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Let’s invest in indigenous peoples and local communities

In Indonesia and around the world, indigenous peoples and local communities (IP and LC) are on the front lines of the fight to save our planet.

MartĂ­n AbregĂș and Alexander Irwan
Jakarta
Fri, May 12, 2023

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Let’s invest in indigenous peoples and local communities Defender of nature: An Orang Rimba tribesman carries his child near their camp in Batang Hari regency, Jambi, on May 19, 2017. The Orang Rimba are an indigenous community of an estimated 70 million people and play a pivotal role in environmental protection. (AFP/Goh Chai Hin )

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nvironmental degradation and social inequality are two sides of the same coin—inextricably linked and mutually aggravating. Natural disasters and human-made devastation routinely ravage areas with the fewest economic resources and the least social capital.

But the inverse is true as well: empowering those same communities is key to reducing damage. Their stewardship is essential in mitigating the impacts of floods, fires, pollution, and even climate change. And yet far too often, the people who understand the problems best lack the power to solve them.

In Indonesia and around the world, indigenous peoples and local communities (IP and LC) are on the front lines of the fight to save our planet. They care for critical land, depend on it for their livelihood, know its abundance and its fragility better than anyone else.

IP and LC protect 80 percent of the world’s biodiversity, sustaining a crucial buffer against natural disasters and other impacts of global warming. But when it comes to direct funding, they receive only a fraction of a percent of the billions of dollars dedicated to combating climate change.

And in high-level conversations about conservation and resource management, they seldom get a seat at the table. When communities with the greatest expertise and most lived experience are the last consulted and least empowered, the entire planet suffers the consequences.

That’s why, as an organization dedicated to fighting inequality, the Ford Foundation was proud to sign the COP26 pledge to support the tenure rights and forest guardianship of IP and LC. In fulfilling our commitment, however, we are reminded why this work is so challenging.

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Because there is limited infrastructure to support funding IP and LC directly, the percentage of our investment reaching them (as opposed to nonprofit intermediaries) is smaller than we’d like.

We are determined to be part of the solution, guided by our Indigenous and rural partners. And that starts with supporting the creation of IP and LC-led funds in which we can all invest.

Now, we are pleased to support the launch of Indonesia’s Nusantara Fund. This investment is an extension of our longstanding, sustained efforts to expand opportunity for all Indonesians.

An initiative of Indigenous coalition AMAN, environmental organization WALHI, and agrarian reform consortium KPA, the Nusantara Fund brings stakeholders together to create a simple, transparent funding mechanism for projects by and for IP and LC. In doing so, the Fund not only supports grassroots conservation, it also strengthens local economies and increases social mobility, lifting up traditionally under-served communities and reducing inequality. Additionally, the Nusantara Fund would contribute to the achievement of Indonesia’s Enhanced National Determined Contribution and net zero emission targets.

Community-generated projects recognize the growth potential of investing in training and education. One Nusantara pilot initiative, which created a structured curriculum specifically for female farmers, gave participants both instruction in sustainable farming methods and a community of fellow advocates for their cadre of women agriculturalists.

Together, their success has created a virtuous cycle: better practices lead to better products, which lead to more profit—and ultimately, increased recognition of the power and potential of women in the community. The female farmers are able to diversify their business and earn more to support their families, all while safeguarding local biodiversity. Funding for a farming academy becomes an investment in economic empowerment, gender equity, and the environment.

Other projects tackle community sustainability through a generational lens. One such pilot has sparked a homecoming movement of young farmers returning to their villages to put down literal roots. They are leaving the cities where they toiled as low-wage garment workers to revitalize the gardens and fields where they grew up, planting high-value crops like coffee and herbs that bring greater sophistication to local economies.

With Nusantara’s support these 21st century farmers are reversing the trend of urban migration as economic necessity and building a brighter future for rural youth.

But they can’t build it alone. The Nusantara Fund aims to rehabilitate and restore millions of hectares to IP and LC management, ultimately impacting one third of Indonesia’s total land area and at least a quarter of the total population.

Beyond the improvements to IP and LC quality of life and political influence are benefits that accrue to us all, from carbon sequestration in thriving forests to greater biodiversity fostered by regenerative agriculture. But before we enjoy the fruits of these initiatives, we all share a responsibility to help sow the seeds.

By funding Nusantara and supporting the creation of other vehicles for direct investment, those in government, philanthropy, and beyond can ensure that our resources are going where they are needed most—to the communities that will use them best. We must be bold, innovative, and above all, collaborative in our pursuit of more just and equitable funding structures.

Together, we can fight the inequality at the root of our most pressing challenges and support the IP and LC-led movements that advance our collective commitment to social and environmental progress.

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Martín Abregú is vice president for international programs at Ford Foundation. Alexander Irwan is director of Ford Foundation Indonesia.

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