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TABLE OF CONTENTS

Table of Contents 2 Acronyms and Terms 3 I. Situation Analysis 5 II. Strategy 7 III. Results and Resources Framework 21 IV. Annual Work Plan 27 V. Management Arrangements 28 VI. Project Management Organisation Structure 31 VII. Monitoring Framework And Evaluation 32 VIII. Legal Context 34 IX. ANNEXES 35

Annex A: Annual Work Plan 35 Annex B: Standard annex to project document for use in countries, which are not parties to the Standard Basic Assistance Agreement (SBAA) 36 Annex C: Risk Analysis 39 Annex D: REDD+ Interim Phase – Budget Overview 40 Annex E: Reporting Schedule from UNDP to Norwegian Ministry of Foreign Affairs 43

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ACRONYMS AND TERMS

AMAN : Aliansi Masyarakat Adat Nusantara (Indonesian Indigenous Peoples Alliance). Bakosurtanal : See BIG. BAPPENAS : Badan Perencanaan Pembangunan Nasional (National Development Planning

Agency). BIG : Badan Informasi Geospatial (National Agency for Geospatial Information), formerly

Badan Koordinasi Survei dan Pemetaan Nasional (Bakosurtanal, National Coordinating Agency for Surveys and Mapping).

BPK : Badan Pemeriksa Keuangan (Government Audit Agency). BPKH : Balai Pemantapan Kawasan Hutan (Centre for the Registration of Forest Area), a work

unit under the Director General of Forest Planology, Ministry of Forestry. BRWA : Badan Registrasi Wilayah Adat (Agency for Registration of Traditional Regions). CIFOR : Center for International Forestry Research, a non-profit organisation that provides

decision-making information about the use and management of forests in less-developed countries.

FREDDI : Fund for REDD+ in Indonesia. GHG : Greenhouse gases. HuMa IPB

: :

Pembaharuan Hukum berbasis Masyarakat dan Ekologis (Community and Ecology Law Reform). Institut Pertanian Bogor (Bogor Agricultural University)

JKPP : Jaringan Kerja Pemetaan Partisipatif (Indonesian Network for Participatory Mapping). KPH : Kesatuan Pengelolaan Hutan (Forest Management Unit). KPK : Komisi Pemberantasan Korupsi (Corruption Eradication Commission). KpSHK Konsorsium Pendukung Sistem Hutan Kerakyatan (Support Consortium for

Community Forestry Systems). LAPAN : Lembaga Penerbangan dan Antariksa Nasional (National Institute of Aeronautics and

Space). LoI : Letter of Intent which refers to a REDD+ Partnership between the governments of

Norway and Indonesia established on 26 May 2010. This partnership aims to support Indonesia’s efforts to reduce emissions from deforestation and degradation of forests and peat lands.

MoU : Memorandum of Understanding. MP3EI : Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia (Master

Plan for the Acceleration and Expansion of Indonesia's Economic), Years 2011-2025. MRV : Measurement/Monitoring, Reporting and Verification refers to the collection of data

and information at a national or sub-national level and applying calculations for estimating emission reductions or enhancement of carbon stocks based on a reference level (RL).

PRISAI : Prinsip Kriteria Indikator Safeguards Indonesia (Principles, Criteria and Indicators for Safeguards in Indonesia). PRISAI is based on the seven principles stipulated in the Cancun Agreement (FCCC/CP/2010/7/Add.1) and have been extended to ten principles to ensure elements peculiar to Indonesia are included.

PES : Payment for Environmental (Ecosystem) Services refers to the voluntary payment of a buyer to a provider to purchase an environmental service (or a land use that will secure that service).

PMU : Programme Management Unit. PNPM : National Program for Community Empowerment Mandiri, a community-based poverty

alleviation programme providing direct block grants. PSAP : Provincial Strategic Action Plan (Strategi Rencana Aksi Provinsi, SRAP). PUSPIJAK Pusat Penelitian dan Pengembangan Perubahan Iklim dan Kebijakan (Research and

Development Center for Climate Change and Policy). RAD-GRK : Regional Action Plan to Reduce GHG Emissions. RAN-GRK : National Action Plan to Reduce GHG Emissions.

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REDD+ : Reducing Emissions from Deforestation and Forest Degradation; refers to a mechanism that enables developing countries to move towards a low-carbon development through the implementation of REDD+ activities and for developed countries to support a reduction in global deforestation and forest degradation by contributing funds for these activities. REDD+ activities include: reducing emissions from deforestation; reducing emissions from forest degradation; conservation of forest carbon stocks; sustainable management of forests; and enhancement of forest carbon stocks (Cancun Agreement FCCC/CP/2010/7/Add.1, Paragraph 70).

REDD+ Task Force : Satuan Tugas REDD+ (Satgas REDD+); refers to the government appointed National REDD+ Task Force (Keppres 19/2010, 25/2011, 5/2013) responsible for establishing a government REDD+ Agency in Indonesia as a part of an agreement (LOI) between the governments of Norway and Indonesia. Its legal mandate expired 30 June 2013.

RKP : Rencana Kerja Pemerintah (Government Annual Work Plan). RL/REL : Reference Level (RL) is the amount of net/gross emissions and removals from a

geographical area estimated within a reference time period (eqCO2); Reference Emission Level (REL) is the amount of gross emissions from a geographical area estimated within a reference time period (eqCO2).

RPJMN : Rencana Pembangunan Jangka Menengah Nasional (National Medium-term Development Plan), Years 2015-2019.

STRADA : REDD+ Strategi Daerah (REDD+ Regional Strategy). STRANAS : REDD+ Strategi Nasional (REDD+ National Strategy). TPSF : Tripa Peat-Swamp Forest (Hutan Rawa Gambut Tripa) which forms the area of focus

for restoration activities under Provincial projects in this document. Unless otherwise specified, reference to TPSF is not limited to the actual boundaries of TPSF but includes, in particular, the LEA biosphere sanctuary.

UNDP : United Nations Development Programme; the fund manager of the National REDD+ Task Force’s programme to establish a REDD+ Agency in Indonesia as a part of the agreement (LOI) between the governments of Norway and Indonesia and fund manager of the Interim Phase.

UNORCID : United Nations Office for REDD+ Coordination in Indonesia; mandated to support the national REDD+ Programme, its stakeholders and related priorities in accordance with a MoU between the United Nations System and the Government of Indonesia signed in September 2011. Other agencies including UNDP, UNEP, UNESCO, ILO, UNOPS, UNODC, FAO and WFP have joined as additional parties to this MoU.

UKP-PPP : Unit Kerja Presiden Bidang Pengawasan dan Pengendalian Pembangunan (President’s Work Unit for Development Monitoring and Oversight).

Unsyiah : Syiah Kuala University, Universitas Syiah Kuala, a state university located in Banda Aceh, Aceh, Indonesia, and the lead partner of this current project to conduct scientific studies of the TPSF.

WG : Working Group refers to the former ten working groups of the REDD+ Task Force: Agency, Strategy, Communications, Funding, MRV, Pilot Province, Moratorium, Mainstreaming, Legal and Knowledge Management.

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I. SITUATION ANALYSIS

Background As like other developing countries, climate change threatens many MDG achievements Indonesia has made in the past decade. With 17,000 islands, Indonesia is especially vulnerable to rising sea levels and floods, while erratic weather patterns will impact agricultural production which supports many local livelihoods. Most MDG goals, and especially reducing poverty will be severely compromised without adequate ‘climate proofing’ or adaptation interventions. Indonesia is also a major emitter of Greenhouse Gases (GHG), with most emissions originating from deforestation and the burning of peat lands. These practices not only cause global warming but also threaten livelihoods, biodiversity, peace and stability. REDD+ (reducing emissions from deforestation and forest degradation) has gained traction in the international climate change dialogue and has become an eminent priority for Indonesia because deforestation and forest degradation still represent a major source of GHG emissions, in addition to hindering human development and causing environmental problems in the country. Most of Indonesia’s GHG emissions are related to land degradation, inappropriate land uses, and land conversion. Indonesia has played a leading and continually expanding role in addressing the global climate change challenge. At the G20 Summit in Pittsburgh on September 2009, President Susilo Bambang Yudhoyono committed to a 26% emission reduction target by 2020, and a 41% emission reduction with international support, making Indonesia the first large developing country to do so. By shifting to a less carbon-intensive growth model and playing a leading role in addressing the global climate change challenge, Indonesia stands to:

• Play a proper and appropriate role in combating the severe global challenge of climate change which threatens the country’s future prosperity and well-being.

• Create a more sustainable and diversified growth model in the provinces and districts without sacrificing the country’s economic and development objectives and providing new energy and purpose into its decentralization program.

• Be a leader in innovative climate financing, providing different financing models to capture global financing to support not only Indonesia’s climate change programs but also the country’s more general development objectives.

It is widely acknowledged that REDD+ will play an important role to support Indonesia’s voluntary commitment to reduce its emissions by 26%. To deliver significant reductions a set of clear targets, tailored strategies, policies and institutions will be required. The Norway Indonesia Climate Change Partnership In response to the President’s commitment to reduce GHG emissions, on May 26th, 2010, the governments of Indonesia and Norway signed a Letter of Intent (LoI), outlining a USD 1 billion programme of “Cooperation on reducing GHG emissions from deforestation and forest degradation”. This ambitious programme will be implemented in three phases, namely “Preparation”, to establish the REDD+ infrastructure and enabling legal framework for REDD+ in Indonesia; “Transformation”, involving substantial capacity building in the pilot province of Central Kalimantan and possibly others; and “Contributions for verified emission reductions”, for national level implementation of measures to reduce emissions. This is a crucial programme aiming to reduce deforestation and land degradation in Indonesia’s substantial forest cover, together with associated Green House Gas emissions. The main purpose of the climate change partnership, focusing on REDD+ is to contribute to significant reductions in GHG emissions from deforestation, forest degradation and peat land conversion through:

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• Conducting an action-oriented policy dialogue on international climate change policy, in particular international policy on REDD +.

• Supporting the development and implementation of Indonesia’s REDD+ strategy. • Being a driver for institutional change and reform by aligning multiple Ministries and departments

across a common objective and goal, shifting mindsets and attitudes to climate change and creating real and lasting impact on the ground.

Payments will be made to the Government of Indonesia based on deliverables as outlined in the LoI. The Funds will be channelled according to the three phases. In the spirit of partnership, the Joint Consultation Group composed of representatives of the Government of Indonesia and the Government of Norway has been formed as a forum for dialogue and to oversee the implementation of the deliverables of the LoI. Support to the Establishment of Indonesia REDD+ Infrastructure and Capacity The United Nations Development Programme (UNDP) was tasked by the Government of Indonesia and Norway to facilitate the implementation of the first phase of the Letter of Intent through the “Support to the Establishment of Indonesia REDD+ Infrastructure and Capacity” project aimed at building the basic institutional and financing architecture for REDD+ in Indonesia. An allocation of USD 30,711,482.68 was made to this effect and channelled through UNDP. While the main outputs produced by the REDD+ Task Force and initially identified in the original project document remain the same, the revised project document signed in May 2011 and July 2013 reflected several substantive changes with regards to the deliverables, corresponding budget allocations and change of Implementing Partner (IP). This includes the identification of several “quick win” initiatives to demonstrate concrete measures to reduce deforestation and forest degradation for the future REDD+ implementation in the province of Central Kalimantan. The implementation timeframe of the project was extended until the end of September 2013. The mandate of the REDD+ Task Force expired 30 June 2013 and, based on the decision of the Project Board on 21 June 2013, was taken over by the President’s Work Unit for Development Monitoring and Oversight (UKP-PPP) acting as the Implementation Partner (IP) for completion of the phase 1 project, which is scheduled to end on 30 September 2013. A special team in UKP4 has been established to oversee and facilitate the handing over of phase 1 business plans and project pipelines, legal obligations and liabilities, and to archive both physical and virtual documentation through an Information and Asset Management System. .

