Feeding nation while protecting environment

The Jakarta Post, Thursday, 5 January 2017,

By Fitrian ArdiansyahIndonesia country director of IDH-Sustainable Trade Initiative

Original link: http://www.thejakartapost.com/academia/2017/01/05/feeding-nation-while-protecting-environment.html

2016_12_30_18720_1483095893._JP5January2017.jpg
Farmer works cultivating rice in the field (Antara/Berto, as shown in the Jakarta Post)

The year 2016 has just ended, but a question remains. Will countries, including Indonesia, be able to supply food for their growing populations, taking into account the constraints of our limited natural resources?

The global demand for food, fiber and fuel is on the rise. This demand needs to be matched while we also need to ensure that our resources, landscape and ecosystems will be sustainably managed for the long term. Several projections, including from the Directorate General of Food Crops in 2013, for example, reveal that Indonesia’s rice consumption would exceed its production starting in 2020, taking into account land availability and climate change.

Threats to food security will likely increase as the population continues to soar and economic activities develop, while land availability becomes more limited. Hence, improved productivity and technological developments are necessary.

Globally traded commodities produced in Indonesia, namely palm oil, coffee and cocoa, face similar challenges.

Palm oil is one of the most efficient crops but the productivity level in Indonesia, especially on small farmers’ lands, is still relatively low at 3.2 tons of crude palm oil (CPO) per hectare — the global average is between 4 and 5 tons.

If productivity and practices are not improved, the increased global demand for palm oil could lead to expansion and exploitation of the remaining forests and peat lands and potentially to forest and land fires.

However, a decree for conservation has been adopted by the government, which is in tandem with global markets that increasingly support sustainable products.

Land cultivated for palm oil needs replanting. In South Sumatra alone, between 2016 and 2021, replanting needs are estimated to be at least 270,000 hectares.

The investment required for oil palm replanting could reach US$5,000 per ha. A new financial plan is needed to support replanting, especially if it involves small farmers.

Without adequate finances and technical support for replanting, growers and farmers could opt to expand their palm oil cultivation to high risk areas, such as forests and peat lands.

Concerning cocoa and coffee, low productivity is a huge challenge as land is often managed and cultivated by small farmers.

Low productivity has trapped small farmers in a cycle of poverty and a cycle of debt. The inability of small farmers to access finances and sound agriculture practices has led to reduced quality of input which in turn produces a low level of output (quantity and quality).

Without a provision of better input, farmers will have difficulty meeting global standards — hence, their struggle to break into the global market.

Funding for farmers is even more challenging because financial institutions perceive giving loans to small farmers as a high risk.

This perception relates to the unclear land status of farmers, low capability and accountability of farmer organizations and existing debt by farmers.

Innovation could help farmers gain agriculture knowledge, input material, improve farmer organizations and reduce investment risks. This is key to producing more with less — more productivity with less environmental impact.

Models for this have been tested across the globe, including in Indonesia.

A good model usually consists of a supply chain company committed as a long-term off-taker of commodities supplied by farmers, a farmer organization or cooperative, a bank that provides a soft-loan for a cooperative with a grace period taking into account the harvesting cycle, a provider of seeds and input materials and a donor or private foundation that provides technical support for farmers.

Such models have been applied in Aceh for aquaculture, Riau, Jambi and South Sumatra for palm oil, Lampung for coffee and Sulawesi for cocoa.

Individual corporations, organizations and banks or multi-stakeholders’ platforms, such as Partnership for Indonesia Sustainable Agriculture (PISAgro), are examining these models in collaboration with a number of cooperatives and government agencies.

A model in just one supply chain may not be enough as there are many challenges and issues shared among different actors in different supply chains.

These shared issues include land legality, water and landscape management, fire prevention and energy provision and require a holistic approach beyond just one farm or supply chain.

In Musi Banyuasin district, South Sumatra, a supply shed approach led by its regent is being tested to support the development of integrated sustainable commodities, such as palm oil, rice, rubber and protecting forests and peat lands.

This approach has gathered the support of local government agencies, mills and local and international organizations to collaboratively help identify and map independent small farmers and their challenges.

