Reviewing World Banks Forests and Natural Habitat sSafeguards in the context of Indonesia

Orchida RamadhaniaReviewing World Banks Forests and Natural Habitats Safeguard in the context of Indonesia Overview The World Bank safeguard review and update is a welcome opportunity to strengthen the Banks current forest and natural habitat policies to reflect international best standards and lessons learned from the Banks own projects, through Inspection Panel cases and the 2013 IEG evaluation of the World Bank Forest Strategy implementationIndependent Evaluation Group (IEG) Report 2012Between July 2002 and June 2011, the World Bank invested US$4.1 billion into 345 forestry related projects.

2013 review of Bank forest portfolio by the Independent Evaluation Group (IEG) found that overall these projects have failed to address poverty or to benefit local communities.

Forest A livelihood source for an estimated 1.6 billion forest dependent peoples, many of whom are indigenous. Forest dependent peoples comprise 90% of the worlds people living in extreme poverty.

In Indonesia, the number of this directly dependent people to forest is 60million or a quarter of our total population. Indonesian Context Indonesia has the 3rd largest tropical forest area on earth.

Forest covers 99,6 million hectares of land or almost 52.3% of Indonesia (data: Book of Statistic on Indonesian Forest, Ministry of Forestry 2011, published on July 2012)

Also one of the fastest country in its deforestation pace. Reaching a 610.375,9 hectares a year (data 2011) and back in 2007, Indonesia set a record as the worlds fastest on deforestation pace. In total, for the last decade we have destroyed 10 million hectares. It is equal to destroying forest areas as large as 300 football fields every hour. It is now predicted that we only have 28% of our natural forest

Acing internal threads but also external threads. I need to mention here things that will be further explained by my friend, about Climate Investment Funds Indonesian Forest Investment Program which -- in November 2012 despite the criteria requires a prohibition on support for conversion of natural forests -- approved an IFC project plan in Indonesia designed to support industrial logging on up to 700,000 hectares of intact forest in areas with known conflicts including West Papua, Sumatra and Kalimantan.

5Forest governance issues in Indonesia

Lack of land tenure rightsLack of consultation, consent including recent examples with Indonesias Forest Investment Plan, supported by the World Bank and IFCRole of militaryLack of judicial due processCorruptionBad governance and overlapping policies

The World Banks Justice for Forests study report risks of weak forest governance, which the Bank must proactively address through safeguard policy, cites a four year study in Brazil, Mexico, Indonesia, Philippines which found that the probability of illegal logging crime being penalized was less than 0.082% (in West Papua, Indonesia, it was 0.006%)

Tata Cara Permohonan IUPHHK HA/HTI/REPEMOHONBUPATIGUBERNURB U KDIRPLANTIM PENILAIMENHUTAkta pendirianSurat Izin UsahaNPWPPernyataan mendirikan cabang di daerahPeta min skala 1:100.000

Pertimbangan BupatiAnalisis Kaw HutanDISHUTKABBPKHRekom Gubernur + Peta min 1:100.000Rekom Gubernur + Peta min 1:100.000Proposal TeknisSurat PermohonanSurat PermohonanTEMBUSANSurat PermohonanTEMBUSANSurat PermohonanTEMBUSANSurat PermohonanTEMBUSANSurat PermohonanPertimbangan Ka-DishutpenilaianTerima/ tolakTerima/ tolakTerima/ tolakTerima/ tolakTerimaMenyusunamdalSp-1amdalamdalamdalWorking area& bpttTerimaSp-2Konsep SkiuphhkSkiuphhkSkiuphhkBayariiuphhkSEKJENKonsep SkiuphhkPermen No 50/2011IUPHHK-HA, HT, REA study by doctor hariadi kartodihardjo based on interviews with logging concession holders who describes the process that they have to go through7Concerns about OffsetsIndonesia: governance concerns, lack of land rights, participation, consultation, consent, military involvement, corruption;

Concerns about suggestions for that offsets be used if unable to avoid damage to environment; legitimization of otherwise banned forest destruction;

Concerns about suggestions of developing national aggregate offset plan in context of poor governance, lack of land rights.

Biodiversity offsets should not be used to compensate for adverse impacts on critical natural habitats, including those utilized by resource-dependent communities.

Important definitions: Critical Habitat, Forest, and Degradation.Critical habitatmust include all intact forests, other high conservation value areas and areas of socioeconomic and cultural value to local communities and indigenous peoples.

Forest Is NOT monoculture plantations

Degraded forestsAny definition of degradation must ensure that plans for the use of degraded forest do not involve the eviction or resettlement of forest-dependent peoples nor the curtailment of their ownership, access or use rights.

the designation of degraded forest has been utilized to allow powerful plantation companies to engage in land-grabbing from forest dependent communities whose community forests have been defined as degraded in order to facilitate the transfer of the forests to industrial forest and plantation companies. 9Revised Safeguards Must:1. Prohibit Bank support for industrial logging; prohibit the conversion, degradation or destruction of critical natural habitats, including through the use of offsets

2. Fully respect the rights and livelihoods of forest-dependent peoples and Indigenous Peoples and ensure their full participation and free, prior informed consent throughout all aspects of forest policy development

3. Must be mandatory contractually and legally binding.

4. Must include strengthened impact assessment, including risk and gender assessment, and safeguard implementation, and

5. Must apply in a uniform manner to all of the Banks activities and instruments in a manner which strengthens safeguard implementation.

6. Strong Bank safeguards must apply to all forms of climate finance.

Strengthened safeguards are of critical importance to protecting the integrity of our natural habitats and the livelihoods and rights of the people who depend on them. 10Thank You When all the trees have been cut down,When all the animals have been hunted,When all the waters are polluted,When all the air is unsafe to breathe,Only then will you discover you cannot eat money.

-Native American Proverb-