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QUARTERLY REPORT USAID LESTARI FIRST QUARTER OF YEAR 2 WORK PLAN October 1 December 31, 2016 This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech ARD.

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QUARTERLY REPORT

USAID LESTARI FIRST QUARTER OF YEAR 2 WORK PLAN October 1 – December 31, 2016

This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech ARD.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | ii

This publication was prepared for review by the United States Agency for International Development under Contract # AID-497-TO-15-00005. The period of this contract is from July 2015 to July 2020. Implemented by:

Tetra Tech P.O. Box 1397 Burlington, VT 05402

Tetra Tech Contacts:

Reed Merrill, Chief of Party [email protected] Matthew Edwardsen, Project Manager [email protected]

Cover Photograph: From left to right: National Essential Oils Conference at which LESTARI facilitated a Zero Deforestation Pledge with multi-stakeholders; Local community identify village’s environmental and cultural values, existing threats, and action to be taken during community meeting in Lawe Cimanok Village, Aceh Selatan; Orangutan release in Sebangau National Park facilitated by LESTARI, BKSDA Kalteng, and national park staff.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 3

QUARTERLY REPORT

USAID LESTARI

October 1 – December 31, 2016

DISCLAIMER

This publication is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this publication are the sole responsibility of Tetra Tech ARD and do not necessarily reflect the views of USAID or the United States Government.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 4

TABLE OF CONTENTS Acronyms and Abbreviations ............................................................................................ 5

Executive Summary ............................................................................................................ 7

Ringkasan Eksekutif ......................................................................................................... 11

LESTARI Program Activities ............................................................................................ 16

Technical Theme 1: Forest & Land Use Governance & Advocacy ................................................ 16 LESTARI 1 – Awareness and Advocacy ........................................................................................... 16 LESTARI 2 – Operationalize Strategic Environmental Assessments (SEAs) and Landscape Conservation Plans (LCPs) to Improve Land Use Governance ....................................................... 22 LESTARI 3 – Sustainable Landscape Governance .......................................................................... 30

Technical Theme 2: Conservation Co-Management ....................................................................... 36 LESTARI 4 – Improved Forest Management Through Co-Management ......................................... 36 LESTARI 5 – Protected Area Management ...................................................................................... 41

Technical Theme 3: Private Sector Engagement ............................................................................. 48 LESTARI 6 – Green Enterprises ....................................................................................................... 48 LESTARI 7 – Private Sector Best Management Practices (BMPs) .................................................. 53 LESTARI 8 – Innovative Financing for Sustainable Land and Forest Management ........................ 56

Project Coordination, Management, and Communications ........................................... 59

Coordination and Management ......................................................................................................... 59

Communications ................................................................................................................................. 61

Monitoring and Evaluation ............................................................................................... 68

Grants Fund ...................................................................................................................... 69

National Initiatives ............................................................................................................ 72

Landscape Initiatives ........................................................................................................ 74

Leuser Landscape ............................................................................................................................. 75 Katingan-Kahayan Landscape .......................................................................................................... 77 Lorentz Lowlands Landscape ........................................................................................................... 79 Mappi-Bouven Digoel Landscape ..................................................................................................... 81 Sarmi Landscape .............................................................................................................................. 83 Cyclops Landscape ........................................................................................................................... 85 Papua Provincial Initiatives ............................................................................................................... 87

Appendix 1: LESTARI Progress Matrix – First Quarter FY 2017 .................................................... 88

Appendix 2: LESTARI Results Framework ....................................................................................... 93

Appendix 3: Staffing Plan ................................................................................................................... 94

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ACRONYMS AND ABBREVIATIONS AMEP Activity Monitoring and Evaluation Plan ASEAN Association of Southeast Asian Nations ATR Ministry of Agrarian Affairs and Spatial Planning BAPPENAS Ministry of National Development Planning BIG Geospatial Information Agency BCC Behavior Change Communication BKPRD Regional Spatial Planning Coordination Agency BKSDA Nature Conservation Agency BMP Best Management Practice BRG National Peatland Restoration Agency CA Conservation Area (National Park, Wildlife Reserve, Nature Reserve, or Tourist Park) CBO Community Based Organization CBS Constituency Building Strategy CCLA Community Conservation and Livelihood Agreement CLA Collaborating, Learning, and Adapting CMMP Conservation Management and Monitoring Plan COP Chief of Party CSO Civil Society Organization DAK Special Budget Allocation Fund DAU Regular Budget Allocation Fund DCOP Deputy Chief of Party DSC Destination Stewardship Council FIP Forest Investment Program FMU Forest Management Unit (or KPH) FPIC Free, Prior, and Informed Consent FSC Forest Service Council GFW Global Forest Watch GHG Greenhouse Gas GOI Government of Indonesia HCS High Carbon Stock HCV High Conservation Value ICCTF Indonesia Climate Change Trust Fund ICT Information and Communication Technologies IDIQ Indefinite Delivery, Indefinite Quantity contracting mechanism IFACS Indonesia Forestry and Climate Support Project IPCC Intergovernmental Panel on Climate Change ISCC International Sustainability and Carbon Certification ISPO Indonesian Sustainable Palm Oil Foundation KADIN Indonesian Chamber of Commerce KfW German Development Bank KLHK Ministry of Environment and Forestry KM Knowledge Management LCP Landscape Conservation Plan LEDS Low Emission Development Strategy LOP Life of Project LTTA Long-Term Technical Assistance

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LULUCF Land Use, Land Use Change, and Forestry M&E Monitoring and Evaluation METT Management Effectiveness Tracking Tool MIS Management Information System MOU Memorandum of Understanding MRV Monitoring, Reporting, and Verification MSF Multi-Stakeholder Forum MSU Michigan State University MTD Monthly Thematic Discussion NGO Non-governmental Organization NP National Park NRM Natural Resource Management NTFP Non-Timber Forest Product P3 Policies, Plans, and Programs PA Protected Area PCN Project Concept Note PDD Project Design Document PES Payment for Environmental Services PHKA Directorate General of Forest and Nature PPP Public-Private Partnership RDMA Regional Development Mission for Asia RDTR Detailed Spatial Plan / Rencana Detail Tata Ruang REC Review and Evaluation Committee REDD+ Reducing Emissions from Deforestation and Forest Degradation,

including conservation, sustainable management of forests, and enhancement of forest carbon stocks

REL Reference Emission Level REPLACE Restoring the Environment through Prosperity, Livelihoods and

Conserving Ecosystems RFTOP Request for Task Order Proposal RKT Provincial Development Plan RPJM District Development Plan RPJMD Regional Development Plan RPJMDes Village-level Development Plan RSPO Roundtable on Sustainable Palm Oil RTRWK District Spatial Plan RTRWP Provincial Spatial Plan SDI Spatial Data Infrastructure SEA / KLHS Strategic Environmental Assessment SMART Spatial Monitoring and Reporting Tool SP Spatial Planners STI Sustainable Travel International STTA Short-Term Technical Assistance TBI The Borneo Initiative TFA Tropical Forest Alliance UKCCU UK Climate Change Unit UNPAR University of Palangkaraya USAID United States Agency for International Development USDA United States Department of Agriculture USDOI United States Department of the Interior USFS United States Forest Service USG United States Government WCS Wildlife Conservation Society WDC Washington, DC WWF World Wildlife Fund

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EXECUTIVE SUMMARY This Quarterly Progress Report (QPR) summarizes the activities and achievements of the USAID LESTARI project during Year 2, Quarter 1 – October 1, 2016 to December 31, 2016. Based on feedback from USAID, this QPR follows a new, condensed format. The progress this quarter is primarily discussed within the Technical Themes section under each relevant Strategic Approach. It is explained in an integrated manner, including both the technical approach (Theory of Change) as well as the concrete progress per landscape. Matrices are presented to complement the text and provide landscape-specific data, updates, and achievements. The landscape sections are now scaled down, containing maps indicating areas of field activities and a short, bulleted list of key activities and achievements in that landscape over the previous quarter. This new format is expected to reduce overlap between the technical and landscape sections, hence communicating project progress in a more efficient manner to USAID, GOI, and project partners. As with previous QPRs, there are dedicated sections on Project Coordination, Management, and Communications; Monitoring and Evaluation; Grants Fund; and National Initiatives. Appendices at the end of the report include a Year 2, Quarter 1 Progress Matrix, LESTARI Results Framework, and an updated staffing plan.

PROGRESS THIS QUARTER Heading into the first quarter of the second year of LESTARI, emphasis was placed on scaling up the range of existing field activities and operationalizing key assessments across all three technical themes in order to amplify impact and achieve project results. The LESTARI team also focused on building synergies between technical themes and creating a vision among staff and partners for a landscape approach. All LESTARI activities were consistent with the respective Theory of Change (ToC) under each Strategic Approach and will ultimately contribute to the project’s primary two goals: 41% reduction in GHG emissions from forest and land use sectors and 8.42 million hectares of forest, including orangutan habitat, under improved management. In line with LESTARI’s ToC, it is expected that these outcomes will create the enabling conditions necessary to ultimately achieve the two overarching goals. A detailed Year 2 LESTARI Work Plan was submitted, revised according to USAID inputs, and subsequently approved. It has been shared widely among all LESTARI partners. Notably, more clearly defined activities in the Year 2 Work Plan reduce the reliance on project-based SOWs and ensure more routine, technical content-driven work. In support of awareness and advocacy efforts, major highlights included: (1) a Blogger Gathering in Aceh to communicate the importance of conserving the Leuser ecosystem as well as the threats it is currently facing; (2) a Youth Voice event in Central Kalimantan to raise awareness on integrated fire and land management and peatland restoration and inspire the next generation of environmental champions; (3) a draft Zero Deforestation Pledge facilitated during the National Conference on Essential Oils. Work on SEA / LCP operationalization progressed through the new regional environmental regulation in Aceh Selatan, the updated SEA for revision of Central Kalimantan’s spatial plan as well as incorporation of the RPJMD SEA recommendations in sectoral strategic plans (RENSTRA), and updated SEA in Mimika to emphasize the recognition of traditional areas

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and prevention of conversion of land adjacent to mangrove areas in the revision of the district spatial plan. In the Katingan-Kahayan Landscape, the technical working group (Tim 9) of the Pulang Pisau MSF conducted field visits related to integrated fire and land management. Tim 9 welcomed assurances that any LESTARI support requested by local government to construct a demonstration set of compacted peat dams would be preceded by free prior and informed consent (FPIC) compliant with USAID and BRG guidelines. This quarter marked the expansion of LESTARI community facilitation for ensuring sustainable forest stewardship through co-management and sustainable livelihoods through ensuring the integration of such a vision into RPJMDes and village zonation. The LESTARI team finalized the initiative in 3 pilot villages in the Leuser Landscape and 5 villages in the Katingan-Kahayan Landscape. In Cyclops Landscape, the team completed community mapping in 12 villages in and around Cyclops Nature Reserve, which will be used to inform CA management. The team has also completed a socio-cultural survey in Sereh village to be utilized as a baseline for sustainable livelihoods and co-management initiative in the village. LESTARI also successfully facilitated several communities in its landscapes to submit applications and subsequently receive social forestry permits. In the Katingan-Kahayan Landscape, four villages in Banama Tingang Subdistrict (Pulang Pisau) have obtained Village Forest Permits, which cover 2,016 hectares of forest area. The permits were handed over by President Jokowi during his visit to Pulang Pisau District. LESTARI streamlined its support for the development and operationalization of several targeted Forest Management Units in LESTARI Landscapes and ensured the linkage of FMU initiatives at the local level with provincial and national level initiatives. An STTA was mobilized to carry out the FMU assessment and design institutional and capacity building activities. The assessment has been completed in FMU III, V, and VI in Leuser Landscape and will be continued in the next quarter in Lorentz Lowlands and Katingan-Kahayan Landscapes. This quarter also marked the deepening of LESTARI-MoEF programmatic synergy, particularly with LESTARI’s main counterpart, Directorate of Conservation Area (KK). The LESTARI team facilitated participatory discussions with all conservation area managers to develop and agree upon joint annual work plans (RKT) to ensure the achievement of priority targets. In this quarter, RKT have been completed and signed by LESTARI Bukit Baka Bukit Raya National Park, Sebangau National Park, BKSDA Aceh, BKSDA Papua, and Lorentz National Park. In support of improved CA management, SMART Patrols have been initiated in almost all CAs in LESTARI landscapes. In Leuser Landscape, there are 7 SMART Patrol teams carrying out routine patrolling activities in Gunung Leuser National Park and Rawa Singkil Nature Reserve. SMART Patrol training and testing has been carried out in CAs in other LESTARI landscapes with rollout expected within the next quarter. In conjunction, a Wildlife Conservation Unit (WCU) has been active in carrying out investigations targeting wildlife trafficking and marketing in the Leuser Landscape. In collaboration with park staff and the police department, the team supported law enforcement efforts and also closely monitored the court processes of 9 cases. 3 cases have been finalized, and the perpetrators are being prosecuted. Implementation of the PPP For Organic Cacao in Aceh with PT Kampung Kearifan Indonesia continued in Aceh Selatan, Gayo Lues, and Aceh Tenggara Districts. Activities focused on providing technical assistance at the demoplots while strengthening the institutional capacity