A combination of segregated supply chain and integrated supply shed approaches with clear financial support and sound agriculture practices is one of the most effective ways to develop commodities while protecting our fragile ecosystem.

The bold part of this journey is to build on these approaches to increase investment, develop commodity production and protect larger areas.

It is time for Indonesia to demonstrate its ability to “produce more with less”.

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Geopolitical Map of REDD+ negotiation: An analytical report

UNREDD Geopolitical mapThis report is prepared by Pelangi Indonesia, commissioned by the UN-REDD Indonesia Programme. The writing team consists of Fitrian Ardiansyah, Melati, Boyke Lakaseru, Reza Anggara and Yasmi Adriansyah. This report presents an analysis to stimulate discussion on the geopolitical situation of REDD+ negotiation at the global level, prior to the COP (Conference of Parties of the UNFCCC)-18 in Doha, Qatar. The views expressed are entirely of Pelangi Indonesia and the writing team’s own and not that of the UN-REDD Indonesia Programme or the Government of the Republic of Indonesia.

This report was submitted to the UN-REDD Indonesia Programme in October 2012.

For the full report, please click here GEOPOLITICAL MAP OF REDD+ NEGOTIATION: An analytical report

Hot, clean and complex: Unlocking Indonesia’s geothermal power

Strategic Review, The Indonesian Journal of Leadership, Policy and World Affairs, January-March 2013, Vol. 3, No. 1, pp 72-85,

by Fitrian Ardiansyah and Adhityani Putri

Geothermal_Strategic Review_FA_2013The first parts of the article can be read below, the remaining section can be read if you are subscribed to Strategic Review http://www.sr-indonesia.com/index.php/subscribe

Indonesia has huge potential geothermal resources, but develop­ment has been slow and speeding it up is considered a herculean task. The high cost of investment and lack of government capac­ity are often cited as hindrances to development, along with familiar concerns from the era of decentralized government about unclear regulatory and institutional frameworks.

Finding solutions to these issues is critical to further unlocking this indigenous, clean and renewable source of power. Success could bring positive benefits to the country’s energy security and climate change mitigation efforts.

Indonesia can no longer depend on fossil fuels, particularly oil, to power its economy. Soaring global oil prices have placed consid­erable strain on the economy. According to the Finance Ministry, energy subsidies – from both fuel and electricity – in 2012 cost the government $18.55 billion (17 percent of government expenditures). This is a significant increase from $9.78 billion in 2010, as shown by several studies.The figure could even be higher since it reportedly underestimates the actual global oil price.

With Indonesia’s projected gross domes­tic product growth to remain steady at 4-6 percent and industrial production to slightly increase over the next couple of years, sev­eral studies, including from the National Council on Climate Change (NCCC) and the Energy and Mineral Resources Ministry (MEMR), have estimated that the power sector is projected to grow from 120 tWh (terawatt-hour) in 2005 to 970 tWh by 2030.

If Indonesia continues to depend on oil, rising electricity needs would lead to the depletion of Indonesia’s domestic oil reserves sooner than expected. A 2012 statement from the energy ministry estimated that the country’s remaining 10 billion barrels of oil reserves will be exhausted in the next 20 years should no new reserves be found. In fact, the country has been a net importer of both crude oil and refined products since 2004.

The formidable task of meeting rising electricity demand requires a funda­mental change in Indonesia’s energy policies, programs and actions. The country could opt for an easier solution, such as utilizing its abundant coal reserves. According to a 2009 World Bank report, the central government already has initiated a “crash program” to bring 10,000 MW (megawatt) of coal-fired power plants online as stipulated in Presi­dential Decree No 71.

Many critics, however, argue that while coal-fired power plants can alleviate short-term supply problems and reduce depen­dency on imported oil, the approach fails to address energy security goals and more im­portantly casts a shadow on the government’s pledge to tackle climate change and reduce emissions.

