RI must brace for debt-for-nature scheme

RI must brace for debt-for-nature scheme

JAKARTA (JP): An environmentalist has expressed hope that
Indonesia will be included in a U.S. "debt-for-nature swap"
scheme in which developing countries' debts are written off if
they are found to be committed to protecting their rain forests.

Mas Achmad Santosa said the government must prepare for the
possibility that the U.S. might offer the program to Indonesia.

The U.S. House of Representatives passed a bill Thursday
stipulating that developing countries could write off U.S. debts
if they were deemed to be committed to protecting their rain
forests.

"It's a very good program," said Santosa, an environmental law
expert at the Indonesian Center for Environmental Law.

"Our government must respond to this quickly," Santosa said.

One way the government could prepare for the scheme is to
consistently implement the 50-point International Monetary Fund
reform package, especially reforms addressing environmental
issues, he said.

"The government should, for instance, show its commitment by
sponsoring a law to regulate the use of the country's
reforestation fund, rather than just leaving the fund to be
regulated by presidential decree," Santosa said.

He said the law was needed to ensure that the reforestation
fund was used for environmental purposes only, and that its use
be accountable to the Indonesian House of Representatives.

"This would, at least, become the platform for them (the
United States) to decide whether we deserve the scheme," Santosa
said.

Yesterday, the Agence France Presse reported that the U.S.
House of Representatives had overwhelmingly passed a bill on the
"debt-for-nature swap" scheme, set to help protect rain forests
in countries such as Brazil and Indonesia.

The bill provides for as much as US$325 million to facilitate
"debt-for-nature swaps" with such countries, it said.

The news agency said the Clinton administration supported the
measure, as did a variety of environmental groups. A Senate vote
has not yet been scheduled, it said.

The measure is partly modeled after an existing program called
the Enterprise for the Americas Initiative, which began in 1991
and has thus far resulted in the forgiving of $874 million in
U.S. debts owed by seven Latin American countries.

In return, those countries provided $154 million in
conservation funds.

During a recent fact-finding visit to Indonesia, Marianne
Guerin-McManus, the conservation finance director for
Conservation International, said the scheme would not only reduce
Indonesia's debt burden but also greatly enhance the country's
conservation of natural resources.

The solution, McManus said, would be for Indonesia to swap
U.S. debt for a commitment to bolster its conservation efforts.

"Some debt relief is going to have to come through," McManus
said. "There has to be some debt forgiveness and we would like to
see the opportunity for some to be delivered in rupiah to
conservation (efforts)."

Tropical rain forests have especially been important to the
world's environment because they absorb carbon dioxide and
therefore reduce greenhouse gases.

They are also home to half of the world's known species of
plants and animals, which are increasingly becoming extinct in
countries where development pressure has resulted in rain forest
losses.

Environmentalists estimate that since 1950 half of all
tropical forests have been burned or logged.

Santosa said: "This program puts its emphasis on green issues
which will have a direct impact on the United States. It will be
a mutual symbiosis."

"Especially during this crisis, the government should not miss
such a good opportunity," he said. (aan)