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of farmers through the Internal Control System (ICS). A second PPP for nutmeg is currently under finalization with private sector partner PT Givaudan. In support of private sector Best Management Practices, the LESTARI team continued focusing on preparations for Reduced Impact Logging to Reduce Carbon Emissions (RIL-C) training with HPHs in the Katingan-Kahayan and Sarmi Landscapes. The LESTARI team has conducted a baseline analysis with all of the engaged HPHs to identify the current condition of their RIL implementation and develop a list of items that need to be fulfilled by each HPH prior to receiving training. For ecotourism, the LESTARI team identified priorities for pilot development within Leuser (Gayo Lues and Aceh Selatan) and Katingan-Kahayan (TN Sebangau and TN Bukit Baka Bukit Raya) Landscapes. Moving forward, this work will focus on engaging with government and community stakeholders both on fostering enabling conditions for ecotourism as well as pilot site development at the field level. Led by LESTARI team member PT Hydro (South Pole Carbon), a PES toolkit was developed and is currently under finalization. A series of meetings were held at the national and landscape levels to receive inputs on the toolkit. The toolkit will be tested against a number of selected PES potentials within LESTARI landscapes with the final product to be launched in one of the landscapes. The Grants mechanism remained active throughout the quarter, with grants under robust implementation for orangutan conservation in Leuser (G-002) and Katingan-Kahayan (G-003) Landscapes and co-management and sustainable livelihoods initiatives in South Aceh (G-004). Notably, LESTARI grantee BOSF released 19 rehabilitated orangutans in Bukit Baka Bukit Raya National Park. Throughout this quarter, LESTARI senior staff provided support and mentoring to staff and partners in the landscapes, enhancing their capacities to deliver impactful sustainable landscapes and biodiversity conservation work. LESTARI senior management also engaged regularly with subcontractors to ensure efficiency and effectiveness of technical support to the project. A successful LESTARI senior management meeting was held in December together with landscape coordinators from each landscape to address big picture issues including: (1) A clear understanding of the ‘landscape approach’; (2) Map out where we will achieve the ambitious LESTARI targets; and (3) Develop a clear strategy to engage stakeholders and chart out resources that are needed.

LESTARI maintained clear and routine communication with USAID through weekly meetings and field visits. LESTARI facilitated a visit to the Katingan-Kahayan Landscape by USAID/Indonesia Mission Director and Environment Office staff, which included a tour of LESTARI Grantee BOSF work on orangutan conservation, meeting with Bupati/MSF Pulang Pisau, visiting agroforestry site of LESTARI Champion Pak Taman, and attending the MSU-UMP-UPR carbon MRV training event. Finally, LESTARI communications, advocacy, and knowledge management efforts were dynamic and cross-cutting throughout the quarter, effectively documenting and disseminating key issues and project achievements through the LESTARI Journal, Briefs, Stories From the Field, Making a Difference, short videos, LESTARI website, and social media outlets.

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Figure 1. LESTARI Landscapes Map

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RINGKASAN EKSEKUTIF Laporan Triwulan (QPR) ini meringkas berbagai aktivitas dan prestasi Proyek USAID LESTARI selama triwulan pertama di tahun kedua periode 1 Oktober-31 Desember 2016. Berdasarkan masukan dari USAID, QPR ini ditulis dengan merujuk sebuah format baru yang lebih padat. Kemajuan-kemajuan di triwulan ini didiskusikan di bagian Tema Teknis yang dibagi berdasarkan relevansi ke Pendekatan Strategis. Laporan dijabarkan secara padat dengan menggabungkan pendekatan teknis (Theory of Change) yang digunakan dengan kemajuan konkret di lanskapnya. Matriks disajikan untuk melengkapi teks dan menunjukkan berbagai data, pembaharuan, dan prestasi di lanskap. Sekarang, bagian lanskap di laporan ini diperkecil untuk memuat peta-peta area kerja LESTARI dan lis pendek tentang aktivitas utama di lanskap tersebut selama triwulan sebelumnya. Format baru ini diharapkan dapat mengurangi tumpang tindih antara konten-konten di bagian teknis dan lanskap sehingga mampu mengkomunikasikan kemajuan proyek secara lebih efisien kepada USAID, Pemerintah Indonesia, dan mitra-mitra proyek. Layaknya Laporan Triwulan sebelumnya, ada bagian-bagian khusus yang didedikasikan bagi tema Koordinasi Proyek, Manajemen, dan Komunikasi; Monitoring and Evaluasi; Dana Hibah; dan Inisiatif Nasional. Lampiran di akhir laporan memuat Matriks Kemajuan di Tahun 2 Triwulan 1, LESTARI Results Framework, dan rencana kepegawaian yang dimutakhirkan.

KEMAJUAN TRIWULAN INI Di triwulan pertama tahun kedua, LESTARI menitikberatkan pengembangan jenis kegiatan di lapangan dan operasionalisasi asesmen-asesmen utama di seluruh tema teknis untuk meningkatkan dampak dan pretasi proyek. Tim LESTARI juga memfokuskan pada penguatan sinergi antara tema-tema teknis dan menciptakan visi bersama untuk staf dan mitra bagi pendekatan lanskap. Semua aktivitas LESTARI dirancang dengan merujuk Theory of Change (ToC) di setiap Pendekatan Strategisnya sehingga diharapkan dapat berkontribusi pada dua tujuan utama LESTARI: pengurangan GRK dari sektor kehutanan dan penggunaan lahan sebesar 41% dan pengalokasian 8,42 juta hektar hutan termasuk habitat orang hutan ke dalam program perbaikan pengelolaan. Diaplikasikan berdasarkan ToC, diharapkan bahwa hasil-hasil proyek ini pada akhirnya akan dapat mencapai kedua tujuan besar tersebut. Rencana Kerja Tahun 2 LESTARi diserahkan, direvisi berdasarkan input USAID, dan kemudian disetujui. Rencana kerjanya telah disebarkan ke semua mitra LESTARI. Perlu diingat, aktivitas-aktivitas yang dijabarkan secara rinci di Rencana Kerja Tahun 2 mengurangi SOW berbasis proyek dengan menjamin adanya aktivitas rutin dengan bobot teknis. Dalam rangka mendukung upaya advokasi dan kampanye, beberapa kegiatan patut digarisbawahi : (1) pertemuan blogger di Aceh untuk mensosialisasikan pentingnya ekosistem Leuser dan sekaligus ancaman-ancaman yang dihadapainya saat ini, (2) kegiatan Youth Voice di Kalimantan Tengah untuk meningkatkan kesadaran pengelolaan kebakaran hutan dan lahan dan restorasi lahan gambut sehingga dapat menginsipirasi generasi penerus agar menjadi penjaga lingkungan, (3) perancangan draf ikrar Zero Deforestation saat Konferensi Minyak Atsiri Nasional. Operasionalisasi KLHS/LCP telah meniti kemajuan dengan (1) dibuatnya peraturan-peraturan lingkungan baru di Aceh Selatan, (2) digunakannya KLHS yang telah

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dimutakhirkan bagi revisi rencana tata ruang Provinsi Kalimantan Tengah dan digabungkannya rekomendasi RPJMD dan KLHS di RENSTRA, dan (3) dibuatnya KLHS paling mutakhir di Mimika yang menitikberatkan pengakuan kawasan-kawasan tradisional dan pencegahan alih guna lahan di kawasan sekitar hutan bakau yang telah tertera di rencana tata ruang daerah. Di Lanskap Katingan-Kahayan, tim kerja teknis (Tim 9) MSF Pulau Pisang telah mengadakan kunjungan lapangan terkait pengelolaan kebakaran hutan dan lahan yang terintegrasi. Tim 9 mendapatkan kepastian bahwa semua dukungan LESTARI yang diminta oleh pemda untuk demonstrasi pembangunan bendungan ringkas akan didahului oleh prinsip sukarela (FPIC), sesuai dengan panduan USAID dan BRG. Triwulan ini juga ditandai dengan diadakannya ekspansi usaha fasilitasi komunitas oleh LESTARI untuk menjamin penjagaan hutan lewat pengelolaan bersama (co-management) dan mata pencaharian berkelanjutan yang telah diintegrasikan di RPJMDes dan zonasi desa. Tim LESTARI telah menyelesaikan proyek percobaan dari inisiatif tersebut di 3 desa di Lanskap Leuser dan 5 desa di Lanskap Katingan-Kahayan. Sedangkan di Lanskap Cyclops, LESTARI telah menyelesaikan pemetaan 12 desa yang terletak di sekitar kawasan Cagar Alam Cyclops yang dapat memberikan informasi yang berguna bagi usaha konservasi area tersebut. Tim LESTARI juga telah merampungkan sebuah survey sosial-budaya di Desa Sereh yang dapat dimanfaatkan sebagai rujukan bagi inisiatif mata pencaharian berkelanjutan dan pengelolaan bersama di desa tersebut. LESTARI juga berhasil membantu beberapa komunitas untuk mengajukan izin perhutanan sosial di lanskapnya masing-masing. Di Lanskap Katingan-Kahayan, empat desa di Kecamatan Banama Tingan, Kabupaten Pulau Pisang, telah mendapatkan Izin Hutan Desa yang mencakup kawasan hutan seluas 2.016 hektar. Izin tersebut diberikan langsung oleh Presiden Jokowi saat kujungannya ke Pulau Pisang. LESTARI terus berusaha menyempurnakan dukungannya bagi pengembangan dan operasionalisasi KPH yang berada di lanskap-lanskap LESTARI dan menjamin adanya keterkaitan antara inisiatif-inisiatif KPH tersebut di tingkat lokal dengan inisiatif-inisiatif tingkat provinsi dan nasional. Sebuah Bantuan Jangka Pendek (STTA) telah dikerahkan untuk mengadakan asesmen KPH dan merancang berbagai kegiatan capacity building. Asesmen tersebut telah diselesaikan di KPH III, V dan VI di Lanskap Leuser dan akan dilanjutkan di Lanskap Lorentz Lowlands dan Katingan-Kahayan pada triwulan selanjutnya. Triwulan ini juga ditandai dengan menguatnya sinergi antara program-program LESTARI dan KLHK terutama dengan mitra utama LESTARI yaitu Direktorat Kawasan Konservasi (KK). Tim LESTARI memfasilitasi diskusi partisipatoris dengan semua pengelola kawasan konservasi untuk mengembangkan dan menyetujui Rencana Kerja Tahunan (RKT) bersama dalam rangka menjamin pencapaian target-target prioritas. Pada triwulan ini, RKT telah selesai dirancang dan telah ditandatangani oleh LESTARI, TN Bukit Baka, Sebangau, BKSDA Aceh, BKSDA Papua, dan TN Lorentz. Untuk mendukung perbaikan pengelolaan area konservasi, LESTARI menginisiasikan SMART Patrol hampir di semua area konservasi di lanskap-lanskap LESTARI. Di Lanskap Leuser, terdapat tujuh tim SMART Patrol yang secara rutin mengawasi Taman Nasional Gunung Leuser dan Cagar Alam Rawa Singkil. Pelatihan dan uji coba tim SMART Patrol di lanskap-lanskap LESTARI lainnya telah diadakan dan diharapkan dapat beroperasi pada triwulan selanjutnya. Selain itu, sebuah Unit Konservasi Fauna (WCU) juga mulai meluncurkan investigasi perdagangan hewan di Lanskap Leuser. Berkolaborasi dengan pegawai taman nasional dan