Key Indonesian stakeholders in­terviewed in 2011 believed that the new coal power plants – purchased at low cost from China – were mostly dirty and inefficient, according to the paper, “An Environmental Perspective on Energy Development in In­donesia” included in the 2012 book “Energy and Non-Traditional Security in Asia.” If the use of coal continues to dominate the power sector, many experts predict that increased CO2 emissions from electricity generation by 2030 could reach 810 million metric tons of CO2 equivalent (CO2e), an increase of nearly seven times the amount in 2005.

To read the complete article: Subscribe now

Fitrian Ardiansyah is a doctoral candidate at the Australian National University.

Adhityani Putri is a postgraduate scholar at the Australian National University.

About Strategic Review:

The Strategic Review is the Indonesian Journal of Leadership, Policy and World Affairs with its editorial board led by Dr Hassan Wirajuda (Former Minister of Foreign Affairs) and its advisory board consists of Prof Juwono Sudarsono (Former Minister of Defense), Let Gen (Ret) Agus Widjojo (Executive Board in the Partnership for Governance Reform), Prof. John Thomas (Harvard Kennedy School of Government USA), Prof. Erhard Friedberg (Sciences Po France) and Prof Arne Westad (London School of Economics UK).

A review and outlook of Indonesia’s forest governance

Published in Coal Asia, January 22 – February 22, 2013, Page 86-87

by Fitrian Ardiansyah

for the pdf version, please see Opinion Fitrian Ardiansyah_CoalAsia_JanFeb2013

CoalAsia_JanFeb2013_ForestThe year 2013 is here and when it comes to forest and land use governance, this year has replaced a period that was filled with seized opportunities, conquered challenges but also with shattered hopes and unrealized potentials.

In the yesteryear, Indonesia witnessed some interesting dynamics in forest and land use policies.

Firstly, these include the issuance of Kalimantan and Sumatra spatial planning (i.e. Presidential Regulation No. 3 and 13 of 2012). Based on these two policies, there is a clear mandate for the government to at least maintain, conserve, restore and sustainably manage 45 percent of remaining forests in Kalimantan and 40 percent in Sumatra.

These are ambitious targets, since the total forest cover loss for Sumatra and Kalimantan in 2000-2008 was 5.39 million hectares (representing 5.3 percent of the land area and 9.2 percent of the year 2000 forest cover in both islands) as revealed by researchers from South Dakota University and World Resources Institute in 2011.

In addition, according to a 2009 peer-reviewed scientific publication written by the two institutions which also collaborated with the Forestry Ministry and State University of New York, 40 percent of the lowland forests in both islands were cleared from 1990 to 2005.

Hence, to achieve its own targets in 2013 onward, the government would need all support it can get to see the desired changes on the ground, particularly from district and provincial governments. With a decentralized government system in place, district and provincial governments hold relatively more power and authority to manage and control their natural resources.

The latest story from Aceh could provide a good example. The new provincial government, as reported by Fairfax Media, for instance, has confirmed that a draft spatial plan was finalized. With massive development on forest and land has been placed as priority, the plan may lead to total forest cover reduction from about 68 percent of the province’s land mass to 45 percent.

Such situation could contradict and hamper a national policy milestone achieved in mid last year, which was the completion of the first year of Indonesia’s two-year moratorium on new permits for primary forest and peat-land clearing.

As many may have known, the first year of the moratorium was marked by continuous development and refinement of the moratorium-indicative map (MIM). In 2012 alone, the government has produced two latest versions of the MIM, version II and III.

Between these two maps (as well as with the first one), some discrepancies of forest figures, however, have occurred, as reported by the REDD+ (reducing emissions from deforestation and forest degradation plus) Task Force. Research institutions such as the Center for International Forestry Research (CIFOR) showed that the area to be addressed in the latest version of MIM is much less (64.7 million hectares compare to the original 69.1 million). Although smaller, this area appears to have a higher degree of problems in terms of governance.

To respond to such criticism, the task force argued that such differences happened because different agencies involved in the MIM development, in which they have used different forest definitions and sources of maps.

