New Indonesia–Norway Agreement Supports Indonesia’s FOLU Net Sink 2030 Target

The Indonesia–Norway agreement signed through the 12 September 2022 MoU strengthens Indonesia’s path toward achieving FOLU Net Sink 2030, with results-based financing support, enhanced forest protection measures, and a greater role for local communities and regional governments.

13 September 2022

[Jakarta, 13 September 2022] Yayasan Madani Berkelanjutan welcomes the new agreement between the Government of Indonesia and the Government of Norway to collaborate on reducing greenhouse gas (GHG) emissions in Indonesia’s forestry and land-use sector. The agreement, formalized through a Memorandum of Understanding (MoU) signed on 12 September 2022, supports the achievement of Indonesia’s FOLU Net Sink 2030 (IFNET 2030) target.

“This agreement marks a new chapter in the Indonesia–Norway partnership on environment and forests, particularly in meeting the IFNET 2030 target announced by the Indonesian government earlier this year. It is a positive step, as achieving net zero or net negative emissions in the forestry and land-use sector by 2030 has become Indonesia’s commitment to the global community. This demonstrates Indonesia’s seriousness in implementing the Paris Agreement,” said Nadia Hadad, Executive Director of Yayasan Madani Berkelanjutan.

Beyond supporting the exchange of information and knowledge, the cooperation also includes financial support through a results-based contribution mechanism. According to the Indonesia FOLU Net Sink 2030 Operational Plan, implementing IFNET 2030 policies will require a total budget of IDR 204.02 trillion.

“In addition to contributing to the funding needs for achieving FOLU Net Sink 2030, we hope this MoU between the Governments of Indonesia and Norway will help leverage additional sources of climate finance,” Nadia added. Through IFNET 2030, Indonesia has committed to increasing carbon removals by 140 million tons of CO₂ by 2030. This makes the forestry and land-use sector a critical pillar in supporting the achievement of Net Zero Emissions by 2060 or sooner. Achieving IFNET 2030 will therefore reflect the fulfillment of Indonesia’s climate commitments, particularly in the forestry and land-use sector.

“Indonesia has also undertaken various climate actions to reduce carbon emissions and increase carbon stocks, including the Permanent Forest Moratorium Presidential Instruction, which protects 66.59 million hectares of primary forests and peatlands. At the same time, Indonesia has approximately 89.7 million hectares of primary and secondary natural forests that should also be protected and maintained. Meanwhile, Madani’s 2022 analysis shows that around 9.6 million hectares of natural forest are still not protected under the Indicative Map for the Suspension of New Permits (PIPPIB), Social Forestry Indicative Map (PIAPS), or existing permits and concessions. Optimizing efforts to protect all remaining natural forests—from low to high deforestation risk—should be a key step in achieving the IFNET 2030 ambition,” said Yosi Amelia, Forest and Climate Program Officer at Yayasan Madani Berkelanjutan.

The IFNET 2030 operational plan currently prioritizes the protection of natural forests in areas with a Location Priority Index (IPL) score of 7–9, or forests with high deforestation risk. However, focusing solely on IPL 7–9 areas is not sufficient to achieve the FOLU Net Sink target and move toward zero deforestation.

“With Norway’s commitment to supporting IFNET 2030 implementation, this partnership should serve as a catalyst to expand mitigation actions beyond high-risk forest areas, to also include forests with low to medium deforestation risk,” Yosi Amelia added.

This bilateral cooperation is expected to strengthen Indonesia’s existing climate commitments and actions. In addition to setting the ambitious IFNET 2030 target, Madani notes that Indonesia has rehabilitated 29,500 hectares of mangroves across nine priority provinces and an additional 3,500 hectares across 23 provinces, based on data from the Peatland and Mangrove Restoration Agency (BRGM). Indonesia has also restored approximately 835,000 hectares of peatlands between 2016 and 2020.

Meanwhile, to promote community-based forest management, around 5.07 million hectares of forest areas have been allocated to Indigenous Peoples and local communities through the social forestry program.

The Indonesia–Norway cooperation agreement also explicitly emphasizes strengthening community participation in forest protection to reduce GHG emissions. This aligns with broader efforts to prioritize community roles and engagement in sustainable development within the forestry and land-use sector.

“Indigenous Peoples and local communities have deep connections to nature, embedding cultural values and local wisdom in forest management to sustain healthy ecosystems. Communities also act as catalysts for development and play a vital role in managing forest resources, and therefore deserve strong support—particularly in terms of financing,” said Resni Soviyana, Green Development Program Officer at Yayasan Madani Berkelanjutan.

“Local governments, as key actors in designing and implementing sustainable development planning, must not be overlooked—especially in achieving IFNET 2030 targets at the regional level. This requires technological support, capacity building, and adequate financing to implement IFNET 2030 and ensure alignment between national climate commitments and long-term sustainable development goals,” she added.

Furthermore, under the partnership agreement, the Government of Norway has prioritized results-based contributions through Indonesia’s Environmental Fund Management Agency (BPDLH), to be further elaborated in a separate agreement.

“Many Indonesian government initiatives stand to benefit from this cooperation. Beyond forest ecosystem protection and rehabilitation, this partnership has the potential to strengthen the implementation and operational capacity of BPDLH, which was established by the government three years ago,” explained Yosi Amelia.

“Going forward, particular attention must be given to the pathways for implementing the MoU within the broader framework of achieving IFNET 2030. Strengthening the PIPPIB policy as a key instrument for protecting remaining natural forests must be carried out in a collaborative and participatory manner. Without active community participation at the local level, ecosystem protection will be extremely difficult. Similarly, the development and application of strong social and environmental safeguards must be a central consideration in defining implementation pathways for IFNET 2030,” concluded Nadia Hadad.

Media Contacts:

  • Nadia Hadad – Executive Director, Yayasan Madani Berkelanjutan | +62 811 132 081

  • Yosi Amelia – Forest and Climate Program Officer, Yayasan Madani Berkelanjutan | +62 813 2217 1803