Yogyakarta, Indonesia, May 6, 2025 – The Government of Indonesia continues to strengthen concrete measures in achieving the FOLU Net Sink 2030 target, which aims to achieve 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 (KIBAR) project.

The KIBAR project, funded by the UK Foreign, Commonwealth & Development Office (UK FCDO) through a grant scheme worth USD 7,27 million, is implemented in collaboration with the Indonesia Environmental Fund (IEF, Badan Pengelola Dana Lingkungan Hidup/BPDLH) and the Global Green Growth Institute (GGGI). The focus of this project is to strengthen the Social Forestry Program (Perhutanan Sosial) as an important instrument in reducing deforestation rates and improving the welfare of communities living around forest areas.

Minister of Forestry Raja Juli Antoni stated that this initiative not only promotes sustainable forest management but also provides a direct economic impact for communities. “This partnership will strengthen the local economy through increased productivity, forest-based business development, and institutional strengthening of Social Forestry Business Groups (KUPS),” said the Minister in his remarks at the signing of a cooperation agreement between IEF and GGGI in Yogyakarta.

Deputy Governor of Yogyakarta, Kanjeng Gusti Pangeran Adipati Arya Paku Alam the 10^th, who attended on behalf of Yogyakarta Governor Sri Sultan Hamengkubuwono the 10^th, stated in his remarks that social forestry in the region is not merely a policy, but a concrete strategy to address three challenges: environmental sustainability, strengthening the people’s economy, and value-based governance. “Since 2007, Yogyakarta has received permanent permits [for social forestry] and made them not just as access to [forest] management, but as comprehensive community empowerment tools,” he explained.

IEF President Director Joko Tri Haryanto added that the development of blended finance mechanisms such as the Revolving Fund Facility (Fasilitas Dana Bergulir/FDB) is key to the sustainability of forestry sector funding. “Funding that is based on Natural Capital Assets has great potential in addressing climate change financing challenges, especially at the scale of inclusive and sustainable community businesses,” he said.

British Ambassador to Indonesia Dominic Jermey expressed 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 an important pillar for achieving climate justice and community welfare,” he stated.

The KIBAR project also aims to accelerate the implementation of Integrated Area Development (IAD), which will target seven priority provinces: Aceh, West Sumatra, Bengkulu, Lampung, Special Region of Yogyakarta, East Java, and East Kalimantan.

Yogyakarta has become one of the project’s focus areas due to the success of community forest management through social forestry schemes. Through the Integrated Forest Farming Development (IFRD) approach, Yogyakarta will develop a “Thematic Forest” model that includes Food Forest, Medicinal Forest, Craft Forest, and Tourism Forest, to support food security and the local economy.

Rowan Fraser, Country Representative of GGGI Indonesia, further stated that GGGI will continue to support the expansion of ecosystem-based green investments and strengthening natural capital assets in Indonesia through cross-sectoral collaborative approaches.

The signing ceremony was held in Yogyakarta to provide an opportunity for all stakeholders to visit the Social Forestry area in Gunung Kidul Regency, as well as to learn about non-timber forest product management and agroforestry systems that provide solutions for food sustainability and conservation.