The document discusses Indonesia's plans for economic development under the Master Plan for Acceleration and Expansion of Indonesian Economic Development (MP3EI) and the potential challenges of harmonizing these development goals with the country's targets for reducing greenhouse gas emissions. It notes that Papua's development plans under MP3EI (called MIFEE) focus on resource extraction and processing but may face challenges in meeting environmental sustainability and local welfare goals. The document proposes research on evaluating MIFEE's progress in adopting best practices to reduce impacts, engaging local communities, and analyzing any gaps between development activities and Indonesia's goals to reduce greenhouse gas emissions under its climate change policies.

1. THINKING beyond the canopy
Harmonizing land-based investment (MIFEE)
and GHG reduction policies in Papua
6-7 April 2013, Merauke
Obidzinski K., Komarudin H., Dermawan A., Andrianto A.

2. THINKING beyond the canopy
Objectives
•Stimulate discussion about the relationship between DEV and Climate
Change initiatives in the province
•Ask questions about the ‘gap’ between development targets and ENV
sustainability
•Is there are a ‘gap’? If so, how to bridge? How to harmonize DEV and
ENV agendas?
•Food for thought for Group Discussion
•Identify research needs/areas for CIFOR’s projects

3. THINKING beyond the canopy
Indonesia Today
Source:
McKinsey
2012

4. THINKING beyond the canopy
….and in 2030
Source:
McKinsey
2012

5. THINKING beyond the canopy
MP3EI: quantum leap forward
Source: MP3EI

6. THINKING beyond the canopy
USD 400 bln in overall investment
Kalimantan
Source: MP3EI

7. THINKING beyond the canopy
Emphasis on resource extraction
and processing
Main economic activity Sumatera Java Kalimantan Sulawesi Bali-Nusa
Tenggara
Papua – Kep.
Maluku
Steel  
Food and beverages 
Textile 
Transportation equipment 
Shipping  
Nickel  
Copper 
Bauxite 
Palm oil  
Rubber 
Food agriculture  
Tourism 
ICT 
Coal  
Oil and gas   
Jabodetabek Area 
Sunda Straits National Strategic Area 
Defense equipment 
Animal husbandry 
Timber 
Cocoa 
Fishery   

8. THINKING beyond the canopy
MP3EI Papua
Source: MP3EI

9. THINKING beyond the canopy
MP3EI Papua = MIFEE

10. THINKING beyond the canopy
But there are some challenges
Source:
Strategic Asia
2012

11. THINKING beyond the canopy
… and there are some concerns

12. THINKING beyond the canopy
Calls for a greener approach

13. THINKING beyond the canopy
Steps towards a greener approach
• 26% GHG national emission reduction target, or 41%
with International assistance
• LCGS - Low Carbon Growth Strategy
• RAD-GRK - GH emission reduction action plan
• SRAP REDD+ - Strategy and Action Plan REDD+
• Harmonization of economic development and GHG
emission reduction
KOMPAS: Aspek Lingkungan Diadopsi MP3EI,7 July 2012
BISNIS INDONESIA: MP3EI Usulan konsep ekonomi hijau disambut baik, 12
August 2012
Maybe something from Papua Pos???
BAPPENAS: MP3EI Hijau Tidak Hambat Investasi….. selama ini perusahaan
sudah memiliki rencana bisnis yang ramah lingkungan (greening), 16 Jan
2013

14. THINKING beyond the canopy
“Green Economy”
• Allows for: economic growth but significantly
reduces environmental risks and ecological
scarcities
• Understands that:
• We are reaching limits in our use of the natural
resources
• Environmental and social costs of our current
economic model must be taken into account in
devising future development solutions
• Need for a balance between growth, income,
jobs, environmental quality and equity

15. THINKING beyond the canopy
“Green economy” challenges to
MIFEE in Merauke, Papua
•Since 2007 MIFEE has undergone evolution,
and it still continues…
•Downsizing, staged approach
•What is the current design and how does it
relate to GHG emission reduction policies?
•How does MIFEE respond to national targets
of food and energy security?
•How does MIFEE do for local food security
and welfare?
•What gaps are there and how to help bridge
them?

16. THINKING beyond the canopy
Proposed activities and input into
policy process
•Review of MIFEE “evolution”
•Current state of MIFEE investments under MP3EI
•Examination of investment operations in key
commodities (oil palm, HTI, cassava, sugar cane)
•Analysis of:
•Impacts (social, economic, environmental)
•Community engagement and hak ulayat
• Progress with adoption of best management
practices
•Gap analysis of best management practices vis-à-
vis GHG reduction targets
•Bottlenecks and enabling conditions
•Recommendations and policy options