Investment and Business
Model for Blue Carbon
and Commodities
Fitrian Ardiansyah
Chairman of Executive Board
IDH Indonesia (17.07.2018)

IDH Indonesia & partners
FORESTRYPULP &
PAPER
PALM OIL
COFFEE COCOA
AQUACULTIRE SPICES
CEO/Chairman:
Fitrian Ardiansyah
Commodities & Landscapes:
Program Director:
Zakki Hakim
Managers:
Eka Wijayanti (SPM, Palm Oil)
Mila Nuh (SPM, Papua)
Aris Wanjaya (PM, Forestry, Kal)
Program Officers:
Nadia Ridwan (FOP)
Burhanuddin (Papua)
Landscape Managers:
Riswan (Aceh); Lorens (W. Kal);
Khusnul Zaini (Jambi); Ifran (S.
Sumatra)
Other Commodities:
Program Officers:
Melati (Coffee & Cocoa)
Trini Pratiwi (Aquaculture)
Innovative Finance & Business
Development:
Zakki Hakim
Operations:
Andri Oarto (Director)
Yashinta Wardhani (Finance
Officer)
Yuli Setyawati (PA for
Chairman)
DONORS
PARTNERS
GOVERNMENTS
PRIVATE
SECTOR
CSOsCommunication:
Manager:
Komang Arianti

IMPACT THEMES
Smallholders Deforestation Living wages Agrochemicals Genders
Off-takers
Input materials,
GAPs, systems
Farmers Financiers
Agregators
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3
4
5
Why?
We believe sustainable production and
trade can transform markets for the
benefit of people and the planet.
How?
Approaches & impacts

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2
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4
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10
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Landscapes
1. Aceh;
2. S. Sumatra/
Jambi;
3. W. Kalimantan;
Green Growth
Plans,
30 companies,
peat/forest mgt,
KEE, PPI compacts,
VSA
Palm Oil
2. S. Sumatra/ Jambi; 4. N. Sumatra; 5. Riau; 6.
Sabah; 7. Europe (ESPO);
41,555 ha; 11,425 farmers; Mapping, traceability,
legality, farmer organization, GAP, RSPO certification
0
1
2
3
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5
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8
2013 2014 2015 2016
Invesment(MilEUR)
Year
Financing for Projects
Donor
Private Sector
Total Investment
Coffee
2. S. Sumatra/ Jambi; 8. Lampung; 9. W. Java; 10. E.
Java; ±54,000 ha; 831 kg/ha (>741 natl avg); National
curriculum, GAP, innovative finance, trade links
Timber, Pulp & Paper:
2. S. Sumatra/ Jambi; 3, 11,
12. W., C. & E. Kalimantan;
2.1 mil ha (FSC certified);
1.66 mil ha (in process);
Certification, productivity,
protection
Cocoa
13. Sulawesi;
Leading & supporting CSP
(Cocoa Sustainability
Partnership)
Aquaculture
1. Aceh; 3. W. Kalimantan;
10,000 farmers, innovative finance
Our interventions

Ecohub
Farmers
1 2
3
4
5
Aquaculture model

Village forest model
Village Forest Size:
76,000 HA
Off-takers
Farmers/ Villagers
Financial
institutions
(e.g. Credit
Union)
Village forest
institutions
6-10,000 HA
(COCONUT, TIMBER,
HONEY, CRABS & SHRIMPS)
2,802 ha
(Mangrove)
4,918 ha
Additional Forest Cover (Reforestation & Natural
Regeneration 2015-17: 57,756 ha to 62,674 ha)
393 ha
(Dry Forest)
1,723 ha
(Peat Forest)
IDR 0.7 bil
Revenue: Honey
(in 7 months)
IDR 1.5 bil
Revenue: Coconut
charcoal (in 6 months)

VERIFIED SOURCING
AREA (VSA)
PPI AGREEMENT
Government is key
TANTANGAN BERSAMA
PENGELOLAAN
TATA AIR
KARHUTLA NKT (NILAI
KONSERVASI
TINGGI)
PEMETAAN
PETANI,
MASYARAKAT,
GAP, LEGALITAS
AKSES
PEMBIAYAAN
KOLABORASI
KONSESI &
MASYARAKAT
Images: Flaticon
Key interventions: Green Growth
Plans, PPI (production-protection-
inclusion) compacts with 30
companies, peat/forest
management, KEE (Essential
Ecosystem Area), VSA (Verified
Sourcing Area)
Landscape approach: beyond one supply chain

An AGREEMENTbetween public, private (incl.
farmers/villagers), civil society stakeholders or a
CONCESSIONto enhance the sustainability and
productivity of land and secure community livelihoods in
exchange for forest /natural resources protection.
Protection
Production Inclusion• A landscape governance structure is developed
• Sustainable agricultural production and use of
natural resources are actively contributing to
forest protection
• New sources of funding are mobilized to
support production, protection and inclusion
PPI compact & concessions

Agro//forestry products
ANDGREEN.FUND,
LDNF (LAND DEGRADATION
NEUTRALITY FUND),
SMALLHOLDER FUND, ETC• Total projected financing need
for complete rehabilitation &
replanting key commodities ±
US$ 4billion (e.g. &GreenFund
≈ US$125 million)
• Risk-layering critical to attract
long-term private capital
needed
• Strong protection components
KEY FOR SCALE: supply chain
companies, government of
Indonesia and donors must de-
risk 3rd party financing
Innovative financing: scaling up

Fitrian Ardiansyah
Chairman of Executive Board of IDH Indonesia
Ardiansyah@idhtrade.org
Terima kasih