T H E S USTAI NAB L E L ANDSC AP ES PA RT NE RSH I P

A n i n t e g r a t e d m o d e l f o r s u s t a i n a b l e d e v e l o p m e n t i n I n d o n e s i a

W e e n v i s i o n

I n d o n e s i a a s a s e r i e s

o f s u s t a i n a b l e

l a n d s c a p e s w h e r e

n a t u r a l c a p i t a l i s

p r o t e c t e d a n d

e n h a n c e d t h r o u g h

a p p r o p r i a t e l a n d -

u s e ,

s u s t a i n a b l e

p r o d u c t i o n p r a c t i c e s ,

a n d i n c l u s i v e

d e c i s i o n - m a k i n g f o r

t h e i m p r o v e m e n t o f

h u m a n w e l l - b e i n g .

2

The Sustainable Landscapes Partnership

(SLP) is an integrated landscape initiative

that works with local governments,

communities, businesses and NGOs to

design and develop innovative, landscape-

scale solutions to challenges caused by

human pressures on natural resources.

Conservation International established

SLP in Indonesia, to promote and support

this model through four primary areas of

intervention: conservation of natural

capital; developing sustainable

production; improving governance and

participation; and sustainable financing

that aim to provide a range of benefits to

people.

Achieving sustainable development and

economic growth for Indonesia will

require finding the right balance between

conservation and production.

In the long run, success for SLP can be

characterized by:

• Zero net deforestation, with

• All land under appropriate

management including the protection

of biodiversity, leading to

• Quantifiable improvements in human-

well being, supported by

• Sustainable financing.

S u s t a i n a b l e L a n d s c a p e s F r a m e w o r k

SLP in Indonesia is implemented by

Conservation International (CI) with funding

from USAID and the Walton Family Foundation.

NATURAL CAPITAL

GOOD GOVERNANCE

SUSTAINABLE PRODUCTION

SUSTAINABLE FINANCE

BENEFITS TO PEOPLE

POLICIES& PROGRAMS

SPATIAL PLANS

DECISION SUPPORT

TOOLS

MULTI-STAKEHOLDER

FORUMS

CLIMATE STABILITY WATER LIVELIHOODS FOOD

A T A G L A N C E

T h e S u s t a i n a b l e L a n d s c a p e s P a r t n e r s h i p i s f o c u s e d

o n a r u r a l e c o n o m i c d e v e l o p m e n t p a t h t h a t d e p e n d s

o n , a n d v a l u e s , n a t u r a l c a p i t a l a s t h e c o r e

p r i n c i p l e

SLP is implementing this landscape model in Indonesia in two

provinces: North Sumatra and West Papua

Like all countries, Indonesia faces a particular set of challenges in

developing sustainable landscapes. Key challenges include the

growing population pressure across the archipelago – currently

around 250 million; with the fourth largest population in the

world and that is growing by more than 3 million people per

year1. To meet the needs of this growing population, Indonesia is

looking to increase domestic production, maintain economic

development and provide a broad base of infrastructure and

essential services.

Reflecting these pressures on land use, rates of deforestation

have been high over the past 15 years. Between 2000 and 2012,

It has been estimated Indonesia lost 6 million hectares of

primary forest cover, at rate of around 0.5 million hectares per

year2. The conversion of forests for agricultural purposes and

socio-economic development have been key drivers.

Deforestation has consequences of course. It generates

greenhouse gas emissions and can lead to a loss of wildlife and

biodiversity. Tropical forests are home to a vast array of species

that are threatened by widespread land conversion and forest

fragmentation. North Sumatra and West Papua – the Provinces

in which SLP has focused its work to date – are two of the

world’s most unique and biodiverse areas; therefore it is critical

that they are managed sustainably.

To strengthen forest management across the country, the

Ministry of Environment and Forestry is in the process of

establishing a new model of forest management based on

designated Forest Management Units (FMUs). This new model is

intended to provide more active professional management at

the local level. Indonesia is looking to establish over 600 new

FMUs across the country – in itself a significant challenge.