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kepolisian, sebenarnya tim WCU membantu upaya penegakan hukum dan pengawasan proses pengadilan 9 kasus terkait. Tiga kasus telah ditutup dan pelakunya telah dihukum. Implementasi Kemitraan antara Pemerintah dan Swasta (PPP) bagi industri cokelat di Aceh dengan PT Kampung Kearifan Indonesia dilanjutkan di Aceh Selatan, Gayo Lues, dan Kabupaten Aceh Tenggara. Kegiatan-kegiatan yang diadakan terfokus pada pemberian bantuan teknis di daerah peragaan dan peningkatan kapasistas institusional petani dengan Internal Control System (ICS). Saat ini, PPP kedua dengan PT Givaudan bagi industri pala sedang berada di tahap akhir. Dalam rangka mendukung penerapan Praktik Pengelolaan Terbaik (BMP) oleh pihak swasta, tim LESTARI memfokuskan pada persiapan pelatihan Reduced Impact Logging to Reduce Carbon Emissions (RIL-C) dengan HPH di Lanskap Katingan-Kahayan dan Sarmi. Tim LESTARI telah mengadakan analisis awal dengan seluruh HPH terkait untuk mengidentifikasi kondisi implementasi RIL saat ini dan mengembangkan lis hal-hal yang perlu dipenuhi oleh setiap HPH sebelum mendapatkan pelatihan. Bagi ekowisata, Tim LESTARI telah mengidentifikasi prioritas bagi pengembangan proyek percobaan di Lanskap Leuser (Gayo Lues dan Aceh Selatan) dan Katingan-Kahyaan (TN Sebangau dan TN Bukit Baka). Selanjutnya, LESTARI akan menjalin kerjasama dengan pemerintah dan pihak-pihak terkait lainnya untuk membangun kondisi yang kondusif bagi realisasi ekowisata dan program percobaan di lapangan. Dipimpin oleh salah satu anggota tim LESTARI, PT Hydro (South Pole Carbon), sebuah rangkaian alat Pembayaran Jasa Lingkungan (PJL/PES) telah dikembangkan dan sedang berada di tahap akhir. Serangkaian pertemuan telah diadakan di tingkat nasional dan lanskap untuk mengumpulkan masukan bagi pengembangan alat tersebut. Alat tersebut akan diuji coba terhadap beberapa PJL potensial dalam lanskap-laskap LESTARI dengan produk akhirnya akan diluncurkan di salah satu lanskap. Mekanisme Dana Hibah juga tetap aktif selama triwulan ini dengan dana hibah paling besar dialokasikan bagi konservasi orang utan di Lanskap Lesuer (G-002) dan Katigan-Kahayan (G-003) dan bagi pengelolaan bersama dan mata pencaharian berkelanjutan di Aceh Selatan (G-004). Patut diingat bahwa penerima dana hibah LESTARI, BOSF, telah berhasil melepasliarkan 19 orang utan yang telah direhabilitsi di TN Bukit Baka. Selama triwulan ini, staf senior LESTARI juga memberikan dukungan dan mentoring bagi staf lain dan mitra di lanskap sehingga meningkatkan kemampuan mereka dalam merealisasikan lanskap yang berkelanjutan dan mengkonservasi keanekaragaman hayati. Pihak manajemen senior LESTARI juga secara rutin menjalin hubungan dengan subkontraktor untuk menjamin efisiensi dan efektivitas dari dukungan teknis yang diberikan bagi proyek ini. Sebuah pertemuan manajemen senior diadakan pada bulan Desember yang ikut dihadiri oleh koordinator dari setiap lanskap dalam rangka memecahkan berbagai isu penting termasuk: (1) penyeragaman pemahaman mengenai “pendekatan lanskap”, (2) identifikasi di mana kita akan mencapai target-target ambisius LESTARI, dan (3) pengembangan strategi rinci mengenai bagaimana cara menjalin hubungan dengan berbagai pemangku kepentingan dan sumber daya apa saja yang dibutuhkan. LESTARI juga menjalin komunikasi yang jelas dan rutin dengan USAID lewat pertemuan mingguan dan berbagai kunjungan lapangan. LESTARI memfasilitasi kunjungan lapangan ke Lanskap Katingan-Kahayan bagi USAID/staf Direktur Misi Indonesia dan Kantor Lingkungan yang termasuk tur ke konservasi orang utan oleh salah satu penerima hibah

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LESTARI, BOSF; pertemuan dengan Bupati/MSF Pulau Pisang; kunjungan ke lahan agroforestry milik salah satu Champion LESTARI, Pak Taman; dan kunjungan ke kegiatan pelatihan MSU-UMP-UPR karbon MRV. Terakhir, upaya komunikasi, advokasi, dan manajemen pengetahuan yang bersifat dinamis juga menghiasi triwulan ini dengan secara efektif mendokumentasi dan menyebarkan isu-isu penting dan prestasi LESTARI lewat LESTARI Journals, Briefs, Stories From the Field, Making a Difference, video-video pendek, laman internet, dan media sosial.

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Figure 2. Peta Lanskap LESTARI

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LESTARI PROGRAM ACTIVITIES During this first quarter of Year 2, the LESTARI team focused on scaling up the range of existing field activities and assessments launched within Year 1 across all three technical themes in order to amplify impact and achieve targets. All LESTARI program activities continued to be consistent with the respective Theory of Change (ToC) under each Strategic Approach and will ultimately contribute to the project’s primary two goals: 41% reduction in GHG emissions from forest and land use sectors and 8.42 million hectares of forest, including orangutan habitat, under improved management. These two key indicators are supported through lower level targets aimed at improving land use governance and forest management (See Appendix 2 – Results Framework). In line with LESTARI’s ToC, it is expected that these outcomes will create the enabling conditions necessary to ultimately achieve the two overarching goals. The Quarter 1, Year 2 progress under each Technical Theme is presented in this section, along with implementation challenges and opportunities and next quarter priorities. The full ToC stream, including current areas of progress, are also presented for each Strategic Approach.

TECHNICAL THEME 1: FOREST & LAND USE GOVERNANCE & ADVOCACY

LESTARI 1 – Awareness and Advocacy

Progress This Quarter

As in previous quarters, awareness and advocacy operated on various fronts ranging from web-based and media outlets to mobilizing local government, community, and academic stakeholder support for improved land management.

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Shared Visualization of Improvements to Landscape Governance. A significant first step was taken towards not only envisioning but also visualizing the benefits of economic and green land use in LESTARI peatland landscapes. An improved storyboard was presented to a technical working group (Tim 9) of the Pulang Pisau MSF known as Forum Hapakat Lestari. Expanded Social Media Impact. Social media outlets were promoted in support of LESTARI landscapes (see Communications section). One of the more notable achievements was a “Blogger Gathering” to promote the Leuser ecosystem and raise awareness regarding the threats it faces. During the workshop, bloggers, social media activists, and media campaigners created a special hashtag #CareLeuser aimed at inspiring a younger audience to become more aware about the value of the Leuser Landscape and the importance of conservation. Enhanced Journalist Capacity and General Media Capacity. Journalistic and media capacity in support of LESTARI landscapes continued to be a focus of awareness and advocacy work during this quarter. Following up the blogger gathering, the LESTARI team continued to work more closely with local journalists and interested citizen journalists through an FGD approach, including the setting of a media agenda for action. A Youth Voice (Pemuda Bicara) public awareness event was held in Central Kalimantan in collaboration with Indonesia Nature Film Society (INFIS), Mongabay Indonesia, WWF, Borneo Orangutan Survival Foundation (BOSF), media, and the youth community to raise awareness and inspire action on conservation and climate change issues under the title Youth Voice for Environment, Culture, and Disaster Preparedness in Tambun Bungai Land (Pemuda Bicara Untuk Lingkungan, Budaya dan Siaga Bencana di Bumi Tambun Bungai. The main themes were fire, land, and water management and peatland restoration. In addition to inspiring the next generation of environmental champions, the event also intended influence policymakers. Communication and media outreach for orangutan reintroduction to Bukit Baka Bukit Raya National Park was conducted to coincide with World Fauna Day. Communication Products Aimed at Awareness Raising. The Stories from the Field series continued with various publications posted on the LESTARI website and shared via email blast. The purpose was to raise awareness on how ordinary people are mobilizing to mitigate climate change and increase biodiversity conservation in LESTARI landscapes. Moreover, a series of shorter Making a Difference (MaD) publications were initiated that highlight LESTARI-supported actions that will have a lasting impact beyond the lifetime of the project through government planning and policy changes in particular. The complete list of communication products produced and disseminated during this quarter is presented in the Communications section of this QPR. LESTARI Scientific Journal, Vol. 1. To wide acclaim, the first edition of the LESTARI journal was launched. Consisting of articles related to improved peatland fire and related land and water management, the gathered knowledge focused most on prevention of environmental degradation through funding, policy, and planning opportunities. Other Opportunities. At the international forest certification conference (PEFC) moderated by CIFOR, LESTARI was invited to be a member of an expert panel to present information on the landscape-based approach to improved land management. The well-received contribution concluded with a five-point approach, ranging from initiatives to increase collaboration and coordination among the diverse set of land users in the landscape to the importance of establishing credible and transparent metrics for tracking the impact of landscape-based approaches to increase accountability and informative replicable models.

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During the National Conference on Essential Oils on October 2016 in Banda Aceh, LESTARI facilitated a draft multi-sector Zero Deforestation Pledge. Signatories of the pledge included 96 private companies, 59 community organizations, 31 universities/academia, Bappeda Aceh, Aceh Selatan Forestry Office, and LESTARI. The pledge dictates that signatories shall not engage in any activity under the Indonesian essential oils sector that contributes to deforestation. Moreover, the pledge commits signatories to relevant actions in support of 4 key areas: (1) utilizing green industry processes, (2) developing sustainable supply chains, (3) supporting alternative technologies that promote natural resource conservation, and (4) triggering green policies that enhance competitiveness. According to the Council of Essential Oils Indonesia, Dewan Atsiri Indonesia (DAI), Indonesia is the world’s leading producer of essential oils. Hence committing to this pledge is a crucial first step in supporting the industry’s transition to sustainability.

Figure 3. LESTARI participation and facilitation of Zero Deforestation Pledge during the

National Conference on Essential Oils in Banda Aceh, October 2016

In Papua, communication support was provided to BKSDA Mimika, PT. Freeport Indonesia and Reptiles Timika Communities (TRC) for the reintroduction of 33 reptiles to the Minajerwi mangrove area. At the provincial level, communication support promoted the guidelines for land use management in provincial and district level.

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USAID LESTARI – MSU

Quarter 1, Year 2 Progress Update

During the first quarter of Year 2, the LESTARI – Michigan State University (MSU) team finalized the planning document on the development of curriculum material and the creation of a Certificate Program in Forest Carbon Management. The goal is to establish a Certificate Program with MSU and Bogor Agricultural University (IPB) credentials, delivered through an on-line Learning Management System (LMS), deployed at the University of Palangka Raya (UNPAR) and Muhammadiyah University (MU), and targeted to in-service professionals and students.

Institution Role/Task/Activity

Universitas Palangka Raya (UNPAR)

Institutional support and facilities

Curriculum material

Outreach and deployment

Universitas Muhammadiyah (MU)

Institutional support and facilities

Curriculum material

Outreach and deployment

Michigan State University (MSU)

Initial LMS platform development

Curriculum material

CCROM-SEAP, Bogor Agricultural University (IPB)

Indonesian educational expertise

Curriculum material

LESTARI

Local linkages to government and NGO institutions

Thematic expertise

LMS Platform Development: The Certificate Program LMS platform will initially use Moodle (https://moodle.org/), which is a free, open source software designed to create educational on-line learning environments. MSU has experience in developing educational courses in Moodle and will lead in starting the process of creating a Moodle-based LMS demo upon which material can be added and developed. A draft statement on the program’s thematic focus is as follows: Certificate program for forest carbon science, policy and management with special emphasis on tropical peatland forest landscapes. The draft statement is open to input from collaborators in order to refine the scope of the program. Next Steps:

Define Certificate Program aims, goals, and learning objectives by the end of February 2017

Develop a demo version of the Moodle LMS and workshop in Palangka Raya in March/April 2017

Address institutional requirements (i.e., what steps needed for LMS Certificate Program to hold official standing with IPB and/or MSU?)

Identify a Post-doc candidate to begin in February/March 2017 and an in-bound sabbatical position starting August/September 2017

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Challenges and Opportunities

There has been a clear tendency of local government to perceive the reduced fires in the peatlands more as effective evidence of active prevention than the heavy rains in 2016 following the 2015 El Niño dry year. The truth is more nuanced. Certainly, police action against fire setters in peatlands has been vigorous but mostly just abetted the few poor smallholders who are unaware of the law or simply risk the use of fire to clear land to plant for subsistence purposes. Meanwhile, with impunity some plantation developers have persuaded the Service Agency for Public Works to open new drainage canals in peatlands. There are great opportunities to meet these challenges through wider dissemination of existing corporate and small-scale zero burning practices (pembukaan lahan tanpa bakar, PLTB) and visceral visualization of two major development pathways – increasing land degradation of alternating fires and floods under business-as-usual compared with land rehabilitation, especially in peatlands.

Encouragingly, local government is beginning to respond to advocacy efforts to emphasize the cross-sectoral imperatives of improved land management. One notable example was the Head of Dinas Kehutanan Aceh Province praising the coordination among FMU and RPJMDes activities. That said, the challenge remains for all land use managers to appreciate that forestland occurs within village areas (and Districts and Provinces) and are never separate from them.

Although forestry land use authority resides primarily within forestry agencies and where present concessions, without collaboration with local communities opportunities will be lost for additional funding and cooperation. Village populations and nowadays even funding vastly exceed those of government agencies, e.g., the annual budget for KPH VI in the Leuser landscape is Rp 700 million whereas each of the 75 villages where KPH VI is located are eligible for approximately Rp 1 billion of Village Funds (Dana Desa), some of which can be used for environmental management. Villages in the Leuser landscape are already incentivized to invest in better water resource management that depends upon better forest management in order to ensure sufficient water and the prevention of floods and landslides. There are clearly considerable opportunities for advocacy and communications to promote this fact as well as inter-sectoral collaboration upon which it depends.

Priorities for Next Quarter

Scale up media advocacy efforts implemented with Mongabay in Katingan-Kahayan Landscape to Aceh and Papua through additional subcontractor organizations with proven media advocacy and local government engagement capacity in forestry and climate change issues

Participatory planning for canal damming in the demonstration site of sub-District Kahayan Hilir that includes FPIC aligned with USAID and BRG guidelines

Using the RPJMdes entry-point and MSF to promote inter-sectoral collaboration initiatives

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The Theory of Change diagram for this Strategic Approach, with current areas of progress and/or focus circled in red, is shown below.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 22

LESTARI 2 – Operationalize Strategic Environmental Assessments (SEAs) and Landscape Conservation Plans (LCPs) to Improve Land Use Governance

Progress This Quarter

To extend the utility of SEA/LCP, greater efforts were made to ensure that all LESTARI landscape staff appreciate the utility of SEA/LCP. Links to the documents were widely shared. SEA/LCP recommendations were also shared with LESTARI staff. The results of SEA/LCP operationalization during this quarter are summarized in Figure 4. Of particular note was operationalization through the new regional environmental regulation in Aceh Selatan, the updated SEA for revision of Central Kalimantan’s spatial plan as well as incorporation of the RPJMD SEA recommendations in sectoral strategic plans (RENSTRA) and updated SEA in Mimika to emphasize the recognition of traditional areas and prevention of conversion of land adjacent to mangrove areas in the revision of the district spatial plan. Recognizing the importance of detailed spatial planning for the Susoh river basin in Aceh Barat Daya, the Bupati designated it as a Strategic Area (Kawasan Strategis). This Bupati instruction enables updating of the SEA to include optimal scenarios for improved zonation in the national park (TNGL) and forest management unit (KPH V) as well as in private land. The Ministry of Agrarian and Spatial Planning (ATR) continued to closely follow LESTARI’s work in Abdya as input to its forthcoming regulation on spatial planning at the village cluster level (kawasan perdesaan) to make spatial planning more implementable.