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II. STRATEGY

Rationale of the Interim Phase The REDD+ Task Force came to a close at the end of June 2013. Its mandate has been challenging, requiring the implementation of significant changes necessary to move Indonesia towards a more sustainable national approach to economic development. For instance, the availability of accurate data is scarce, the political landscape diverse, and the provision of public services limited. Overall, however, the REDD+ mechanism is seen as an important opportunity for Indonesia to achieve its 7/26 objective1 and serve as a catalyst towards improved sustainable development and poverty reduction. Overcoming these challenges requires the development of appropriate mechanisms and incentives, which in turn require adequate capacity to ensure their ability to function and operate effectively and efficiently. In this context, the REDD+ Task Force’s mandate was to prepare for the establishment of a national REDD+ agency; to create technical working mechanisms - a Funding Instrument (FREDDI) and a Monitoring, Reporting and Verification (MRV) institute; and to engage local communities, CSOs, local, district and provincial governments in an effort to build operational capacity for REDD+ projects. To this end, the REDD+ Task Force has accomplished the following: • Drafting of an integrated Presidential Regulation regarding the establishment of a REDD+ Agency

and governance of REDD+ in Indonesia; • Agreement on, and legal basis for, the structure and operations of FREDDI through multi-stakeholder

consultation; its implementation awaits the establishment of the REDD+ Agency and the subsequent release of funding for Phase 2 of the LOI;

• A methodology, partially tested, for the structure and Standard Operating Procedures (SOPs) of the MRV technical unit; while international standards and an international/national REDD+ registry remain in development, the unit is ready for mobilisation following the establishment of the REDD+ Agency; and

• Successful implementation of a wide range of projects by the REDD+ Task Force in the pilot province Central Kalimantan with a focus on developing an operational capacity and an enabling environment for REDD+ projects.

These broad achievements have prepared a basic foundation for a future REDD+ national programme that will help address the country’s immediate concerns regarding carbon-emission reduction and the national long-term goals associated with sustainable economic development and poverty reduction. The REDD+ Task Force further undertook a range of programmes including, among others: the development of baseline and geospatial data for priority (at risk) provinces; the implementation and legalisation of provincial REDD+ strategies and action plans; the One Map initiative; and regulatory review and law enforcement. With the basic foundations for a REDD+ national programme in place, funding for Phase 1 of the LOI has been fully disbursed or committed. For Phase 2 of the LOI to commence, the REDD+ Agency and subsequently FREDDI must have a legal basis. In this respect, the draft Presidential Decree prepared for the establishment of the REDD+ Agency is currently awaiting political approval. Therefore, the principle rationale for this current proposal for an Interim Phase is to continue the momentum generated by the REDD+ Task Force and relevant stakeholders, to enable the preparation of the regulatory frameworks on the basis of which the REDD+ Agency, the Funding Instrument and the Institution for Monitoring, Reporting and Verification (MRV) will be established in addition to facilitating the handover of work packages and deliverables to the REDD+ Agency when created. Given the nature of regulatory review and law enforcement, the complexity of baseline and geospatial data, and the urgency of mainstreaming REDD+ strategies and action plans at the provincial level, the uninterrupted continuation of these programmes is critical for the overall success of REDD+ in Indonesia and to ensure

1 The expression 7/26 refers to maintaining 7 percent economic growth while reducing greenhouse gas emissions by 26 percent by 2020.

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the substantial progress made in Phase 1 remains a solid foundation for the further implementation of the REDD+ programme. It is within this context that the Governments of Norway and Indonesia decided that that a facility for an Interim Phase was required. At the same time, this period could provide the opportunity to significantly reinforce and strengthen the overall readiness of the REDD+ programme in Indonesia. The present project document for the Interim REDD+ Phase reflects the outcome of close consultations between Norway, Indonesia and UNDP, focusing on the strategic direction of the bridging phase designed to maintain crucial political momentum and support for the continuation of REDD+ implementation in Indonesia until the REDD+ Agency is established and operational. Moving forward The interim phase will be managed under four thematic areas based on the national REDD+ strategy. Activities to be supported under the Interim Phase include a range of initiatives which are an integral part of the development of REDD+ infrastructure and capacity and, through the advantage of hindsight, have been expanded over time to mitigate the risks and dependencies related to environmental and economic reform. These activities comprise four main outputs as outlined below, and as these outputs are a direct continuation of the initial ten (10) outputs of the previous “Support to the Establishment of Indonesia REDD+ Infrastructure and Capacity” project, they are numbered from eleven (11) to fourteen (14) as follows: 11. REDD+ strategies and action plans finalised with an operational capacity for project implementation

strengthened in key-priority provinces. 12. REDD+ institutional mechanisms and instruments in readiness for small-to-large scale project

implementation in key-priority provinces. 13. Legal reform for REDD+ implementation in process and strengthened through improved law

enforcement mechanisms and systems. 14. REDD+ Agency management arrangements, human resource and administrative transition

prepared. A breakdown of these four areas of focus and corresponding budget allocation is shown in the diagram below. Diagram 1: The four areas of focus for the Interim Phase

26.1%

27.0%

27.5%

11.8%

7.6%

11. Strategies and Action Plans - Regional offices - Regional work units - PSAP implementation - Tripa Peat-swamp Forest12. Institutional Mechanisms - MRV - Baseline and geospatial Data - FREDDI - REDD+ Registry and Safeguards13. Legal Review and Law Enforcement - Legal Review - Law Enforcement - Moratorium and One Map - Cadastre system14.A REDD+ Agency Readiness and Transition - Management Arrangements - Human Resources - Assets Management - Obligations and Liabilities14.B REDD+ Agency Readiness and Transition (support from the Project Management Unit)

Output 11

Output 12Output 13

Output 14

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Collectively, the objectives of these four-focus areas may be described as follows: • Strategic in nature; • Transformational and forward looking; • Building foundations (enabling an environment) for future REDD+ implementation; • High-quality investments; • No-regret activities; and • Quick wins.

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Building on the national strategy With the imminent establishment of the REDD+ Agency, Funding Instrument and MRV, effort is under way to further align and formalise the activities of the former REDD+ Task force with the REDD+ national strategy. The National Strategy provides valuable insight into the overall development of the REDD+ infrastructure in Indonesia.

Diagram 2: The five pillars of the REDD+ National Strategy

The following table provides an overview of an outcome level framework proposed under a thematic approach based on the REDD+ National Strategy.

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Outcomes based on the five pillars of the REDD+ National Strategy

Outcomes based on the five pillars of the REDD+ National Strategy (including indicator/baseline/target and linked to outputs of the Results and Resources Framework in Section 3)

Outcome/Pillar 1: Establishment of critical institutions and processes such as the REDD+ Agency, the Funding Instrument and the Monitoring, Reporting and Verification (MRV) institution (Outputs 1, 2, 5, 7, 8 – first phase, & Outputs 12 and 14 – interim phase).

Outcome Indicator: Status of the Presidential Regulation to create the REDD+ Agency, its national strategy, funding and safeguards mechanisms and MRV system.

Baseline (30 June 2013): A final inter-ministerial consultation report from Coordinating Ministry of Legal Political and Security Affairs will be shared with the President soon. Based on this report, the President will make an informed decision and is expected to sign the Presidential Regulation enabling the creation of REDD+ Agency, its structure, its National Strategy, FREDDI, safeguard principles and MRV institution.

Target (30 June 2014): The Presidential Regulation is issued to establish the REDD+ institutions and processes, mainly the REDD+ Agency, its structure and mandate, the REDD+ National Strategy, the Fund for REDD+ in Indonesia (FREDDI), the PRISAI safeguard principles and MRV institution. Management arrangements, legal obligations and liabilities of the REDD+ Agency are transferred to an executive director and a core group of staff. A network of REDD+ focal points in all (11) partner provinces is strengthened and supports the implementation of the Provincial Strategic Action Plans.

Outcome/Pillar 2: Review and reform of legal and regulatory frameworks such as land rights and spatial planning and improvement of law enforcement (Output 9 – first phase & Output 13 – interim phase)

Outcome Indicator: Level of progress on the review and reform of the regulatory frameworks on land rights and spatial planning and status of the law enforcement system.

Baseline (30 June 2013): The draft Presidential Regulation mandates the REDD+ Agency to set up a ‘climate-friendly’ legal framework that will function as a more detailed manifestation of the People’s Consultative Assembly Decision No. IX/MPR/2001 concerning the Reformation of Agrarian Affairs and Natural Resource Management. The thematic programmes are providing technical assistance to execute the review and reform of the regulatory frameworks on land rights and spatial planning. The thematic programmes are facilitating the investigation of Moratorium violations by improving the law enforcement system.

Target (30 June 2014): Reformed regulatory frameworks such as land rights and spatial planning are approved by relevant line ministries and law enforcement improved by institutionalising multi-door approach and forest gazettement in at least the three priority provinces of Central Kalimantan, East Kalimantan and Jambi.

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Outcomes based on the five pillars of the REDD+ National Strategy (including indicator/baseline/target and linked to outputs of the Results and Resources Framework in Section 3)

Outcome/Pillar 3: More sustainable management of landscape and broader adoption of sustainable business practices through the implementation of strategic programmes (Output 6 – first phase & Output 11- interim phase).

Outcome Indicator: Level of progress made in engaging stakeholders and introducing a comprehensiveness programme for empowering local communities and local governments for more sustainable landscape management and in generating alternative livelihoods and sustainable business practices.

Baseline (30 June 2013): The level of engagement with local communities, NGOs and Universities in the pilot province of Central Kalimantan is still modest in terms of number of beneficiaries and sustainable impact in the piloting phase. Local governments, such as Aceh with the Tripa peat-swamp forest, have limited capacity to deal with on-going violations of the Moratorium in high-conservation value forest areas.

Target (30 June 2014): A pipeline of REDD+ projects based on 1) scaled-up REDD+ pilot projects or 2) new medium-size investments (USD 5-20M) is identified and ready to be implemented through the thematic pipelines of the Fund for REDD+ in Indonesia (FREDDI). Models of engagements for sustainable landscape management are identified within the projects implemented in the current phase of the programme, and used to propose new scaled-up initiatives in the second phase of implementation of the REDD+ Programme through FREDDI.

Outcome/Pillar 4: More effective forest governance together with more empowered and informed local communities, contributing to a paradigm shift in attitudes and behaviour towards forests and peat land protection - Changing culture and work paradigms (Outputs 3, 10 – first phase & Outputs 11, 14 – interim phase).

Outcome Indicator: Comprehensiveness and availability of the public information that contribute to increase understanding and acceptance of the REDD+ approach among governmental institutions, forest-dependent communities, private sector and general public.

Baseline (30 June 2013): The Task Force increased public awareness about REDD+ through 1) an educational and awareness-raising campaign; 2) a school engagement programme on Education for Sustainable Development; and 3) citizen Journalism for REDD+ monitoring programme to members of Indonesia's Indigenous People's Alliance (AMAN) among other activities. However, Business as Usual in forestry management is still dominating national and local institutions while the concept of REDD+ is still restrained to a limited audience.

Target (30 June 2014): Through the implementation of REDD+ activities promoting better forest management and empowering the local economy, the awareness of local governments and communities of Central and East Kalimantan, Jambi and Aceh and other priority provinces is increased and contributes to reinforcing the public awareness about the REDD+ programme. In all (11) partner provinces, the REDD+ provincial focal points contribute to the socialization of the programme to facilitate the implementation of provincial action plan.

Outcome/Pillar 5: Through a participatory process, strong social and environmental safeguards are developed and put in place along with systems to ensure that benefits derived from forest and peat-land resources are shared fairly inclusion and involvement of stakeholders (Output 4 – first phase & output 12 – interim phase).

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Outcomes based on the five pillars of the REDD+ National Strategy (including indicator/baseline/target and linked to outputs of the Results and Resources Framework in Section 3)

Outcome Indicator: Readiness and capacity of the REDD+ Agency to monitor and regulate safeguards (Safeguards information System) and benefit sharing mechanisms (REDD+ National Registry).

Baseline (30 June 2013): Stakeholders such as central and local government, NGOs, the private sector and local indigenous communities participated in the definition of the REDD+ safeguard principles (PRISAI) and benefit sharing mechanisms. The REDD+ Agency is however not yet established to monitor social/environmental safeguards and benefit sharing mechanisms. The Task Force initiated the design of information systems related to safeguards and benefit-sharing to be used by the REDD+ Agency.

Target (30 June 2014): After being developed through a participatory process with key stakeholders, social/environmental safeguards and equitable benefit sharing mechanisms are approved and disclosed publicly. Inclusive decision-making takes place in the partner provinces - Central Kalimantan, East Kalimantan, Jambi and others - facilitated by REDD+ provincial focal points.