Up to this point, these agencies were the Forestry Ministry, the Agriculture Ministry, the National Land Agency, the Geospatial Information Agency and the Presidential Office (UKP4). Since most key agencies have contributed – although the Energy and Mineral Resources Ministry has yet to get officially involved – and many sectors and actors have tried to influence the process, it is understandable that synchronizing this one national map may require compromises, and hence may add or reduce relevant forest and land cover figures.

It is just the reality of life, i.e. negotiations and trade-offs on contentious issues would require ‘giving’ and ‘taking’ among sectors and actors. There will be winners and losers. A crucial question to answer is whether this negotiation process will result in greater benefits for the wider Indonesian public, which are, among others, productive but sustainable economy and much healthier environment.

Although may be considered as sub-optimal, this one-map development (in which four different agencies have agreed to consolidate their maps/data on land use) has contributed to the increase in the level of transparency, including increasing the level of public access to forest and land use data, as the MIM is uploaded online.

The case of peat swamp forest burning in Kuala Tripa for palm oil in Aceh’s Nagan Raya district reported by NGOs and media is an example of the importance of this map and the access given to the public to utilize the map. The wider public, NGOs and the media have reported this case and sent a letter to the Indonesian president. As a result, UKP4/the REDD+ Task Force and the Environment Ministry sent a fact-finding team, and the accused – a plantation company – is being prosecuted.

The willingness of different agencies to collaborate and share substantive data on forest and land use, albeit difficult, is encouraging.

Another example of collaborative works that can be further nurtured in 2013 is the Memorandum of Understanding (MoU) between the Energy and Mineral Resources Ministry and the Forestry Ministry (No. 7662 of 2011) aiming at accelerating the permit issuance of geothermal energy development in forest areas. The MoU aims at addressing approximately 60 percent of geothermal energy potentials and reserves currently located in forest areas, as reported in 2009 by a senior high-ranking at Bappenas (the National Development Planning Agency).

It is, therefore, urgent under this MoU to develop standards, benchmarks and applied solutions that could and would balance geothermal energy development and forest protection.

A similar collaborative case that leads to appropriate solutions may be explored in areas which have conflicting interests between general energy/mining development and forest. Finding balanced solutions is a huge task, because based on a 2011 report by the Forestry Ministry, forest areas within mining concessions, which include for oil, gas and coal activities, cover approximately 2.03 million hectares.

Saying it as a huge task is perhaps an underestimate.

Indonesia’s political and governance system is not homogenous. While some government agencies may be willing to collaborate, others such as the parliament and local governments need to feel the ownership of such ‘ideal call’ to get involved. Otherwise, they may come strongly against it.

The strong voice from some factions of the parliament calling for the end of moratorium suggests that this important body in the Indonesian governance system may feel sidelined and do not see any benefits provided by the initiative.

Also, with the Constitutional Court recently has returned the authority to determine mining areas from the central government to local (mostly district) governments, for example, district governments appear to have more ‘say’ in forest and natural resources development.

The aforementioned less than ideal situation has undoubtedly brought about many challenges ahead, especially when it comes to sustainably managing and improving the country’s forest, land and natural resources.

Yet, changes are possible. It is, therefore, now up to all components of the Indonesian governance system to turn this around and make positive progress.

—-

Fitrian Ardiansyah is climate and sustainability specialist, a doctoral candidate at the Australian National University, and the recipient of Australian Leadership Award and Allison Sudradjat Award.

Innovative ways of retaining forests

Fitrian Ardiansyah ,  The Jakarta Post, Climate Solutions Column, Jakarta   |  Tue, 01/19/2010 11:18 AM  |  Environment

Stopping and reversing the loss and degradation of forests and peat land is a crucial element of any climate solution developed in Indonesia.

Last year, in his pledge to reduce greenhouse gas (GHG) emissions and in his Cabinet’s “100 days” program, President Susilo Bambang Yudhoyono stated that Indonesia would tackle emissions from deforestation and changes in land use, including from forest and land fires.

This year, the minister of forestry vowed to add an extra 21.15 million hectares of forest by 2020 (500,000 hectares per year) as the top priority to contribute to the President’s pledge.

While this is a good move, it may not provide sufficient results to reduce the country’s GHG emissions.

