Indonesia, Norway Deepen Climate Partnership Through Results-Based Forest Conservation Initiative
Jakarta, The Gulf Observer: Indonesia’s partnership with Norway on climate action has evolved into a more equal, transparent, and results-based model of international cooperation, strengthening efforts to protect tropical forests and combat global climate change, the Ministry of Forestry said on Friday.
Senior Advisor to the Minister of Forestry for Climate Change, Haruni Krisnawati, said the collaboration is based on a Results-Based Payment (RBP) mechanism, under which financial contributions are made only after Indonesia achieves independently verified reductions in greenhouse gas emissions from the forestry and land-use sector.
She noted that the partnership began with the signing of a Letter of Intent (LoI) in Oslo in May 2010, which provided the opportunity for results-based contributions of up to US$1 billion, subject to Indonesia’s verified emissions reductions in the forestry sector.
Haruni explained that institutional challenges and differing perspectives during the implementation of the LoI led both countries to conclude the agreement in September 2021. However, she emphasized that the move marked the beginning of a stronger and more balanced partnership rather than the end of bilateral cooperation.
Speaking at the launch of the book Earth Diplomacy: The Story Behind Indonesia’s FOLU Net Sink 2030, Haruni said Indonesia and Norway entered a new phase of cooperation with the signing of a Memorandum of Understanding (MoU) in September 2022. The new framework is founded on mutual respect, mutual trust, and verified emissions reductions instead of traditional development assistance.
Under the renewed partnership, Indonesia has received four rounds of results-based payments totaling approximately US$216 million for verified reductions in greenhouse gas emissions from the forestry and land-use sector. The payments include US$56 million for emissions reductions achieved during 2016–2017, US$100 million covering the 2017–2019 period, and US$60 million for reductions recorded during 2019–2020.
The funds are administered by the Environmental Fund Management Agency (BPDLH) to support forest protection, ecosystem restoration, prevention of forest and land fires, social forestry initiatives, community empowerment, and the welfare of people living in and around forest areas.
Director of Fund Mobilization and Development at BPDLH, Endah Tri Kurniawaty, said the agency remains committed to ensuring that results-based payments are managed transparently, accountably, and effectively in line with Indonesia’s FOLU Net Sink 2030 strategy.
FOLU Norway Contribution Phase 1 Project Director Agus Justianto described the FOLU Net Sink 2030 initiative as one of Indonesia’s most ambitious national forestry strategies, aimed at ensuring the forestry and land-use sector absorbs more greenhouse gas emissions than it produces by 2030. The strategy focuses on reducing deforestation, restoring peatlands and mangroves, rehabilitating forests, promoting sustainable forest management, conserving biodiversity, and increasing carbon stocks.
Ministry of Forestry Secretary General Mahfudz said environmental diplomacy has become a key pillar of Indonesia’s development agenda, adding that the country’s progress in reducing deforestation, strengthening forest governance, and implementing the FOLU Net Sink 2030 programme has reinforced international confidence in Indonesia’s commitment to meeting its obligations under the Paris Agreement.