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Figure 4. SEA/LCP operationalization in Y2 Q1

Landscape [District]

Source of Recommendations Operationalization Modality

in Y2 Q1 SEA RTRW LCP Position

Paper

Leuser [Aceh Selatan]

Conversion from 15,600 ha of state forest area to private land (perkebunan rakyat) in Sub-District Kluet Selatan, Kec. Bakongan, Kec. Bakongan Timur, Kec. Kluet Timur,

Kec. Trumon, Kec. Trumon Tengah, Kec. Trumon Timur

Smallholder tree crop development in 22,400 ha of private land (APL)

Prevent oil palm expansion in food crop land

Apply water conservation approaches

No monocropping of nutmeg over large areas

Before new land planted to nutmeg leave it fallow

Land intensification

Priority focal areas: DAS Sikulat, Sub-DAS Kluet Hulu-Tengah, Kec. Kluet Timur, DAS

Meukek, DAS Sarap/Samadua, Tapaktuan

Requiring riparian rehabilitation and soil + water conservation

Agroforestry in nutmeg areas to strengthen forest protection functions

Participative land use and function mapping aspects of RPJMDes+ in Desa Lawe Cimanok, Sub-District Kluet Timur finalized and ready for official recognition

Makes provision for organic cacao, forest nutmeg, water conservation, riparian protection, intensification, sufficient fallow periods, smart patrols, and orangutan conservation

As input for KPH zonation / blocking

Strategic issues for Aceh Selatan (pages 30 - 42)

High-carbon areas in Aceh Selatan (page 21)

Forest cover conditions in Aceh Selatan (page 31)

Map of strategic issues in Aceh Selatan (page 10)

Academic Justification for Environmental Protection & Management Regulation (Naskah Akademis PPLH Aceh Selatan) produced, referring to SEA articles:

Strategic Issues for Aceh selatan (pages 19 - 23)

High-carbon areas in Aceh Selatan (page 19)

Forest ecosystem degradation (page 20)

Threats from mining on ground water (page 65), on peatland ecosystems (page 57), rivers (page 65)

Mitigation efforts not environmentally-friendly (page 66)

Conservation of DAS Samadua (page 53)

Priority conservation issues related to sand mining in coastal areas (page 9)

High-carbon areas (page 21)

Conservation as a priority (page 16)

Environmental Protection & Management Regulation enacted (Qanun PPLH Aceh Selatan),

referring to SEA articles:

Water resource protection and management (Article 12.3 and 54 - 56)

Coastal ecosystem protection and management (Article 12.4 and 61 - 63)

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Landscape [District]

Source of Recommendations Operationalization Modality

in Y2 Q1 SEA RTRW LCP Position

Paper

Strategic conservation issues (page 31)

Priority conservation issues (pages 9 - 10)

Focal intervention areas for conservation (pages 42 - 53)

Peatland ecosystem protection and management (Article 12.4 and 64 - 67)

River ecosystem protection and management (Article 12.4 and 68 - 75)

Management of materials and toxic waste (Article 76 - 77)

Leuser [Aceh Barat Daya]

N/A SK Bupati Abdya 597/2016 signed regarding DAS Susoh for detailed district spatial planning (RTR Kawasan Strategis Kabupaten)

Katingan-Kahayan [Pulang Pisau]

Promotion of participative community mapping process so that Village and smallholder forests can be increased in area

Restoration forest in functional areas to increase biodiversity

In the draft RTRW, peoples (customary/local) areas, mining and large-scale plantations as well as protection and conservation areas all overlap, increasing the risk of land use conflict that can be prevented

Customary areas need to be inventoried and entered into RTRW functional areas (pola ruang)

Integrated fire management

Optimal carbon stock increase proposed through increased land cover over the next 20 years by a moratorium on new licenses in conservation areas determined as peat deeper than 3 m, primary

Sub-districts Maliku & Pandih Baru for sustainable agriculture through appropriate socialization

Sub-District Kahayan Hilir for improved forest fire and related peatland land management, especially in Desa Jabiren Raya and Desa Taruna

Sub-District Sebangau Kuala tree planting along riversides

River Kahayan’s function restored as a source of clean water

Additionally: 1. Desa Kalawa, Mantaren I, Gohong and Buntoi, - Planting abandoned land with productive crops (estate, food, horticulture) - Alternative community livelihoods: livestock, fisheries 2. Customary forest license in sub-District Jabiren Raya: - Land inventory - Participative mapping

Participative land use and function mapping aspects of RPJMDes+ in Desa Buntoi, Mantaren I, Gohong, Garong finalized, including:

Makes provision for Ecotourism,

improved smallholder rubber productivity, village forest management, Smart patrols, Orangutan conservation

As input for KPH and KHG zonation

Rehabilitation to increase land cover

Strengthening masyarakat peduli api

Damming of small canals

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Landscape [District]

Source of Recommendations Operationalization Modality

in Y2 Q1 SEA RTRW LCP Position

Paper forest, protection forest and formal conservation function areas

- Government recognition of customary area 3. Village Forest (Hutan Desa) throughout Pulang Pisau

Katingan-Kahayan

KLHS recommendations: 1. Low emissions strategy (SPRE) 2. Green Economy 3. Sustainable Landscape

Strategy Plans for Regional Agencies (Renstra Organisasi Perangkat Daerah) explicitly aligned

with KLHS RPJMD recommendations in draft form

Papua [Mimika]

Important to consider site-by-site relocation according to actual biophysical characteristics for food and estate crop agriculture.

Important to protect customary peoples’ rights in strategic areas, as well as designated areas for food crops, livestock, estate crops, mining, tourism, industry, and settlements.

Important to increase local peoples’ capacity

Strategic areas are protected areas (Sub-districts Mimika Barat Jauh, Mimika Barat, Mimika Tengah, Mimika Barat, Tembagapura, Mimika Baru, Mimika Timur, dan Mimika Timur Jauh), Lorentz National Park (sub-districts Jita, Agimuga, and Jila), peatlands and mangroves, PT.Freeport Indonesia mining area, fisheries areas (sub-districts Mimika Timur, Mimika Barat, Mimika Barat Jauh) and Poumako harbor economy (sub-district Mimika Timur)

Efforts to conserve peatlands and mangrove to be given greater attention

Increase capacity of community groups to develop alternative livelihoods

Participatory mapping and management schemes that are community-based

Training for developing alternative livelihoods

Focus areas:

Coastal Keakwa and Timika Pantai in mangrove and peatlands of sub-district Mimika Timur Tengah that is of major

importance to prevent abrasion and protect community livelihoods

Kokonao along the southern

Mimika coast connected to the focal area of Keakwa-Timika Pantai in sub-District Mimika

Draft RTRW 2017 revision proposals based upon LCP and SEA:

Increase community participation and awareness of sustainable economic development in protected areas in Lorentz National Park (sub-Districts of Jita, Agimuga, and Jila), and in mangrove areas (sub-districts Jita to Mimika Barat Jauh)

Provide guidance for land and conservation area management in sub-District Mimika Timur Tengah

Support the water absorption functions in sub-Districts Mimika Barat Jauh, Mimika Barat Tengah, and Kuala Kencana

In production forest areas provide suggestions for greater participation of customary communities, customary area protection through participatory mapping, forest rehabilitation and protection of riparian areas

Appropriate changes in land function (pola ruang) in special areas in HPT and HPK to become protection forest (HL); similarly, for a small conservation forest in sub-District Kuala Kencana to become an estate crop area for sustainable sago development (currently, at public consultation

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Landscape [District]

Source of Recommendations Operationalization Modality

in Y2 Q1 SEA RTRW LCP Position

Paper Barat containing coastal forest,

mangrove and peatlands

Ayuka-Tipuka dominated by mangrove ecosystem in sub-District Mimika Timur Jauh

where there are accumulations of downstream tailings from PT Freeport Indonesia, and close to Pomako harbour. This is also an important buffer area for Timika city and within the PT Freeport Indonesia concession area

Freeport wanted to keep the area as conservation forest)

Papua [Mimika]

Recommendations for policies, plans, and programs (P3) mitigation along rail lines (page 101)

BAPPEDA acknowledged need for detailed analysis of technical, environmental, social, cultural and economic aspects of infrastructure development where lines run across conservation areas, protections areas, vulnerable areas and topographically difficult areas

Analysis of factors and indicators of strategic sustainable development (pages 78 - 79)

BAPPEDA acknowledged need for P3 in the National Park:

Strenghten park management

Increase community awareness about national park functions

Develop family economy capacity

Environmentally-friendly sustainable economic development

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Landscape [District]

Source of Recommendations Operationalization Modality

in Y2 Q1 SEA RTRW LCP Position

Paper

Conservation priority for Ayuka-Tipuka (page 58)

BAPPEDA acknowledged need for P3 in coastal mangroves to cover:

Improvement of management systems for mangrove forests and coastal ecosystems

Increased community awareness about the value of mangroves

Strengthen household economic capacity

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Challenges and Opportunities

SEA / LCP have an increasingly important role to play in guiding spatial planning as the fundamental underpinning for development. As the Minister of ATR recently indicated, the challenge is to support improved land use functions through spatial planning rather than sectoral determination, accepting the fundamental challenge of ensuring this be the basis of policy-making and the need for inter-institutional coordination and communication.1 While recognizing that KLHK is the principle counterpart of LESTARI, this serves as a reminder of the importance of engaging with other national agencies such as ATR, BIG, and BRG.

The long-awaited new Government Regulations for SEA PP46/2016 has implications for LESTARI. LESTARI has been invited by KLHK DG Planologi to support the assurance of high-quality SEA processes and products that will be the subject of a KLHK implementation decree. LESTARI is sharing ideas on achieving SEA quality based upon experience in the field.

Gayo Lues District’s request for an SEA for the RPJMD for the new Bupati serves two functions. First, in enables updating and greater operational utility of the SEA/LCP/Kertas Posisi at the District level and second, it promises to be a platform to interest provincial authorities in a similar RPJMD SEA as has been so successful in Central Kalimantan. It should be noted that this success led to provincial interest in requesting an update of the SEA for the RTRWP, which in Aceh is also a contentious issue that could likewise benefit from a rigorous SEA.

The Governor’s request to LESTARI to support spatial planning for the re-location of the national capital to Central Kalimantan, while illustrating the confidence he has in the project, should be tempered by the fact that this remains a distant prospect and that LESTARI strength would be in initiating an SEA process, not spatial planning per se.

Priorities for Next Quarter

Mapping of the above village-clustering approach across the entire Leuser and Katingan-Kahayan Landscapes while identifying a comparable approach in Papua, to be supported by regional policy

Follow up field activities with LESTARI staff and counterparts to increase emphasis on the value of SEA / LCP to strengthen regional policy-making and planning

Review and revision of the SEA (that incorporates a LCP analysis) in Mappi and Bouven Digoel

1 “Penegasan fungsi hutan lebih penting dibanding penetapan kawasan hutan …. paling penting adalah

fungsinya, fungsi hidrologi, fungsi penyelamatan air dan fungsi lainnya … Tata ruang harus menjadi panglima yang menjadi salah satu faktor arah pembangunan …. Permasalahan spasial menjadi salah satu isu yang kurang disorot dalam pembuatan kebijakan publik. Koordinasi dan komunikasi antar lembaga merupakan serta pemahaman karakteristik wilayah menjadi sorotan. (source: http://tataruangpertanahan.com/artikel-429-penataan-kawasan-hutan-demi-kemakmuran-bangsa.html, from, www.bpn.go.id, 26 October 2016).