Various reports have concluded that the deforestation rate in this country still outweighs that of reforestation — the annual rate of deforestation stands at 0.8 to 1.09 million hectares compared to 0.3 to 0.6 million hectares for reforestation (re-planting).

Most GHG emissions in this sector usually come from forests being converted to expand the forestry industry (e.g. logging, pulp wood plantation) and agriculture (e.g. oil palm plantation), build infrastructure, settlements and set up mining operations; illegal and destructive logging outside and inside legal forest concessions; and forest and land fires to clear space for agricultural lands.

Addressing these, hence, is key to reducing the country’s GHG emissions.

The million dollar question that needs to be answered now is: “What sort of policies, incentives, investments and practices are required to retain the remaining forests and still allow for economic growth in Indonesia?”

At the policy level, it is essential for the government to start promoting, adopting and implementing sustainable and responsible spatial and land use development.

It is clear that one of the stumbling blocks to achieve the President’s pledge is that carbon issues are yet to be integrated into land-use planning in this country, while land-grabbing continues due to poor governance.  

To be able to plan the use of land effectively, the work ought to be carried out at island, provincial and district levels, integrating both economic and ecosystem values for priority landscapes.

Having adopted a decentralized decision-making process, some initial steps have been carried out to demonstrate a good process in integrating sub-national and national levels of effective land use policies.

These include steps taken under the Sumatra Governors’ Declaration, in the Heart of Borneo and 
in Papua.

In Sumatra, for example, four ministers and 10 provincial governors committed themselves to protect the remaining forests and critical ecosystems of this island by developing ecosystem-based spatial plans that will serve as the basis for future development on the island.

The Road Map for Saving Sumatra — expected to become a blueprint for conducting ecosystem-based spatial planning — was subsequently finalized and endorsed by those governors.

Nevertheless, concrete actions are required, especially in key sectors, if these policies are to succeed. 
In the forestry sector, standing stock and performance of different forest areas should be assessed.

These assessments can then become the basis to decide how to manage the forests in a sustainable manner, while reducing emissions and enhancing carbon stocks.

In the natural production forests, for instance, reduced impact logging can be introduced to lower emissions and increase the carbon stock.

When it comes to the use of forest lands to produce palm oil, growth in demand could be met by improving yield on existing plantations by 1.5 to 2 percent per year, and particular focus needs to give to smallholders, or planting on abandoned land.

When agricultural development requires new land, various statistics have indicated that between seven and 14 million hectares of degraded, abandoned lands may be used.

To achieve this result, non-state actors — the private sector, NGOs and local communities — need to work together to promote policy reforms reconciling Indonesia’s land-use and sector’s policies.

These actors and the government will need incentives and assistance to sustain their work and achieve their goals.

The Copenhagen Accord reached last December recognizes the crucial role of reducing emissions from deforestation and forest degradation and enhancing the removal of GHG emissions by forests (REDD-plus).

Around US$30 billion has been set aside to help developing countries adapt to and mitigate the effects of climate change.

Other important actors need to be invited to join the cause: banks and other financial institutions.

In the past decade, billions of dollars were invested in sectors related to land use by both national and foreign investors.

These institutions play an indispensable role in supplying capital to commodity producing companies by providing loans or buying their shares.

There is a glimmer of hope. Several commercial banks have developed detailed forest, plantation 
and mining policies over the past few years.

According to their policies, these banks strive to finance only companies that care for high conservation value forests, to minimize their environmental impact and respect the rights and needs of local communities.

The overall work combining policies, incentives and actions is critical to ensure fundamental changes in how Indonesia manages, protects and sustains its forests.

Today, this kind of changes must come from various actors who can eradicate unsustainable practices and hopefully take the pressure off forests and peatlands.

The writer is program director of climate & energy at WWF-Indonesia, and adjunct lecturer at Paramadina Graduate School of Diplomacy. He can be reached at fardiansyah@wwf.or.id

The original link: http://www.thejakartapost.com/news/2010/01/19/climate-solutions-innovative-ways-retaining-forests.html