Meanwhile, the private sector plays a key role in shaping

Indonesia’s agricultural landscapes. For example, Indonesia now

produces over 50% of the palm oil produced globally, to meet

demand of international consumers3. Indonesia is looking to

work with multi-national interests and the private sector to

improve land management practices and encourage responsible

sourcing along global supply chains.

A holistic integrated approach is required to consider and

balance the production and conservation in each landscape.

A widely accepted definition of the sustainable landscape is ‘a

landscape that can maintain its basic structure and provide

ecosystem services in a changing world of environmental,

economic and social conditions’. 4

Within this context, SLP in Indonesia is establishing new

partnerships and collaboration with local partners to protect

natural capital by promoting good governance and sustainable

production practices, and facilitating sustainable finance models

that provide long-term benefits for the Indonesian society.

3

T H E B I G P I C T U R E

1 World Bank Data: Indonesia’s population in 2014 was 254.5 million. Annual population growth rate 2011-2015 was 1.3%.2 Margono, B.A., Potapov , P.V., Turubanova , S; Stolle, F; and Hansen, M. (2014) Primary forest cover loss in Indonesia over 2000–2012. Nature Climate Change, DOI:10.1038/NCLIMATE2277.3 European Palm Oil Alliance (2016) Online resource: Palm oil production http://www.palmoilandfood.eu/en/palm-oil-production andhttp://www.sawitindonesia.com/kinerja/2020-kebutuhan-minyak-nabati-dunia-bergantung-kepada-cpo-indonesia4 Wu, Jianguo. (2013) Landscape Sustainability Science: Ecosystem Services and Human Well-Being in Changing Landscapes. Landscape Ecology, 28 (6): 999-1023.

G O V E R N A N C E

G o o d g o v e r n a n c e i n a l a n d s c a p e s e t t i n g i n c l u d e s

a l i g n i n g p o l i c i e s a n d r e g u l a t i o n s a c r o s s a l l l e v e l s o f g o v e r n m e n t ,

e n g a g i n g s t a k e h o l d e r s , e n s u r i n g s o c i a l s a f e g u a r d s a r e i n p l a c e

a n d f a c i l i t a t i n g s u s t a i n a b l e i n v e s t m e n t s

4

SLP is working to support good governance, as it relates to land

use planning decisions and forest conservation.

Key governance challenges in Indonesia include the limited

capacity within provincial and district governments to develop

and implement strategic plans relating to land use planning at

the landscape level. This has led to spatial planning conflicts

between government levels, and a lack of landscape level

performance monitoring tools. Another key governance

challenge is addressing the biophysical and ecological aspects of

landscapes that can extend beyond administrative units and

jurisdictional boundaries; which further highlight the need for

an integrated approach that incorporates activities that align

policies and regulations across all levels of government.

To address these challenges, SLP is working with governments

to ensure there is the scientific evidence and the decision-

making support tools needed to enact policies that are

environmentally sustainable and good for communities. SLP has

supported the design of policies focused on sustainable

development and worked with local agencies to identify the

capacity and resources required.

SLP has developed Sustainable Investment Action Plans (SIAP)

for the three districts and the province of North Sumatra. SIAPs

are landscape-level plans designed to support and guide

conservation while supporting sustainable production. SIAPs

provide information and recommendations about the

landscape. This analysis includes assessing areas of high

conservation value, land use suitability for crops, value chains

analysis, identifying risk due disasters and climate change,

understanding watershed and hydrological dynamics.

.

P o l i c i e s a n d p l a n s

SLP has also facilitated the development of Strategic

Environmental Assessments (SEA) for three districts in North

Sumatra, and most recently, for the province of North Sumatra.

These SEAs have provided the science and technical evidence to

support spatial planning with capacity building and inclusive

multi-stakeholder engagement also underpinning the process.

Building on the SEAs, SLP has continued to support the districts

to incorporate the recommendations in spatial plans for the

districts of South Tapanuli and Mandailing Natal.

