Representatives from Eight Indonesian Districts and Development Partners Join Central Government Officials at B20 Investment Forum in Bali, November 11, 2022, to Discuss Sustainable Practices in the Plantation Sector. Photo: USAID SEGAR

The drive for sustainable development practices in Indonesia is gaining momentum, with numerous districts and cities taking concrete steps to adopt sustainable practices in the plantation sector. This commitment is exemplified by the joint agreement signed by eight districts, including Aceh Tamiang (Aceh Province); East Kutai (East Kalimantan Province), Sanggau and Kapuas Hulu (West Kalimantan Province); Seruyan and East Kotawaringin (Central Kalimantan Province); Siak (Riau Province); and Sigi (Central Sulawesi Province); in the B20 Investment Forum in Bali, November 11, 2022.

To foster and sustain this positive trend, the Indonesian Ministry of National Development Planning (Bappenas) and the Ministry of Investment (BKPM), supported by the Koalisi Ekonomi Membumi (KEM), are developing a model that aims to attract investment while also considering sustainability and responsibility. The model called the Sustainable Jurisdictions Indicators, is in the form of an electronic platform currently being developed, which at this early stage was developed for the plantation sector. It was officially introduced at the B20 Investment Forum.

Ir. R. Anang Noegroho Setyo Moeljono, MEM, Director of Food and Agriculture at Bappenas, emphasized that the Sustainable Jurisdictions Indicators is a vital tool that aids the operationalization of Presidential Regulation 18/2020 on the National Medium-Term Development Plan (RPJMN) for 2020-2024. He stressed that the aforementioned indicators are crucial in promoting positive partnerships among stakeholders, which are essential in accelerating the attainment of the Sustainable Development Goals (SDGs). "A positive partnership between stakeholders is the major foundation that will accelerate the achievement of the SDGs. By collaborating and working together, we can facilitate and oversee all stakeholders in the implementation of multi-stakeholder collaboration and green investment strategies to achieve the SDG targets," he added.

“Multi-stakeholder collaboration is the key to implementing sustainable practices in land management, which is why good cooperation between environmental professionals, farmers, business actors, and local governments as regulators at the regional level is needed throughout the commodity supply chain. In addition, the local government has a very crucial role related to strengthening the policies and monitoring of environmental protection and land management, “said Dr. Nur Hygiawati Rahayu, MSc, Director of Forestry and Water Resource Conservation in Bappenas.

Dr. Indra Darmawan, MSc, Deputy for Investment Planning of BKPM states that Indonesia possesses a long-term strategy regarding green investments, including for the land-based commodity sector. His ministry has prepared an Investment Opportunity Map which currently has 47 proposed projects that focus on investment potential in Indonesia. The information on the map will be supplemented with an overview of progress and commitments in the different regions by using the information provided through the Sustainable Jurisdictions Indicators assessment process prepared by Bappenas. The objective is that regional commodities will be more competitive, and improve the attractiveness of district investment's portfolios. Thus, foreign investments will be attracted.

The European Union (EU) has provided support to Bappenas and the Sustainable Jurisdictions Indicators over the past five years through several initiatives, which include the Malaysia and Indonesia Palm Oil Sustainability (KAMI) program implemented by the European Forest Institute. The European Union is also working with partners at local and national levels – including Javlec, Surveyor Indonesia, and the LPEM Universitas Indonesia – to boost inclusiveness and traceability in the palm oil supply chain, enhance the Sustainable Jurisdictions platform, and conduct an evaluation on available options, specifically in the context of the presence of new regulations at the global level relevant to palm oil.

Another form of support came from USAID Indonesia through the 'Sustainable Environmental Governance Across Regions' program (USAID SEGAR) which aims to assist Indonesia in achieving inclusive economic growth and sustainable development through sustainable land use and improved environmental governance. “The United States, through USAID, is working with BAPPENAS to strengthen the implementation of sustainable land and environmental governance. Our main goal is to support the Government of Indonesia in improving the quality of sustainable land management through strengthening the role of local governments in the supply chain,” said Brian Dusza, Environment Office Director, USAID Indonesia. "We would also like to invite the private sector to transform their supply chains to become greener, in line with local government priorities," he concluded.

Best Practices from Local Government

Iswanti, SE, MM, the Vice-Bupati of Seruyan District, stated that as a palm oil producer and with the current Bupati serving as the Chair of the Association of Palm Producing Regions, Seruyan is committed to improve various aspects of land management through jurisdictional approaches. One method to do so is by forming a regional regulation and a special working group whose task is to improve various aspects ranging from managing land conflicts, certification of self-subsistent farmers, to protecting areas with high conservation value. There are at least 1,045 Cultivation Registration (STDB) certificates issued by the Seruyan district which show that the land is clean and clear. Furthermore, the district also has task force teams for conflict resolution established at every governmental level which is directly monitored by the Bupati.

Aside from Seruyan, East Kutai district has also demonstrated its commitment to sustainability by declaring itself as a region that upholds the principles of sustainable jurisdictions by developing a 2021-2030 Plantation Plan. "East Kutai has designated HCV in plantation areas with a size of ​​48,933.68 hectares which have been regulated in the form of a Bupati's Decree (SK Bupati), in order to improve the quality of the environment and reduce greenhouse gas emissions," says Kasmidi Bulang, Vice Bupati of Kutai Timur. In addition, various palm-producing regions have also finished creating Regional Action Plans for Sustainable Palm Oil, which serve as a guideline for improving palm oil governance in their regions.

According to Rukaiyah Rafik, Chair of the Indonesian Sustainable Palm Oil Farmers Forum (FORTASBI), some farmers still face challenges in accessing Indonesia Sustainable Palm Oil (ISPO) and Roundtable on Sustainable Palm Oil (RSPO) certifications. To address this issue, farmers require support in implementing sustainable palm oil certification. "Several programs have been established to assist farmers, including FORTASBI's collaboration in integrating RSPO and ISPO certification. Through this program, it is hoped that 9,000 Indonesian oil palm smallholders will be able to obtain ISPO certification within the next three years," said Rukaiyah. She also emphasized the significance of local governments in expediting the farmers' registration and certification to join the green supply chain.

In addition to palm oil, other commodities, such as cocoa or chocolate, have gained significant attention. Samuel Pongi, Vice Bupati of Sigi, emphasized the importance of cocoa as a plantation commodity in the district. “Nearly 75 percent of the Sigi area comprises forest areas while the remainder is for cultivation. Therefore, the Green Sigi Regional Regulation has been implemented, which includes an investment scheme aimed at protecting the forest and enhancing the local population's prosperity.” Mr Pongi further explained that cocoa has immense potential in his region, and a jurisdictional investment portfolio focusing on cocoa is being developed in collaboration with the Cocoa Sustainability Partnership (CSP), PISAgro, and Lingkar Temu Kabupaten Lestari (LTKL).