Enviro News Asia, Jakarta – Indonesia continues to intensify its concrete steps to achieve the FOLU Net Sink 2030 target, an initiative aimed at achieving net carbon absorption from the forestry and land use sector.
To support this ambitious target, the Ministry of Forestry has established a strategic partnership with the UK Government through the Sustainable Landscape Investment Partnership in Indonesia project, also known as KIBAR.
The KIBAR project is funded by the United Kingdom Foreign, Commonwealth & Development Office (UK FCDO) through a grant scheme worth USD 7.27 million, or approximately IDR 118.6 billion (at an exchange rate of IDR 16,472 per USD).
According to a press release from the Ministry of Forestry, the grant is channeled through a strategic partnership within the Sustainable Landscape Investment Partnership in Indonesia (KIBAR).
The Environmental Fund Management Agency (BPDLH) and the Global Green Growth Institute (GGGI) are also involved in the collaboration.
The main focus of this project is to strengthen the Social Forestry Program (Perhutanan Sosial/PS) as a key instrument to reduce deforestation rates and improve the welfare of forest-adjacent communities.
Indonesia’s Minister of Forestry, Raja Juli Antoni, stated that the initiative not only promotes sustainable forest management but also brings direct economic benefits to local communities.
“This partnership will strengthen local economies through increased productivity, development of forest-based enterprises, and institutional capacity building of Social Forestry Business Groups (KUPS),” said the Minister in his remarks following the signing of the cooperation agreement between BPDLH and GGGI in Yogyakarta, Tuesday (May 6, 2025).
The Deputy Governor of the Special Region of Yogyakarta, G.K.P.A.A. Paku Alam X, representing Governor Sri Sultan Hamengkubuwono X, stated in his speech that social forestry in Yogyakarta is not merely a policy, but a practical strategy to address three key challenges: environmental sustainability, people’s economic empowerment, and value-based governance.
“Since 2007, Yogyakarta has received permanent permits and has treated them not just as management access, but as a tool for comprehensive community empowerment,” he noted.
Joko Tri Haryanto, President Director of BPDLH, added that the development of blended finance mechanisms such as the Revolving Fund Facility (FDB) is crucial for the sustainability of forestry sector funding.
“Financing based on Natural Capital Assets holds great potential in addressing climate finance challenges, especially at the scale of inclusive and sustainable community-based enterprises,” he said.
The British Ambassador to Indonesia, Dominic Jermey, reaffirmed the UK’s commitment to supporting Indonesia’s FOLU Net Sink strategy.
“We are proud to help accelerate sustainable practices that protect Indonesia’s forests and support green economic growth. Social forestry is a key pillar in achieving climate justice and community well-being,” he stated.
The KIBAR project also aims to accelerate the implementation of Integrated Area Development (IAD), which will focus on seven priority provinces: Aceh, West Sumatra, Bengkulu, Lampung, Yogyakarta Special Region, East Java, and East Kalimantan.
Specifically, the Special Region of Yogyakarta has been chosen as a focus area of the project due to its successful forest management through social forestry schemes.
Using the Integrated Forest Farming Development (IFRD) approach, Yogyakarta will develop thematic forest models (Wana Tematik) including Wana Boga (food), Wana Husada (health), Wana Kriya (crafts), and Wana Wisata (ecotourism) to support food security and the local economy.
Rowan Fraser, GGGI Indonesia’s Country Representative, stated that the organization will continue to support the expansion of ecosystem-based green investment and the strengthening of natural capital assets in Indonesia through a cross-sectoral collaborative approach.
The signing event in Yogyakarta also gave stakeholders the opportunity to visit a Social Forestry site in Gunung Kidul Regency, where they learned about non-timber forest product management and agroforestry systems as sustainable solutions for food security and conservation.
