RBC FOLU Green Financing Opportunities for Regions: Lessons Learned from South Kalimantan

Sumber Foto: ANTARA Foto/Adeng Bustomi

Efficiency in budget transfers from the central to local governments has encouraged regional authorities to seek alternative funding sources to strengthen regional resilience against the impacts of climate change. In response, South Kalimantan Province has demonstrated a strong commitment to forest and land rehabilitation through the Green Revolution Movement (Gerakan Revolusi Hijau), supported by Result-Based Contribution (RBC) funding to contribute to the national Forestry and Other Land Uses (FOLU) Net Sink 2030 target.

South Kalimantan’s success in securing the RBC FOLU Net Sink 2030 funding is the result of a long journey. Since 2017, the Province has initiated the Green Revolution Movement as a strategy to reduce the extent of critical land within its territory. This program was later formalized under South Kalimantan Provincial Regulation (Perda) Number 7 of 2018 concerning the Green Revolution Movement.

According to Alip Winarto, Head of the Watershed Management (DAS) and Forest and Land Rehabilitation (RHL) Division at the South Kalimantan Provincial Forestry Service, the Green Revolution is a multi-stakeholder collaborative program aimed at increasing the carrying capacity of watersheds while simultaneously improving sustainable community welfare. The program focuses on restoring over 500,000 hectares of critical land, with an annual rehabilitation target of approximately 15,000 hectares.

“This program has successfully addressed hundreds of thousands of hectares of critical land in South Kalimantan, transforming them into green areas that serve as active carbon sinks and driving general environmental quality improvements,” stated Alip Winarto during a public discussion titled “Learning Access and Implementation of RBC FOLU Norway Funds: South Kalimantan Province’s Experience.” The event was held online by PATTIRO and KMS-PE, supported by The Asia Foundation, on Friday (12/11).

This activity is also part of an initiative by PATTIRO to share best practices among provinces regarding their experiences in accessing and implementing RBC FOLU funds.

Provincial Contribution to the FOLU Net Sink 2030 Target

FOLU Net Sink 2030 refers to a state where Indonesia’s forestry and land-use sector achieves higher carbon sequestration levels than the emissions it generates by the year 2030. Indonesia has integrated this target into its national priority programs for climate change mitigation.

The Provincial Government of South Kalimantan has developed a Sub-National FOLU Net Sink 2030 Work Plan (Renja), with an estimated budget requirement of approximately IDR 21.9 trillion to achieve land restoration and emission reduction targets. To leverage Results-Based Contribution (RBC) funding opportunities, the province established a Regional Action Plan for FOLU (RAD-FOLU). This plan is aligned with the Regional Medium-Term Development Plan (RPJMD) and the Forestry Service’s Work Plan, while also being integrated into the National FOLU Net Sink 2030 Action Plan.

The first phase of program intervention prioritizes land inventory, planning for Forest and Land Rehabilitation (RHL) sites, and tree planting in strategic locations. These actions are designed to initiate an increase in carbon sequestration while establishing the site-specific database required for long-term targets through 2030.

Intensive coordination is being maintained with technical units under the Ministry of Environment and Forestry (MoEF/KLHK), such as the Directorate General of Watershed Management and Protected Forests (PDASHL), along with other relevant technical agencies.

Sumber Foto: ANTARA Foto/HO-Dishut Kalsel

RBC Funding Governance and Regional Support

In managing the RBC FOLU Net Sink 2030 funds, the South Kalimantan Provincial Government has established a Provincial FOLU Team, set standard operating procedures (SOPs) for implementation and reporting, and applied Environmental, Social, and Governance (ESG) principles. Transparency in fund management and project progress remains the primary focus to strengthen trust among donor partners.

In addition to RBC support, the South Kalimantan Provincial Government provides co-funding from the Regional Budget (APBD) to support proposal drafting, technical consultations, and the reinforcement of supporting policies, such as Governor Regulations, Governor Decrees, and the formation of coordination teams. These steps are intended to bolster the province’s credibility in the eyes of international donors.

Ecological Funding Opportunities Regions

According to PATTIRO Program Officer, Nurul Tanjung, the RBC FOLU program is an environmental funding opportunity managed by the Environmental Fund Management Agency (BPDLH). The primary funding source comes from the Kingdom of Norway through a results-based contribution scheme for the 2023–2030 period.

Nurul also noted that the absorption of RBC funds remains low to date, despite the significant amount of funds received. “Based on the FOLU Net Sink 2030 Project Financial Report released by BPDLH, the RBC grant funds received in 2024 reached approximately IDR 2.91 trillion, yet expenditure absorption stands at only about IDR 282 billion (±9.7%) for NC-1, NC-2, and NC-3 activities,” Nurul explained.

The discussion was also attended by Burhan, Head of the Forest Planning and Utilization (PPH) Division at the West Nusa Tenggara (NTB) Provincial Environment and Forestry Service (DLHK), and M. Agus Farhan, a Planning Functional Officer at the Banten Provincial DLHK, both of whom are currently exploring access to RBC FOLU funding.

Burhan stated that the NTB Provincial Government is currently preparing a proposal for RBC FOLU funding. NTB Province has already established several Forest and Land Rehabilitation (RHL) policies and practices developed with a food security approach, particularly in forest areas classified as critical land or open forest areas. These RHL activities implement agroforestry or mixed-garden patterns, which are deemed capable of providing both ecological and economic benefits to the community.

According to him, this mixed-planting approach has become part of a cross-sectoral strategy in NTB—not only for land restoration and emission reduction but also as an effort toward disaster mitigation, poverty alleviation, and strengthening food security, particularly on Lombok Island.

Meanwhile, M. Agus Farhan explained that the Banten Provincial DLHK is currently exploring potential collaborations with universities to draft proposals for accessing RBC FOLU funding.

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