East Kalimantan Environmentally Sustainable Development Strategy

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58 AGRICULTURE SECTOR Agriculture remains an important part of East Kalimantan’s development and is one of the most important opportunities to improve rural livelihoods. Although agriculture, excluding palm oil, represents only 4 percent of East Kalimantan’s overall GDP, in some rural districts it accounts for 20 percent of GDP. Its impact on rural communities is even broader as it accounts for almost 20 percent of total employment. By bringing jobs and incomes to rural households, which are typically poorer than the average household in East Kalimantan, agriculture is one of the most effective anti-poverty economic development strategies; by some estimates, a 1 percent increase in agricultural GDP can translate into 6 percent more spending for rural households. Yet, current agricultural practices also led to significant emissions from land use, and there are substantial opportunities to reduce the sector’s carbon footprint. In this section, the agricultural sector includes both production of food crops and estate crops but excludes palm oil, which is addressed in a separate section given its disproportionate size and growth. Current Context East Kalimantan’s agricultural sector is divided into food crops, dominated by rice production, and estate crops. Over 178,000 ha of agricultural lands are planted with food crops, often for subsistence farming. Rice is by far the largest food crop, accounting for almost 90 percent of production by hectare. Estate crops, excluding palm oil, are roughly equal in area to food crops with 181,000 ha planted. Rubber, followed by cocoa and coconuts, are the largest crops accounting for 80 percent of planted areas. Compared to Java and Sumatra, agriculture is small in East Kalimantan, taking up just 2 percent of land and 4 percent of GDP, but is still important for rural communities. Agricultural practices differ substantially by type of farming in East Kalimantan. There are four main types of farming in East Kalimantan, upland food crop production, lowland food crop production, perennial estate crop production, and swidden or shifting cultivation. These are not mutually exclusive as individual farmers engage in multiple types of farming. Lowland farming is dominated by irrigated paddy rice fields and common among Javanese migrants. Upland farming is conducted in rainfed, hilly areas; again rice is the most common crop, but its yield is almost half that of lowland rice. Perennial estate crop farming practices differ by the type of crop. For example, the pepper plantations common among Buginese migrants are typically developed for three to five years, after which the soil is depleted and must be restored or abandoned for new farmland. Rubber plantations, by contrast, take 10 to 15 years to reach peak productivity. Swidden or shifting cultivation involves the clearing of agricultural or forest land, typically by fire, cultivating the land for a short period until fertility or weeds decrease productivity, then shifting to a new area, eventually rotating back through fields as they have been restored. While conventional wisdom holds that shifting cultivation is a major force of deforestation and is inherently unsustainable, its impact depends on the length of the rotation. The swidden agricultural practices by Dayak tribes are considered more sustainable given their long rotation periods compared to swidden practices on lowland, smallholder estate crops, which have shorter periods. DRAFT Agriculture accounted for substantial emissions of 52 MtCO2e in 2005, primarily from its expansion into forests and peatlands. Agricultural processes, such as the fuel used to run farm equipment and transport crops, and methane release from flooded rice paddies, account for only 3.2 MtCO2e currently. The other 94 percent of emissions are due to the opening up of forest land for new agriculture (9.4 MtCO2e), use of fires to clear land and their spread and subsequent destruction of abandoned lands (31 MtCO2e), and peat decomposition from active and abandoned peatlands which have been opened and drained for agriculture (8 MtCO2e). These emissions are greatest in the districts of Nunukan, Kutai Kertanegara, and Kutai Barat, respectively.