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Description of Interim Phase activities

The following section of the Project Document is a brief narrative intended as an introduction to the four (4) outputs of this project document. As these outputs are a direct continuation of the initial ten (10) outputs of phase 1 of the LoI, they are numbered from eleven (11) to fourteen (14). For reference, the ten (10) initial outputs, linked to the “Support to the Establishment of Indonesia REDD+ Infrastructure and Capacity” project, are presented below:

Output 1: Special REDD+ Agency including operation of the preparatory Task Force established. Results as of 30 June 2013 Continued in the Interim Phase

• Refer to Output 14. Draft Presidential Regulation finalised and submitted to the President.

Output 2: National REDD+ Strategy and Provincial Strategic Action Plans (PSAPs) developed. Results as of 30 June 2013 Continued in the Interim Phase

• Refer to Output 12. A Decree (REDD+/UKP-PPP No. 02/SATGAS REDD PLUS/09/2012) was signed by the Head of the REDD+ Task Force to officialise the National Strategy until the Presidential Regulation for the REDD+ Agency is signed. Seven PSAPs (Central Kalimantan, West Sumatera, Riau, Jambi, West Papua and East Kalimantan, Papua) were developed.

Output 3: National communication, awareness raising and stakeholder engagement programme for REDD+ developed and Initiated. Results as of 30 June 2013 Continued in the Interim Phase

• New activities merged under all four (4) Outputs.

The REDD+ Task Force website is online at http://www.satgasreddplus.org and available in English and Indonesian REDD+ publications from all Working Groups are uploaded to the website. Public awareness and education campaign delivered School engagement programme on Education for Sustainable Development carried out Citizen Journalism for REDD+ monitoring programme to members of Indonesia's Indigenous People's Alliance (AMAN) delivered. Green business campaign delivered.

Output 4: Funding instrument and safeguard mechanism developed. Results as of 30 June 2013 Continued in the Interim Phase

• Refer to Output 12. FREDDI concept note developed and incorporated into the draft REDD+ Agency Presidential Regulation to be signed by the President. REDD+ safeguards (PRISAI) is refined based on the feedback of PRISAI on-site pilot implementation in Kalimantan and Jambi.

Output 5: Measurement, Reporting and Verification framework developed. Results as of 30 June 2013 Continued in the Interim Phase

• Refer to Output 12. Final draft of conceptual design of MRV at national level developed by line ministries without requiring a joint MOU as initially planned. MRV design incorporated into draft REDD+ Agency Presidential Regulation submitted to the President.

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Output 6: Initial investments for REDD+ in pilot province and other candidate provinces made. Results as of 30 June 2013 Continued in the Interim Phase

• Refer to Output 12. Data collection in Central Kalimantan and East Kalimantan extended until April 2013 to cover a broader area and more complex datasets requested by Legal Working Group. Data collection in South Sumatra, Jambi, and Riau is underway. Four REDD+ pilot projects completed: Eight pilot projects currently implemented by local CSOs, the University and UN Agencies in Central Kalimantan. REDD+ Joint Secretariat (Sekber) operational. Training Centre established and operational.

Output 7: Plan for suspension of forest conversion concessions developed (Moratorium). Results as of 30 June 2013 Continued in the Interim Phase:

• In light of extension of the Moratorium, remaining activities will be supported by the interim phase project under Output 12.

The Moratorium was extended on 13 May 2013 for two years, enacted by the Presidential Instruction No. 6/2013. Broad government and non-government support for the Moratorium and/or its underlying principles maintained.

Output 8: REDD+ National Strategy mainstreamed in government planning. Results as of 30 June 2013 Continued in the Interim Phase:

• No new activities under the transition phase.

Mainstreaming of REDD+ National Strategy into Government Annual Work plan (RKP) 2013 concluded. Guideline for mainstreaming REDD+ into RKP 2014 and National Medium-Term Development Plan 2015-2019 developed. Guideline for greening the Master Plan for Acceleration and Expansion of Indonesian Economy (MP3EI) on REDD+ developed.

Output 9: REDD+ legal framework and enforcement strengthened. Results as of 30 June 2013 Continued in the Interim Phase:

• Refer to Output 13. The drafts of legal instruments (presidential and ministerial regulations, and guidance documents) developed. Regulatory frameworks on One-Door Integrated Licenses and acceleration of forest designation being developed by the legal WG.

Output 10: Knowledge Management and Project Support. Results as of 30 June 2013 Continued in the Interim Phase

• The interim phase project will continue to provide knowledge management services and requires a project management unit to support activities

REDD+ Knowledge Management System established and ready to be launched to support knowledge sharing, decision making process by the REDD+ Task Force. Working Group Coordinators and Monitoring Officer in place to support the monitoring activity and development of project progress report and annual report.

Built as continuation of activities from the previous ten (10) outputs, the four (4) outputs of this “REDD+ Interim Phase” project are as follows:

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Output 11: REDD+ strategies and action plans finalised with an operational capacity for project implementation strengthened in key-priority provinces.

REDD+ regional agencies established in key-priority provinces and work units strengthened in other priority provinces.

The provincial government of Central Kalimantan, East Kalimantan and Jambi have become increasingly responsive to the REDD+ initiative and this has resulted in substantial advancements particularly in the pilot province Central Kalimantan. With this stronger commitment, the opportunity to move forward the establishment of REDD+ regional agencies in these provinces has emerged; a move that would further prepare these provinces for increased REDD+ activities following the establishment of FREDDI and, in accordance with, its pipeline strategy for small grants and medium-to-large scale investments.

In turn, the establishment of regional offices in these key-priority provinces would facilitate the expansion of (human) resources to assist in other strategic programmes including, but not limited to: MRV’s reference emission levels (REL), and legal review and law enforcement. It is in this context that the provincial-programme focus of this Interim Phase aims to strengthen institutional support particularly in the key-priority provinces and generally in the other eight priority provinces.

Provincial REDD+ Strategy and Action Plans (PSAPs) finalised and implementation initiated in all priority provinces.

Critical to the successful implementation of REDD+ projects is the development of the Provincial Strategy and Action Plans (PSAP, Strategi dan Rencana Aksi Provinsi - SRAP) and their inclusion into provincial development and spatial planning. Significant progress has been achieved thus far, as described in Annex 2 of this document, and in order to capitalise on this current momentum, the project intends to inject additional personnel including consultants, through the expansion of regional offices and work units, in all priority provinces. This plan will strengthen provincial REDD+ readiness in general, support the finalisation and the initial stages of the implementation of PSAPs, and will release key-personnel of the project to focus on the transition period.

It is particularly important that PSAPs, and an understanding of REDD+ in general, are supported both financially and through the assistance of additional human resources. There are expressed concerns among provincial governors that REDD+ PSAPs require additional and more comprehensive socialisation activities particularly at the district and sub-district levels where sustainable development/livelihood principles remain an enigma.

Restoration planning for the Tripa Peat-swamp Forest in Aceh completed and initiated. In the province of Aceh recent events have highlighted the challenges facing the introduction of the REDD+ programme in Indonesia. The protected Tripa Peat-swamp Forest (TPSF), where land clearing continues unabated despite government regulations and the two-year moratorium, aptly illustrates the importance of law enforcement and the consequences of inadequate land management on the welfare of local communities and the habitats of (critically) endangered animal species.

As a result of these developments, the REDD+ Task Force initiated discussions with the provincial government to provide assistance in the restoration of the TPSF and to assist in the development of payment for ecosystem services as an alternative to the provincial government’s proposed clearing of natural forest and peat land for commercial purposes. This is an important opportunity for the project to illustrate to the nation and specifically to the government of Aceh the advantages associated with the REDD+ programme.

Output 12: REDD+ institutional mechanisms and instruments in readiness for small-to-large scale project implementation in key-priority provinces.

MRV measurement and default standards for emission calculations operational. While MRV has achieved a degree of readiness, especially in terms of its strategies, legal framework and methodology, and through its support for the strengthening of LAPAN and BIG, a shortage of resources has limited its achievements to conduct more extensive analysis of REL in the priority provinces. Having trialled its historical approach to REL in Central Kalimantan, it is proposed that this approach could now be applied in East Kalimantan, Jambi, Riau and South Sumatra where baseline and geospatial data projects are currently being completed.

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With the prospect of REDD+ regional offices being established in East Kalimantan and Jambi, and additional resources provided to the work units in other provinces, there will be sufficient resources available to support the consolidation of historical data and the subsequent calculation of carbon stock for the additional four priority provinces.

Further, while trialling its approach to compiling historical data, MRV and Funding Instrument experts will work together to finalise structures and procedures for a REDD+ Registry and Safeguards Information System. This activity is critical to the operations of the REDD+ Agency and an important opportunity to determine the operational practices for the Agency.

Completion of expanded baseline and geospatial data projects in four priority provinces.

Considerable work is required to complete the development of comprehensive baseline and geospatial data. For the pilot province, Central Kalimantan, comprehensive data has been compiled and for four of the priority provinces (Riau, Jambi, South Sumatra and East Kalimantan) work is currently being completed while the remaining six priority provinces remain at the planning stage.

The process of compiling and verifying baseline and geospatial data is complex. Although with the growing support of national and sub-national government agencies this process is becoming more streamlined and thus progressively more efficient. In addition, with the recent developments in LAPAN and BIG the process of geospatial data acquisition has been significantly streamlined which will assist in efforts to standardise map resolutions and availability.

FREDDI’s pipeline strategies and supporting operational procedures in place. Apart from a range of final refinements to the structure and legal basis of FREDDI that will form an important part of the proposed Interim Phase, effort is currently underway to construct a portfolio and pipeline management brief in preparation for Phase 2 of the LoI. In light of the imminent establishment of FREDDI, it will be necessary to prepare potential small grant and medium-sized investments to ensure adequate preparations and scalability are in place.

Having now established funding windows and supporting criteria for determining eligibility for REDD+ projects/programmes, Funding Instrument experts, in accordance with the national REDD+ strategy, are identifying projects/programmes that should be encouraged during Phase 2 of the LoI. To this end, support will be deployed to assist in developing a range of concept notes as a part of this proposed Interim Phase.

REDD+ National Registry and Safeguard Information System designed and ready for development. In early 2013, following the finalisation of a draft Presidential Regulation for the establishment of the REDD+ Agency and the MRV institute and Funding Instrument, effort to determine the structures and procedures necessary for these three interdependent entities to function together have begun in earnest.

As a part of this effort to integrate and structure the operations of the REDD+ Agency, MRV and FREDDI, consideration for the design of a REDD+ National Registry and Safeguard Information System (SIS) has proven to be an important vehicle for determining the respective roles of these three entities. Examining the data required for project approval and monitoring has resulted in a first draft of the REDD+ Registry and SIS and has helped to clarify, or at least formulate questions regarding, the future processes required following the establishment of the REDD+ Agency.

It is in this context that the interim phase project will finalise the design of the REDD+ Registry and SIS and prepare for its development as an on-line system. At the same time, it is expected that through this design-development stage the perceived interaction between the REDD+ Agency, MRV and FREDDI, especially in terms of project approval and safeguard monitoring, will continue to be explored in preparation for REDD+ implementation.

Output 13: Legal reform for REDD+ implementation in process and strengthened through improved law enforcement mechanisms and systems.

Regulatory review of the legal basis for the implementation of REDD+ and related legislation carried out at national and sub-national levels.

As preparation for the implementation of REDD+, it has been necessary to review regulations related to land-use activities, their respective spatial designations and existing legal status. This review process is designed to clarify issues and, where deemed necessary, to submit recommendations for regulatory revision. Over the past decade, a range of new laws were enacted that initiated a decentralisation

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process in natural-resource management which, in some cases, has resulted in inconsistencies between national and provincial legislation.

These laws devolved elements of authority to manage forests from the central government to the provincial and district governments (PP 6/1999, Ministry of Forestry 310/KPTS-II/1999, 317/KPTS-II/1999 and UU 41/1999). At the same time, other reform legislation aimed at allowing communities residing in or near forest areas to engage in forest management activities through cooperatives and community associations, mainly by acknowledging adat, or customary rights (hak ulayat), to land and forest areas.

These forest-management reforms, while providing an opportunity for greater district and community participation in land-use surveying and spatial planning, fragmented planning as districts sought to (re)produce their own spatial plans and rarely attempted to coordinate with provincial or central authorities. In some respects, district efforts to define their own spatial boundaries became a tool for legitimising private access to district resources with little consideration or concern for natural forests or the indigenous communities that relied on natural resources for their livelihoods.

