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Publication Details

Paper
PP0289-10
TitleFinancing mechanisms for sustainable forest management in Indonesia: the role of public financing instruments
AuthorBeria Leimona, Hendrayanto, Joko Prihatno and Nanang Roffandi
Year2009
Parent TitleStrategies and financial mechanisms for sustainable use and conservation of forests: experiences from Latin America and Asia. Proceedings of an Inter-Regional Workshop Chiang Mai, Thailand, 20-22 November 2006
PublisherFAO Regional Office for Asia and the Pacific (RAP)
City of PublicationBangkok, Thailand
Pages78-87
Call NumberPP0289-10
Abstract:
This paper presents the public financing instruments for forestry of Indonesia, especially the Re-greening Fund. The conclusion is that a gap in financing mechanisms exists. The development of a new financing institution that is autonomous and independent to address current issues in forest financing is proposed. It is also be stressed that any new initiatives in forest conservation, including the introduction of forest financing instruments, should be predicated on solving the underlying causes of failure. Therefore, a discussion of the current problems and necessary pre-conditions for achieving sustainable forest management and rehabilitation is also provided. Finally, payment for environmental services (PES) is briefly covered. The definition of “payment for environmental services”, the various types of environmental services provided, as well as the role of governments, are clarified. The paper concludes by offering some recommendations for addressing forest financing problems in Indonesia.
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GRP 6: Developing policies and incentives for multifunctional landscapes with trees that provide environmental services
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