The Sustainable Landscape Investment Partnership in Indonesia project aims to support the design, finance, and implementation, including scale-up of increases in Natural Capital Asset (NCA) private and public initiatives across Indonesia. The project enables, incentivizes, and mobilizes investments in sustainable landscapes in ways that significantly contribute to national Forest and Land Use (FOLU) Net Sink 2030 targets.

The scope of the project supports the Government of Indonesia’s dynamic investment plan and enables policies for specific investments in Social Forestry (PS), Multipurpose Forestry Business (MUK), and Payments for Environmental Services (PES), notably water and carbon resources. Investment will be triggered by grant support from project capital assistance supported by technical assistance, targeting investors, financiers, and donors.

The project aims to increase the value of natural capital assets in the forestry areas by:

– Enhancing local communities or forest-dependent communities’ capacity for financial literacy and access to finance from public and private financial institutions.

– Raising awareness of sustainable usage of forest products and ecological-based practices in managing forest landscapes for business owners, consumers, and the government.

– Enhancing government capacities to develop enabled policies for NCA investment and increase the ability to develop and mobilize resources for NCA projects.

– Increasing incentives for forest and ecosystem services protection and conservation and ensuring fair distribution of environmental goods and services from protected areas that benefit all stakeholders.

– Building a safety net to protect the environment from overconsumption.

Natural Capital Assets (NCA) are typically divided into five pillars: land (including forests and soil), freshwater (both ground and surface water), oceans, biodiversity, and climate. Natural capital provides services or benefits to the people and economies of Indonesia and is integral to achieving the Sustainable Development Goals (SDGs). Economic and business activities should adhere to sustainability while simultaneously driving growth, and thus, conservation and restoration of natural capital are imperative as businesses rely on natural resources.

Investing in NCA sustainably will generate and secure additional forest landscape values, reduce greenhouse gas emissions, enable more robust adaptation, and leverage additional finance to achieve Indonesia’s FOLU Net Sink 2030 target.

The project’s participatory approach in co-designing the program involves the Ministry of Environment and Forestry (MoEF), the Indonesian Environment Fund (IEF), and other partners in the Inception Phase.

An efficient and iterative investment plan for enabling NCA investments aligned with the National Investment Framework.

An enabling policy environment for NCA investments.

Business Models on the ground that enhance NCA values sustainably, benefit forest-dependent communities, enhance natural forest concession competitiveness, and create new forest revenue streams.

Ultimately, these NCA initiatives are expected to generate highly positive impacts, such as:

– The restoration and protection of conservation areas, notably the Tahura Sultan Adam in South Kalimantan, which provides water for the downstream conurbation of three cities as well as hydro energy.

– Greater incentives for decision makers to maintain natural production forests rather than considering conversion to non-natural forest land uses.

– Significant contribution to the Government’s Social Forestry target of 12.7 million hectares in production and protection of forest areas.

Click here to download the electronic version of the Indonesia Country Brochure.