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The Rimba Raya Biodiversity Reserve REDD Project

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Under Indonesian legislation, Law (UU) No. 41/1999-­‐ForestryLaw defines forest status types and each type’s allowablefunctions/activities, management, planning and research, anddevelopment requirements. Forests in Indonesia thereforefall into four distinct categories, based on the ‘prime function’to be achieved:Conservation forest: conserve biodiversity Protection forest: protect hydrology/water quality,prevent floods, control erosion, prevent saltwaterintrusion, and maintain soil fertility, as well as protectdeep peat (>3 m depth)Production forest: produce timber or other goods andservicesBased on this classification scheme, alternative land usescenarios 2 (production forest) and 4 (conservation forest)identified in Sub-­‐step 1a are entirely in compliance withapplicable legal and regulatory requirements, currently and inthe foreseeable future.Conservation/protection with project financing (land usescenario 5) complies with applicable legislation andregulations. <strong>The</strong> project proponent can apply to theIndonesian government for ownership and/or carbon rightsto the proposed project area, and therefore conservationwith project financing is fully within applicable legal andregulatory requirements.<strong>The</strong> result of Sub-­‐step 1b is that all alternative scenarios (1-­‐5)listed above are plausible and in compliance with mandatorylegislation and regulations, or in the case of illegal loggingwithin forests zoned for production or conversion, legislationis not systematically enforced.STEP 2: Barrier analysisSub-­‐step 2a. Identification of barriers that would prevent theimplementation of at least one alternative land use scenarioSeveral realistic and credible barriers prevent the realizationof several of the land use scenarios identified in Sub-­‐step 1a.A list of barriers that may prevent one or more land usescenarios identified in Sub-­‐step 1a is given below.Barriers to Alternative Scenario #1 (conversion to palm oilplantations). <strong>The</strong>re are no barriers to alternative scenario #1.Rather, there are several incentives for this land use scenario,summarized below:Indonesia is the world’s largest producer of palm oil, withMalaysia close behind. Together they account for 87percent of global production (USDA 2007). Indonesia’spalm oil production has been growing steadily, primarilyfor export. In 2006, of the estimated 14-­‐16 million tonsproduced, some 11 million tons were exported, accordingto the Indonesian Palm Oil Producers Association (Gapki2006). An estimated 19.5 million tons of palm oil areexpected to be produced in Indonesia in 2009 (Simamora2009b).Indonesia’s Ministry of Agriculture plans to issue aministerial decree to allow businesses to developpeatland for oil palm plantations (Simamora 2009b).94

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