The Procedure Of Implementation Afforestation And Reforestation
Project Under The Clean Development Mechanism (CDM)
In Indonesia

by : Dr. Gun Mardiatmoko (gum_mardi@yahoo.com)
(HP:+6281244509130)

II. THE PILOT PROJECT OF CARBON TRADING IN INDONESIA Indonesia has two pilot projects of carbon trading in Reducing Emission from Deforestation and Degradation (REDD) scheme at forest area of East Kalimantan and Aceh. The implementation of carbon trading has been done through joint operation with some international institutions, i.e. Meryl Lynch, Global Environmental Resources (GER), Eco Securities and Bird Life, etc. Information regarding pilot project of carbon trading in Ulu Masen Project, Aceh in short, as follows: Ulu Masen Project is certified by the Climate, Community & Biodiversity Alliance which involved Non Governmental Organization (NGO): the Nature Conservancy, the Rainforest Alliance and the big company Weyerhaeuser Co. the sponsor of Ulu Masen Project hopes that level of logging operation in project area must be cut until 85%.

With reducing forest extraction, project area can produce carbon credit 3.3 million ton per year. Thus, if price estimation of carbon is US $ 5 per ton the project can produce carbon credit US $ 16.5 million per years. The other benefits are:
(1) biodiversity benefit because the project area is habitat for elephant of Sumatera, tiger of Sumatera, orang utan and clouded leopard, etc.;
(2) Socio-economic benefits when the villages receive money as a compensation that local people have involvement and participation on forest conservations or they do not cut the trees in project area, etc.
In my opinion, the afforestation & reforestation project under the CDM is very flexible because it can be done at forest area, forest community area, state forest area and private land. Land use change that can be done in the afforestation & reforestation project under the CDM is conversion from agriculture, wetland, settlement area, ranch area or prairie to forest. Type of forestry activity for implementation of the afforestation & reforestation project under the CDM is agroforestry, sylvofishery, rubber estate, monoculture and mixed species plantation, multipurpose species plantation, etc. Unfortunately, as far as I know, the Forestry CDM in Indonesia is still in concept and macro policy and is not ready to implement afforestation & reforestation project under the CDM. So, it is time to make concrete action to implement the Forestry CDM and I hope there is NGO or international institution will take participation in this project in Indonesia.