North Kalimantan Receives IDR 41.5 Billion in Performance-Based Funding to Reduce Emissions in the Forestry Sector

The Provincial Government of North Kalimantan has received IDR 41.5 billion in funding as part of the implementation of the Result-Based Payment for Reducing Emissions from Deforestation and Forest Degradation (RBP REDD+) project from the Green Climate Fund (GCF), managed by the Environmental Fund Management Agency (BPDLH). This funding aims to strengthen efforts to reduce emissions from the forestry sector and accelerate low-carbon development, with disbursement facilitated through the Yayasan Konservasi Alam Nusantara (YKAN) as the appointed intermediary.

This fund is part of a performance-based payment scheme provided to countries or jurisdictions that successfully reduce greenhouse gas emissions in the forestry sector. North Kalimantan is one of 38 provinces benefiting from this funding.

“BPDLH is mandated to manage environmental funds in an accountable, credible, and transparent manner. We hope that this funding, distributed through the RBP REDD+ GCF Output 2 Project, can be optimally utilized to accelerate emission reduction targets, strengthen sustainable forest management, and improve the livelihoods of surrounding communities,” said BPDLH Director General Joko Tri Haryanto during the signing event attended by Coordinating Minister for Food Affairs Zulkifli Hasan, Minister of Forestry Raja Juli, and Minister of Environment Jumhur Hidayat in Jakarta (12/8).

The funds allocated to North Kalimantan are part of the USD 103.8 million funding from the Green Climate Fund received by the Indonesian government through a proposal submitted by the Ministry of Environment and Forestry. This funding was granted in recognition of Indonesia’s success in reducing greenhouse gas emissions by 20.25 million tons CO₂e, plus an additional 2.5% incentive for non-carbon benefits for the 2014–2016 reporting period.

Substantive proposal assessments were conducted by the RBP REDD+ GCF Output 2 Fund Management Team, consisting of the Ministry of Environment and the Ministry of Forestry. At the same time, financial and safeguard aspects were evaluated by BPDLH.

From North Kalimantan to the World

This fund disbursement is significant amid the growing need for impactful climate action. With around 5.49 million hectares of forest cover, equivalent to 78.48% of its total administrative area, North Kalimantan is one of Indonesia’s most important tropical forest strongholds and a strategic region for global climate change mitigation.

Governor of North Kalimantan, Zainal A. Paliwang, stated that the provincial government has developed various programs supporting low-emission development through the implementation of the Regional Action Plan for Reducing Greenhouse Gas Emissions for the 2010–2030 period.

These programs include strengthening the Climate Village Program, accelerating social forestry, implementing Ecology-Based Provincial Budget Transfers, controlling forest and land fires, managing Essential Ecosystem Areas, revitalizing the Kayan–Sembakung Delta, and strengthening Forest Management Units (KPH).

This commitment is further strengthened by efforts to protect high conservation value areas. The provincial government is currently working on regulations concerning sustainable palm oil plantations. Additionally, Bulungan Regency, one of North Kalimantan’s districts, has issued Regent Regulation No. 26 of 2025, which provides guidelines for identifying, managing, and monitoring high conservation value areas.

“All of these measures are aimed at supporting low-emission development while opening opportunities for green investment in the forestry and land-use sectors,” Zainal said.

However, several challenges remain in strengthening the local implementation of REDD+. The Global Green Growth Institute’s 2023 study highlighted the need to improve carbon accounting systems, develop subnational Forest Reference Emission Levels, build integrated monitoring, reporting, and verification systems compatible with national systems, and strengthen REDD+ institutions and regulations.

To address these challenges, the North Kalimantan Provincial Government will gradually utilize this funding over three years.

In the initial phase, funds will be allocated to set up an operational REDD+ framework. This will include policy formulation, developing geographic information systems, registering mitigation actions in the National Registry System, enhancing the Safeguards Information System, and preparing a benefit-sharing mechanism.

The next phase will focus on strengthening Forest Management Units (KPH), community-based fire management and field patrols, as well as addressing forest encroachment and resolving conflicts. Subsequently, funding will be directed toward enhancing forest protection and restoration and developing village- and community-based low-carbon livelihoods.

“Overall, the development of REDD+ in North Kalimantan aims to create healthy forests, reduce carbon emissions, and promote inclusive green economic growth,” Zainal said.

YKAN Executive Director Herlina Hartanto believes North Kalimantan has strong potential to become a model for successful REDD+ practices in Indonesia.

“Result-based funding like this demonstrates that forest protection delivers tangible value in supporting green development at the subnational level. With its abundant natural resources and strong local government commitment, North Kalimantan has great potential to be an example of effective and sustainable REDD+ implementation,” Herlina said.

She mentioned that the Bulungan District Government, with the support of YKAN, has been implementing an integrated approach that considers environmental and economic factors. This approach forms part of the Integrated Area Development initiative in the 568,182-hectare Kayan Landscape.

“Through this approach, the environment becomes the foundation for long-term green economic growth. The same spirit underpins the implementation of the Green Climate Fund program and the development of REDD+ in North Kalimantan,” Herlina concluded.