59 Swidden agricultural practiced by Diak Lay, East Kalimantan Exhibit 35 1870 River 1900 Swidden Fields Regenerating secondary forests 1920 Settlement 1945 Rattan and mixed fruit garden 1960 1980 1992 0 1 2 3 4 5 6 Kilometers SOURCE: Southeast Asia Sustainable Forest Management Network Agriculture has substantial emissions largely from expansion into forest and peatlands and the use of fires Percentage, MtCO2 Exhibit 36 East Kalimantan total emissions 100% = 251 Mt CO2e Fuel, transport, and energy used; also methane release from rice paddies Opening up of forest covered land for agriculture Other 80% 51.6 3.2 9.4 Fires to clear land and their spill-over into abandoned lands 31.0 1.2 (Forest) Active and abandoned 29.8 peat opened (Peat) for agriculture Agriculture 20% 8.0 2010 2010 Total Agriculture emissions Agricultural processes Deforestation & degradation Fires Peat decomposition SOURCE: BPS Kaltim; Team analysis
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East Kalimantan Environmentally Sus
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3 East Kalimantan Environmentally S
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5 Contents Preface 7 Acknowledgemen
Page 7 and 8: 7 Preface A broad global consensus
Page 9 and 10: 9 Acknowledgements The DNPI and the
Page 11 and 12: 11 Executive summary East Kalimanta
Page 13 and 14: 13 1. The development of coal-bed m
Page 15 and 16: DRAFT 15
Page 17 and 18: 17 Kaltim Green Program The Governm
Page 19 and 20: 19 1. The context for East Kalimant
Page 21 and 22: 21 This resource development pathwa
Page 23 and 24: 23 Both Berau and Malinau are large
Page 25 and 26: 25 In the BAU scenario, CO 2 e emis
Page 27 and 28: 27 TOP 5 ABATEMENT INITIATIVES Top
Page 29 and 30: 29 Kalimantan’s shift to a climat
Page 31 and 32: 31 The sector’s 57 MtCO2e of net
Page 33 and 34: 33 Outside of the sector’s need f
Page 35 and 36: 35 The greatest expansion is expect
Page 37 and 38: 37 improving water management in on
Page 39 and 40: 39 Including financial transfers fo
Page 41 and 42: 41 after the identified abatement m
Page 43 and 44: 43 The Case of Oil Palm Permits and
Page 45 and 46: 45 Emissions from the forestry sect
Page 47 and 48: 47 across Kalimantan in 1997 and 19
Page 49 and 50: 49 Utilizing concession buyout sche
Page 51 and 52: 51 Pilot Projects Pilot projects ha
Page 53 and 54: 53 GDP Potential The economic decli
Page 55 and 56: 55 Downstream manufacturing would i
Page 57: 57 downstream manufacturing as it w
Page 61 and 62: 61 Although East Kalimantan has far
Page 63 and 64: 63 Reaching average national yields
Page 65 and 66: 65 farmers . We have identified sev
Page 67 and 68: 67 Many mining operations are locat
Page 69 and 70: 69 Unlike timber or oil palm planta
Page 71 and 72: 71 exploration and production conce
Page 73 and 74: 73 The Economic Opportunity of Post
Page 75 and 76: 75 Entering downstream value chain
Page 77 and 78: 77 Current Context The oil and gas
Page 79 and 80: 79 granted in 2008-2009 and contain
Page 81 and 82: 81 Emission from flaring is declini
Page 83 and 84: 83 Satellite images can help monito
Page 85 and 86: 85 Under business as usual, relativ
Page 87 and 88: 87 BERAU Berau is the third largest
Page 89 and 90: 89 350,000 ha of Kutai Timur is cat
Page 91 and 92: 91 substantial natural resource ext
Page 93 and 94: 93 Borneo conservation area as well
Page 95 and 96: 95 agricultural processing. As Pena
Page 97 and 98: 97 Range of climate related risks t
Page 99 and 100: 99 predict increased precipitation
Page 101 and 102: 101 In addition to the refinery and
Page 103 and 104: 103 The greatest economic risks fro
Page 105 and 106: 105 change issues. In December 2009
Page 107 and 108: 107 Proposed BFCP governance and ma
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109 the lack of a strong system, th
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111 Carbon Accounting, Standards, a
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113 EXAMPLE INITIATIVES REQUIRING C
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115 for example, includes represent
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DRAFT 117
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119 Sources • 2010, Kesiapan Kali
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121 • Badan Perijinan Dan Penanam
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123 • Daniel Murdiyarso et al, Me
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125 • Marcus Colchester et al, Pr
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127 • Yosep Ruslim et al, STUDY O
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East Kalimantan Environmentally Sustainable Development Strategy

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