Home In The News Norway To Pay Indonesia for Moratorium on New Logging Concessions

Norway To Pay Indonesia for Moratorium on New Logging Concessions

By: EW News Desk Team Date: 8 June 2010

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08 June 2010

Indonesia's President, Susilo Bambang Yudhoyono, has announced a two-year moratorium on new logging concessions, part of a deal with Norway

in which Indonesia will receive up to $US1 billion ($1.2 billion) if it adheres to a letter of intent signed by the two countries yesterday.

The initiative was warmly welcomed by environmentalists, as Indonesia is the world's third largest emitter of greenhouse gases,

with 80 per cent of those emissions due to deforestation.

It will put curbs on Indonesian's lucrative palm oil industry and could delay or slow plans for the creation of a huge agricultural estate in Papua province.

Addressing reporters on his way to Oslo, where the deal was signed, Dr Yudhoyono said Indonesia had to balance its needs for economic development with its responsibilities to prevent a rise in carbon emissions,

which the majority of scientists say are responsible for global warming, according to this article in the Sydney Morning Herald.

''Indonesia is really able to maintain its tropical forests, meaning that we maintain the lungs of the world,'' Dr Yudhoyono said, according to the official Antara news agency.

''It is not merely Indonesia but also the rest of the world which will enjoy the fruit.''

As well as felling trees that absorb carbon, deforestation in Indonesia's swampy peatlands releases carbon from the exposed peat as it dries.

It also often leads to huge fires that are very difficult to control and spew out more greenhouse gases.

The rapid expansion of the palm oil sector and granting of million of hectares in new logging concessions in recent years have accelerated deforestation, including in peatlands.

Under the Oslo plan, those concessions will still be able to be logged, but new areas will not be opened up.

Norway will pay the Indonesian government in instalments, and closely monitor whether the forest areas are protected.

Norway's Prime Minister, Jens Stoltenberg, said: ''If there is no reduced deforestation we will not pay; if there is reduced deforestation we will pay.''

Indonesia has a pervasive problem with illegal logging, an activity Dr Yudhoyono has indicated he will cracking down on as part of a broader anti-corruption push.

''We congratulate President [Yudhoyono] on his commitment in Oslo,'' said Bustar Maitar, forests campaigner with Greenpeace Indonesia.

''This is a very large step and shows he is committed to stopping forest deforestation and climate change.''

According to Greenpeace, forests covering the equivalent of 300 football fields are eradicated every hour in Indonesia, which with Malaysia produces 80 per cent of the world's palm oil.

Palm oil is used for cosmetics, fuel and as vegetable oil in many foods such as snacks like chocolate bars and crisps.

While the agreement may threaten plans for a huge agricultural estate in Merauke district in Papua where there are large swampland forests,

the presidential climate adviser, Agus Purnomo, indicated it would still go ahead, telling the Jakarta Globe that ''we will work it out so that there will be no peatlands converted''.

Elfian Effendi of the Indonesian non-government organisation Greenomics said he was sceptical that the plan announced in Oslo could be implemented properly.

''I think the Norway government will be disappointed,'' he said.

''The regents [Indonesian district chiefs] have power over forests. Whatever actions are taken by the central government, the regents will not give their authority to stop deforestation in their area. They will want the money from the new plantations."