Concurrently, SLP is engaging with the West Papua Province to

help support the vision of developing its Conservation Province

policy initiative as an opportunity to define a sustainable

development pathway. SLP, together with the Bird’s Head

Secretariat, has helped bring together government, non-

government, community and academic partners to establish a

provincial policy framework and targets that link 'green’

government planning, budget cycles and relevant agencies.

Multi-stakeholder forums (MSF) have an important role in

improving the understanding, participation and collaboration

by stakeholders. MSFs ensure cross-sectoral alignment of

policy, regulations and practices with public and private

interests.

SLP has established and facilitated a range of MSFs, to support

the program objectives across a range of sectors and

geographies. These include forums set up to support the SEA

process in multiple districts in North Sumatra; the facilitation of

two regional watershed management forums; and support for

the Joint Secretariat for Sustainable Palm Oil in North Sumatra

headed by the Environmental Protection Agency comprised of

private sector partners who meet frequently to discuss a range

of environmental and best management practices.

M u l t i - S t a k e h o l d e r F o r u m s

5

In related work, SLP has created a new decision support tool for

landscape accounting, with considerable scope for application

across Indonesia. SLP’s Landscape Accounting Framework (LAF)

comprises a stakeholder engagement process for establishing

goals and key indicators, and a system that features an online

dashboard for stakeholders to monitor the status of the

landscape – either at the provincial level or the district level.

SLP has established an online dashboard for

landscape accounting in North Sumatra, to monitor

trends and changes across key indicators that are

aligned with objectives of the landscape model

V i s u a l i z i n g i m p a c t

This framework brings together data from a range of credible

public data-sets, to report on dimensions of natural capital,

sustainable production and also human well-being. SLP has

brought this data together for North Sumatra in an online

dashboard that government policy makers, the private sector

and civil society can refer too as the basis for multi-stakeholder

engagement on landscape trends and priorities.

6

S L P s u c c e s s s t o r y : P r o t e c t e d A r e a s a n c h o r n a t u r a l c a p i t a l i n a l a n d s c a p e

SLP’s approach to Protected Areas aims to

improve the management and protection

practices of high conservation value areas.

Work to date has included strategic reviews

of Protected Area plans, reviewing status

and identifying risks; supporting the use of

Spatial Monitoring and Reporting Tools (like

SMART and METT/PAME) to measure and

evaluate management effectiveness; as well

as the introduction of management support

systems and tools that are implemented by

local staff. In some cases, SLP has provided

field equipment including GPS units and

camera traps, to better equip local staff for

monitoring and reporting functions.

For example, Batang Gadis National Park

has already conducted systematic camera

trapping surveys; meanwhile intensive

training and capacity building for spatial

monitoring and reporting has been

extended to 12 other Protected Areas in

North Sumatra.

SLP will continue to develop the capacity of

staff in selected Protected Areas with

further training. The next challenge is to

explore ways of deepening and expanding

the sphere of influence of Protected Areas

within the broader landscape.

The integrated landscape model recognizes that Protected Areas and

sustainable production can and should co-exist to enhance human

well-being. This highlights the importance of finding effective ways of

linking and managing landscapes that comprise both.

Large areas of tropical forests in Indonesia are considered biodiversity

hotspots with high conservation value. They shelter rare and

endangered species – such as the Sumatran tiger, orang-utans and the

Birds of Paradise in West Papua – and they constitute a rich array of

ecosystems and peatlands that can store large amounts of

sequestered carbon from the atmosphere.

7

N A T U R A L C A P I T A L

Sustainable production and human well-being are both derived

from, and dependent upon, the ecosystem services that natural

capital provides. In order to protect critical ecosystems and the

services they provide, it is necessary to identify critical natural

capital within the landscape and ensure there is appropriate

management of these areas. Biodiversity is critical natural

capital.

Key challenges for managing natural capital in Indonesia include

the ability to effectively address the inter-related drivers of

deforestation that include: growing population pressure,

contested land and property rights, poor governance, increasing

market demand for fast-growing agricultural crops, and the

limited resources and capacity for enforcement of regulations

around Protected Areas and the broader National forest estate.

