Indonesia fails to meet deadline in bilateral agreement

The US$1 billion forest conservation deal was signed in May 2010. According to the agreement, Indonesia will implement a two year suspension on all new concessions for conversion of peat and natural forest. According to the International Centre for Trade and Sustainable Development Indonesia continues to award new logging- and peat concessions.

The agreement between Indonesia and Norway apply funding to support the country’s enhanced Reducing Emissions from Deforestation and Forest Degradation. The REDD+ programme.

Up through December, Indonesia had been complying with all the provisions of the agreement and had selected the province of Central Kalimantan on the island of Borneo as the pilot province. However, the second phase of the agreement - the launch of the forest-clearing moratorium - has been unable to move ahead due to the absence of a presidential decree, according to ICTSD, International Centre for Trade and Sustainable Development.

The degradation and deforestation of virgin rain forest and peat land has been escalating in the past decade. With the increased use of palm oil in consumer products and the new demands for bio fuels, oil palm plantations have been expanding at an increasing magnitude across the territory. Indonesia is the top palm oil supplier in the world.

Despite international warnings, Indonesia has yet to set a deadline for the officially implementing the moratorium on deforestation.