East Kalimantan Environmentally Sustainable Development Strategy

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62 Exhibit 39 Exhibit 40 Nunukan’s fires are quite concentrated, on the border of a major peatland and outside current timber concessions * 2005 data SOURCE: WRI Interactive Atlas of Indonesia Forests 50,000 ha near/on peatlands Fires are mainly on agricultural land outside of timber concessions 12,500 ha of concentrated fires Intact forest DRAFT Peat 2003 fires 2004 fires 2005 fires 2006 fires 2007 fires Timber concessions* Timber plantations* 2003 fires 2004 fires 2005 fires 2006 fires 2007 fires East Kalimantan has the potential to raise crop yields by at least 20% and increase productivity in the agricultural sector Yields (kg/ton), 2009 Wetland paddy rice KalTim 4,603 Indo Avg. Indo best Maize Indo Avg. Indo best +11% KalTim 2,352 5,121 6,038 +31% +145% 4,160 +77% 5,756 Dryland rice KalTim 2,452 Indo Avg. Indo best Indo Avg. Indo best +21% Sweet potatoes 2,958 KalTim 9,300 +15% 4,410 +80% 10,700 15,500 +67% On average, East Kalimantan’s yields are 20% below Indonesia’s average yields and 60% below the best performing province Cassava KalTim 15,100 Indo Avg. Indo best +21% 18,200 24,600 +63% Soybean KalTim 1,227 Indo Avg. +7% 1,318 Indo best 1,596 +30% Peanuts KalTim 1,102 Indo Avg. +10% 1,214 Indo best 1,623 +47% Mungbeans KalTim 1,068 Indo Avg. Indo best +1% 1,079 1,401 +31% SOURCE: BPS
63 Reaching average national yields by 2030 would increase the province’s GDP from agriculture by IDR 3.2 trillion GDP from food crops IDR Trillions 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 2.3 0 2010 15 20 25 2030 SOURCE: Team analysis +6% p.a. +3% p.a. GDP from estate crops, excluding palm oil IDR Trillions 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2010 +6% p.a. +2% p.a. 15 20 25 2030 Increased Productivity 1 Scenario where East Kalimantan yields reach the forecasted average national yields in 2030; forecast national 2030 yields estimated by 2009 national yields grown at historical national annual productivity improvements percent p.a. by 2030. This would result in an additional IDR 3.2 trillion of GDP in 2030 (EXHIBIT 41). Improving yields requires better seedlings, inputs, and farming practices, all of which will require substantial support to implement with many smallholders farmers on their lands. It will be important to raise yields sustainability and not by overuse of fertilizers alone, which could result in other environmental degradation. Expanding aquaculture and estate crops on degraded land will allow the agricultural sector to expand and increase incomes for smallholders. There are over 50,000 ha of small plots and 400,000 hectares of mid-sized plots of degraded land that could be used for smallholder estate crops. A wide variety of estate crops can be grown in East Kalimantan, but a mixture should be used to balance the demands of capital, return, and jobs (EXHIBIT 42, EXHIBIT 43,). While coconut generates high revenues of IDR 42 million per ha, it also requires a high capital investment in the early years of IDR 128 million per ha. Cocoa, in contrast, yields only IDR 20 million per ha, but requires much less investment at IDR 20 million per ha. Seaweed generates almost twice as many jobs per ha as rubber, but requires twenty times the initial investment. Seaweed also has the quickest payback of only two and a half years. DRAFT BAU 0.9 Exhibit 41 Required Policies and Institutions Implementing these initiatives will require changes in how farmers manage their lands. These farmers will require significant support to make these shifts. Efforts to raise productivity and reduce emissions from ending fires should be done hand-in-hand, so farmers see both direct benefits as well as the intangible value of reducing emissions. The traditional approach to working with farmers has been through public research and government extension workers; however, funding for these has decreased since decentralization and are not always the most effective option. We aim to increase the private sector’s contribution to improving farmers’ livelihoods and practices in addition to government support. In addition, working with all of East Kalimantan’s smallholders directly is too large a task and requires some form of aggregation to work with
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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 and 58: 57 downstream manufacturing as it w
Page 59 and 60: 59 Swidden agricultural practiced b
Page 61: 61 Although East Kalimantan has far
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
Page 109 and 110: 109 the lack of a strong system, th
Page 111 and 112: 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
Page 125 and 126:
125 • Marcus Colchester et al, Pr
Page 127 and 128:
127 • Yosep Ruslim et al, STUDY O
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