutions.