By 2004, following an acknowledgment of misuse of district-forest management, the government qualified its initial legislative reforms by recentralising local control of forests and other natural resources. With the issuing of UU 32/2004 district governments were required to coordinate their land-use planning with the province and national authorities. Then in 2008 the government gave provincial governors and national ministries the right to overrule land-use decisions made by the districts (PP 26/2008).

These, and other issues, form the basis of the regulatory review initiated by the REDD+ Task Force and that will be carried out further through the Interim Phase. The review aims to mitigate the risk of land disputes impeding upon future REDD+ projects and, to this end, extensive consultation with related ministries is being conducted. Due to the complexity of this process and the degree to which progress is being made, it is imperative that the Interim Phase ensures continuity of current deliberations.

Law-enforcement capacity in support of related legal frameworks, including the Moratorium, is strengthened.

In relation to the regulatory review, a range of illegal issues regarding land-use have been identified. These issues mainly concern the alleged misuse of land concessions, and legal proceedings are underway. It is strongly recommended to continue the law enforcement process so these cases can successfully be brought to court.

Of particular interest in these developments concerns the multi-door approach being developed to pursue illegal land-related practices. This approach coordinates officials from relevant government agencies in an effort to avoid conflicting interpretations of the law, and it has established mechanism to enable the public to report suspected cases.

Moratorium extension advances governance of forests and peat-land and builds upon the One Map objective.

The two-year Moratorium on new concessions for conversion of peat and natural forest in Indonesia ended in May 2013, and through Presidential Instruction 6/2013 has been extended for another two-year period. The moratorium has enabled the government to evaluate forest-management planning and, importantly, to reach an inter-ministerial consensus on the natural forest and peat land protected under its purview. The development of land-cover classifications and a corresponding map that defines the boundaries of these classifications has been a major challenge.

The Moratorium map (PIPIB) is a single map with standardised taxonomies agreed by all related ministries and open to feedback from external stakeholders since it has been put online. The PIPIB is an important basis upon which the One Map initiative can be expanded and, in this context, the interim phase project will ensure that the outcomes of the Moratorium are thoroughly reviewed, and incorporated into national programmes. This includes a review of existing land use issues such as challenges on utilizing physically degraded land, and protecting forests within concessions such as palm oil plantations.

Options for a solution determined, and stakeholder agreement clarified, for the implementation of a cadastral registry (land-management) system.

There are considerable efforts underway to assist communities to determine tenurial rights in many of the priority provinces. These efforts have recently received further impetus with the ruling of the constitutional court which further acknowledged the rights of communities’ legal access to land. In this context, and considering that these efforts are being conducted by many different and fragmented actors around the country, there is a growing need to establish a centralised land-management system to ensure that records are properly managed, maintained and updated.

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Needless to say, such a registry system is complex and requires a consensus between line ministries and other key stakeholders. For this reason the Interim Phase will support current efforts by government departments and CSOs to develop a road map to prepare for the procurement and installation of a cadastre (land-management) system for Indonesia.

Such a cadastre system would be linked to other important developments now in place in Indonesia, in particular, the expansion of the LAPAN facilities at Pare-pare in South Sulawesi where satellite imagery is now accessed directly and supported by the operations of the National Agency for Geospatial Information (BIG). Combining these recent developments with a land-management system is a natural extension and constitutes important infrastructure for the critical need to manage tenurial rights in Indonesia.

Output 14: REDD+ Agency management arrangements, human resource and administrative transition prepared.

Legal arrangements, human resources and infrastructure for REDD+ Agency operations in place. While readiness for the establishment of the REDD+ Agency is complete in terms of preparing basic foundations, considerable work is required to ensure a seamless transition of activities to the REDD+ Agency and its partner institutions - MRV and FREDDI. The first priority is to support the establishment of the REDD+ Agency from a legal perspective. This includes the preparation of necessary legal documents and communication with key stakeholders. While decisions on recruitment and staffing for the REDD+ Agency will begin in earnest following its establishment, it is important to identify key personnel to fill positions within the REDD+ Agency. It is also critical to ensure key personnel are not lost due to a gap in funding.

The current proposed structure of the REDD+ Agency comprises a director, up to four deputies (Echelon 1 level), and an average of three assistant deputies for each deputy (Echelon 2 level). Considering approximately half of the assistant deputies would be hired rather than appointed (up to nine), and other operational staffing needs, a total of up to 30 new positions are envisaged beyond June 2013. This includes existing staff.

The newly established REDD+ Agency should have the capacity to manage and operate on-going projects and programmes - and especially strategic programmes that are closely linked to other government ministries and agencies. In this respect, it is important that all archives from the REDD+ Task Force’s operations are secured and available to the incoming management and staff. While UNDP maintains records concerning all aspects of the funding mechanism, it will be important to preserve other documents related to the WG’s activities.

Information Management Systems (IMS) and IT links with the provinces are particularly important. The REDD+ Task Force developed a website for news, current affairs and general information; it has developed a Knowledge Centre which contains specialised information regarding REDD+ and related subjects and a set of databases for managing data concerning stakeholders, projects and locations; and a Management Centre for coordinating staff and partner missions and events in a transparent and consolidated manner. Ensuring the continued operation of these systems requires: a) keeping the IMS servers, Internet connection, REDD+ website etc. operational; and b) adequate staffing including system and web administrators, consultants and provincial liaisons.

Outgoing and incoming administrative transition requirements finalised. It is important to ensure that legal obligations and liabilities of the former REDD+ Task Force are transferred to the REDD+ Agency in a clear and transparent manner. These are specifically contracts, standing payments, assets and any other commitment made to external stakeholders. A third party should ensure these contracts; obligations and liabilities are handed over/transitioned in such a way that does not lead to future legal implications. The proposed activity is to contract an Indonesian Government audit agency to oversee the process and develop a handover document signed by both parties.

In consideration of the different tasks required in preparation for, and implementation of, the transition period, the interim phase project will support these activities.

Cross-cutting strategies and linkages

In addition to the above description of the four (4) output streams for the proposed Interim Phase, there are a range of cross-cutting strategies and linkages that are important to each output or to the overall success of the REDD+ programme.

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REDD+ pilot province: Central Kalimantan Central Kalimantan, as the pilot province, has made significant advancements in its preparations for the implementation of the REDD+ programme. In this respect its role as a pilot for REDD+ readiness is exemplary and, through the Interim Phase, additional activities will be conducted to capitalise on the province’s capacity to facilitate more advanced aspects of the REDD+ programme.

These activities, for which approximately USD 2.14 million have been allocated, are dispersed across Outputs 11-13 and will enable more active engagement of provincial authorities and other stakeholders; ensure strong commitment and ownership from the governor and his team; and support for the socialisation of PSAP and the governor’s road-map for sustainable palm-oil development.

In addition, technical issues including MRV, pipeline planning and legal review feature substantially throughout the proposed activities of the Interim Phase for Central Kalimantan.

Coverage of Papua and West Papua Papua and West Papua have always been monitored by the REDD+ Task Force and, while there are no specific activities referred to in the above four (4) outputs, planning for these provinces continues. The strategic value of these two provinces in the implementation of the REDD+ programme will remain high.

Political landscape and context have to be taken into account, thus requiring adequate close monitoring and careful attention. This would need a proper strategy and also require longer time frame of implementation. As a result of the PSAP process, several strategic initiatives have been identified to be further implemented, as soon as the REDD+ Agency is established and FREDDI operational.

Gender strategy As a part of its approach to the development of a REDD+ infrastructure and capacity, the project actively encourages the inclusion of gender issues in the development of the strategies and action plans with an emphasis on mainstreaming gender equality across all levels of REDD+ implementation. The strategies in place range from in-house recruitment to field engagement where the role of women in local government and village life is regarded as an essential part of the goals associated with sustainable development through alternative livelihood programmes.

To support the REDD+ Agency in incorporating gender mainstreaming in its activities, the project aims to:

• Ensure that planning for small-grant projects are gender sensitive and project proposals monitored accordingly;

• Establish a precondition of incorporating gender mainstreaming in project proposal as a part of the REDD+ Registry and safeguards systems; and

• Advice the REDD+ Agency on establishing a gender focal point to enable monitoring of gender participation and mainstreaming in approved projects and within the agency itself.

Gender equality in the staffing of the REDD+ Agency will be ensured by a transparent recruitment process of key staff of the Agency. The proportion of male and female staff of the REDD+ Agency will be a key measurement for gender equality.

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III. RESULTS AND RESOURCES FRAMEWORK

The following Results and Resources Framework defines the output streams (Output 11-14) proposed for the Interim Phase.

Intended Outcome as stated in the Country Programme Action Plan (2011 – 2015): CPAP Outcome 2.3: National institutions & other key stakeholders are coherently & effectively addressing Climate Change (CC) adaptation & mitigation & ozone layer protection

Outcome indicators as stated in the Country Programme Results and Resources Framework, including baseline and targets: Indicators: 1) Existence of a strong, effective and convergent national institutional arrangement 2) Sound policies/ guidelines/ strategies and mechanism for REDD+, Ozone Layer Protection and Adaptation activities 3) National coordinating and harmonizing mechanism for climate change financing Baseline: 1) National institutional arrangement on climate change is not unified 2) Policies, strategies and mechanisms for REDD+, Ozone Layer Protection and Adaptation activities require further development and refinement 3) National coordination on climate change financing is not harmonized Targets: 1) A strong, effective and convergent national institutional arrangement to manage climate change is established 2) Sound policies/ guidelines/ strategies and mechanism for REDD+, Ozone Layer Protection and Adaptation activities are developed with necessary resources to deliver true and lasting impacts 3) National coordinating and harmonizing mechanism for climate change financing is established with sufficient institutional support to run efficiently and effectively

Applicable Key Result Area (from 2008-11 Strategic Plan): 4.2 Catalyzing environments finance

Partnership Strategy: Central Government: Ministry of Legal Political and Security Affairs, Ministries of Forestry, Agriculture, Finance, and Environment, National Development Planning Agency (BAPPENAS), National Institute of Aeronautics and Space (LAPAN), National Coordinating Agency for Surveying and Mapping (BAKOSURTANAL) and the National Land Agency (BPN). Provincial Government (11): Aceh, Central Kalimantan, Central Sulawesi, East Kalimantan, Jambi, Papua, Riau, South Sumatra, West Kalimantan, West Papua and West Sumatra UN Agencies and extended UN system: UNORCID, UNOPS, UNESCO, ILO, FAO and World Bank. Academia: University of Palangkaraya (Central Kalimantan), Syiah Kuala University (Aceh)

Project title and ID (ATLAS Award ID): Support to the Establishment of Indonesia REDD+ Infrastructure and Capacity: Interim Phase (IDN00075619)

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Output 11: REDD+ strategies and action plans finalised with an operational capacity for project implementation strengthened in key-priority provinces.

Indicator Baseline (30 June 2013) Target (30 June 2014) Activities REDD+ regional agencies established in key-priority

provinces and work units strengthened in other priority provinces.

11.1 REDD+ regional agencies established in three (3) priority provinces. (continued from Output 2)

11.2 Capacity of provincial REDD+ work units strengthened in eight (8) priority provinces - Aceh, West Sumatra, Riau, South Sumatra, West Kalimantan, Central Sulawesi, West Papua, and Papua. (continued from Output 2)

Provincial REDD+ Strategy and Action Plans (PSAPs)

finalised and implementation initiated in all priority provinces.

11.3 REDD+ priority provinces have finalised their PSAPs. (continued from Output 2)

11.4 PSAPs are legalised and implementation initiated in all priority provinces. (continued from Output 2)

Restoration planning for the Tripa Peat-swamp Forest in

Aceh completed and initiated. 11.5 Green-economic development strategy and planning for

Aceh developed. (new)

11.6 Data and legal analysis of land concessions in the Leuser Ecosystem and TPSF is available to the appropriate agencies. (new)

11.7 Technical design for the restoration of TPSF completed and implementation initiated. (new)

Degree of establishment of provincial coordinating units for REDD+ in all (11) partner provinces.