Relatedly, there is limited recognition at present of the

economic value of ecosystem services. As a result, there tends to

be minimal incentives to protect natural capital particularly

where there are other business-as-usual economic activities.

This may include the clearing of natural forests to establish

agriculture crops and plantations or extractive industries.

SLP has been working to address these challenges in a number of

ways. In addition to its work in strengthening protection for high

conservation value areas (see ‘Protected Areas’), SLP has

supported the Ministry of Environment and Forestry in

promoting and developing FMUs for active forest management

in the national estate, and also worked with local communities

to facilitate Conservation Agreements in North Sumatra.

The promotion and development of FMUs within SLP landscapes

has involved extensive engagement with all levels of

government. SLP has worked closely with the Ministry of

Environment and Forestry to identify high priority FMUs and

confirm the model of management required for both production

and protection based forests. SLP has also provided the technical

support and facilitation capacity to support district government

units to set up these FMUs with sound management plans.

SLP has conducted extensive work on supporting community

stewardship. A significant achievement in this regard has been

establishment of over 30 Community Conservation Agreements

(CCAs), which typically represents agreements that are made by

the community to observe particular conservation goals – for

example, no clearing of adjacent forest areas to plant new crops

– while SLP and our partners have provided support including

training for village farmers in better crop management that will

increase yields, or establishing linkages to responsible supply

chains that will pay a premium for higher grade products.

SLP views the CCAs as a pre-condition that establishes a

conducive context in which to engage in longer term support for

communities, to conserve the broader environment while

providing for benefits from sustainable and improved

production.

SLP has also provided support for six new village forestry areas in

South Tapanuli District. Where a clearly defined area is

established that a community can access and use. SLP expects

this to lead to improved management of the forest over the

longer term.

H u m a n w e l l - b e i n g i s d e r i v e d f r o m ,

a n d d e p e n d e n t u p o n , e c o s y s t e m

s e r v i c e s t h a t n a t u r a l c a p i t a l p r o v i d e s

T h e c h a l l e n g e s

F o r e s t m a n a g e m e n t m o d e l s

C o m m u n i t y c o n s e r v a t i o n

S U S T A I N A B L E P R O D U C T I O N

8

SLP in Indonesia promotes the use of best practices in managing

key commodity value chains that underpin production systems.

Best practices include zero deforestation, minimizing the

‘footprint’ and waste, through the intensification of or

restoration of degraded lands. Commodity chains include not

only large scale industrial production, but also small-holder and

community production that underpins local economies.

Key challenges for sustainable production include limited access

to information on improved production practices and improved

technologies; limited understanding of quality and how it is

defined; and limited knowledge of market needs and trends –

these issues leads to low production, poor quality and limit

bargaining power and missed opportunities to access markets

that will support sustainable farming.

SLP has conducted studies on crop suitability across the province

of North Sumatra, and also assessed how crop suitability will

potentially be impacted by future climate change.5 This work

identified areas of the province that are likely to become

progressively unsuitable for palm oil, coffee, cocoa and rubber

production. SLP will continue to engage with the government,

private sector, and smallholder farmers so that they recognize

the need to consider what strategies might be most appropriate

to mitigate these potential risks.

This and other science has been used as the foundation for a

smallholder farmer training series called ‘Where the Farms meet

the Forests’, which SLP is embedding within conventional

smallholder farmer agribusiness training. SLP has also

incorporated these crop suitability studies and maps in both the

SIAP and LAF for North Sumatra, for the use by stakeholders.

SLP has actively promoted the concept and development of

green supply chains, for the purpose of improving access to

markets for sustainably produced products.

SLP has engaged with private sector partners who provide

farmers with market access and who help to explain what quality

the market needs. To compliment this, SLP is developing a

jurisdictional sourcing approach – the aim is to provide

companies with an understanding of where they can source

commodities from selected landscapes that meet certain quality

and sustainability criteria. SLP advocates the use of the

Landscape Accounting Framework to inform this approach.

