With 120 million hectares of forest area, Indonesia has the third largest area of biodiversity-rich tropical forests in the world, and it is well-known as a mega-biodiversity country. However, in 2020, only 70 percent of this area remained forested. The government has consistently undertaken corrective actions to achieve Sustainable Development Goal targets, with a special focus on Goals #1 (no poverty), #2 (zero hunger), #3 (good health and well-being), #7 (affordable and clean energy), #8 (decent work and economic growth), #13 (climate action), and #15 (life on land). Good environmental governance is a core concept in Indonesia’s forest management and includes mainstreaming ecosystem services as a framework for sustainable forest management. This paper analyzes efforts to mainstream Indonesia’s remaining forest ecosystem services. We review the state of Indonesia’s forests in relation to deforestation dynamics, climate change, and ecosystem service potential and options and provide recommendations for mainstreaming strategies regarding aspects of policy, planning, and implementation, as well as the process of the articulation of ecosystem services and their alternative funding.

Wildfires in Indonesia are an annual phenomenon which peak in dry El Nino years, with up to 2.6 million ha of forest and land burnt in the drought year of 2015. This is an annual disaster for the country and surrounding region, with severe impacts on the environment, as well as human health, economic and social factors. Forest Management Units (FMUs, known locally as Kesatuan Pengelolaan Hutan, KPH) are the implementation agencies on the ground that play a strategic role in both the prevention and suppression of forest fires. FMUs are mandated to establish a local fire brigade, to provide adequate personnel and equipment, and to carry out fire prevention as well as suppression programs. This research aimed to analyze the performance of forest fire-related policy implementation. The study was based on five FMUs in fire-prone regions of Central Kalimantan and South Sumatra, Indonesia. The performance of the FMUs is measured by achievement of the policy objectives and effectiveness of policy implementation. Our analysis shows the policies, standards and objectives to manage fire are clear for FMUs, but there are challenges in their implementation, such that fire control activities have not been fully implemented. Most FMUs have limited capacity and resources, as well as complicated budget mechanisms and low community participation. Strengthening FMU capacity will significantly improve their performance in forest fire control, particularly in the initial stages. This can be done at three scales: personnel, organization and system.

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Climate change mitigation actions significantly require strong financial support. One of the climate change financing schemes stated on the government regulation no 46/2017 is transaction of environmental services. The implementation schemes in the site level however have not been clearly explored yet. This paper explores funding scheme options for various forest management purposes in order to support climate change mitigation actions in forestry sector. Tanjung Jabung Timur District that is actively reducing emission from forest is chosen as the research location. The research shows environmental service funding schemes that could be implemented in Tanjung Jabung Timur are including Payment of Environmental Services (PES), Liability Rule (LR), and Purchasing Development Right (PDR). PES is effective to encourage forest management purposed for carbon stock; LR is to support carbon sequestration activities, while PDR is potential to support forest management for reducing carbon emission. INTISARIUpaya mitigasi perubahan iklim di sektor kehutanan memerlukan dukungan pendanaan yang kuat. Salah satu skema pendanaan perubahan iklim yang ditetapkan dalam PP 46 tahun 2017 adalah skema imbal jasa lingkungan. Meskipun demikian, skema tersebut di tingkat tapak belum banyak dikembangkan. Tulisan ini menganalisis opsi-opsi kombinasi skema pendanaan jasa lingkungan dengan optimalisasi pemanfaatan kawasan hutan dalam rangka mendukung upaya mitigasi perubahan iklim di sektor kehutanan. Kabupaten Tanjung Jabung Timur Provinsi Jambi dipilih sebagai lokasi penelitian karena merupakan salah satu provinsi yang aktif dalam upaya penurunan emisi dari sektor

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