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 29

The Theory of Change diagram for this Strategic Approach, with LESTARI’s Year 1 areas of progress and/or focus circled in red, is shown below.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 30

LESTARI 3 – Sustainable Landscape Governance

Progress This Quarter

Multi-Stakeholder Forum (MSF). During this quarter, greater utility of MSFs were realized in a number of specific cases with focus on achieving more effective citizen-based support for initiatives that have direct strategic impact on LESTARI landscapes, notably, public consultation for the new environmental regulation in Aceh Selatan and for updating of the SEA for revision of Mimika’s spatial plan (see LESTARI 2, above). In Papua, MSF Mimika facilitated a dialogue between local government (BKPRD) and the Institution for Empowerment of the Amungme and Komoro Peoples (Lembaga Pemberdayaan Masyarakat Amungme dan Komoro, LPMAK) together with PT Freeport regarding development of a sustainable sago production and factory initiative that will require appropriate redesignation of spatial planning functions. MSF Mappi Lestari Sejuta Rawa (MSF MALESERA), leveraged an increase of formally-approved local government support from Rp 287,040,000 in fiscal year 2016 to Rp 664,206,000 in 2017 as reflected in the government budget implementation document (DIPA). In the Katingan-Kahayan Landscape, the technical working group (Tim 9) of the Pulang Pisau MSF known as Forum Hapakat Lestari conducted field visits related to integrated fire and land management (IFLM). In preparation for FPIC (Persetujuan Tanpa Pakasaan, PADIATAPA), Tim 9 welcomed assurances that any LESTARI support requested by local government to construct a demonstration set of compacted peat dams would be preceded by free prior and informed consent (FPIC) compliant with USAID and BRG guidelines and that there would be subsequent participatory planning, construction, maintenance, and monitoring. The MSF technical working group visited sites in Sebangau National Park where canal damming had been conducted. They also visited shallow peat areas where zero burning was being employed by local farmers for land preparation. In addition, MSF Forum Hapakat Lestari also carried out ad hoc work to explore Team 9 opportunities for Payments for Environmental Services in the Pulang Pisau peatlands. In the Leuser Landscape, MSF Gayo Lues was successfully utilized by LESTARI team member PT Hydro to conduct its first public consultation to gather inputs from stakeholders and identify potential payment for environmental services. A similar approach in Aceh Tenggara was less successful (see below). The technical strategic foci for each of the MSFs are summarized in Figure 5. Thematic areas chosen by MSF members guide their activities in Year 2 as well as the forthcoming Media Advocacy sub-contract. Notably, establishment of MSF is but one means to achieve citizen-based inputs to policy development and planning, and this does not necessarily require the establishment of new fora. For example, in Papua at the provincial level, the existing spatial planning forum can be appropriately strengthened to ensure multi-stakeholder voice, whereas in Aceh, the Kaukus Lingkungan offers a similar opportunity at the provincial level.

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Figure 5. Summary of active strategic issues and technical priorities declared by MSFs in Y2 Q1

Landscape MSF Name (District)

Strategic Issues Specific Technical Thematic Priority

Cyclops Sahabat Cyclops (Kabupaten / Kota Jayapura)

Cyclops Landscape as a Major Water Catchment Area

Forming Sahabat Cyclops, a provincial-level MSF Need for specific regulation to protect Cyclops as a major water source Concern over declining volume of Lake Sentani

Sarmi

Forum Multi-pihak Pembangunan Berkelanjutan Sarmi Lestari (Sarmi)

Deforestation and Degradation

Improve land management / governance to prevent deforestation from corporate investment *Postponed indefinitely due to political situation in Sarmi

Lorentz Lowlands

MSF Perubahan Iklim Kabupaten Mimika

(Mimika) MSF Perubahan Iklim Kabupaten

Asmat (Asmat)

Mangrove’s biodiversity and Eco-tourism Land Use Functions of Spatial Plan (Pola Ruang)

Prevent wildlife trafficking and threats against mangrove eco-system More communications outreach related to mangrove eco-system and preventing wildlife trafficking Promote Lorentz Lowlands as potential landscape for ecotourism Improved Mangrove Management through the formalization of the KKMD (District-level mangrove coordination group)

Mappi-Bouven Digoel

MSF Mappi Lestari Sejuta Rawa

(Mappi) Forum Multi-pihak Pengelolaan Hutan Berkelanjutan BoDi

(Boven-Digoel)

Land Use Governance and the revision of spatial plan Deforestation and Degradation

Tenurial conflict and the importance of strengthening indigenous people (masyarakat adat) in policy-making processes Growing pressure on forest and land as almost 80% of the area is designated for corporate investment Land use permit and licensing accountability Tenure conflict between indigenous people with licensed corporation Horizontal conflict between communities caused by unclear village borders (bentang adat)

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Katingan- Kahayan

Forum Hapakat Lestari (Pulang Pisau)

Integrated Land, Water and Fire Management (ILFM)

Fire-Free farming (Pengelolaan Lahan Tanpa Bakar, PLTB) Local peatland restoration unit (Tim Restorasi Gambut Daerah) capacity building Canal damming to keep water levels high in dry season for fire prevention and reduce risk of flooding in rainy season Village planning (RPJMDes, APBDes, RKPDes) More active MSF involvement in National Plan of Action on Low Emission Development Strategies (LEDS) Improve community development especially for villages who just received community forest licensing

Katingan-Kahayan

MSF Kota Palangka Raya (Kota Palangka Raya)

Disaster Mitigation and Ecotourism

The need to strengthen data and information center in local disaster management body More communication outreach to promote Katingan-Kahayan as eco-tourism destination

Leuser

Forum Lanskap Kabupaten Aceh Selatan, FORLAST

(Aceh Selatan)

Water resource protection and related forest management

Qanun for environmental protection and management especially water and related forestry resources Strengthening FORLAST to be more involved in communication and policy advocacy Village information and communication access to better manage village funds

Leuser

Forum Lanskap Kabupaten Aceh Tenggara, FORLAT (Aceh Tenggara)

Collaborative Management, Biodiversity and Deforestation

Bupati Decree (PerBup) to allocate at least 15% of Village Fund (Dana Desa) for conservation

Leuser

Forum Masyarakat untuk Leuser, F-MUL (Gayo Lues)

Collaborative Management, Water Resources Protection, and Payment for Environmental Services (PES)

Integrated Tourism Plan (Rencana Induk Pengembangan Pariwisata / RIPP) Conflict mitigation in community level Growing essential oil industry and threats against land use and forest conservation Disaster including prolonged drought during summer and flood/landslide during monsoon

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Other regional policy reform. In addition to the above policy reforms publicly consulted through the MSF and strengthened through the SEA / LCP, a draft Naskah Akademis and a regulation for forest and land fires (Karhutla) were finalized though not yet enacted. Technical and Institutional Compliance for Geospatial Data Platforms. Direct consultations were held with BIG about development of SIMTARU, SST, and RDTR as well as utility of high resolution imagery obtained from NASA to ensure compliance with national standards specifically for web portal development and adoption of open source software (openGIS, format CSW for metadata and ISO19115 standard). Previously, support for data obtained through local government requests to LAPAN resulted in geospatial imagery that was not of sufficient quality. Meetings were also held with Departments of Village Affairs, Home Affairs, and Agrarian Affairs and Spatial Planning to ensure alignment with national standards and policy making in geospatial planning. LESTARI was invited to be a member of Sustainable Rural and Regional Development Forum Indonesia (SRRED-RI) consisting of the above Departments as well as WWF, Public Works, and the Coordinating Ministry for the Economy. Information System for Spatial Planning (SIMTARU). Support for SIMTARU in Papua consisted of a strengthening of digital linkages with provincial service agencies as well as Sarmi and Mimika Districts where there are significant LESTARI landscapes. An important step was the linkage of SIMTARU to the one-stop-shop for natural resource licensing in Jayapura including capacity-building. Verification was obtained of the registration of two draft Governor’s decrees for SIMTARU development, one on establishment and the other on licensing, legally-ready for signing. Importantly, digital space was provided in SIMTARU for the listing of customary lands mapped through participatory means but not yet formally registered and recognized. An extension of the SIMTARU work was support to the provincial BAPPEDA to formulate a SoP for the spatial planning coordination agency (BKPRD) to monitor and evaluate spatial plan implementation including the extent of compliance of natural resource licensing. A follow-up activity increased BKPRD capacity accordingly both at the provincial and district levels. The Departments of ATR, Home Affairs, and BIG also contributed. Sustainability Screening Tool for Natural Resource Licensing (SST). Given that the sharp-end of development is typically manifested in natural resource licensing, the development of the web-based sustainability screening tool (SST) continued to be focused where licensing has been most damaging and represents the highest risk of GHG emissions anywhere in LESTARI landscapes, namely, Pulang Pisau District. Over the last quarter significant progress has been made in both the technical development of the SST and working with local stakeholders to establish exactly how the SST can fit into the existing government business process. At the provincial level, the coordination of the SST implementation was carried out by the Provincial Public Work Office (Dinas PU Provinsi), together with the Provincial Development Plan Office (Bappeda Provinsi) on facilitating their ability to implement One Map Policy (OMP) initiatives. Two of the SST modules, SIMDS (Sistem Manajemen Data Spasial) for spatial data coordination, and SIMPLE (Sistem Monitoring Perizinan dan Lisensi) for licensing and permitting query, were presented to and keenly welcomed by the Governor of Central Kalimantan Province. At the district level, BAPPEDA agreed to host the implementation of SST as their land use monitoring and landscape management tool by involving the district Spatial Data Infrastructure (SDI) Team for spatial data coordination. Key stakeholders in SST

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development included Public Work Office (Dinas PU Kabupaten), Permitting and Licensing Office (PTSP), and Regional Spatial Planning Coordination Office (BKPRD). Finalization of Fire Vulnerability Map. The fire vulnerability map for Katingan supported by LESTARI was given its final multi-stakeholder reading. BIG – BRG – LESTARI Collaboration for Peatland Canal Damming. In support of peatland restoration efforts in Pulang Pisau, LESTARI continued to engage at various national and district-level meetings. The role of LESTARI to support the district-requested construction of a demonstration set of compacted peat dams in a sub-block of KHG #14, Pulang Pisau was clarified, emphasizing the essential inclusion of FPIC and participatory planning, construction, and maintenance. A finalized set of four LESTARI studies related to canal damming across KHG #14 were widely disseminated and are accessible via the LESTARI website. They are entitled:

Rapid Hydrological Survey of Block C KHG 14, Pulang Pisau

Socioeconomic Canal Use Study

Design and Cost of Peat Dam Construction

Framework for Comprehensive Sustainable Rehabilitation of Block C Pulang Pisau

Challenges and Opportunities

Whereas most MSFs are on track to mobilize citizen-based support for collaborative conservation action built upon mutual understanding, respect and trust across community, local government and private sector stakeholders, MSF FOLAT and Boven-Digoel have tended to misunderstand the MSF as a project implementation unit rather than a public forum. This argues for the need for a clearer roadmap at each landscape level about what MSF is and is not. A program for this was prepared for use in the next quarter.

While SIMTARU development has proceeded apace, it remains constrained by the lack of signed Governor decrees for its establishment as well as related natural resource licensing.

Construction of a demonstration set of compacted peat dams in a sub-block of KHG#14 will require sufficient landscape stewardship to ensure the benefits of canal damming not be undermined by the building of new canals. For this reason, the initiative must be perceived as being under the direct auspices of local government and not a project activity.

Priorities for Next Quarter

MSF roadmap for stakeholders

Start the geospatial discourse in anticipation of linking SIMTARU with SST

Two PerGubs for SIMTARU and related natural resource licensing

Practical rollout of the SST with tangible examples of utility

Participatory planning, construction, and maintenance of canal damming in sub-block C2 preceded by FPIC (PADIATAPA)

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The Theory of Change diagram for this Strategic Approach, with LESTARI’s Year 1 areas of progress and/or focus circled in red, is shown below.

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TECHNICAL THEME 2: CONSERVATION CO-MANAGEMENT

LESTARI 4 – Improved Forest Management Through Co-Management

Progress This Quarter

The focus of this Strategic Approach in the second year is to leverage initiatives to improve forest management, particularly outside conservation areas (CAs), through a co-management approach to impact broad areas in the landscape. This year, the work focuses on implementing the initiative in the village and Forest Management Unit (FMU/KPH) levels. In addition, LESTARI also focuses activities to facilitate communities to obtain and implement co-management agreements. The detailed achievements during this past quarter are described below. Communities Engagement in Conservation and Forest Management This quarter marked the expansion of LESTARI community facilitation for ensuring sustainable forest stewardship through co-management and sustainable livelihoods through ensuring the integration of such a vision into RPJMDes and village zonation. In this quarter, the LESTARI team finalized the initiative in 3 pilot villages in the Leuser Landscape and 5 villages in the Katingan-Kahayan Landscape. A training of trainers event will be held early next quarter to train community facilitators and village champions to expand the initiative in the targeted neighboring villages in both landscapes, in which they will roll out the initiative on a broader scale. In LESTARI landscapes in Papua Province, the approach used for community facilitation is slightly different because it needs to be adjusted to the socio-cultural context. In Cyclops Landscape, the team has completed community mapping in 12 villages in and around Cyclops Nature Reserve, which will be used to inform CA management. The team has also completed a socio-cultural survey in Sereh village to be utilized as a baseline for sustainable livelihoods and co-management initiative in the village. Community facilitation has been initiated in 2 priority villages for the development of RPJMK and village regulation (peraturan kampung/Perkam) in Cyclops. In the Lorentz Lowlands Landscape, co-management training engaging adat communities in Mimika and Asmat District were held to broaden their perspectives and understanding on the options for co-management, which was followed by community facilitation in 5 villages to build a common vision for improved forest management and sustainable livelihoods.