SLP currently has memoranda of understanding with three

partner companies that are supporting green supply chains for

coffee, rubber and also palm oil crops.

As part of this direct engagement with producers, SLP is working

with communities and farmers to improve production and

incomes. This includes evaluating new purchasing models, such

as more direct supply arrangements between farmers and

processing facilities. Increasing efficiency will further strengthen

the platform for supporting sustainable farming practices.

SLP has also supported the convening of a Joint Secretariat for

Sustainable Palm Oil that meets on a regular basis to discuss

market issues and best practices in sustainable production. This

MSF brings together some of the largest industry producers as

well as smallholder and community producers in North Sumatra,

to engage with leading practitioners and researchers on policy

directions and technical aspects of sustainable production in

Indonesia.

G r e e n s u p p l y c h a i n s

S L P p r o m o t e s t h e d i v e r s i f i c a t i o n a n d

i n t e n s i f i c a t i o n o f p r o d u c t i o n t o i n c r e a s e

l a n d s c a p e r e s i l i e n c e a n d s t r e n g t h e n r u r a l

e c o n o m i e s

C r o p s u i t a b i l i t y s t u d i e s

5 Smit, H., Tias, P. Hadiprakarsa, Y. (2014) Exploring Trade-Offs Between Conservation and Development in North Sumatra, Sustainable development strategies forrubber, cocoa, coffee and oil palm agriculture in North Sumatra. Commissioned to support the Sustainable Landscapes Partnership, Conservation International, Jakarta,Indonesia.

9

S L P c a s e s t u d y : N o r t h S u m a t r a o n a p a t h t o s u s t a i n a b l e p r o d u c t i o n

Major cash crop products grown in North

Sumatra include palm oil, coffee, cocoa and

rubber. SLP has conducted supply chain

assessments for each of these constraints

to competitiveness as well as identifying

practices that can be improved.

The Landscape Accounting Framework

(LAF) dashboard provides a sound basis for

prioritizing opportunities to increase

production across the landscape.

An example where improvements have

been made is the tapping of rubber trees.

SLP identified many farmers who were

tapping trees with sub-optimal techniques,

inferior equipment and poor post-harvest

handling – this resulted in both low

productivity and poor quality. Added to this

farmers were also cutting down rubber

trees and replacing these with new

plantings or different crops.

SLP has trained thousands of farmers in

optimal tapping and post harvesting

handling techniques with many seeing a

significant increase in productivity and

income from the existing trees – this has

also reduced clearing of the rubber-forest

gardens and reduced emissions.

C r o p y i e l d s p e r h e c t a r e

10

Establishing and maintaining sustainable

landscapes will require ongoing sources of

sustainable finance in the long term.

SLP is reviewing and developing new

financing models – for reasons that

include the fact that to-date, ecosystem

services have been undervalued, and

taken for granted. If natural capital is to

be maintained there is a need to attribute

an appropriate value to these resources,

and to manage them accordingly.

There is scope to establish fiscal

incentives for provinces and districts that

take steps towards forest conservation.

These incentives may leverage existing

government budgets or use trust fund

mechanisms to support forest

conservation.

Sustainable finance models also include

mechanisms based on payment for

ecosystem services (PES), and the

development of low emission enterprises

that can generate revenue and social

benefits on a sustainable basis. SLP is

working to test these models across

landscapes and explore the scope for

amplification.

T h e c h a l l e n g e

11

SLP through a grant provided funding

and technical guidance for communities

in North Sumatra that are introducing

more efficient stoves to replace the

smoky, fuel-hungry three-stone fires.

The benefits are several: reducing

harvesting of fuelwood; helping families

save money on cooking fuel; creating

employment in marketing and selling

the stoves; and improving the health of

women and children by reducing

exposure to air pollution.

SLP is either actively exploring or

supporting the development of new

business cases for potential low-

emission enterprises, such as village

forestry, agribusiness products,

ecotourism and non-timber forest

products, which may be linked to

finance (e.g. microfinance, Landscape

Bonds, etc.) at favorable rates.

