We deserve a thumbs up for the Indonesian government, which has successfully contributed internationally to curbing climate change. This tangible contribution is evidenced by the recent award of US$103.78 million (approximately Rp 1.52 trillion) in compensation from the Green Climate Fund (GCF).
This compensation fund was provided because Indonesia has successfully reduced greenhouse gas emissions from deforestation and forest degradation, as stated by the Minister of Environment and Forestry, Siti Nurbaya. Between 2014 and 2020, Indonesia's deforestation rate dropped from 3.51 million tons of carbon dioxide equivalent to 0.40 million tons of carbon dioxide equivalent.
Indonesia's commitment to combating the impacts of climate change, or more accurately called the climate crisis, has not only been realized through international funding from the GCF, but Indonesia has also previously received climate change funds from the Norwegian government amounting to Rp 840 billion.
Indonesia's success is certainly something to be proud of. Amidst the ongoing pandemic and the increasingly alarming global environmental crisis, Indonesia has received an award for its achievements in mitigating the impacts of the global climate crisis.
However, as a wise nation, it would be wise not to let this achievement make us complacent, because the agenda of combating the climate crisis still has a long, difficult road ahead.
Regarding the agenda of combating the global climate crisis, Indonesia has set a fairly good target. This target, manifested in its Nationally Determined Contribution (NDC), aims to reduce greenhouse gas emissions by 29% from business as usual (BAU) by 2030 through its own efforts and 41% with international assistance. The NDC itself is a key component of the Paris Agreement, which contains a statement of commitment from many countries to address climate change.
Testing BPDLH
After such a large sum of money entered the Indonesian government's coffers, it is natural for the public to start asking questions about the allocation of these international funds.
To address the various questions and speculation that will arise, the Indonesian government has established a special institution tasked with managing these funds. This institution is called the Environmental Fund Management Agency, or BPDLH for short.
The BPDLH is an agency designed to collect funding for environmental protection and has the capacity to channel it to priority projects committed to environmental restoration and preservation. The BPDLH will channel funds for, among other things, climate change mitigation and adaptation efforts, conservation, biodiversity, and various local wisdoms that must be protected.
As an institution that has the authority to manage funds related to environmental interests, such as the international climate change fund, BPDLH must have a grand design that is in line with Indonesia's ambitions and challenges in the future.
Funding from the State Budget (APBN) is indeed limited. The COVID-19 pandemic presents a significant challenge for the BPDLH, which will operate this year. These challenges must be met effectively to maintain trust and reputation in the eyes of the public and the world.
In managing these funds, there are several key items that can be the primary targets of the BPDLH. First , environmentally-based Micro, Small, and Medium Enterprises (MSMEs). In line with the aims and objectives of environmental restoration, targeting environmentally-based MSMEs is the most appropriate priority. MSMEs based on the Social Forestry program are an excellent example of receiving green funding support from the BPDLH.
In addition to saving the environment, channeling funds to the Social Forestry sector can also improve the community's economy, which is currently under severe pressure due to the prolonged Covid-19 pandemic.
Second , addressing environmental damage. In addressing environmental damage, incentive schemes can be a viable option. More specifically, the government can channel funding to community groups that preserve the environment, forests, and nature, as well as to companies that implement disciplined production activities, thereby eliminating the impact of environmental damage.
As in the case of forest and land fires (karhutla), companies' practice of clearing land by slash and burn must be stopped with appropriate incentive schemes. These schemes could include support for the procurement of heavy equipment to facilitate more environmentally friendly land clearing.
Meanwhile, fire-prepared community groups can receive support in the form of mitigation equipment and operational funding. Incentive schemes can be considered the best way to prevent forest and land fires in the country. Isn't this country eager to be free from the threat of forest and land fires that lurk every year?
Third , rewards or recognition for regions that protect the environment. There has long been a worrying perception among regions regarding forests, namely that forests are a curse. The existence of forests is said to be a curse because it poses a dilemma for development. Regions that tend to still have intact forests are compelled to maintain their sustainability. Meanwhile, the demands for development are so pressing that local governments struggle to boost their economies.
By awarding awards to regions that excel in environmental protection, particularly forests, they will receive funding for development. These awards will also stimulate regions to be more creative in utilizing their forests effectively, as forests hold significant economic and non-economic value for the future. Consequently, the perception of forests as a curse can be transformed into a blessing for regions.
As the crisis looms, Indonesia clearly needs to make a major leap forward. With the establishment of the BPDLH, we hope Indonesia will not only focus on emerging from the COVID-19 pandemic, but also on addressing the threat of the climate crisis currently plaguing the world. As the saying goes, "kill two birds with one stone."
Author: Delly Ferdian
Sustainable Civil Researcher Jakarta
This article was published in the Kotan Daily edition of September 22, 2020.