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Figure 6. Community facilitation for co-management in Kampung Syuru, Asmat

During this quarter, LESTARI successfully facilitated several communities in its landscapes to submit applications and subsequently receive social forestry permits. In the Katingan-Kahayan Landscape, four villages in Banama Tingang Subdistrict (Pulang Pisau) have obtained Village Forest Permits, which cover 2,016 hectares of forest area. The initiative is expected to bring benefit to 931 households in these villages. The permits were handed over by President Jokowi during his visit to Pulang Pisau District on December 20, 2016. There are 3 villages in Pulang Pisau District, 2 villages in Gunung Mas, and 5 villages in Katingan District that have submitted applications and are currently waiting for permit issuance. It is expected that the permits will be issued sometime next quarter. Figure 7. Villages in Katingan-Kahayan Receiving Village Forest Permits

No. Village Forest Function Area of Village

Forest (Ha) Beneficiaries (households)

1. Tangkahen Production forest 162 414

2. Tumbang Tarusan Production forest 419 153

3. Tambak Production forest 590 107

4. Bawan Production forest 845 257

TOTAL 2,016 931

Forest Management Units During this quarter, LESTARI streamlined its support for the development and operationalization of several targeted Forest Management Units in LESTARI Landscapes and ensured the linkage of FMU initiatives at the local level with provincial and national level initiatives. An STTA was mobilized to carry out the FMU assessment and design institutional and capacity building activities. The assessment has been completed in FMU III, V, and VI in Leuser Landscape and will be continued next quarter. The main findings are described in the callout box on the next page. The team is currently preparing activities for institutional and capacity building for FMUs in Leuser Landscape to be kicked off next quarter. The assessment will be continued in the next quarter in Lorentz Lowlands and Katingan-Kahayan Landscapes. It will be concluded with publishing a position paper to be presented in front of relevant provincial government and DG Planologi to ensure broader impact of the initiative. LESTARI, along with BIJAK and MFP 3, has also supported a national coordination meeting engaging FMUs in Indonesia and ensure the linkage of our initiatives in the landscape to national initiatives and policies on FMUs. Lastly, significant progress was achieved this quarter in support of Co-Management initiatives via the Grants mechanism. This included implementation of G-004 (Co-Management and Livelihoods in South Aceh) by FORPALA as well as the approval of G-005 (sustainable livelihoods in Gayo Lues), G-006 (social forestry in Gunung Mas), and G-007 (social forestry in Gayo Lues). Further details are available in the Grants section of this QPR.

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Summary of FMU Assessment Initial Findings In Leuser Landscape

An assessment has been held to examine capacity and institutional building needs of FMU III, V and VI in Leuser Landscape. There are three main challenges that are encountered by these FMUs: first, all of the FMUs still function as an implementing agencies rather than forest management agencies as most of the important decisions, including budget allocation, are still held by the provincial agency. Second, in terms of entrepreneurship, these FMUs are still passive and do not play active roles to pursue sustainable forestry businesses. Most of the forest partnerships developed now are not based on a comprehensive business but instead respond to the needs of private sectors. Third, in terms of co-management of forest through partnership and social forestry, these FMUs encounter ‘consumption community’ in which communities have been heavily integrated into the market, which is marked by capital accumulation and competition. Therefore, rather than focusing on the fulfillment of communities’ subsistence needs, a broader community development intervention is recommended to ensure sustainable and lasting impacts of the co-management initiative. However, there are also differences among these 3 FMUs. It was found that FMU III is considerably more advanced than the others. Based on the economic productivity, FMU 3 is 7 times more productive than other FMUs. In 2016, FMU 3 earned 2.7 billion IDR, while FMU 3 earned only 400 million IDR and FMU VI has not earned any income yet. Based on the findings, several recommendations are proposed: 1. Capacity and institutional building, sustainable forest entrepreneurship and social

forestry will be priory areas to improve for 3 FMUs. The milestones will include the improvement of zoning and long term management plan and capacity building activities.

2. Each FMU needs to develop their long term and medium management plans based on

the following priority: a) KPH 3 needs to establish sustainable forest business model and asset management to improve its productivity in a sustainable manner; b) FMU V needs to prioritize its agenda to ensure ecological function and protection of the forest area, particularly to counter unsustainable investment in the area; c) FMU VI needs to place social inclusion as its priority to solve conflicts and widespread open access of forest. Capacity building needs to be tailored based on these priority agendas.

3. FMUs need to closely engage with local government at the village, district, and provincial

levels to encourage multi-level support for FMU management.

4. Multi-level policy harmonization will also be needed to ensure effective operationalization

of FMU

Figure 8. Pine Forest in FMU V

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Challenges and Opportunities

There are two regulations that have been issued this quarter, which could potentially smooth the achievement of targeted result under this strategic approach:

1) Ministry Regulation no 83 on Social Forestry initiative, which regulates all social forestry schemes (HD, HKm, HTR and Kemitraan Kehutanan) and allows simpler bureaucratic procedures for the permit applications, hence shortening the processing time. 2) A provincial regulation no 7 on Forestry in Aceh (Qanun No.7/2016) has been issued, which includes a provision that allows the provincial forestry agency to issue permits for forest partnership (kemitraan kehutanan) and support social forestry initiatives.

Priorities for Next Quarter

Assessment of FMUs will be continued in Central Kalimantan and Papua. The assessment is expected to complete by the end of March

Capacity building and institutional building activities of FMUs will be kicked off in the next quarter in Leuser Landscape

TOT for RPJMDes and Co-Management to be held in Leuser Landscape, which will be continued with review of RPJMDes in several villages in Leuser and Katingan-Kahayan Landscapes

In Katingan-Kahayan Landscape, community facilitation will be continued to support the development of village forest management plan and strengthen local institutions to manage the forests

Facilitating the process for social forestry applications that have been submitted to MoEF in the national level, particularly in 10 villages in Katingan-Kahayan Landscape

Community facilitation will also be continued to support the development of RPJMK (Kampung) and village regulations to support sustainable livelihoods and forest management in villages around Cyclops Nature Reserve

Facilitation for co-management and sustainable livelihoods will be continued in 10 villages within and outside the National Park in Lorentz Lowlands Landscape

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The Theory of Change diagram for this Strategic Approach, with LESTARI’s Year 1 areas of progress and/or focus circled in red, is shown below.

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LESTARI 5 – Protected Area Management

Progress This Quarter

LESTARI continued to mainstream the application of the Management Effectiveness Tracking Tool (METT) to assess management effectiveness in protected areas embedded in its landscapes by engaging multi-stakeholders. LESTARI strives to ensure broader public participation in the process of METT evaluation and enable public access to the result of the evaluation. LESTARI also provides more programmatic support for CAs in implementing key aspects of conservation area management plans and establishing effective conservation area management. This quarter also marked the deepening of LESTARI-MoEF programmatic synergy, particularly with LESTARI’s main counterpart, Directorate of Conservation Area (KK). The LESTARI team facilitated participatory discussions with all conservation area managers (Unit Pelaksana Teknis/UPT) to develop and agree upon joint annual work plans (Rencana Kerja Tahunan/RKT) to ensure the achievement of priority targets. In this quarter, RKT have been completed and signed by LESTARI and 5 UPTs (Bukit Baka Bukit Raya National Park, Sebangau National Park, BKSDA Aceh, BKSDA Papua and Lorentz National Park). The RKT signing between LESTARI and Gunung Leuser National Park and BKSDA Central Kalimantan will be held early next quarter. The LESTARI team organized a visit by the Directorate of KK in Sebangau National Park inviting UPTs in the Katingan-Kahayan Landscape in Central Kalimantan. The head of Directorate of KK, Ir. Herry Subagiadi, M.Sc., provided guidance to UPT officials for improving protected area management effectiveness. Such a visit proved to be effective in nurturing collaborative working among UPTs and between the LESTARI team and its MoEF counterpart. A similar site visit will be conducted next quarter in Papua or Aceh.

Figure 9. Orangutan release facilitated by LESTARI in Sebangau National Park together with BKSDA

Kalteng, Sebangau National Park, and Bukit Baka Bukit Raya National Park staff

METT In order to facilitate a mid-term evaluation of SMART to be held in mid-2017, LESTARI supports a National METT working group to develop a guideline for facilitators for METT Evaluation. The first and second drafts of the guideline have been completed and a public consultation will be held to gather inputs from multi-stakeholders. The guideline will be

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published by early next quarter. The initiative is co-funded by LESTARI, MoEF, and GIZ Forclime. In addition, LESTARI published a policy paper on METT distributed to relevant stakeholders. SMART Patrol As of the first quarter of LESTARI’s second year, SMART Patrol has been initiated in almost all conservation areas in LESTARI landscapes. In Leuser Landscape, the initiative is up and running. There are 7 SMART patrol teams carrying out routine patrolling activities in Gunung Leuser National Park and Rawa Singkil Nature Reserve. In Bukit Baka Bukit Raya and Sebangau National Park, SMART training has been carried out with 32 participants from Bukit Baka Bukit Raya and Sebangau National Park, BKSDA Central Kalimantan, community representatives, and WWF. The training was held to improve capacity not only to integrate SMART-based technology in patrolling, but also to ensure that the SMART data is integrated with overall conservation area management. The training was followed by testing out SMART Patrols in priority locations in both National Parks. A similar training was held in Lorentz National Park, which included 15 participants from Lorentz National Park, BKSDA Papua, FMU VI Mimika, community representatives, and WWF. Figure 10. Summary of SMART Progress Q1 Year 2

Landscape Conservation Area Progress

Leuser

Gunung Leuser National Park 4 SMART patrol teams are operational

Rawa Singkil Nature Reserve 3 SMART patrol teams are operational

Katingan-Kahayan

Sebangau National Park Training and patrol testing completed, 2 patrol teams will be operational next quarter

Bukit Baka Bukit Raya Training and patrol testing completed, 2 patrol teams will be operational next quarter

Cyclops Cyclops Nature Reserve Training and patrol testing completed, 3 patrol teams will be operational next quarter, 1 new team will be established

Lorentz Lowlands Lorentz National Park Training completed, a patrol testing held and one more patrol testing to be held next quarter

In Leuser National Park, 4 SMART teams have patrolled for 121 days and covered 342 km. The highest rate of illegal logging incidents was found in Blangkejeren, Gayo Lues District. Hence efforts to curb the incidents need to be focused in the area. The findings of illegal logging in the focus area of patrolling as illustrated in the figures below:

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Figure 11. Illegal logging incidents in four management regions (seksi wilayah) in TNGL

Figure 12. Encroachment incidents in four management regions in TNGL

In Rawa Singkil Nature Reserve, during this quarter, the teams managed to effectively patrol three resorts, spanning 176 days of patrol and covering 1417 km of area. The teams found high incidents of illegal logging and encroachment in Trumon resort.

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Figure 13. Number of active encroachment incidents in Rawa Singkil Nature Reserve

Figure 14. Number of illegal logging incidents in Rawa Singkil Nature Reserve

Despite relatively high incidents of illegal logging, the patrol found a declining trend of incidents during this quarter. This finding could be attributed to the SMART patrol strategy engaging BKSDA office, which increased the presence of BKSDA field officers in locations that are prone to illegal logging. Such a strategy needs to be continued in the future. Wildlife Crime Unit In Leuser Landscape, WCU carried out 10 investigations targeting illegal trafficking of ivory, hornbill, Sumatran tiger skin, pangolin, and online wildlife marketing. In collaboration with the TNGL and the police department, the team supported law enforcement efforts and also closely monitored the court processes of 9 cases. 3 cases have been finalized and the

38

22 22

57

13 12

5 4 5

September October November

Resort Rundeng Resort Singkil Resort Trumon

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perpetrators are being prosecuted. The documents of 4 cases have been finalized and will be processed in court (3 out of 4 cases were the result of SMART Patrols). Wildlife Response Unit (WRU) During this quarter, WRU in Leuser Landscape carried out activities to mitigate human-wildlife conflicts. This included 5 human-tiger, 3 human-elephant, and 2 human-orangutan conflicts in Leuser Landscape. The team continued to facilitate capacity building for villages to enable them to independently mitigate conflicts (Masyarakat Desa Mandiri). Two targeted villages (Lesten and Batu Natal) have established community task forces to mitigate human-wildlife conflicts and socialization activities on biodiversity conservation and wildlife have been carried out. Similar activities will be carried out in three additional pilot villages (Namo Buaya, Batu Napal and Panton Luas) in the next quarter. Species Survey and Monitoring This quarter marked the kick off of species monitoring and survey activities, particularly in Leuser and Lorentz Lowlands Landscapes. In Lorentz Lowlands, the LESTARI team, along with BKSDA Papua and Lorentz National Park staff members, carried out a survey of pig-nosed turtles (Carrettochlys insculpta) in Mamats and Cateria River area in Asmat during November 2016. The survey results will serve as baseline data for continuous monitoring of its population and distribution. The species was chosen for long-term surveying and monitoring due to its high rate of illegal wildlife trafficking. The data is currently being analyzed, and the analysis is expected to be completed some time in the second quarter. In addition, LESTARI worked with KSDA Timika, PT Freeport, and Lorentz National Park to conduct a feasibility study on the release site in Far East Mimika District, Mimika. In Gunung Leuser National Park, the LESTARI team continued the activity to monitor the density and distribution of key species – Sumatran Tiger and Rhinoceros – through camera trapping, particularly in select locations in Aceh Tenggara and Aceh Selatan Districts. The data analysis on population and distribution will be completed next quarter.

