12 Innovative Financing for Peatland Restoration in Indonesia
251
Fig. 12.2 Grouping of areas within the 2.5 Mha of BRG mandate areas
Financing Requirements for Peat Restoration
Concession Versus Non-concession Dichotomy
Out of the 2.5 Mha of the BRG mandate, about 1.4 Mha is located within private
concessionaires’ jurisdiction. Since the Ministry of Environment and Forestry
(MOEF) is the issuer of the concession permits, the ministry holds the responsibility for facilitating the planning and oversighting of peatlands restoration activities implemented by those concessionaire permit holders. Meanwhile, BRG has
focused its effort and prioritized to coordinate and facilitate restoration activities in
the remaining 1.1 Mha target (see Table 12.2).
About 0.60 Mha (66%) of the 1.0 Mha non-concessionaire target area is located in
Central Kalimantan, which is around 0.4 Mha (70%) is occurred in the ex-mega rice
project area. The remaining 0.40 Mha (36%) of the non-concessionaire restoration
target area is located in other provinces such as 0.1 Mha (11%) in South Sumatera;
0.1 Mha (10%) in Riau; and another 0.1 Mha (13%) in other provinces (Fig. 12.2).
2
2 Ex-mega rice is a failed government project that attempted to develop one million ha of peatlands
as rice-farming fields in Central Kalimantan. Commenced in 1996, the project already opened up a
large portion of peat forests and built canals, only to be abandoned later on. It remains a problem
until today.
251
Fig. 12.2 Grouping of areas within the 2.5 Mha of BRG mandate areas
Financing Requirements for Peat Restoration
Concession Versus Non-concession Dichotomy
Out of the 2.5 Mha of the BRG mandate, about 1.4 Mha is located within private
concessionaires’ jurisdiction. Since the Ministry of Environment and Forestry
(MOEF) is the issuer of the concession permits, the ministry holds the responsibility for facilitating the planning and oversighting of peatlands restoration activities implemented by those concessionaire permit holders. Meanwhile, BRG has
focused its effort and prioritized to coordinate and facilitate restoration activities in
the remaining 1.1 Mha target (see Table 12.2).
About 0.60 Mha (66%) of the 1.0 Mha non-concessionaire target area is located in
Central Kalimantan, which is around 0.4 Mha (70%) is occurred in the ex-mega rice
project area. The remaining 0.40 Mha (36%) of the non-concessionaire restoration
target area is located in other provinces such as 0.1 Mha (11%) in South Sumatera;
0.1 Mha (10%) in Riau; and another 0.1 Mha (13%) in other provinces (Fig. 12.2).
2
2 Ex-mega rice is a failed government project that attempted to develop one million ha of peatlands
as rice-farming fields in Central Kalimantan. Commenced in 1996, the project already opened up a
large portion of peat forests and built canals, only to be abandoned later on. It remains a problem
until today.