The REDD+ Joint Secretariat (Sekber) supports the implementation of PSAP in Central Kalimantan, MoUs are in preparation with the provincial governments of Jambi and East Kalimantan to formalise the existing structure. Informal structures for the preparation (not the implementation) of PSAP exist in the remaining eight (8) provinces.

After signature of MoUs with East Kalimantan and Jambi, the implementation and socialisation of PSAPs in Central Kalimantan, East Kalimantan and Jambi is supported by REDD+ regional agencies linked to the REDD+ Agency and strengthened with additional staff (up to 15) and consultants (up to 12). In the remaining eight (8) provinces, the capacity of provincial REDD+ work units is strengthened through additional staff (up to 18) and multi-stakeholder events (Focus Group Discussion and Workshops) to support the implementation and socialisation of the PSAPs.

Completion, legalisation and implementation status of REDD+ provincial action plans.

Eight Provincial Strategic Action Plans (PSAPs) for Central Kalimantan, West Sumatra, Riau, Jambi, Papua, West Papua, East Kalimantan and Central Sulawesi developed. The remaining PSAPs for Aceh, South Sumatra, and West Kalimantan are being developed. One PSAP for Riau was legalised with a governor decree. The provinces of Central Kalimantan and Central Sulawesi must revise the alignment of their respective strategies previously issued in accordance with the PSAP framework.

By September 2013, Governors regulations in the provinces where PSAPs were finalised but not legalised are drafted (Central Kalimantan, West Sumatra, Jambi, Papua, West Papua, East Kalimantan and Central Sulawesi) All partner provinces are prepared for the implementation of REDD+ activities with the finalisation and legalisation of PSAP for all (11) partner provinces through governor decrees drafted by December 2013 and issued by February 2014. At least one key government agency in each province commits to integrate the PSAP into their next revision of key planning documents by June 2014.

Degree of completion and funding of the TPSF restoration plan.

Nine preliminary studies on the safeguard of the TPSF were initiated by the REDD+ Task Force in partnership with the Syiah Kuala University (Unsyiah) of Banda Aceh. Currently there is no single source of data on land concessions and so the legality of concessions cannot be evaluated.

Based on the TPSF a project design document is submitted by December 2013 to the government of Aceh on Payment for Ecosystem Services modalities. Land concession data for plantations, mining and forestry are collected by December 2013 and due diligence completed for a sample of high priority concessions by June 2014. A Master Plan for the restoration and future maintenance of TPSF is developed by December 2013, and adequate funding is secured for the TPSF restoration programme by June 2014. A quick-win project on partial wetland restoration is completed.

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Output 12: REDD+ institutional mechanisms and instruments in readiness for small- to large-scale project implementation in key-priority provinces.

Indicator Baseline (30 June 2013) Target (30 June 2014) Activities MRV measurement and default standards for emission

calculations operational. 12.1 Historical analysis of deforestation and forest degradation

completed for four (4) priority provinces. (new)

12.2 Calculate emission reductions for the period 2010-11 for five (5) priority provinces. (new)

Completion of expanded baseline and geospatial data

projects in four priority provinces. 12.3 Baseline data of a standard required for REDD+

implementation is available. (continued from Output 6)

12.4 Geospatial data available to support REDD+ and provincial planning decisions. (continued from Output 6)

FREDDI’s pipeline strategies and supporting operational

procedures in place. 12.5 Concept Note on a strategic and large-scale investment

programme for Central Kalimantan prepared and endorsed by the provincial government. (continued from Output 6)

12.6 Provincial and related district governments agree to a portfolio of small grants for community-based REDD+ initiatives to be implemented in Central and East Kalimantan and Jambi. (continued from Output 6)

12.7 Operational procedures for FREDDI are developed and approved. (continued from Output 3)

REDD+ National Registry and Safeguard Information

System designed and ready for development. 12.8 Design for a REDD+ National Registry agreed.

(continued from Output 4) 12.9 Information on Safeguards (PRISAI) is standardised and

available to all stakeholders.

Level of establishment of the MRV authority and availability of required data.

MRV design and Standard Operating Procedures incorporated into draft REDD+ Agency Presidential Regulation and submitted to the President.

The MRV Institution is created after the signature of the Presidential Regulation on the REDD+ Agency. For East Kalimantan, Jambi, South Sumatra and Riau, historical data on deforestation and forest degradation is compiled (2000-09) and available. Based on this historical data, carbon stocks are calculated and calculations made for emission reductions (2010-11) in the same priority provinces and for Central Kalimantan (default standard of REL).

Level of accessibility of baseline and geospatial data by stakeholders.

Baseline data collection for Central Kalimantan, Riau, Jambi, South Sumatra and East Kalimantan baseline data is on-going. Geospatial database, maps and metadata are complete for Central Kalimantan but the degree of detail for geospatial data between other provinces differs.

Baseline data and data management protocol are standardised by December 2013 and by June 2014, Baseline data for Central Kalimantan, Riau, Jambi, South Sumatra and East Kalimantan are acquired and management/maintenance strategies are in place. Geospatial data architecture developed, metadata compiled and data gaps identified for each province by December 2013 and by June 2014, up-to-date, complete geospatial information collected for each of the five provinces and managed in accordance with the agreed data protocol and BIG standards.

Degree of development of FREDDI’s pipeline and operational procedures.

Operational requirements and concept note for FREDDI are prepared and incorporated in the draft REDD+ Agency Presidential Regulation. Draft legal framework and operational guidelines were developed but MAC curve is not available for any province. Experience was acquired by the former Task Force in the design and management of small grants for community-based REDD+ initiatives: Four (4) REDD+ pilot projects were completed, eight (8) pilot projects currently being implemented by local CSOs, a University and UN Agencies in Central Kalimantan.

A pipeline of project is identified for funding through FREDDI: • Key stakeholders agree on a large-scale

investment programme in Central Kalimantan by December 2013 and a Concept Note is developed along with a preliminary Project Design Document by June 2014; and

• Existing village forest (hutan desa) and community based plantations (HTR) initiatives in readiness to take advantage of REDD+ small grants by December 2013 and by June 2014 the enabling framework for CBRIs is improved by preparing for small grants to community forest licensing processes in village forests; community plantations.

While operational procedure of FREDDI are

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developed and approved as follows: • REDD+ Agency decree for the appointment of

Board of Trustee for FREDDI and other legal arrangements are prepared and approved by December 2013;

• Project Implementation Grant Agreement is finalised by December 2013;

• Decision on accreditation of partner agencies and corresponding procedures is finalised by December 2013;

• MAC curve established for pilot province by June 2014; and

• Report on funding priorities for the eleven priority provinces prepared by June 2014.

(continued from Output 4)

Degree of completion of systems used by the REDD+ Agency for approving, managing and monitoring REDD+ projects.

The Task Force has proposed the national REDD+ instruments for MRV and designed new information systems to be used by the REDD+ Agency (REDD+ National Registry and Safeguards Information Systems).

REDD+ Agency and MRV institution is equipped with institutional tools for approving, managing and monitoring REDD+ activities: • PRISAI principles are approved by national and

international bodies and incorporated in the REDD+ Safeguard Information Systems, the design of which is approved by the GoI and ready for implementation by June 2014; and

• By June 2014, the design of the REDD+ National Registry is completed and approved by the GOI.

Output 13: Legal reform for REDD+ implementation in process and strengthened through improved law enforcement mechanisms and systems.

Indicator Baseline (30 June 2013) Target (30 June 2014) Activities Regulatory review of the legal basis for the

implementation of REDD+ and related legislation carried out at national and sub-national levels.

13.1 Legal basis for REDD+ implementation in process and alignment with national regulatory framework initiated. (continued from Output 9)

13.2 Review of land concessions in pilot provinces provides a basis for regulatory reform and remedial action on concessions - Central Kalimantan, East Kalimantan and Jambi. (continued from Output 9)

Law-enforcement capacity in support of related legal

frameworks, including the Moratorium, is strengthened.

Status of the reform on the legal framework of REDD+ implementation in Indonesia based on the results of the regulatory review initiated by the REDD+ Task Force. (Direct continuation of Output 9).

The draft of the legal framework (presidential and ministerial regulations, and guidance documents) is developed and included in the Presidential Regulation for the REDD+ Agency.

The Coordinating Ministry of Legal Political and Security Affairs committee recommends the signature of the REDD+ agency decree by December 2013 and based on the committee’s recommendations, selected legal instruments are revised, submitted and adopted by lines ministries. In addition, a Presidential Regulation on peat land/swamp and corporate criminal liability is drafted by June 2014.

Existence and operationalisation of a centralised Information Management System (IMS) with concessions and geospatial data used to conduct due diligence and

Data on concessions requires verification and is not yet managed in an IMS, which is an untested concept without legal basis and with only partial stakeholder endorsement.

Alternative proposals on the issuance and management of concessions are drafted and an online information system supporting the management of concessions is developed, agreed to by stakeholders and populated for one province by December 2013. By June 2014, proposals for

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support the One Map. concession management are agreed with provincial and national governments. Due diligence analysis is completed for Central/East Kalimantan and Jambi populating the IMS.

13.3 Multi-stakeholder agreement achieved on the approach to be used in acceleration of forest gazettement in pilot province. (new)

13.4 Key agencies commit to work through a multi-door approach to enforce forest and peat-land regulations. (continued from Output 9)

13.5 New and previously reported Moratorium violation cases are investigated and prosecuted by national authorities (continued from Output 9)

Moratorium extension advances governance of forests

and peat-land and builds upon the One Map objective. 13.6 Lessons learned and recommendations from the first

moratorium are adopted in implementation of the moratorium extension. (new)

13.7 Primary forest and peat-lands secured, and wider forest governance reform enhanced, through extension of the moratorium. (new)

13.8 Key national planning processes officially adopt the One Map programme as a central part of land and resource governance. (new)

Options for a solution determined, and stakeholder

agreement clarified, for the implementation of a cadastral registry (land-management) system.

13.9 Road map for the establishment of a national cadastre produced and endorsed by government stakeholders (new)

Status of establishment of forest gazettement authorities and technical guidelines.

Framework for technical guideline on forest gazettement is prepared, but not yet tested in the field or endorsed by all stakeholders. In Central Kalimantan, the Centre for Registration of Forest Area (BPKH) and Barito Selatan pilot district’s Forest Management Unit (KPH) do not have the capacity to conduct forest gazettement.

In the three districts of Barito Selatan, Kapuas and Kotawaringan, field tests of the technical guideline for forest gazettement are conducted by December 2013. Based on the field tests, the revised guideline is adopted by key stakeholders and submitted for endorsement by June 2014. Also by the end of June 2014, the project supports the provincial Centre for Registration of Forest Area (BPKH) and a Forest Management Unit (KPH) for Barito Selatan district.

Status of the adoption multi-door approach enforcement.

Regulatory frameworks on multi-door approach is developed by the legal Working Group and endorsed by the relevant line ministries and national institutions. Training on multi door approach has been conducted in three provinces, Aceh, Central Kalimantan and Riau with the local police, judges and office of the Attorney general.

Following the adoption of the multi-door enforcement approach in principal by relevant ministries in Q2, trainings with local law enforcement authorities are conducted for the remaining eight partner provinces by December 2013. By June 2014, the multi-door approach is tested, formally endorsed and institutionalised as a law enforcement approach.

Number of Moratorium violations cases under investigation and prosecution.

Sixty three (63) cases of Moratorium violations reported to the REDD+ Task Force up until end of 2012; Fourteen (14) cases prioritised for investigation by the Police and Prosecutor to be potentially brought to court; and One (1) case brought to court with the Attorney General’s Office for prosecution.

The project facilitates the prioritisation of at least half of the remaining 48 reported violations for investigation by the Police and also facilitates the investigation of the fourteen (14) cases to undergo prosecution for all verified violations.

Degree of institutionalisation of the One Map in the context of the extended Moratorium.

After being two years in force, the Moratorium was extended on 13 May 2013 for two additional years, enacted by the Presidential Instruction 6/2013. The One Map initiative and under it the Moratorium/PIPIB map is used by the project as unique reference for monitoring of concessions on forested areas and peat land.

Taking into account lessons learned from the initial phase of the Moratorium (report prepared by UKP-PPP in Q2) and in light of its two-year extension: • PIPIB/Moratorium map is updated every six

months, and the One Map initiative integrated into geospatial-related national and sub-national planning (RKP, RPJMN/D, and MP3EI); and

• Standard Operational Procedures to continue the One Map process are developed and

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adopted by LAPAN and BIG by December 2013 and by June 2014, roles and responsibilities of key agencies for adoption and continuation of the One Map process are established.

