4/10/2017

Mewujudkan
Pertumbuhan
Ekonomi Hijau di
Kalimantan Barat
4 April 2017

Apa itu IDH?

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About IDH
• Accelerating and up-scaling sustainable trade by building impact oriented coalitions of front
running multinationals (200), civil society organizations (35), governments (50) and other
stakeholders.
• Convening public and private interests, strengths and knowledge, and helping create shared
value for all partners  making sustainability the new norm and contributing to the SDGs.
• From our public and private partners, bringing in funds, entrepreneurship, procurement power,
legislation, laws, regulations, know-how, networks, local expertise and credibility.

Min. Max.
60% 40%

Implementing partners

Field interventions

Our commodity initiatives

Palm oil Coffee Cocoa Soya Natural stone Cotton

Pulp & paper Tin Aquaculture Cashew Tourism Electronic

Spices Timber Fresh Flowers Apparel

Tea
Ingredients
Interventions in Indonesia (existing, in the pipeline or scoping)

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Supply chain of commodities: e.g. palm oil

Supply Shed of Commodities, Production and

Protection

• Organisation of
smallholders
• Legality
• Capacity &
knowledge – land use
intensification
• Bankability
• Replanting
• Protection of
ecosystems

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Towards 100 % certified/verified sustainable

Concrete examples: banking & small farmers

Coffee farmers & Nestle

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Example of coffee small farmers (1)

Example of coffee small farmers (2)

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Concrete examples: transforming small

farmers organisation
Aqua-
culture –
FIT Fund

Green Growth and

Landscape Approach

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Concrete examples:
Green Growth Plan in WK and SS

Increased productivity of rice and South Sumatra

Green
oil palm; Good agricultural
practice, Rubber auction market,
Increased productivity rubber; Mini CPO mill

Growth Plan
Avoiding
Good agricultural practice,
deforestation and
Rubber auction market; Better
natural forest
connectivity
degradation; Peat land Interventions Map
restoration

Land use planning and

Avoiding allocations that are
deforestation compliant, effective and
and degradation; fair.
Forest Increased accesses
restoration, to five capitals.
ecosystem
service for water Improved productivity and
benefit from a unit area.

Improved value chain with

better benefit sharing.

Increased connectivity
and economy of scale.
Increased productivity of
Effective forest and
coffee, rubber and oil palm ;
Good agricultural practice, landscape restoration.
Avoiding Ecosystem service for
deforestation and water provision
Effective incentive
natural forest mechanism of ecosystem
powered by
degradation; Forest services.
restoration LUMENS

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Green Growth vs Business As Usual

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Landscape approach

Landscape approach: beyond concessions

Parcels of concessions
Not contributing to shared issues/ challenges:
• Hydrological management
• Peat fires prevention
• HCV/HCS in a landscape
• Social dimension
• Smallholder
productivity

Incentivising concessions/land use players

(small to large) to collaborate and be
integrated in a sustainable supply
sheds/landscape

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Community Based Restoration Project Tahura

Sekitar Tanjung

Potential area
KEE, Overlay
dengan Izin
Sawit

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Ketapang: Gunung Palung/Tarak & Sungai Putri

North
Companies: ANJ (PT KAL), BGA, PT Mohairson
Possible actions: eco-corridor, in-situ conservation, smallholder productivity,
community livelihoods , alternative business model for Sungai Putri peat
swamp forest area (HPH), investment in protection fund for Gunung Palung
NP

Ketapang: Sungai Putri South & Pematang Gadung

Companies: First Resources (PT LS), Eagle High Plantations (Arrtu), PT

Mohairson
Possible actions: peatland management (plantation and smallholders),
eco-corridor, land swap and/or HCV compensation

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Ketapang: Batu Menangis

Companies: GAR (PT ALM), Genting (PT SISM), BGA (PT LGI), Alas
Kusuma
Action: strengthening protection of Hutan Lindung, eco-corridor,
production-protection deals with smallholders encroaching the forest and
corridor
PT SISM

PT ALM
2

PT LGI

PT ALM

Ketapang/Kubu North of Gunung Palung NP

Companies: PT PAS, BGA, First Resources, PT MP, Lyman Agro
Possible actions: in-situ conservation & fire management, peatland management, support
to small scale rubber production, community livelihoods, connectivity between HCV areas
and NPs, investment in protection fund for Gunung Palung NP

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Stakeholders: PT ATP-DTK, WSL-MTI, PT. MP, PT EKL, PT BSN, PT

KLIA, Hutan Desa Padang Tikar, WWF, Sampan, Kemitraan, etc
Action: community livelihoods, peatland and fire management, in-situ
HCV conservation, HCV connectivity

Upscaling: landscape & production-protection

finance structuring
Financial structure: Source of funding:

Development De-risking
• Total projected financing 50% Donors and
Finance Guarantee Facility Government
need for complete
Portfolio (Public-Private
rehabilitation & replanting Partnership)
50% Supply Chain
Guarantee (Originators & Off
key commodities ± US$ $200-400M takers)
$600-800M
4billion over 25 years over 25 years
• Risk-layering critical to
attract long-term private
capital needed Long-Term e.g. Tropical
Landscape
• Strong protection Private Capital Loan Facility;
components $2.5 – 3bn private banks
KEY FOR SCALE: supply chain over 25 years
companies, government of
Indonesia and donors must - Private capital investment into Indonesia
de-risk 3rd party financing >USD4bn

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Example of a deal

Agro//forestry products

Thank you for your attention!

wanjaya@idhsustainabletrade.com

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