Central Kalimantan, Indonesia

HISTORY

Over recent decades, the province of Central Kalimantan, located in Indonesian Borneo, has experienced massive economic growth. The expansion of mining and agricultural commodities, in particular oil plam, has been driving this growth. Although agricultural expansion has benefitted many in Central Kalimantan, it has led to deforestation and the degradation of peatland as well social conflicts.

In 2012, the former governor of Central Kalimantan, Teras Narang, invited Earth Innovation Institute to support the provincial government in finding ways to ensure the sustainable and equitable cultivation of oil palm. In early 2013, the provincial government, with the support of Earth Innovation Institute, launched the “Central Kalimantan Roadmap to Low-Deforestation Rural Development” to support the implementation of Provincial Regulation No. 5/2011 on Sustainable Plantations.

Since that time, Earth Innovation Institute and Institut Penelitian Inovasi Bumi (INOBU) have been working with the provincial and district governments in Central Kalimantan to ensure the sustainable cultivation of oil palm. The activities have focused on three districts Kotawaringin Barat, Seruyan and Gunung Mas, with an aim to have the jurisdictions certified according to the Roundtable on Sustainable Palm Oil (RSPO) standards.

CENTRAL KALIMANTAN:

From Sustainable Palm Oil towards Sustainable Jurisdictions

Gunung Mas

Seruyan

KotawaringinBarat

The overarching goal of our work is to support districts in Central Kalimantan to become sustainable. We define a sustainable district as one where:• Every commodity produced is guaranteed to

be free from deforestation, environmental degradation and social conflict.

• Farmers and agribusinesses in these districts are highly productive and farming improves the welfare of the residents of the district.

• Indigenous and local communities in the district have their rights acknowledged and violations of those rights are severely penalized.

We believe that these districts will inspire a new model of sustainable development for districts across Indonesia.

Sustainable Districts in Central Kalimantan

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Goals: Multi-stakeholder dialogues among local governments, companies and civil society to the definition of sustainability goals. In this case, stakeholders defined the central goal for the jurisdiction as: 100% certified palm oil. This means that all palm oil should be deforestation and social conflict-free, and certified according to RSPO standards.

Working group established to support the achievement of the following targets:

• Reducing deforestation: Agricultural expansion can only be sustainable if there is no deforestation in the process. Governments and companies need to know which lands can be cultivated and which should be protected. The working group will define “Go and No Go Zones” to identify suitable and unsuitable lands according to a High Conservation Value assessment (see Deforestation Brief).

• Free, Prior and Informed Consent (FPIC): To respect the rights of indigenous and other local people and avoid social conflict, companies should follow the principles of FPIC when acquiring and developing lands. The working group intends to have FPIC principles embodied in local regulations and policies regarding plantation development.

• Fire prevention: To prevent the outbreak of forest and peat fires, the working group is defining strategies and mechanisms for preventing the use of fire in land clearing and farming.

• Smallholder certification: The working group is supporting public-private partnerships to support the certification of oil palm smallholders (see Smallholder Brief).

A plantation monitoring system has been designed and implemented in the three districts and is hosted by the provincial government. The system integrates spatial and non-spatial data to monitor the performance of the jurisdiction. The system includes a comprehensive database on oil palm smallholders, both independent and schemed, as well as commercial concessions.

Multi-stakeholder dialogues

Multi-stakeholder governance

Monitoring system

THE PROCESS ACHIEVEMENTS:

Develop and implement a reliable, transparent monitoring system for tracking progress towards these milestones.

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Hold multi-stakeholder dialogues to agree on specific performance targets or milestones for achieving the commitments.

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Establish a governance system for implementation such as a reliable and transparent monitoring system for defining deforestation targets and “Go and No Go Zones.

2

Design and Implement incentive systems for businesses, farmers and local government for driving the jurisdiction’s transition to sustainability.

4

Smallholder mapping process commences

NEXT STEPS:

• Creating incentives for local governments to implement sustainable rural development through the use of the on-granting mechanism.

• Creating an agricultural facility for supporting smallholders (see Smallholder brief and Incentive brief).

Implementation

Incentive System

Governor requests EII/INOBU what zero deforestation would look like?

Central Kalimantan launches the Roadmap – 2 districts participate 2012

2013 2014

First dialog between government and companies in Central Kalimantan: the work on monitoring system and smallholders launched

First Jurisdiction Working Group convened and agrees on targets: all producers certified by 2019

NOV

MAY MAY

AUG

1 2 3

46Bupati Seruyan publicly announces his participation

NOVAPR - MAY

• Perform High Conservation Value (HCV) and High Carbon Stock (HCS) area assessments. These assessments will be used as the basis for developing “Go and No Go Zones” as well as calculating potential deforestation and emission reductions.

• Draft local regulation for FPIC to be consulted and later formalized in a regulation.

• Identify the causes of forest and peat fires and formulate fire prevention and control strategies.

• Pilot oil palm smallholder certification schemes in a few districts before expanding the initiative using government budgets including village funds (dana desa) or fiscal transfers.

The beta version of the monitoring system launched by the Governor

Governor issues a decree on jurisdiction certification target, setting up a working group and monitoring system

5

2015

Governor announces his commitment at GCF Meeting in Barcelona

Work in Pangkalan Tiga was launched towards smallholder certification

Seruyan, IPOP companies, CKal and INOBU sign MOU

JUNEAUG

NOV

78

9

1,200 farmers mapped in Seruyan and Kobar

DEC

2016

Work in Gunung Mas commences

JAN

Plantation companies commit to assisting Seruyan Government to map smallholders

2nd Working Group meetings in Seruyan: agreement on “Go & No Go Zone” and FPIC

Unilever, CKal, Kobar & INOBU sign MOU

2nd Working Group meetings in Kobar: agreement reached on” Go & No Go Zone” and FPIC

MARAPRL

MAY

JUN

IPOP companies commit to supporting mapping in Seruyan

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