Status of endorsement from line ministries of a roadmap for a national cadastral system.

No centralised registry available for cadastre (land management) at national or provincial level and increased participatory mapping will follow the Constitutional Court’s recent ruling on community land rights.

A roadmap for the procurement and introduction of a cadastral mapping database at national and provincial level to be incorporated in One Map is proposed to the relevant government agencies by September 2013 and endorsed by June 2014.

Output 14: REDD+ Agency management arrangements, human resource and administrative transition prepared.

Indicator Baseline (30 June 2013) Target (30 June 2014) Activities Legal arrangements, human resources and infrastructure

for REDD+ Agency operations in place. 14.1 Legal arrangements for the REDD+ Agency and its

operational structures prepared. (continued from Output 1)

14.2 Procedures and priorities for recruitment and staffing for the REDD+ agency established. (continued from Output 1)

14.3 Information Management Systems (IMS) for the REDD+ Agency integrated and in production. (continued from Output 1)

Outgoing and incoming administrative transition

requirements. 14.4 Preparations in place for transition of legal obligations and

liabilities to the REDD+ Agency. (continued from Output 1)

14.5 Responsibilities and functions of the Project Management Unit ready to be handed over to a REDD+ agency. (continued from Output 1)

Completeness of the management arrangements and structures of the REDD+ Agency.

A final inter-ministerial consultation report from Coordinating Ministry of Legal Political and Security Affairs held inter-ministry will be shared with the President in Q2 2013. The recruitment of the executive director and key staff require the signature of the REDD+ Agency Presidential Regulation.

After signature of the Presidential Regulation and by June 2014: • Organisational structure for the REDD+ Agency

approved by relevant government ministries. • Executive director is nominated and contracts

of an estimated 30 professionals required for the initial stages of the REDD+ Agency have complete job description and are secured by December 2013 and potential candidates for key positions that cannot be fulfilled by current staff are identified by June 2014.

• Information Management Systems (IMS) developed by the project are made available to the REDD+ Agency.

Status of the transition of the administrative requirements to the REDD+ Agency.

Assurance required ensuring no future legal implications to either party following of the establishment of the REDD+ Agency.

After signature of the Presidential Regulation and by June 2014: • Responsibilities as well as its legal obligations

and liabilities of the former REDD+ Task Force are transferred to the REDD+ Agency with oversight from the National Audit Agency (BPK); and

• Handover reports on obligations and liabilities are prepared by the Project Management Unit and approved by the REDD+ Agency.

27

IV. ANNUAL WORK PLAN

Period: 15 August 2013 – 30 June 2014 The Annual Work Plan can be found under Annex A for ease of reference.

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V. MANAGEMENT ARRANGEMENTS

The project is a direct continuation of the efforts of the former REDD+ Task Force and constitutes a rationalized bridge of activities between the Phase 1 and 2 of the LoI between the Government of Indonesia and Norway. The project is the direct continuation of the ongoing “Support to the Establishment of Indonesia REDD+ Infrastructure and Capacity” project, scheduled to complete implementation on 30 Sept 2013 following the expiry of the mandate of the national REDD+ Task Force on 30 June 2013. The project has been designed through close consultations between the Governments of Norway, Indonesia and UNDP, and aims to enable the work on strategies and action plans of the REDD+ Task Force to continue while further advancing preparation of the regulatory frameworks on the basis of which the REDD+ Agency, the Funding Instrument and the Institution for Monitoring, Reporting and Verification (MRV) will be established in addition to facilitating the handover of work packages and deliverables to the REDD+ Agency when created. Financial Arrangements The activities contained within this Project Document will be implemented using the framework of a standard Cost Sharing Agreement, implying compliance with relevant GoI and UNDP rules and regulations. All assets and services shall be procured and their ownership transferred in line with the relevant rules and regulations. Handover of assets to beneficiaries will be discussed at a later stage between UNDP and the Government of Indonesia. Implementation Arrangements As an interim solution, the “REDD+ Interim Phase” project will be implemented under the Direct Implementation Modality (DIM), in order to maintain crucial political momentum and necessary support until the national REDD+ Agency is established. Once the Agency is created and adequate human resource and operational capacities are in place, it is expected that the implementation modality of the REDD+ Interim Phase will be shifted from DIM to the standard National Implementation Modality with the REDD+ Agency acting as the project National Implementing Partner. Implementation arrangements follow the standard UNDP project management under DIM. Technical Steering Committee The Technical Steering Committee will provide oversight and technical guidance to the implementation of the project and its activities, including recommendations for approval of project/budget plans and revisions. In light of the direct implementation modality of the project, the steering committee will be chaired by UNDP. Other members include representatives of project beneficiaries (Senior Beneficiary role), and representatives of the Royal Norwegian Embassy Norway in Indonesia and UNDP Environment Unit as Senior Supplier. In order to ensure UNDP’s ultimate accountability, the committee decisions should be made in accordance to standards that shall ensure management for development results, best value for money, fairness, integrity, transparency and effective international competition. The Project Management Unit will report regularly to the steering committee. The Project Management Unit will refer to the steering committee when issues arise that exceed the authority of the National Project Manager. REDD+ Advisory Committee The REDD+ Advisory Committee provides key stakeholders with strategic guidance pertaining to the overall direction of REDD+ in Indonesia. The Management and Technical Steering Committee of the REDD+ Interim Phase project may consult this committee as necessary to ensure alignment of the project with the overall development of REDD+ in Indonesia. This committee will be composed of high-level representatives from relevant institutions, including civil society, academia and the government in addition to the Government of Norway and UNDP. Project Assurance On behalf of the Technical Steering Committee, UNDP will perform the project assurance function, to ensure results are achieved at the quality and timeline as approved by the Technical Steering Committee. The UNDP Task Force for REDD+ will support the Technical Steering Committee by fulfilling the following functions:

• Identify and address possible gaps and risks and how to mitigate them.

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• Ensuring that project plans are being developed according to standards and that quality management procedures are properly followed;

• Ensuring that project outputs’ and activity definitions, including description and quality criteria, have been properly recorded in the Atlas Project Management module to facilitate monitoring and reporting;

• Ensuring that the Technical Steering Committee's recommendations are followed and revisions are managed in line with the required procedures.

The UNDP Task Force will be led by the Environment Unit, but will include other key personnel from the UNDP Country Office, such as from the Operations, Finance, Planning Monitoring Evaluation and Governance Units. The UNDP Task Force’s assurance measures will draw upon UN-REDD standards, guidelines and experiences. As such, it will draw necessary technical assurance expertise from the UN-REDD global programme if needed. Project Management Unit The existing Project Management Unit (PMU) will be supervised by UNDP. This entity will be responsible for the day-to-day operational and financial activities and reporting in accordance with the rules and regulations of the Government of Indonesia and UNDP, such as asset management and audits. Services provided by the PMU include, inter alia, support to recruitment and contracting of project management and technical staff; procurement of goods and services for project inputs; developing Annual Work Plans; support for budget and financial management; etc. The PMU will also be responsible for translating work activities prioritized by the Thematic Programmes into Annual Work Plans (AWP) covering all activities, inputs and outputs under the project. Quarterly Progress Reports will be prepared on outputs and detailed expenditures. The AWP will be accompanied by a budget table and the clarification of specific procurement and recruitment activities to be undertaken by either the PMU or UNDP. The AWP and budget will be reviewed and agreed by the Technical Steering Committee. The PMU houses all operational staff including coordinators who oversee their respective Thematic Programmes. The number of personnel in PMU will be decided as needed by the National Project Manager upon approval from the Technical Steering Committee if required. At the minimum the PMU should consist of:

• National Project Manager Reporting directly to the Technical Steering Committee, the NPM is responsible for the day-to-day management of the PMU including supervising staffs and personnel. The NPM is responsible for preparing project work plans and to be accountable for the achievement of outputs and targets as approved by the Technical Steering Committee. The NPM is also responsible for ensuring clear and strategic support line between PMU and the Thematic Programmes.

• Operation manager An Operation Manager will be responsible for ensuring provision of project inputs and operational needs of the project; allocating technical assistance resources as well as the day-to-day management. Throughout the duration of the project, the Operation Manager will also liaise closely with the NPM to support the optimal allocation of resources based on identified priorities.

• Thematic Programme Coordinators Thematic Programme Coordinators will liaise with the PMU, and manage all four Thematic Programmes operational requests including procurement, recruitment, travel and outsourcing. The Thematic Programme Coordinators will directly manage all operational requests of their respective Thematic Programmes, including travel, workshops, commissioned research, outsourcing, procurement etc., and will report to the National Project Manager. The Thematic Programme Coordinators will also coordinate Monitoring and Reporting of the Thematic Programmes, ensuring results are reported and progress is made, while working closely with the PMU on remaining budget and other administrative issues. Other responsibilities include the facilitation of coordination among members of the Technical Steering Committee through Technical Steering Committee meetings, informal and formal communications, field visits and monitoring as well as other relevant activities, organize production of knowledge management out of the project implementation, and utilize lessons learned for wider application at the national and other provinces levels.

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• Finance Associate

The Finance Associate will assist all Thematic Programmes to advise on budgets according to the work plans and ensure all funds are spent in line with approved work plans. Other key tasks include the reporting of expenses, preparing for audit, dealing with cash advance requests, and generally ensuring solid fiduciary management of the project.

• Monitoring and Reporting Officer Solid Monitoring and Reporting is a key component of any successful project, and determines how the project can explain and showcase to external stakeholders progress made and impacts delivered. For the above, M&R officers will, in conjunction with the NPM and Thematic Programme Coordinators of each Thematic Programme, follow a Result and Resource Framework and Activity Log Frames with quantifiable indicators, baselines and targets. In some instances, the M&R officer may advise on surveys and field visits to establish a baseline or data collection which may not exist, a crucial task in enabling an objective measurement of the project’s impacts. Other staff functions include: administration, drivers and secretarial posts. The exact number and composition of the above posts will vary according to needs of the project.

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VI. PROJECT MANAGEMENT ORGANISATION STRUCTURE

Project Management Unit

Operations

Thematic Programmes

Institutional Development

Technical Steering Committee

National Project Manager

Finance Procurement

HR MonEv

IT Admin

Executive UNDP

(Deputy) Country Director

Senior Supplier UNDP Environment Unit

Royal Norwegian Embassy

Senior Beneficiary IPB (Hariadi Kartodiharjo) -

tbc

REDD+ Advisory

Committee

Provincial Programmes • Central Kalimantan • East Kalimantan • Jambi • Aceh

Legal Review and

Moratorium

Agency Readiness and

Transition

UNDP

Legend Direct supervision Coordination

Project Assurance (UNDP Environment Unit)

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VII. MONITORING FRAMEWORK AND EVALUATION

An overall monitoring framework will be designed to ensure effective multi-stakeholder (UNDP, Government, donors) monitoring for results supported through on-site monitoring, regular reporting, and financial expenditure tracking. The monitoring framework for this programme is intended to achieve the following purposes.

• Results-Orientation: Ensure appropriate measurement and assessment of programme performance to effectively improve performance and achieve results.

• Quality Assurance: Ensure quality in project activities supported through this programme to ensure best possible benefit for beneficiaries, through monitoring programme delivery and identifying issues that need corrective action and ensure that additional assistance is provided early.

• Accountability: Ensure accountability in the use of programme resources through heavy emphasis on financial reviews to make sure that funds are being appropriately used to achieve project outputs, and that the implementing agents have sufficient controls in place to demonstrate that funds are being used appropriately.

• Transparency: Ensure transparency in programme activities, finances, and results to all stakeholders.

• Learning: Ensure that the programme has learning mechanisms for purposes of improving ongoing implementation and guiding new initiatives, and to identify key lessons learned and success stories from programme implementation in relation to mainstreaming disaster risk reduction into the development planning and implementation processes of UNDP, the Government and development partners.

In order to achieve these purposes, the monitoring framework for this programme will seek to apply the following measures:

• Appropriate Resourcing of Monitoring: The programme will dedicate staffing to ensure proper implementation of monitoring systems, including monitoring officers and financial monitoring assistants, as well as financial resources for monitoring purposes.