Figure 15. A Sumatran Tiger photographed using a camera trap, in support of the key species density and distribution study in the Leuser Landscape

Conservation Area Management Plan In this quarter, the LESTARI team continued providing technical support for the completion of conservation area management plans, particularly in Cyclops Nature Reserve. The management plan has been finalized and has been submitted to Conservation Area

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Directorate (KK) for final review and approval. National consultation and review of the management plan draft will be held by KK Directorate at the end of January, engaging BKSDA Papua and LESTARI team. The completion of CA management plan will improve the METT score in Cyclops Nature Reserve. Conservation Area Zoning System and Spatial Data Management LESTARI continued its assistance for the completion of conservation area zoning system. This initiative is aimed not only to improve the effectiveness of protected area management, hence improving the METT score, but also to contribute to the completion of the One Map Initiative at the national level. In this quarter, the LESTARI team in Cyclops facilitated the completion of the zonation plan in Cyclops Nature Reserve in close engagement with BKSDA Papua and PIKA representative. The final draft has been submitted to Jakarta to be approved soon. At the national level, LESTARI STTA supported PIKA in completion of zonation of several priority CA, carry out trainings for GIS specialists, and contribute to the development of a guideline book for conservation area zonation published by PIKA. The book is currently being utilized by Technical Implementation Unit (UPT) of MoEF to design and implement their zonation system. Lastly, significant progress was achieved this quarter on orangutan conservation initiatives through the Grants mechanism, including mitigating human-orangutan conflict in the Leuser Landscape (G-002 with YOSL-OIC) and rehabilitating and releasing orangutan into Bukit Baka Bukit Raya National Park (G-003 with BOSF). Further details are available in the Grants section of this QPR.

Challenges and Opportunities

The signing of a 5-year work plan (Rencana Pelaksanaan Program) and annual work plan between LESTARI and MoEF counterpart is expected to increase programmatic synergy and collaboration between LESTARI and MoEF, hence ensuring long term impact of LESTARI-supported initiatives, particularly in Conservation Areas.

DG KSDAE has recently undergone regular staff rotation resulting in major staffing change, particularly in several UPTs in LESTARI Landscapes. During the next quarter, LESTARI team will coordinate with the newly assigned UPT staff to ensure a smooth transition for project collaboration and implementation.

Priorities for Next Quarter

Training and curriculum development on Human-Orangutan Conflict Mitigation will be held in Palangkaraya in close collaboration with BKSDA Central Kalimantan

SMART evaluation meetings to be held in Sebangau, Bukit Baka Bukit Raya and Lorentz National Park. Long-term roll out of SMART Patrol in Katingan-Kahayan, Cyclops, and Lorentz Lowlands Landscapes will also commence in the next quarter

A survey of migratory birds will be held in Lorentz Lowlands Landscape

The development of management plan and zonation plan in Rawa Singkil Nature Reserve will be kicked off next quarter

The National METT guideline will be finalized and subsequently published by KSDAE Directorate, Ministry of Environment and Forestry and will be used by METT facilitators to support the mid-term METT evaluation process across the country

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 47

The Theory of Change diagram for this Strategic Approach, with LESTARI’s Year 1 areas of progress and/or focus circled in red, is shown below.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 48

TECHNICAL THEME 3: PRIVATE SECTOR ENGAGEMENT

LESTARI 6 – Green Enterprises

Progress This Quarter

PPP For Organic Cacao in Aceh. During this quarter, LESTARI continued to implement its first Public-Private Partnership (PPP), in support of organic cacao development, between LESTARI and PT Kampung Kearifan Indonesia, the holder of JAVARA trademark. Currently the implementation activities are well under way in Aceh Selatan, Gayo Lues, and Aceh Tenggara. Within the three districts, activities are focusing on providing technical assistance through field activities at the demoplots while at the same time strengthening the institutional capacity of the farmers in managing the Internal Control System (ICS) as the core of all activities related to organic cacao within the district. The farmers are not only receiving socialization on organic certification standards through Good Agriculture Practices (including forest conservation, reducing deforestation, and no encroachment principles), but they are also learning intercropping techniques to improve their incomes through product diversification. LESTARI has helped to introduce cardamom and moringa as potential side produce. Furthermore, farmers who are ICS administrators are receiving capacity building support to manage their members with regards to both administrative and field level matters given that ICS will be fully managed by the farmers in the future. Most of the farmers were new to these activities and were highly eager to actively participate the demoplots and the management trainings as seen in the pictures below. Around 1000 farmers within the three districts were involved in the trainings and more are expected to participate in the implementation of the initiatives. In parallel with the activities in the field, the LESTARI team is also coordinating with the other initiatives to ensure the synergy of the overall program especially with activities related to RPJMDes as well as awareness and advocacy.

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Figure 16. Training for cacao nursery in Aceh Figure 17. The making of organic fertilizer in Tenggara demplot in Aceh Selatan

Figure 18. Training in demplot area in Aceh Selatan Figure 19. ICS training as part of organic standardization in Gayo Lues

By fostering the PPP for organic cacao, both LESTARI and JAVARA hope to combine strengths in widening access to technology and innovations, linking farmers to better markets, facilitating the development of sustainable green enterprises that support community-scale businesses critical to local livelihoods, and importantly, reducing the pressure on forests by increasing income/job opportunities for communities in the landscape. PPP For Nutmeg in Aceh. The second PPP within the Leuser landscape in Aceh is currently under finalization. The local commodity to be supported is nutmeg (pala) in Gayo Lues and Aceh Selatan, with private sector partner PT. Givaudan Indonesia. Givaudan is a multinational corporation and global leader in flavors and fragrances. It operates in all major regions of the world with a strong presence in Indonesia. With more than 90 locations worldwide, 30 production sites, and over 9,500 employees, Givaudan provides access to better and improved markets for local famers in the landscapes. Givaudan is also operating under strong policies in sustainable sourcing and sustainable innovation that goes hand in hand with LESTARI’s project goals. Currently, LESTARI is under intensive communication with Givaudan to finalize the PPP agreement. The signing of the agreement is expected to take place in January 2017. Moreover, these activities will be closely integrated with the work under LESTARI grantee, FORPALA, in Aceh Selatan. Under IFACS, activities with local NGOs to support the development of local commodities such as nutmeg were initiated. LESTARI continues this initiative with engagement of the private sector to improve market access and the quality of the produce, while simultaneously acquiring commitments to support conservation and reduce deforestation pressures from local stakeholders.

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In parallel with the PPP initiatives, the LESTARI team in Leuser Landscape has started a new initiative to conserve watershed areas, including upstream forests, by supporting freshwater fisheries in all four districts within Leuser Landscape. The initiative is implemented under close coordination with the MSF and local government. The provincial government has responded very positively, as the LESTARI team is currently under intensive coordination with the forestry Dinas and fishery and maritime Dinas at the provincial and district levels to discuss follow up activities. PPP For Rubber in Kalteng. In the Katingan-Kahayan Landscape, the PPPs for the community rubber are under implementation. This is based on the previous work under IFACS that had demonstrated a viable model to improve the rubber value chain that provided benefits at scale. The key aspect of the model is that rubber farmers are organized into rubber marketing groups known as Kelompok Usaha Bersama Karet (KUBK). The KUBK model also includes collaboration and partnerships with rubber processing factories, input suppliers, and financial institutions that serve the needs of the community rubber sector. This PPP expands the work on the KUBK model in existing areas, focusing on the rehabilitation of the burnt rubber plantations, and also extending to new geographic areas. Based on the earlier assessment of rubber and fire in Pulang Pisau and Palangkaraya Districts, a significant percentage of the rubber plantations and rubber forests had burnt, as farmers did not conduct proper maintenance due to the low market price of natural rubber. Therefore, besides focusing on rehabilitation, this PPP also aims to educate farmers in implementing Good Agricultural Practices as well as integrated fire management. Meanwhile improved harvesting techniques will allow farmers to fetch at a higher price. Considering that most of the rubber plantations in Pulang Pisau are located on peatland, minimizing the fire risk will help reduce the land degradation rate. Moreover, under this initiative, LESTARI is working on synergizing KUBK with the current and future government plans. One of the activities is to connect KUBK with BUMDES and RPJMDes to get official acknowledgement from the local authority and therefore allow it to receive regular funding from the Village Fund (Dana Desa). The initiative has been actively implemented in Pulang Pisau District in the villages of Sakakajang, Garung, Buntoi, Kalawa, Gohong, Mantaren1, Kanamit, Gandang, Gandang Barat, Sei Baru Tewu, and Talio with total 13 KUBKs (9 new and 4 previous KUBKs) with total estimated of around 480 rubber farmers. During the next quarter, the initiative will be expanded to a new area within the Sebangau Kuala sub-district where LESTARI will engage new private sector partners.

Figure 20. Bokar Bersih product from one of the new KUBK

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Commodity Assessment in Mappi-Bouven Digoel. An assessment on sustainable livelihood development through local commodities and value chain mapping in Mappi-Bouven Digoel Landscape has been finalized. Two workshops have been organized in Keppi and Tanah Merah to present initial results and acquire inputs from local stakeholders. The result of this activity will be combined with the land suitability assessment to develop a strategy plan for the landscape. The expected output is a strategic plan to foster partnerships with private sector entities to rationalize land use (especially in the land conversion sector, such as palm oil) and develop and improve the livelihoods of local communities. The final report is currently being edited and will be shared with MSF members and other relevant stakeholders. The Green Enterprises strategic approach is also supported through the Grants mechanism under RFA-004. These activities support collaborative management and sustainable livelihood initiatives by improving the management of land use activities. Currently, three proposals have been approved by USAID and have already started implementation in the field. Further details can be found in the Grants section of this QPR.

Challenges and Opportunities

Field school activities at demoplots have started for the organic cacao initiative in Leuser Landscape, which involves training in intercropping techniques that introduce and plant new agriculture commodities. However, LESTARI has not received approval for the waiver request of these additional agriculture commodities from USAID. This has created an issue regarding the scheduling of activities.

LESTARI has initiated activities for supporting Buloh Semak Village in Aceh Selatan (Singkil region) in the sustainable production of forest honey. This commodity holds tremendous potential (estimated at 50,000 liters/year) as the target of green enterprise development. However, the exploitation of forest honey is associated with some conflicts between the locals and authorities. The LESTARI team needs to proceed cautiously since we are working with both parties.

The central government has decided to grant 9 new HTR licenses in Pulang Pisau, with 7 of them located within villages where LESTARI has been giving technical assistance. It is crucial for local communities to understand their rights as well as obligations to manage the HTR properly, especially regarding partnering with the private sector. The LESTARI team is currently developing a list of strategies to approach this matter appropriately.

The government has recommended to local communities to plant “sengon trees” for all HTR areas. It is crucial to ensure that this development does not go against peatland restoration plans in Pulang Pisau District where LESTARI is involved.

Priorities for Next Quarter

Internal coordination between the LESTARI landscape team and the JAVARA team on pricing and organic certification mechanism. Discussions will also involve potential champions from the cacao farmer community. To be held in Gayo Lues and Aceh Selatan.

Signing new PPP in Leuser and Kahayan-Katingan landscapes for expansion of private sector engagement for local commodities.

Engagement with local stakeholder through MSF to distribute the result of the value chain and local commodity assessment in Mappi and Bouven Digoel.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 52

The Theory of Change diagram for this Strategic Approach, with LESTARI’s Year 1 areas of progress and/or focus circled in red, is shown below.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 53

LESTARI 7 – Private Sector Best Management Practices (BMPs)

Progress This Quarter

During the first quarter of the second year, the LESTARI team continued focusing on preparations for Reduced Impact Logging to Reduce Carbon Emissions (RIL-C) training with HPHs in the Katingan-Kahayan and Sarmi Landscapes. The LESTARI team has conducted a baseline analysis with all of the engaged HPHs to identify the current condition of their RIL implementation and develop a list of items that need to be fulfilled by each HPH prior to receiving training. The results of the baseline analysis have been presented and shared with the relevant HPHs. LESTARI received a very positive response, as all of the HPHs agreed to fulfill the prerequisites through signing a commitment letter. Based on the baseline analysis result, the LESTARI team has developed a RFP for the procurement process of the RIL-C trainers. Currently, 5 proposals have been received and reviewed, and the best proposal has been announced to the potential sub-contractor. However, several inputs from the HPHs have been received by LESTARI concerning RIL-C trainers, and these have to be accommodated into the RIL-C program. Therefore, LESTARI is currently negotiating with the potential sub-contractor to find the best solution. The definitive winner of the bidding process will be made official as soon as the agreement has been signed.

