1) Indonesia has 15 million hectares of peatlands, the largest in the tropics, which store large amounts of carbon and are vulnerable to fires and subsidence when dried. 2) Peatland restoration and management are key to meeting Indonesia's emissions reduction targets and preventing large CO2 emissions from dried peatlands. 3) Pilot projects in West Kalimantan are demonstrating that paludiculture systems combining rewetted peatlands with agroforestry of biomass, essential oils and latex crops can both restore peatlands and provide livelihoods.

1. Building a Green, Healthy and Resilient Future with Forests
SEOUL, 4 MAY 2022
PROF.DR.IR. INDROYONO SOESILO
President of the Association of Indonesian Forest
Concessionaires (APHI)
ENABLING MICROFINANCING
FOR BIOENERGY TREES IN PEAT LAND

2. Indonesia’s Peatland Area : 15 million hectares,
The Largest Tropical Peatland In the World.
In Sumatra, Kalimantan and Papua.

3. PEAT ECOSYSTEM MUST BE PRESERVED:
High Capacity to retain water.
Hydrological Buffer Zone,
Store High Level of Carbon, absorb high
level of GHG Emmission,
Vunerable to damage (Land Subsidence,
Fire of Peat Forest)

4. Wildfire in Peatland area, Riau, Sumatera,
emitted large amount of CO2.

5. Peatlands are one of
the most effective
carbon sinks. Must be
kept wet.
Global emmission
absorption in peatland
areas: 500 gigatons of
CO2.
Dried peatland will
emmit large amount
of CO2.
(Katrina Moore)

6. Indonesia’s GHG
Emission Level from
Forestry Sector
(2010):
647 Million Tons CO2e
Total: 1.334 Juta Ton
CO2e.
Mostly, due to
peatland & forest
wildfire
(Industry)

7. Emission 2010: 1335 Mio Tons CO2, Emission 2030 BAU:
2869 Mio Tons CO2. Target 29% : 2034 mio-tons, Target 41%
: 1787 Mio.Tons. 60% from Forestry Sector, i.e peat forests.

8. Indonesia is working to restore over
two million hectares of peatland in
seven provinces, by 2030:
Riau, Jambi, South Sumatra, West
Kalimantan, Central Kalimantan,
South Kalimantan, and Papua

9. In Order to meet
the Long Term
Strategy Target,
2050:
Peat Decomposition
must be reduced,
peat fire should
be limited
peat
management
should be
strengthened

10. Best Management Practices Mitigation
(Peat Land Management & Restoration)
PEAT LAND RESTORATION

11. Area
Utilization
Utilization
of Timber
Products
Utilization of
Non-Timber
Products
Collection
of Timber
Products
Collection
of Non-
Timber
Products
567
UNITS
Licences
Forestry
Multi-
Business
FORESTRY MULTI-BUSINESS TO SUPPORT NDC
& LTS-LCCR
Environme
ntal
Services Can
be
mixed

12. MIX MITIGATION ACTION : REHABILITATION WITHOUT ROTATION & PEAT RESTORATION
 Rehabilitation without rotation and peat restoration can be
established through Paludiculture system with agroforestry
 Paludiculture combines the reduction of greenhouse gas emissions
from drained peatlands through rewetting with continued land use
without drainage.
 Paludiculture restores land cover by planting native plants or other
adaptive cultivation plants with economic value
 Paludiculture with agroforestry will be revitalizing community
livelihoods , parallel with restoring the degraded peatlands
 Biomass plant with coppice system  potential to be mixed in
paludiculture system with agroforestry. The coppice system relies
upon these methods of vegetative production after each stand of
trees has been felled to provide the next generation

13. OUTPUT OF PALUDICULTURE SYSTEM WITH AGROFORESTRY --
WEST KALIMANTAN PILOT
Gamal for
biomass
production
Serai
wangi for
essensial
oil
Jelutung
for latex
production
Courtesy of PT EKL
( West Kalimantan)

14. DESIGN OF PALUDICULTURE SYSTEM WITH AGROFORESTRY -- WEST KALIMANTAN PILOT
Gamal for biomass production
Serai wangi for
essensial oil
Jelutung for latex
production
Courtesy of PT EKL
( West Kalimantan)
Degraded peat land

15. INTEGRATED BUSINESS MODEL BIOMASS ENERGY FROM GAMAL
On Farm : Gamal plantation Off Farm
Gamal for Woodchips to supply co-firing PLN’s Steam
Coal Power Plan, and Wood Pellet for Export
Export

16. Calorie Values of Gamal
Acacia Decurens
Calliandra calothyrsus
Anthicephalus Cadamba
Albizia falcataria
Eucalyptus sp
Glinsida maculate
Local Calorie Value
Akasia 4462
Gamal 4548
Sengon 4464
Jabon 4731
Hue 4721
Kaliandra 4617
Source : FORDA, Ministry of Forestry, 2006

17. 52 Locations for Co-Firing, consist of 114 Unit PLN’s Power
Plan, Production capacity : 18.000 MW,
Supply need from biomass energy : 4.1 Million tonnes/year

18. FINANCIAL REQUIREMENTS FOR MITIGATION OF FORESTRY
SECTOR UNTIL 2030
Sources: Operatiomal Plan of Indonesi’s FOLU Net
Sink 2030, MoEF (2022) Total Budget: USD 14 Billions
Peat
Restoration
Peat Deforesttation
Peat Degradation
Budget for Mitigation Action
to overcome Peat
Deforestation 2020 – 2030:
USD 542 millions.
Budget for Mitigation Action to
overcome Peat Degradation
2020 – 2030: USD 164 millions.
Budget for Mitigation Action to
conduct Peat Restoration 2020
– 2030: USD 667 millions

19. FINANCIAL REQUIREMENTS FOR MITIGATION OF FORESTRY SECTOR UNTIL 2030
Identification of financial resources for mitigation action 2021 –
2030: Government: 45%, Private: 55% (MoEF, 2021).
Government Financial Resources: distributed within Government
Budget (APBN): a) green sukuk instrument & carbon domestic market
(Carbon Pricing) b) Ecological basis budget transfer, c) Budget
optimation from revenues in the Region d) optimation of Result-
Based Payment for REDD+.
Private Financial Resources: investment instrument, grant, green
obligation, loans, private equity, Corporate Social Responsibility
(CSR), etc.

20. INDONESIA GREEN BOND /SUKUK FRAME-WORK
100 % for refinancing &
financing green project
Budged Tagging mechanism to
determine green project
MoFinance ensure 100 % of
issuing of Green Bond utilize
for green project financing
Green Bond report is including
MRV of GHG emission reduction
MoFinance , 2021

21. CONCLUSION AND REMARKS
 Biomass energy plantation establishment in degraded peat
land aligned with :
- Law No. 30/2007 on Energy
- Lawt No. 16/2016 on Ratification of Paris Agreement
- Law No. 11/2020 on Job Creation
 Paludiculture system with agroforestry should be
considered in developing biomass energy in degraded peat
land. By doing so, there will cover 3 output :
1) Restoring peat land ; 2) Producing adaptive cultivation
plants with economic value , including biomass energy
and, 3) Generating community livelihood (inclusive
approach)
 Mobilization of financial support will be underlying factor

22. THANK YOU