The election of Minister of Finance Sri Mulyani Indrawati as co-chair of the Global Coalition of Finance Ministers for Climate Change 2021-2023 affirms the great confidence of the global climate change action community in Indonesia.

In the past decade, the world has seen Indonesia's strong efforts and commitment in controlling climate change through various policies and instruments. For example, the policies and instruments related to funding such as the allocation of the State Budget for climate change (budget tagging) and the establishment of the Environmental Fund Management Agency (BPDLH). BPDLH is in charge of managing various forestry-related funds, such as energy and mineral resources, carbon and energy trading, and other environmentally related resources in various ministries/institutions.

In line with the strategic role in the coalition, the mainstreaming issue of climate change in the national development programs is in line with efforts to reduce greenhouse gas (GHG) emissions in accordance with the nationally determined contribution (NDC). Indonesia's NDC commitment to the Paris Agreement is 29% on its own or 41% with international support by 2030.

One of the efforts to reduce carbon emissions is by rehabilitation and utilization of wetlands such as peat forests, mangroves, and seagrass fields scattered in a number of forests and coastal throughout the archipelago.

Ironically, the large potential for carbon stocks in mangroves, tidal swamps, and seagrass fields, known as 'blue carbon', along with its high destruction rate. The rapid rate of deforestation of peatlands and mangroves has led the United Nations to declare a climate change emergency in tropical regions, such as Indonesia, Southeast Asia, Brazil, and Central Africa.

Meanwhile, mangroves store the second largest carbon stocks in the world peatland with three to four times more carbon than tropical forests. Mangroves are a protective plant for the land from exposure to strong winds and large waves (tsunamis) due to climate change. A number of flora and fauna species can also be sustainable if the mangroves are maintained properly. Therefore, the existence of mangrove forests is very important for national disaster resilience and as an ecosystem in maintaining biodiversity.

In addition, mangrove ecosystems are able to increase the productivity of fisheries, crabs, and silvofishery for the surrounding community. Mangrove forest also has socioeconomic potential as this forest can be used as an ecotourism spot and derivative products of plants in this land can be made into various foods such as dodol, syrup, and chips.

Research and Development Agency for Innovation of the Ministry of Environment and Forestry (KLHK) findings reveal that Indonesia's mangroves store 3.14 billion tons of carbon or one-third of all carbon stored in coastal ecosystems around the world.

Therefore, the government is committed and strives to continue to restore mangrove areas. Last year, the government has restored 17 thousand hectares of 637 thousand hectares of the nation’s critical land. In a coordination meeting on National Mangrove Management held on Thursday (11/2/21), the Minister of Environment and Forestry Siti Nurbaya discussed mangrove rehabilitation plans in which 124 thousand hectares or 20% of mangroves forest will be rehabilitated this year. This number will rise as time goes by. As for 2022 and 2023, the government plans to rehabilitate 155 thousand hectares or 25% of mangrove forest each year. Meanwhile,  187 thousand hectares or 30% of mangrove forest will be rehabilitated in the following year of 2024. 

However, great work also requires equally great financial support. The mangrove rehabilitation fund from the 2021 State Budget is only able to cover an area of 1,250 hectares. Therefore, it is necessary to expand the budget aspects through international cooperation such as foreign grants that are synergized across ministries and institutions.

Right now, 20 million euros have been raised through cooperation between the Ministry of Environment and Forestry and Germany’s Kreditanstalt für Wiederaufbau (KfW). The World Bank also provided their assistance through the Ministry of Marine Affairs and Fisheries which worth more than US$200 million.

Efforts to accelerate the implementation of mangrove rehabilitation have been carried out by the government through the establishment of the Peat and Mangrove Restoration Agency (BRGM). Mangrove rehabilitation will be focused in nine provinces covering an area of 600 thousand hectares in North Sumatra province, Riau province, Riau Islands province, Bangka Belitung province, West Kalimantan, East, and North Kalimantan provinces, as well as in Papua province and West Papua province.

Currently, the government also continues to collaborate with various universities and NGOs to work on research and applied studies on mangroves. The Ministry of Environment and Forestry and the Ministry of Marine Affairs and Fisheries have also pioneered the development of modern nurseries and the World Mangrove Centers in Java and Kalimantan.

Furthermore, the government is also currently studying mangrove seedling through a coastal village labour-intensive program funded by the Village Funds. Indonesia has also succeeded in attracting financial support and cooperation in reducing greenhouse gas emissions with several international parties through the Reducing Emissions from Deforestation and Forest Degradation (REDD+) mechanism.

Indonesia has also obtained a REDD+ Result Based Payment (RBP) funding commitment from Norway of USD56 million. The funding is a payment for the performance of reducing the greenhouse gas emission through the REDD+ activities in the 2016-2017period whereby 11.23 million tonnes of CO2eq (carbon equivalent) was successfully reduced.

Meanwhile, RBP funding of US$103.8 million from the Green Climate Fund was provided for the performance of greenhouse gas emission reduction from REDD+ activities in the 2014-2016 period. As many as 20.3 million tons of CO2eq was successfully reduced during this period. Furthermore, RBP funding from the Forest Carbon Partnership Facilities-Carbon Fund World Bank cooperation in East Kalimantan province is provided for the performance of greenhouse gas emission reduction from REDD+ activities of 22 million tons of CO2eq. This fund worth USD110 million and will be paid in three payment stages between 2021–2025.

All of the received funds from international cooperation commitments are managed by the Environmental Fund Management Agency (BPDLH). These RBP funds were utilized to strengthen mitigation measures to reduce emissions in the field, such as mangrove and peatland restoration.

Writer: Kristantyo Wisnubroto
Editors: Ratna Nuraini/Elvira Inda Sari/Penny P. Rusman
Translator: Aisah Amanda