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Norway Environmental Grant Hits Phase Two
Camelia Pasandaran | October 25, 2010

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Jakarta. Indonesia has met the conditions set for the first phase of a $1 billion environmental grant deal with Norway, officials said on Monday, and will now move on to the second phase — pilot conservation projects.

“Basically, the environment minister of Norway says we have met the conditions stated in the letter of intent,” said Kuntoro Mangkusubroto, head of the Presidential Working Unit for Development Supervision and Control (UKP4).

Kuntoro spoke from the Vice Presidential Palace after attending a meeting between Vice President Boediono and Erik Solheim, Norway’s environment minister.

Under the Indonesia-Norway agreement signed in Oslo in May by President Susilo Bambang Yudhoyono, Indonesia will receive a $1 billion grant from Norway to cut its carbon emissions.

The project has three stages. In the first part, for which Indonesia will receive an initial $200 million, the government established the institutions to evaluate, implement and monitor the project, to be led by Kuntoro.

The next stage, which would span two years, is the transformation phase that will see pilot conservation projects in several provinces and the suspension of licenses to clear peat and natural forest lands, expected to start next year.

If the projects progress well, Indonesia would then scale up the pilot projects in the third phase. The remaining $800 million would be disbursed once Indonesia began showing reduced emissions.

Minister of Forestry Zulkifli Hasan previously said provinces that can potentially serve as pilot areas are Riau, Jambi, East Kalimantan and Papua.

But Boediono’s spokesperson, Yopie Hidayat, said the final provinces that would serve as pilot areas would be announced during an international climate change meeting in Cancun, Mexico, later this year.

Yopie added that the central government would cooperate closely with local governments for the project and involve officials from governors down to those at the community level.

“Indonesia expects that this model could be expanded to involve countries beyond Norway, including the United States, which has indicated that it is interested in following the cooperation model of Indonesia and Norway,” Yopie said.