S U S T A I N A B L E F I N A N C E

L a n d s c a p e s r e q u i r e s u s t a i n a b l e f i n a n c e t o

e n s u r e l o n g - t e r m v i a b i l i t y o f i n v e s t m e n t s

a n d t h e i r b e n e f i t s t o c o m m u n i t i e s

To address the issue of natural capital

being undervalued and potentially used

unsustainably, SLP has identified

models in which communities and the

private sector contribute directly to the

maintenance of ecosystem services

they receive from the natural capital.

SLP has scoped the development of

‘Payment for Ecosystem Services’ (PES)

models in North Sumatra to improve

the supply and quality of fresh water. In

South Tapanuli, SLP together with

stakeholders has developed a model

and district regulation supporting PES.

The PES models for watershed

management are designed to generate

sustainable financing for the

maintenance of ecosystem services, and

means the people who utilize the

service can enjoy a better quality of life

through the ongoing supply of these

services.

SLP endeavours to mainstream

conservation goals into government

budgets and fiscal drivers. Despite the

available funds to reduce forest loss

(REDD+, etc.) there is a lack of regional

incentives for provinces and districts

that support forest conservation and

base their budget allocations on those

measures.

SLP has worked with local agencies to

leverage existing government budgets

to support management of forests (e.g.

local FMU accessing ministerial funds).

SLP has drawn on international models

to advocate for the development of

fiscal policies that link budget

allocations to natural capital. SLP is also

exploring regional trust fund

mechanisms to support forest

management.

B u d g e t a l l o c a t i o n s

a n d F i s c a l d r i v e r s

P a y m e n t f o r

E c o s y s t e m S e r v i c e s

L o w E m i s s i o n

E n t e r p r i s e s

T h e r o l e o f o u r p a r t n e r s

Because all landscapes are embedded in

administrative units where planning decisions are

made, it is critical that at all levels of government

are effectively engaged to ensure there is

consistent policy and regulatory alignment with

sustainable land uses and land use decisions.

SLP engages directly with the Ministry of

Environment and Forestry and other Ministries of

the Government of Indonesia, and works closely

with the Provincial Governments and District

Governments in North Sumatra and West Papua,

to ensure coordination and consistency of

landscape activities.

G O V E R N M E N T

Effective implementation of land use change is not

possible without directly involving the people who

are living within the areas and dependent upon

the landscapes. Local communities typically have

the highest level of interaction with and

dependence on ecosystem services.

SLP has established multiple models for working

with communities, including Multi-Stakeholder

Forums for sharing and discussing community

views, and the development of Community

Stewardship Programs that realize benefits for

communities through local conservation.

The private sector plays a vital role in establishing

sustainable landscapes, by providing investment,

employment and innovation in products and

services. In this way, the private sector plays a

central role in the development of green supply

chains, with broad economic and social benefits

for communities and society.

SLP engages with the private sector through a

range of Multi-Stakeholder Forums and Advisory

Committees that have focussed on the

development of green supply chains, the use and

promotion of good agricultural practices, and

integration of conservation practices across

sectors.

C O N T A C T U S

L e t ’ s s o c i a l i z e :

P h o n e :

+62 21 7883 8626

W e b :

www.conservation.org

@ConservationID

@ConservationID

Conservation International Indonesia

Conservation International Indonesia

Pejaten Barat 16A

O f f i c e :

Kemang, Jakarta 12550

P R I V A T E S E C T O R

C O M M U N I T I E S

Civil society comprises non-government

organisations and institutions, with particular

interests that may include environmental, social

and economic development issues. They represent

stakeholders in the landscape, at the local,

provincial or national level. They may also be

partners in a range of landscape interventions,

such as conducting studies across the landscape;

facilitating broader stakeholder engagement; or

contributing to the development of community

business models and low emission enterprises. SLP

has worked closely with civil society groups

include environmental NGOs, community

foundations and also universities in North Sumatra

and West Papua.

C I V I L S O C I E T Y