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USA & Indonesia: Addressing Climate Change & More

Fact Sheet
Bureau of Oceans and International Environmental and Scientific Affairs
Washington, DC

The United States and Indonesia: Partners in Addressing Climate Change, Energy Security, and Clean Development

The United States Government is working with partners in Indonesia to reduce greenhouse gas (GHG) emissions; promote sustainable forest management; improve energy security; support GHG emissions inventories; promote sustainable coral reef management and conservation; and build resiliency to climate change while ensuring continued economic growth and prosperity for its citizens. The following programs exemplify U.S. commitment to support sustainable development in Indonesia.

Promoting Forest Conservation and Sustainable Forest Management

The United States is working with Indonesia, whose forests are among the largest and most biologically diverse in the world, to provide technical, scientific and financial assistance to help reduce deforestation, combat illegal logging and promote sustainable forest management.

Presidents George W. Bush and Susilo Bambang Yudhoyono announced a Memorandum of Understanding on Combating Illegal Logging and Associated Trade in November 2006 under which the two countries are promoting sustainable forest management, improved law enforcement, and markets for legally- harvested timber products. This effort is part of the U.S. President's Initiative Against Illegal Logging launched in 2003.

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The United States and Indonesia have committed to develop a debt-for-nature agreement under the Tropical Forest Conservation Act (TFCA). The United States has set aside nearly $20 million to relieve a portion of Indonesia's debt to the United States upon completion of the agreement, which will generate funds to conserve ecologically- and economically-important forests. Since 2000, the United States has concluded 13 TFCA agreements with countries in Africa, Asia and Latin America-generating $163 million over 10-25 years for tropical forest conservation.

Under the U.S.-sponsored Alliance to Combat Illegal Logging and Promote Certification in Indonesia, the United States and Indonesia pioneered a public-private partnership to reward responsible forest management through the market place, working with the Indonesian private sector, as well as Carrefour, Caterpillar, Goldman Sachs, Home Depot and IKEA, among others. The Alliance has fostered Forest Stewardship Council certification of 466,000 hectares in two East Kalimantan concessions, Southeast Asia's largest certified forest management unit.

The United States government and The Nature Conservancy have launched a $25 million regional alliance - Responsible Asia Forestry and Trade - with Indonesia and other Southeast Asian countries, businesses and environmental groups to increase the supply of and demand for legally-harvested timber.

The United States government is providing financial and technical support to the Heart of Borneo initiative launched in 2007 by the Governments of Indonesia, Malaysia, and Brunei to preserve 220,000 square kilometers of some of the Earth's most biologically-diverse forests on the Island of Borneo.

The United States has funded a range of forest management projects in Indonesia through the International Tropical Timber Organization, whose members account for 80% of the world's tropical forests and 90% of the global tropical timber trade.

Securing Energy for Indonesia's Future

The United States is working with partners in Indonesia to mitigate GHG emissions and invest in renewable energy, energy efficiency, and emissions control technologies.

The U.S.-Indonesia Energy Policy Dialogue, announced by Presidents Bush and Yudhoyono in May 2005, established a dialogue of bilateral working groups on oil and gas, electricity, and coal. These topics, along with energy efficiency and renewables, will be discussed at the next Energy Policy Dialogue meeting in 2008.

The United States is working with Indonesia in the World Trade Organization to advance negotiations for greater market access for environmental technologies, such as renewable energy and emissions control technologies, as well as market access for environmental services.

The United States recently awarded a grant to state-owned gas distributor PT Perusahaan Gas Negara to cooperate on project pre-feasibility analysis and regulatory development to accelerate development of Indonesia's extensive, but largely untapped, coalbed methane resources.

The United States also awarded a grant to PT Perkebunan Nusantara III to fund early investment analysis of a proposed biodiesel processing and energy production plant that would utilize palm oil from an existing plantation in North Sumatra Province and demonstrate environmentally-sustainable biodiesel production methods.

The United States supported AMARTA program is developing a pilot project for small-scale production of bio-fuel from Jatropha curcas (castor oil tree) in Flores, Nusa Tenggara Timur. AMARTA is providing a local producers' cooperative with equipment to press Jatropha seed, producing a kerosene substitute and other valuable compounds. AMARTA is also providing approximately 140,000 Jatropha seedlings, assistance in establishing a nursery, and secondary equipment with which to produce bio-diesel fuel suitable for small engines. Reducing Traffic Congestion The transportation sector poses GHG and air quality concerns, as well as loss of productivity due to traffic congestion. Promoting and supporting public transportation can help reduce traffic congestion and the negative environmental impacts of idling traffic.

The United States government provided the initial funding to the Institute for Transportation and Development Policy for the Livable Communities Initiative to establish TransJakarta, Indonesia's first Bus Rapid Transit (BRT) system. TransJakarta has now reached seven corridors covering 97 kilometers, carrying 200,000 passengers per day, and reducing emissions of urban pollutants and GHGs. It is anticipated to expand to more than 170 kilometers by January 2008, making it the world's largest BRT system. Supporting GHG Emission Inventories GHG emissions inventories are an important first step in measuring and recording current emissions and future emissions reductions. National GHG inventories, a fundamental commitment under the UNFCCC, help a country to plan, implement and assess efforts to reduce its emissions.

The United States government is providing technical and financial assistance to the Regional Capacity Building Program for Sustainable National Greenhouse Gas Inventory Management Systems in seven participating Southeast Asian countries, including Indonesia. To date, participating countries have outlined a three-year project, which will entail preparation of national inventory reports to support future GHG inventories, training of inventory teams, and the involvement of regional and national institutions to improve statistics. Promoting Coral Reef Conservation and Sustainable Fisheries Management Indonesia's coral reefs rank among the largest and most biologically-diverse in the world, forming a substantial part of the "Coral Triangle." The United States is working with Indonesia to provide technical, scientific and financial assistance to help the country reduce the loss of coral reef resources and promote sustainable fisheries management.

The United States government and The Nature Conservancy are working with the national, regional and local governments of Indonesia, communities, local universities, and other local partners to establish networks of marine protected areas that are resilient to "coral bleaching," associated with warming sea surface temperatures and overfishing. Programs are focused in the Raja Ampat region and Wakatobi National Park and incorporate ecosystem-based management into large-scale planning and development efforts to ensure more sustainable fisheries and food security. Building More Resilient Coastal Communities and Practices for Adaptation Coastal areas-dynamic, highly populated areas that face continuing and changing risks-are important for their economic, food security, tourism, and natural resources values. Small islands face unique risks because of their size and exposure to coastal hazards.

The United States government is developing guidance to help communities and coastal managers undertake risk assessments and actions to reduce those risks while enhancing livelihoods at the community level. This project will build on lessons learned during the United States' five-year Sustainable Coastal Communities and Ecosystems (SUCCESS) program, work conducted following the 2004 Tsunami, and other coastal adaptation projects.


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