Indonesia–Norway Partnership Demonstrates Performance-Based Climate Diplomacy
The partnership between Indonesia and Norway in preserving tropical forests and addressing global climate change is regarded as a new model for international cooperation that is more equitable, transparent, and results-based. Haruni Krisnawati, Expert Staff to the Minister of Forestry for Climate Change, stated that through the Results-Based Payment (RBP) mechanism, payments are issued only after Indonesia successfully reduces greenhouse gas emissions from the forestry and land-use sectors, based on measurable and independently verified achievements.
Speaking in Jakarta on Friday, she noted that the Indonesia–Norway partnership originated from the signing of a Letter of Intent (LoI) in May 2010 in Oslo. This agreement opened the possibility for results-based contributions of up to $1 billion, contingent upon Indonesia’s emission reduction achievements in the forestry sector. However, she continued, the implementation of the LoI faced various institutional challenges and differing perspectives, leading both nations to agree to terminate the LoI in September 2021 to make way for a new cooperative framework.
“The end of the LoI does not mean the relationship between the two countries has ceased. On the contrary, it serves as a momentum to build a more equal and mature partnership,” Haruni said during the launch and book discussion of “Earth Diplomacy: The Story Behind Indonesia’s FOLU Net Sink 2030.”
The relationship entered a new phase with the signing of a Memorandum of Understanding (MoU) in September 202<0xA0>22. Under this new scheme, both nations operate as equal partners based on principles of mutual respect and trust, where payments are made based on verified emission reductions rather than being treated as development aid. Through this scheme, Indonesia has received three stages of performance payments totalling approximately $216 million. The first stage of $56 million was granted for successful emission reductions during the 2016–2017 period. Subsequently, Norway approved the second and third stages simultaneously, amounting to $100 million for the 2017–2018 and 2018–2019 periods, as well as a fourth stage of $60 million for achievements in the 2019–2020 period.
All funds are managed through the Environmental Fund Management Agency (BPDLH) and are utilised to support various programmes including forest protection, ecosystem rehabilitation, forest and land fire control, the strengthening of social forestry, community empowerment, and the improvement of the welfare of communities living near forests. Endah Tri Kurniawaty, Director of Fund Collection and Development at BPDLH, explained that the agency serves as a vital instrument for Indonesia’s FOLU Net Sink 2030, ensuring all results-based payments are managed transparently and accountably to benefit environmental protection and local forest managers.
Agus Justianto, Project Director for the FOLU Norway Contribution Phase 1, added that Indonesia’s FOLU Net Sink 2030 is one of the nation’s most ambitious strategies in the forestry sector. The programme aims for the forestry and land-use sector to absorb more emissions than are produced by 2030 through reduced deforestation, peatland and mangrove restoration, forest rehabilitation, sustainable forest management, biodiversity conservation, and increased carbon stocks. The Secretary-General of the Ministry of Forestry, Mahfudz, emphasised that environmental diplomacy has become an essential part of Indonesia’s development diplomacy. He noted that success in reducing deforestation rates and improving forest governance demonstrates the ecological benefits of forest protection and strengthens international confidence in Indonesia’s commitment to the Paris Agreement.