East Kalimantan Environmentally Sustainable Development Strategy

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agricultural processing. As Penajam Paser Utara develops its palm oil sector, it is important to
ensure plasma schemes are implemented, whereby plantation owners support surrounding
smallholders of oil palm. Finally, the district has one HTI concession of 16,000 ha, the district can
encourage the concession holder to invest to ensure best practice yields.
PASIR
Pasir, on East Kalimantan’s southern border, has a sizeable IDR 1.6 trillion economy with
substantial coal deposits. Two-thirds of GDP comes from coal mining and agriculture and palm
oil contribute significantly at 9 percent and 6 percent respectively. Its GDP per capita is roughly
equal to that of Samarinda. Despite its development of natural resources, Paser still retains 50
percent forest cover, mainly in the mountainous interior.
Pasir’s 2005 emissions were approximately 12.3 MtCO2e in 2010, 6 percent of the
province’s total. Land devoted to palm oil is expanding, from 95,000 ha with HGU to a potential
267,000 ha with IL, resulting in emissions of 2.1 MtCO2e from deforestation and an additional 1.6
MtCO2e from smallholder fires. Paser has 197,000 ha of HPH concessions; unsustainable logging
practices in those areas produce annual emissions of 2.4 MtCO2e.
While emissions will grow under business as usual, there is potential to reduce emissions
against business as usual by over 9.8 by 2030. Sustainable forestry in the HPH concessions
could yield 1.2 MtCO2e in abatement; with just four companies, Pasir can easily monitor all of them
as they implement reduced impact logging. Currently, there is only one HTI and that is for 9,000 ha,
but it is inactive; however, moving future HTI expansions to degraded land could yield 2.4 MtCO2e
in reductions. There is over 375,000 ha of suitable for reforestation (as opposed to land swaps for
palm oil or acacia plantations); this would provide 1.1 MtCO2e abatement.
GDP improvement can come from improved productivity as well as increased use of
degraded lands. Pasir has relatively large amounts of very critical and critical land, 173,000 ha,
that can be used to expand agriculture and acquaculture. In particular, Pasir can encourage the
growing of high-value estate crops in the smaller plots by smallholders. With agriculture and palm
oil making up 15 percent of the economy, raising the yields could improve GDP significantly as well
as rural incomes. Finally, Pasir can find an active operator for its one existing HTI concession.
SAMARINDA
DRAFT
Samarinda, on the banks of the Mahakam river, is East Kalimantan’s capital and
largest city. With a population of 620,000, it is larger than Balikpapan. Whereas Balikpapan is a
commercial center, Samarinda is East Kalimantan’s adminstirative center. Two-thirds of its IDR 9.9
trillion economy is from services, mainly public administration; Samarinda is home to the provincial
ministries, parliament, as well as other agencies. The city is also home to the large Mulawarman
University with over 33,000 students. While the city has no palm oil or forest plantations, it does
contain coal deposits, which generate 4 percent of GDP.
With just 3.3 MtCO2e in emissions, Samarinda is less than 2 percent of East Kalimantan’s
total emissions. As the city comprises only 72,000 ha and is already primarily deforested, there
are few emissions from changes in land use. However, Samarinda does have small amounts
of peat, around 20,000 ha, which are degraded and decomposing, releasing an estimated 1.7
MtCO2e. However, most of the city’s emissions are due to the power and transportation needs of
its manufacturing and service sectors, which combined produce 2 MtCO2e.
Samarinda’s abatement options will yield small reductions but can be symbolic. With
low current emissions, there is not much room for reduction. As the province’s capital, though,
Samarinda’s abatement initiatives can have symbolic value. Events such as the Kaltim Green Bike
Event can demonstrate commitment to reducing emissions from transportation. Rehabilitating