• Lessons from Previous Programmes: The programme will seek to address lessons from previous evaluations and assessments of UNDP programmes regarding monitoring systems.

• Result-Oriented: Priority is placed on result monitoring and regularly scheduled review meetings to take stock on the achievement of results.

• Template-Based System: The programme will seek to apply a template-based system to structure monitoring information and ensure its collection on a regular basis.

• Joint Monitoring: When needed, monitoring should include joint monitoring activities with government and other partners at various levels.

• Operational Effectiveness: Ensure proper application of UNDP's internal control framework, and reviews of operational effectiveness.

• Downward Accountability: The programme will seek to identify monitoring approaches that promote downward accountability in the monitoring framework.

Financial Monitoring The programme’s financial resources will be managed through a series of controls at various levels. All financial transactions are monitored, recorded, analysed and reported through in compliance with PMIG. Approved project budgets and expenditures will be shared with relevant parties for transparency purposes. Payments to the responsible parties will generally be made by either the implementing partner or directly by UNDP. Payments are made on the basis of payment schedules articulated in the contract or partnership agreement. Payment schedules are linked into achievement of agreed deliverables and outputs.

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All partners and contractors receiving funds from the project are subjects to financial monitoring by the UNDP programme support team, which includes qualified auditors who serve as finance monitors. Financial monitoring includes:

• Verifying accuracy and completeness of financial information, including review of supporting documents and test of expenditure details;

• Requesting clarification or additional information as required to verify and justify expenditures; and • Providing advice and technical assistance to contractors on measures necessary to enhance their

project financial management in line with UNDP standards and norms; Programmatic Monitoring An overall monitoring framework will be designed to ensure effective multi-stakeholder (UNDP, Government, civil society, community, donors) monitoring of activities supported through the programme, through on-site monitoring, regular reporting, and financial expenditure tracking. Tools for the programmatic monitoring will consist of: 1) Quarterly Progress Report towards achievement of project outputs. The reports include quarterly financial

accounting statements reflecting the expenditure of MFA funds on the implementation of the project in relation to its goals and objectives and prepared in accordance with UNDP's accounting and reporting procedures providing detailed information on the achievement of the goals and objectives set and including a progress report giving information on actual outputs compared to planned outputs, work plans and time schedules, use of inputs, problems encountered or foreseen and other information related to the implementation of the project

2) Annual and final certified financial statement from the UNDP Bureau of Management/Comptroller's Division to be submitted no later than 30 June of the following year

3) Final Report summarizing of outputs and activities undertaken, achievement against the goals and objectives as well as provisional financial data for the full implementation period, submitted no later than 6 months after project completion. This report should cover the implementation of the project in relation to its goals and objectives and prepared in accordance with UNDP's accounting and reporting procedures providing detailed information on the achievement of the goals and objectives set and including a progress report giving information on actual outputs compared to planned outputs, work plans and time schedules, use of inputs, problems encountered or foreseen and other information related to the implementation of the project

The reporting schedule from UNDP to the Norwegian Ministry of Foreign Affairs is referenced at Annex E.

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VIII. LEGAL CONTEXT

This document together with the CPAP signed by the Government and UNDP which is incorporated by reference constitute together a Project Document.

(a) The Revised Basic Agreement for Technical Assistance signed 29 October 1954 between the United Nations, the International Labour Organisation, the Food and Agriculture Organisation of the United Nations, the United Nations Educational, Scientific and Cultural Organisation, the International Civil Aviation Organisation, and the World Health Organisation and the Government of the Republic of Indonesia,

(b) The Standard Agreement on Operational Assistance signed 12 June 1969 between the United

Nations, the International Labour Organisation, the Food and Agriculture Organisation of the United Nations, the United Nations Educational, Scientific and Cultural Organisation, the International Civil Aviation Organisation, the World Health Organisation, the International Telecommunication Union, the World Meteorological Organisation, the International Atomic Energy Agency, the Universal Postal Union, the Inter-Governmental Maritime Consultative Organisation and the United Nations Industrial Development Organisation and the Government of the Republic of Indonesia,

(c) The Agreement signed 7 October 1960 between the United Nations Special Fund and the

Government of the Republic of Indonesia, (d) The Partnership Framework Agreement signed 28 September 2012 between the Government of

the Republic of Indonesia and UNDP; and (e) all CPAP provisions

apply to this document.

Additionally, this document together with the CPAP signed by the Government and UNDP which is incorporated by reference constitute together the instrument envisaged in the Supplemental Provisions to the Project Document, attached hereto as Annex B. UNDP as the Implementing Partner shall comply with the policies, procedures and practices of the United Nations safety and security management system. UNDP will undertake all reasonable efforts to ensure that none of the project funds are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml. This provision must be included in all sub-contracts or sub-agreements entered into under this Project Document.

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IX. ANNEXES

ANNEX A: ANNUAL WORK PLAN

Period: 15 August 2013 – 30 June 2014 See Annual Work Plan attached (16 July 2013)

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ANNEX B: STANDARD ANNEX TO PROJECT DOCUMENT FOR USE IN COUNTRIES, WHICH ARE

NOT PARTIES TO THE STANDARD BASIC ASSISTANCE AGREEMENT (SBAA)

Standard Text: Supplemental Provisions to the Project Document

General responsibilities of the Government, UNDP and the executing agency

1. All phases and aspects of UNDP assistance to this project shall be governed by and carried out in accordance with the relevant and applicable resolutions and decisions of the competent United Nations organs and in accordance with UNDP's policies and procedures for such projects, and subject to the requirements of the UNDP Monitoring, Evaluation and Reporting System.

2. The Government shall remain responsible for this UNDP-assisted development project and the realization of its objectives as described in this Project Document.

3. Assistance under this Project Document being provided for the benefit of the Government and the people of (the particular country or territory), the Government shall bear all risks of operations in respect of this project.

4. The Government shall provide to the project the national counterpart personnel, training facilities, land, buildings, equipment and other required services and facilities. It shall designate the Government Co-operating Agency named in the cover page of this document (hereinafter referred to as the "Co-operating Agency"), which shall be directly responsible for the implementation of the Government contribution to the project.

5. The UNDP undertakes to complement and supplement the Government participation and will provide through the Executing Agency the required expert services, training, equipment and other services within the funds available to the project.

6. Upon commencement of the project the Executing Agency shall assume primary responsibility for project execution and shall have the status of an independent contractor for this purpose. However, that primary responsibility shall be exercised in consultation with UNDP and in agreement with the Co-operating Agency. Arrangements to this effect shall be stipulated in the Project Document as well as for the transfer of this responsibility to the Government or to an entity designated by the Government during the execution of the project.

7. Part of the Government's participation may take the form of a cash contribution to UNDP. In such cases, the Executing Agency will provide the related services and facilities and will account annually to the UNDP and to the Government for the expenditure incurred.

(a) Participation of the Government

1. The Government shall provide to the project the services, equipment and facilities in the quantities and at the time specified in the Project Document. Budgetary provision, either in kind or in cash, for the Government's participation so specified shall be set forth in the Project Budgets.

2. The Co-operating Agency shall, as appropriate and in consultation with the Executing Agency, assign a director for the project on a full-time basis. He shall carry out such responsibilities in the project as are assigned to him by the Co-operating Agency.

3. The estimated cost of items included in the Government contribution, as detailed in the Project Budget, shall be based on the best information available at the time of drafting the project proposal. It is understood that price fluctuations during the period of execution of the project may necessitate an adjustment of said contribution in monetary terms; the latter shall at all times be determined by the value of the services, equipment and facilities required for the proper execution of the project.

4. Within the given number of man-months of personnel services described in the Project Document, minor adjustments of individual assignments of project personnel provided by the Government may be made by the Government in consultation with the Executing Agency, if this is found to be in the best interest of the project. UNDP shall be so informed in all instances where such minor adjustments involve financial implications.

5. The Government shall continue to pay the local salaries and appropriate allowances of national counterpart personnel during the period of their absence from the project while on UNDP fellowships.

6. The Government shall defray any customs duties and other charges related to the clearance of project equipment, its transportation, handling, storage and related expenses within the country. It shall be responsible for its installation and maintenance, insurance, and replacement, if necessary, after delivery to the project site.

7. The Government shall make available to the project - subject to existing security provisions - any published and unpublished reports, maps, records and other data which are considered necessary to the implementation of the project.

8. Patent rights, copyright rights and other similar rights to any discoveries or work resulting from UNDP assistance in respect of this project shall belong to the UNDP. Unless otherwise agreed by the Parties in each case, however, the Government shall have the right to use any such discoveries or work within the country free of royalty and any charge of similar nature.

9. The Government shall assist all project personnel in finding suitable housing accommodation at reasonable rents.

10. The services and facilities specified in the Project Document which are to be provided to the project by the Government by means of a contribution in cash shall be set forth in the Project Budget. Payment of this amount shall be made to the UNDP in accordance with the Schedule of Payments by the Government.

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11. Payment of the above-mentioned contribution to the UNDP on or before the dates specified in the Schedule of Payments by the Government is a prerequisite to commencement or continuation of project operations.

(b) Participation of the UNDP and the executing agency

1. The UNDP shall provide to the project through the Executing Agency the services, equipment and facilities described in the Project Document. Budgetary provision for the UNDP contribution as specified shall be set forth in the Project Budget.

2. The Executing Agency shall consult with the Government and UNDP on the candidature of the Project Manager a/ who, under the direction of the Executing Agency, will be responsible in the country for the Executing Agency's participation in the project. The Project Manager shall supervise the experts and other agency personnel assigned to the project, and the on-the-job training of national counterpart personnel. He shall be responsible for the management and efficient utilization of all UNDP-financed inputs, including equipment provided to the project.

3. The Executing Agency, in consultation with the Government and UNDP, shall assign international staff and other personnel to the project as specified in the Project Document, select candidates for fellowships and determine standards for the training of national counterpart personnel.

4. Fellowships shall be administered in accordance with the fellowships regulations of the Executing Agency.

a/ May also be designated Project Co-ordinator or Chief Technical Adviser, as appropriate.

5. The Executing Agency may, in agreement with the Government and UNDP, execute part or all of the project by subcontract. The selection of subcontractors shall be made, after consultation with the Government and UNDP, in accordance with the Executing Agency's procedures.

6. All material, equipment and supplies which are purchased from UNDP resources will be used exclusively for the execution of the project, and will remain the property of the UNDP in whose name it will be held by the Executing Agency. Equipment supplied by the UNDP shall be marked with the insignia of the UNDP and of the Executing Agency.

7. Arrangements may be made, if necessary, for a temporary transfer of custody of equipment to local authorities during the life of the project, without prejudice to the final transfer.

8. Prior to completion of UNDP assistance to the project, the Government, the UNDP and the Executing Agency shall consult as to the disposition of all project equipment provided by the UNDP. Title to such equipment shall normally be transferred to the Government, or to an entity nominated by the Government, when it is required for continued operation of the project or for activities following directly therefrom. The UNDP may, however, at its discretion, retain title to part or all of such equipment.

9. At an agreed time after the completion of UNDP assistance to the project, the Government and the UNDP, and if necessary the Executing Agency, shall review the activities continuing from or consequent upon the project with a view to evaluating its results.

10. UNDP may release information relating to any investment oriented project to potential investors, unless and until the Government has requested the UNDP in writing to restrict the release of information relating to such project.

Rights, Facilities, Privileges and Immunities

1. In accordance with the Agreement concluded by the United Nations (UNDP) and the Government concerning the provision of assistance by UNDP, the personnel of UNDP and other United Nations organizations associated with the project shall be accorded rights, facilities, privileges and immunities specified in said Agreement.

2. The Government shall grant UN volunteers, if such services are requested by the Government, the same rights, facilities, privileges and immunities as are granted to the personnel of UNDP.

3. The Executing Agency's contractors and their personnel (except nationals of the host country employed locally) shall:

(a) Be immune from legal process in respect of all acts performed by them in their official capacity in the execution of the project;

. (b) Be immune from national service obligations;

. (c) Be immune together with their spouses and relatives dependent on them from immigration restrictions;

(d) Be accorded the privileges of bringing into the country reasonable amounts of foreign currency for the purposes of the project or for personal use of such personnel, and of withdrawing any such amounts brought into the country, or in accordance with the relevant foreign exchange regulations, such amounts as may be earned therein by such personnel in the execution of the project;

(e) Be accorded together with their spouses and relatives dependent on them the same repatriation facilities in the event of international crisis as diplomatic envoys.

