The Indonesian Forestry Laws as Basis for a REDD Regime?

During COP 13 in Bali, the Government of Indonesia officially showed interest in REDD (Reduced Emission from Deforestation in Developing Countries) schemes, which offer financial rewards for activities that reduce CO2 emissions from clearing, converting, or degrading forests. If current emissions are multiplied with current prices for emission reduction credits, a very high value (about US$1.8 billion/year) can be calculated as an upper limit. The dollar signs in the eyes of stakeholders, however, are not necessarily beneficial in helping to see what it will take to make it work. Lack of performance rather than lack of funds may well be the primary constraint. The mechanisms will have to be realistic (dealing with the real causes and drivers), conditional (performance based), and voluntary (providing sustainable benefits along the value chain of involved stakeholders). Current forestry laws and institutions in Indonesia were not designed to deal with a benefit distribution mechanism from REDD incentives, but they will form the background for discussions on who has a right to benefit, and who has the resources and power to obstruct others from benefiting.

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