Iwan Wibisono – BP REDD+

Options and Way Forward in Designing Benefit Sharing In Indonesia

Benefit Sharing Paradigm

Community as “disturbed neighbors” of an “REDD+ Project” that needs to be “bribed” through cash-distribution

Community as a part of, and “co-owners” of the project, being inside the project boundary, sharing responsibility as well as benefits

Benefits being defined almost entirely as cash distribution.

Benefits being defined as well-being, happiness, sustainability, with fulfilled social needs.

Benefits being defined almost entirely as derived from carbon.

Benefits being defined as carbon and other social and ecological services.

Paradigm shift that guides the principles for benefit-sharing and incentive mechanisms :

Defining the Benefit and Beneficiaries

• Carbon Benefit : Bonus, long way to go, difficults. But this is one of the basic why we working with REDD+

• Non Carbon Benefit : it can be anything, strengthen community rights, based on existing activities

• Improvement on forest governance• Beneficiaries : government, community,

private, civil society

Develop The Process

• Open, participatory transparent, inclusive process -> safeguards PRISAI

• Defining benefit not at the end, but from beginning at all stages of REDD+

• Develop program with community based activity as key element

We are on track to properly recognize & protect adat communities rights

Progress of follow-up on MK35

Constitutional Court Decision No. 35/PUU-X/2012• Amended Art 1 (6) of Forestry Law No. 41/1999 • ‘Customary Forest [Hutan Adat] is State Forest located inside

custom based society (MHA) areas’

Impacts:• Enable MHA to claim their tenurial rights in forest area• Enable MHA to protect the forest by implementing their customary

knowledge• Reducing Tenure Conflicts

Further Actions:• Long term: Law on MHA Recognition and Protection which

administers the MHA Rights• Short term: support for Menkokesra in monitoring “MK35” Action Plan

and template for Regional Regulation (Perda) on the recognition of MHA.

Options for Channelling the Benefits

• National benefit sharing : transfer to local govt or directly to local communities, tax incentives

• Sub national : jurisdictional based and project based; • Performance based : based on emission reduction

and others verified performances• Input based : i.e. govt provide enabling condition,

policy on addressing drivers of deforestation• Existing Mechanism i.e. : PNPM, Credit Union• PRISAI/ Safegards and FPIC as key tools

Way Forward

• Creating Strong policy and regulation for REDD+ benefit sharing

• Clarity on tenurial and defining ownership over carbon and other services

• Implementing safeguards and FPIC to identify and defining beneficiaries, identify benefit from REDD+;

• Increase institutional capacity on managing REDD+ benefit;

• Benefit contribute in Addressing drivers of deforestation• Creating positive incentives