[Jakarta, November 26, 2020] The 2020 Simultaneous Regional Elections, held across 9 provinces, 224 regencies, and 37 cities, represent a critical opportunity to strengthen the protection of Indonesia’s natural forests and peatland ecosystems in order to achieve the country’s 2030 climate commitments.

This local democratic process is highly significant for environmental protection, as 67.72% (60.5 million hectares) of Indonesia’s natural forests and 64.33% (13.9 million hectares) of peatland ecosystems are located in regions participating in the 2020 elections.

“If newly elected regional leaders succeed in protecting their vast natural forests and peatlands, they can access innovative environmental financing and incentive schemes—such as intergovernmental fiscal transfers, REDD+ grants, green finance and investment schemes, carbon economic instruments, and other environmental economic mechanisms, including payment for ecosystem services,” said Muhammad Teguh Surya, Executive Director of Yayasan Madani Berkelanjutan.

Conversely, failure to protect these ecosystems could increase disaster risks—such as floods, landslides, and forest and land fires—disrupting regional economic development.

Rising Threats to Forests

Madani’s study shows that natural forests in 9 provinces and 10 regencies holding elections face four escalating threat levels: at risk, threatened, highly threatened, and most threatened. These risks would intensify if provisions weakening forest protection under the implementing regulations of the Job Creation Law (Forestry Sector) are not revised.

Among the nine provinces, those most vulnerable to deforestation and forest degradation are Central Kalimantan, North Kalimantan, and Central Sulawesi. At the regency level, Merauke and Malinau face the highest risks.

In these nine provinces:

• 12.5 million hectares (22 times the size of Bali) are at risk,

• 2.6 million hectares are threatened,

• 1.2 million hectares are highly threatened, and

• 2.6 million hectares are most threatened by deforestation.

Across the ten regencies with the largest forest areas:

• 11.9 million hectares are at risk,

• 1.23 million hectares are threatened,

• 521,000 hectares are highly threatened, and

• 3 million hectares are most threatened.

Shrinking Regional Authority

M. Arief Virgy, Insight Analyst at Madani, noted that the Job Creation Law has reduced several regional authorities and strengthened central government control over environmental and natural resource management.

At least five key regional powers have been curtailed, including authority over spatial planning for strategic areas, environmental impact assessment (AMDAL) policy, determining business activities requiring UKL-UPL, licensing environmental assessment commissions, and granting business permits for forest utilization. Although regions retain some spatial planning authority, their plans can be overridden for National Strategic Projects or major national policy changes.

Remaining Levers for Action

Despite these constraints, regional governments still hold important powers to protect forests and peatlands:

Provincial authorities include:

• Proposing forest designation changes via spatial plan revisions;

• Protecting natural forests in non-forest use areas (APL) within provincial spatial plans;

• Granting non-forestry business permits affecting forest cover (e.g., plantations and mining);

• Managing Forest Management Units (KPH);

• Accelerating recognition of Indigenous peoples and social forestry programs.

Regency/city authorities include:

• Proposing forest status changes to the governor;

• Protecting natural forests within local spatial plans and detailed spatial plans (RDTR);

• Issuing non-forestry business permits;

• Accelerating Indigenous recognition processes.

Conflict of Interest Risks

KPK Research and Development Director Wawan Wardiana highlighted financial gaps between campaign costs and candidates’ personal resources, creating potential conflicts of interest. A KPK survey found that 82.3% of candidates in 2018 received funding from donors or sponsors, and 76.3% of those donors expected returns, often in the form of easier licensing processes or preferential treatment in tenders. Alarmingly, 83.8% of candidates expressed willingness to meet sponsors’ expectations.

KPK has identified bribery cases in forestry licensing, with payments ranging from IDR 600 million to IDR 22 billion per year for concessions.

Case of Central Kalimantan

Central Kalimantan—one of Indonesia’s most forested provinces with 12.3 million hectares (79.75% of its territory)—currently has 95 active forestry permits covering approximately 5 million hectares, plus 1.465 million hectares of oil palm plantations. Provincial officials note that final licensing authority lies largely with the central government, limiting provincial intervention.

Three Key Steps Forward

To align local governance with Indonesia’s climate goals, newly elected regional leaders should:

1. Strengthen development planning and budgeting based on principles of economic growth without environmental destruction.

2. Prioritize forest and peatland protection as the frontline of sustainable regional economic development.

3. Engage the public—especially Indigenous peoples and local communities—as primary development partners, supported inclusively by civil society.

The 2020 elections should serve as a turning point toward high-quality economic development that contributes meaningfully to Indonesia’s climate commitments.

Media Contacts:

• M. Teguh Surya, Executive Director, Yayasan Madani Berkelanjutan
  +62 812 9480 1453 | teguh@madaniberkelanjutan.id

• M. Arief Virgy, Insight Analyst
  +62 877 0899 4241 | virgy@madaniberkelanjutan.id

• Fadli Ahmad Naufal, GIS Specialist
  +62 813 1916 1932 | fadli@madaniberkelanjutan.id

• Luluk Uliyah, Senior Media Communication
  +62 815 1986 8887 | luluk@madaniberkelanjutan.id