4. All personnel of the Executing Agency's contractors shall enjoy inviolability for all papers and documents relating to the project.

5. The Government shall either exempt from or bear the cost of any taxes, duties, fees or levies which it may impose on any firm or organization which may be retained by the Executing Agency and on the personnel of any such firm or organization, except for nationals of the host country employed locally, in respect of:

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. (a) The salaries or wages earned by such personnel in the execution of the project;

. (b) Any equipment, materials and supplies brought into the country for the purposes of the project or which, after having been brought into the country, may be subsequently withdrawn therefrom;

(c) Any substantial quantities of equipment, materials and supplies obtained locally for the execution of the project, such as, for example, petrol and spare parts for the operation and maintenance of equipment mentioned under (b), above, with the provision that the types and approximate quantities to be exempted and relevant procedures to be followed shall be agreed upon with the Government and, as appropriate, recorded in the Project Document; and

(d) As in the case of concessions currently granted to UNDP and Executing Agency's personnel, any property brought, including one privately owned automobile per employee, by the firm or organization or its personnel for their personal use or consumption or which after having been brought into the country, may subsequently be withdrawn therefrom upon departure of such personnel.

6. The Government shall ensure:

(a) prompt clearance of experts and other persons performing services in respect of this project; and

(b) the prompt release from customs of: (i) equipment, materials and supplies required in connection with this project; and

(ii) property belonging to and intended for the personal use or consumption of the personnel of the UNDP, its Executing Agencies, or other persons performing services on their behalf in respect of this project, except for locally recruited personnel.

7. The privileges and immunities referred to in the paragraphs above, to which such firm or organization and its personnel may be entitled, may be waived by the Executing Agency where, in its opinion or in the opinion of the UNDP, the immunity would impede the course of justice and can be waived without prejudice to the successful completion of the project or to the interest of the UNDP or the Executing Agency.

8. The Executing Agency shall provide the Government through the resident representative with the list of personnel to whom the privileges and immunities enumerated above shall apply.

9. Nothing in this Project Document or Annex shall be construed to limit the rights, facilities, privileges or immunities conferred in any other instrument upon any person, natural or juridical, referred to hereunder.

Suspension or termination of assistance

1. The UNDP may by written notice to the Government and to the Executing Agency concerned suspend its assistance to any project if in the judgement of the UNDP any circumstance arises which interferes with or threatens to interfere with the successful completion of the project or the accomplishment of its purposes. The UNDP may, in the same or a subsequent written notice, indicate the conditions under which it is prepared to resume its assistance to the project. Any such suspension shall continue until such time as such conditions are accepted by the Government and as the UNDP shall give written notice to the Government and the Executing Agency that it is prepared to resume its assistance.

2. If any situation referred to in paragraph 1, above, shall continue for a period of fourteen days after notice thereof and of suspension shall have been given by the UNDP to the Government and the Executing Agency, then at any time thereafter during the continuance thereof, the UNDP may by written notice to the Government and the Executing Agency terminate the project.

3. The provisions of this paragraph shall be without prejudice to any other rights or remedies the UNDP may have in the circumstances, whether under general principles of law or otherwise.

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ANNEX C: RISK ANALYSIS

# Description Type Impact & Probability

Countermeasures / Management response Date Identified

Owner Submitted, updated by

Last Update

Status

1 Commitment of the GOI towards implementing REDD+ does not remain firm.

Political risk:

Lacking high-level support progress in programme implementation/ transition, would be slow. REDD+ readiness would not be achieved. P = I =

Linking the programme to the National Action Plan to reduce GHG emissions, which has very strong political support, would reduce this risk. UNDP will work with relevant GOI partners to ensure that commitment remains firm at the highest level of the GOI.

June 2013

UNDP and Project Management Unit will monitor

REDD+ Task Force

June 2013

no change

2 Government/line ministries do not cooperate and coordinate activities.

Organisational risk:

Failure of government/line ministries to cooperate would slow down the programme implementation/ transition. P = I =

UNDP will work with relevant GOI partners towards the issuance of the Presidential Regulation to establish the REDD+ Agency.

June 2013

UNDP and Project Management Unit will monitor

REDD+ Task Force

June 2013

no change

3 Planned activities not fully implemented before 30 June 2014.

Financial/ organisational risk:

Based on the REDD+ experience in Indonesia to date, careful implementation of transition activities may take longer than expected and not all activities may be completed before 30 June 2014. P = I =

A detailed work plan will be monitored on a weekly basis to detect any potential delay in implementation. This way, Implementing Partner and UNDP will ensure that delays are mitigated to the extent possible. Should the mitigation measure not suffice, however, for the Implementing Partner to complete activities within the given timeline, it is foreseeable that a no-cost extension would be required. A longer implementation timeframe may also be necessary to support the REDD+ Agency to become fully operational and the Fund for REDD+ in Indonesia to be accessible.

June 2013

UNDP and Project Management Unit will monitor

REDD+ Task Force

June 2013

no change

4 Project inputs (funds, human resources, other inputs) for the transition period are not mobilised in a timely fashion.

Operational risk:

Many of the inputs and outputs are interlinked and therefore untimely mobilisation of one input or untimely delivery of one output could delay the project implementation. P = I =

The Implementing Partner is anticipating the required set up and planning the mobilisation accordingly.

June 2013

UNDP and Project Management Unit will monitor

REDD+ Task Force

June 2013

no change

5 Establishment of REDD+ Agency is delayed.

Political/organisational risk:

Implementation of planned activities will continue but unclear timeline for the REDD+ Agency establishment may affect the momentum for carrying out these activities. P = I =

The Implementing Partner is anticipating multiple timeline scenarios and will implement the planned activities according to the work-plan and will adjust the plan, as necessary.

June 2013

UNDP and Project Management Unit will monitor

REDD+ Task Force

June 2013

no change

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ANNEX D: REDD+ INTERIM PHASE – BUDGET OVERVIEW

Output and Activities Budget US$ Total US$

Output 11: REDD+ strategies and action plans finalised with an operational capacity for project implementation strengthened in key-priority provinces. 2,675,000

11.1 REDD+ regional agencies established in key-priority provinces and work units strengthened in other priority provinces. 1,700,000

11.1.1 REDD+ regional agencies established in three (3) key-priority provinces:

− Central Kalimantan; 450,000

− East Kalimantan; and 225,000

− Jambi. 225,000

11.1.2 Capacity of provincial REDD+ work units strengthened in eight (8) priority provinces:

− Aceh, West Sumatra, Riau, South Sumatra, West Kalimantan, Central Sulawesi, West Papua, Papua 800,000

11.2 Provincial REDD+ Strategy and Action Plans (PSAPs) finalised and implementation initiated in all priority provinces. 350,000

11.2.1 REDD+ priority provinces have finalised their respective PSAPs. 150,000

− Central Kalimantan 50,000

11.2.2 PSAPs are legalised and implementation initiated in all priority provinces. 130,000

− Central Kalimantan 20,000

11.3 Restoration planning for the Tripa Peat-swamp Forest in Aceh completed and initiated. 625,000

11.3.1 Aceh’s progress towards green-economic development continues. 100,000

11.3.2 Data and legal analysis of land concessions in the Leuser Ecosystem and TPSF is available to the appropriate agencies. 100,000

11.3.3 Technical design for the restoration of TPSF completed and implementation initiated. 425,000

Output 12: REDD+ institutional mechanisms and instruments in readiness for small- to large-scale project implementation in key-priority provinces. 2,750,000

12.1 MRV measurement and default standards for emission calculations operational. 350,000

12.1.1 Historical analysis of deforestation and forest degradation completed for four (4) priority provinces. 250,000

12.1.2 Calculate emission reductions for the period 2010-11 for five (5) priority provinces. 80,000

− Central Kalimantan 20,000

12.2 Completion of expanded baseline and geospatial data projects in four priority provinces. 800,000

12.2.1 Baseline data of a standard required for REDD+ implementation is available. 600,000

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12.2.2 Geospatial data available to support REDD+ and provincial planning decisions. 100,000

− Central Kalimantan 100,000

12.3 FREDDI’s pipeline strategies and supporting operational procedures in place. 1,400,000

12.3.1 Concept Note on a strategic and large-scale investment programme for Central Kalimantan prepared and endorsed by the provincial government.

− Central Kalimantan 300,000

12.3.2 Provincial and related district governments agree to a portfolio of small grants for community-based REDD+ initiatives to be implemented in key-priority provinces:

− Central Kalimantan; 400,000

− East Kalimantan; and 200,000

− Jambi. 200,000

12.3.3 Operational procedures for FREDDI are developed and approved 300,000

12.4 REDD+ National Registry and Safeguard Information System designed and ready for development. 200,000

12.4.1 Design for a REDD+ National Registry agreed. 100,000

12.4.2 Information on Safeguards (PRISAI) is standardised and available to all stakeholders. 100,000

Output 13: Legal reform for REDD+ implementation in process and strengthened through improved law enforcement mechanisms and systems. 2,800,000

13.1 Regulatory review of the legal basis for the implementation of REDD+ and related legislation carried out at national and sub-national levels. 950,000

13.1.1 Legal basis for REDD+ implementation in process and alignment with national regulatory framework initiated. 200,000

13.1.2 Review of land concessions in pilot provinces provides a basis for regulatory reform and remedial action on concessions:

− Central Kalimantan; 350,000

− East Kalimantan; and 200,000

− Jambi. 200,000

13.2 Law-enforcement capacity in support of related legal frameworks, including the Moratorium, is strengthened. 1,225,000

13.2.1 Multi-stakeholder agreement achieved on the approach to be used in acceleration of forest gazettement in pilot province. 200,000

− Central Kalimantan 150,000

13.2.2 Key agencies commit to work through a multi-door approach to enforce forest and peat-land regulations:

− Guidelines for the Multi-door approach prepared and training conducted; 300,000

− Central Kalimantan 300,000

− Booklet and/or collection of Case Studies prepared; 50,000

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− System developed for processing complaints; and 50,000

− Guideline for green prosecutors and green police being developed. 75,000

13.2.3 New and previously reported Moratorium violation cases are investigated and prosecuted by the national authorities. 100,000

13.3 Moratorium extension advances governance of forests and peat-land and builds upon the One Map objective. 425,000

13.3.1 Lessons learned and recommendations from the first moratorium are adopted in implementation of the moratorium extension. 75,000

13.3.2 Primary forest and peat-lands secured, and wider forest governance reform enhanced, through extension of the moratorium 75,000

13.3.3 Key national planning processes officially adopt the One Map programme as a central part of land and resource governance 275,000

13.4 Options for a solution determined, and stakeholder agreement clarified, for the implementation of a cadastral registry (land-management) system.

200,000

13.3.1 Road map for the establishment of a national cadastre produced and endorsed by government stakeholders. 200,000

Output 14: REDD+ Agency management arrangements, human resource and administrative transition prepared. 1,975,000

14.1 Legal arrangements, human resources and infrastructure for REDD+ Agency operations in place. 825,000

14.1.1 Legal arrangements for the REDD+ Agency and its operational structures prepared. 200,000

14.1.2 Procedures and priorities for recruitment and staffing for the REDD+ Agency established. 525,000

14.1.3 Information Management Systems (IMS) for the REDD+ Agency integrated and in production. 100,000

14.2 Outgoing and incoming administrative transition requirements finalised. 1,150,000

14.2.1 Preparations in place for transition of legal obligations and liabilities to the REDD+ Agency. 200,000

14.2.2 Responsibilities and functions of the Project Management Unit ready to be handed over to the REDD+ Agency. 950,000

TOTAL (amount net programmable) US$10,200,000

General Management Support (GMS) 7% US$714,000

GRAND TOTAL US$10,914,000

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ANNEX E: REPORTING SCHEDULE FROM UNDP TO NORWEGIAN MINISTRY OF FOREIGN

AFFAIRS

UNDP shall ensure that MFA is provided with the following reports according to the following schedule: Submission Date: Required Report: Reporting Period: 31 October 2013 Quarterly Progress Report August - September 2013 31 January 2014 Quarterly Progress Report October – December 2013 30 April 2014 Quarterly Progress Report January – March 2014 31 August 2014 Final Report August 2013 – June 2014 30 June 2015 Final Certified Financial Statement August 2013 – June 2014