Figure 21. List of LESTARI private sector partners to receive RIL-C training

No Private Sectors Area (ha) Status Landscape

1 PT. Hutan Mulia 51,100 IFACS and LESTARI partners Katingan-Kahayan

2 PT. Hutan Domas Raya

99,870 LESTARI partners Katingan-Kahayan

3 PT. Graha Sentosa Permai

44,970 IFACS and LESTARI partners Katingan-Kahayan

4 PT Sarana Piranti Utama

49,400 LESTARI partners Katingan-Kahayan

5 PT Fitamaya Asmapara

43,880 LESTARI partners Katingan-Kahayan

6 PT Sikatan Wana Raya

49,400 LESTARI partners Katingan-Kahayan

7 PT Kayu Waja 38,450 LESTARI partners Katingan-Kahayan

8 PT. Wapoga Mutiara Timber

130,755 IFACS and LESTARI partners Sarmi

9 PT. Salaki Mandiri Sejahtera

79,130 LESTARI partners Sarmi

The overall objectives of the collaboration between LESTARI and the concessions for RIL-C practice are:

Improved management over 580,000 hectares of forest through the adoption and standard operation of Best Management Practices in nine natural forest/HPH concessions in LESTARI Katingan-Kahayan and Sarmi Landscapes

Measured increase in concession staff capacity for the implementation of RIL and carbon emission measurement and monitoring

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Measured increase in awareness of the stakeholders in and around concessions about the importance of sustainable forest management related to maintaining forest productivity, biodiversity conservation, and GHG emissions reduction

Demonstrated commitment for reduced deforestation and reduced carbon emissions from the natural forest production sector beyond the life of the LESTARI project

The implementation of the RIL-C training is expected to commence during the second quarter for all HPHs in Katingan-Kahayan and Sarmi Landscapes. Furthermore, the LESTARI team has had a series of meetings with Dirjen PHPL of MoEF who is in charge of all production forests in Indonesia, including HPH concessionaires. As national authority, Dirjen PHPL has a strong interest in enforcing RIL as obligatory practice for all HPHs. LESTARI has been requested to facilitate the process together with APHI and TBI, especially in developing national standards on RIL performance. LESTARI is currently working with APHI & TBI to facilitate the process.

Challenges and Opportunities

LESTARI will work closely with its RIL training implementer and HPH management unit to ensure a robust training curriculum that effectively incorporates biodiversity conservation practices into its standard RIL guidelines.

Some of the HPHs have quite long prerequisite list prior to the training. LESTARI team and the RIL-C trainers need to closely coordinate with the HPH management to ensure this issue can be solved as soon as possible.

Some of the HPHs have expressed objection to the government plans to enforce the obligatory RIL practice policy. Further discussion and facilitation will be required to address this issue.

Priorities for Next Quarter

Finalize the process of RIL-C trainer procurement process. Ensuring that all recommendations and findings during baseline analysis including inputs from the HPH have been addressed and conveyed to the trainers.

Continue the collaboration with APHI and TBI to facilitate the government agenda in developing the national standard of RIL performance.

Starting the engagement with selected HPHs on CMMP collaboration (operationalization of CMMP/ monitoring of HCV). Priority will be given to the HPHs thah have received technical assistance under IFACS for CMMP development.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 55

The Theory of Change diagram for this Strategic Approach, with LESTARI’s Year 1 areas of progress and/or focus circled in red, is shown below.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 56

LESTARI 8 – Innovative Financing for Sustainable Land and Forest Management

Progress This Quarter

During this quarter, this strategic approach continued to focus on two key areas: (1) ecotourism potential assessment and (2) leveraging innovative financing mechanisms for community-level Payment for Environmental Services (PES). For ecotourism, LESTARI team has identified priorities for pilot development within Leuser landscape (Gayo Lues and Aceh Selatan) and Katingan-Kahayan Landscapes (TN. Sebangau and TN Bukit Baka Bukit Raya). LESTARI is working with stakeholders in these landscapes to improve the ecotourism product, improve the ease of access, increase tourism arrivals, increase total visitor spending that stay in the identified communities, and ensure the sustainable development of tourism. The report on this initial activity has been finalized and submitted to USAID. Subsequently, the LESTARI landscape team has been receiving multiple requests from the local government to provide technical assistance in developing the ecotourism masterplan. This is a very positive development where LESTARI can actively participate both on the decision-making level (fostering an enabling environment) as well as pilot development at the field level. Currently, LESTARI is in the process of procuring additional staff both at national and landscape levels to enable the ecotourism team to provide sufficient technical assistance to stakeholders. Regarding the innovative financing-related work, the LESTARI team has developed a PES toolkit that is currently under finalization. A series of meetings at the national and landscape levels to receive inputs on the toolkit have been conducted. Thus far several international institutions have expressed interest in the final toolkit, which is a very positive outcome. The toolkit will be tested against a number of selected PES potentials within LESTARI landscapes. The final product will be launched in one of the landscapes.

Figure 22. PES Workshop held in Pulang Pisau to identify PES potential and

rapidly assess feasibility of developing a PES scheme

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Challenges and Opportunities

The regional government is very keen on developing ecotourism and requested LESTARI to facilitate the development process of the master plan.

Some districts have expressed strong interest in the development of PES schemes in their area. However based on the initial screenings, the potential is quite limited within these regions. Other districts that have expressed less interest in PES actually exhibit better opportunities/potential locations.

Priorities for Next Quarter

Recruitment for additional staff for ecotourism at national and landscape levels

Work with the regional government related to ecotourism development

Launch the PES toolkit and utilize it for the assessment of several PES potential

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 58

The Theory of Change diagram for this Strategic Approach, with LESTARI’s Year 1 areas of progress and/or focus circled in red, is shown below.

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 59

PROJECT COORDINATION, MANAGEMENT, AND COMMUNICATIONS COORDINATION AND MANAGEMENT Heading into the first quarter of the second year of LESTARI, project coordination and management focus was placed on scaling up the range of existing field activities across all three technical themes in order to amplify impact and achieve project results. Emphasis continued to be placed on building synergies between technical themes and creating a vision among staff and partners for a landscape approach. Highlights from this quarter include:

A detailed Year 2 LESTARI Work Plan was submitted, revised according to USAID inputs, and subsequently approved. It has been shared widely among all LESTARI partners. Notably, more clearly defined activities in the Year 2 Work Plan reduce the reliance on project-based SOWs and ensure more routine, technical content-driven work.

The LESTARI Year 1 Annual Report was revised according to USAID inputs and subsequently approved. It has been shared widely among all LESTARI partners.

A successful LESTARI senior management meeting was held on December 6-7 together with landscape coordinators from each landscape to address big picture issues including: (1) A clear understanding of the ‘landscape approach’; (2) Map out where we will achieve the ambitious LESTARI targets; and (3) Develop a clear strategy to engage stakeholders and chart out resources that are needed.

LESTARI facilitated a visit to the Katingan-Kahayan Landscape by USAID/Indonesia Mission Director and Environment Office staff, which included a tour of LESTARI Grantee BOSF work on orangutan conservation, meeting with Bupati/MSF Pulang Pisau, visiting agroforestry site of LESTARI Champion Pak Taman, and attending the MSU-UMP-UPR carbon MRV training event.

The LESTARI team presented on its overall approach, strategy, and targets to the USAID Mission Director on December 7 and subsequently engaged in a productive discussion.

The LESTARI team participated in the USAID Environment Office Partners meeting on December 14 to enhance coordination and understand USAID Environment Office aspirations for the next year.

LESTARI organized a coordination event for KPH national roadmap development together with BIJAK, MFP 3, and GIZ Forclime. LESTARI supported the participation of KPH representatives from Leuser, Katingan-Kahayan, and Lorentz Lowlands Landscapes.

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Regular Senior Management Meetings were held each Monday morning at 9:00 AM and included senior staff while also open to other technical staff and subcontractors, to ensure coherence and impact of LESTARI work.

Senior management and technical team conducted regular visits to landscapes, including implementation of a policy requiring senior technical staff to spend a minimum of two weeks per month working in the landscapes to support and mentor LESTARI staff and partners in relevant sustainable landscapes and biodiversity conservation work.

Regular communications with USAID through weekly meetings

Personnel STTAs continued to be utilized strategically during this quarter in order to obtain key technical inputs in an efficient and cost effective manner, as well as in line with the approved Year 2 Work Plan. This is summarized in the table below. An up to date staffing table for all LESTARI offices is presented in Appendix 3. Figure 23. STTAs mobilized October – December 2016

STTA Title Office Base

Katingan-Kahayan Landscape Management Advisor Palangka Raya

METT Specialist Jakarta

Forest Management Strategy Specialist Banda Aceh

FMU Expert Jakarta

SIMTARU Resource Licensing Specialist Jakarta

Technical Advisor for Village Development Plan Gayo Lues

Ecotourism Specialist Jakarta

Low Emission Development Specialist Jakarta

Strategic Environmental Assessment Specialist & Lead Writer

Jakarta

Economic Resource Valuation Specialist Jakarta

Sustainable Land Use Specialist Palangka Raya

Papua Commodities Development Expert Jakarta

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COMMUNICATIONS The LESTARI Communications Team is tasked with effectively documenting and disseminating LESTARI project achievements, results, best practices, and lessons learned to a broad audience at the international, national, and local levels. This amplifies the messages of the technical themes while promoting synergy and coherency within the project. During this quarter, a successful Communications Team Gathering was held in Jakarta and attended by all landscape and Jakarta-based communications staff. The purpose of this coordination meeting was to:

Discuss Year 2 Work Plan implementation with regards to communications and advocacy issues

Explore, review, and ensure understanding of the communications and advocacy Theory of Change

Develop and establish clear coordination mechanisms

Integrate communications and advocacy strategies to support the achievement of relevant LESTARI Year 2 targets

Exchange information, insights, and action programs across the landscapes

The Communications Team continued to play an active role in conveying LESTARI’s key messages at a range of important offline events. These are summarized below: 1. Youth Voice for Environment/Pemuda Bicara event, October 15, 2016 , Palangkaraya. This event was made possible through collaboration with Mongabay Infis. In this event, the Communications Team provided the following support:

Facilitate interactive dialogue on zero burning land clearing method. This event invited 3 LESTARI champions: Sumarjito, Norhadi, and Akhmad Tamanaruddin who are considered pioneers of the zero burning land clearing method

Promote the event on LESTARI social media channels.

2. National Essential Oils Conference, Aceh, October 19, 2016, Banda Aceh. LESTARI participated in this conference and provided the following support:

Document the event through photos, especially the signing of the Zero Deforestation Pledge by multi-stakeholders facilitated by LESTARI

Design and print 2 infographics and a poster to be showcased in the event

Man the LESTARI exhibition booth

3. Releasing/Returning captured wildlife, November 24, 2016, Timika. LESTARI in collaboration with MSF, Timika Natural Resources Conservation, PT. Freeport, Timika Reptile Community and the Agricultural Quarantine released 33 captured and quarantined wildlife. MSF members produced video footage of the event and this video has been published on the Lorentz Lowlands Facebook page. As a follow up, the LESTARI Communications Team will continue to raise awareness on this issue by developing a campaign on the protection of wildlife as one of the priority Year 2 activities in this landscape. 4. Blogger Gathering, November 26-27, 2016, Banda Aceh. The blogger gathering was organizeed with the purpose of promoting the value of the Leuser ecosystem as well as the threats it is currently facing. This event was organized by Leuser’s communication officer and supported by the Jakarta Communications and Advocacy team. This event created a

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 62

#careleuser hashtag which became a trending topic on Twitter. 5. LESTARI Journal Soft Launch at Pojok Iklim Discussion Forum. The soft launch of the LESTARI Journal was made possible through collaboration with Pojok Iklim. In this event, the Communications Team provided the following support:

In collaboration with knowledge management team, liase with Pojok Iklim secretariat on the possibility of launching LESTARI journal in one of their monthly regular discussion sessions

Contact prospective guess speakers to attend the event

Document the event through photos

Update communications distribution list with new email acquired from the event attandence list

Explore possibilites of future collaboration with KLHK’s public relations department and Pojok Iklim secretariat

The Communications Team continued to maintain a strong social media presence for National and Landscape-specific pages. The National page focused on posting articles, events, and activities related to the First Quarter theme of Sustainable Landscapes. Landscape pages consistently shared content involving threats, challenges, and opportunities facing the landscape as well as LESTARI-supported activities. Total post clicks over the entire quarter are illustrated in the bar graphs below. Figure 24. Total post clicks, October and November 2016

Figure 25. Total post clicks, November and December 2016

217

1134926

0 0

979

2135

53 92 300

500

1000

1500

2000

2500

FanpageNational

FanpageLeuser

FanpageKatinganKahayan

FanpageCyclops

Fanpage MappiBouven Digoel

Total Post Click

October November

979

2135

53 92 3074 157 18 163 330

500

1000

1500

2000

2500

FanpageNational

FanpageLeuser

FanpageKatinganKahayan

FanpageCyclops

Fanpage MappiBouven Digoel

Total Post Click

Novemver December

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 63

A list of Communications Products developed over the last quarter are summarized in the table below. Figure 26. Year 2, Quarter 2 LESTARI Communications Products

Communication Products

Theme/Topic Comment

Journal

LESTARI Journal Vol.1 2016 – Memahami Dinamikan Kebakaran Lahan Gambut di Indonesia (Understanding the Dynamic of Peat Fires in Indonesia)

KM Team in charge of compiling content; Comms Team provide support in printing and dissemination

Making A Difference

Pemuda Bicara (October 2016)

Facilitating Zero Deforestation Pledge from Indonesian Essential Oils Industry (November 2016)

Advocating LEDS in Village-Level Planning (December 2016)

New Comms product that highlights LESTARI-supported actions that will have lasting impact through government planning and policy changes

LESTARI Paper

LESTARI Paper: Management Effectiveness Tracking Tools (METT) sebagai Perangkat untuk Menilai Efektivitas Pengelolaan Kawasan Konservasi (November 2016)

Policy Brief LESTARI Brief 07: Canals Construction Threatens Attempts at Peatland Restoration

Story from the Field

Lawe Cimanok and Orangutan

Mathea Mamoyou: From Activism to Politics for Environmental Preservation

Pining Wildlife Nostalgia

Special Edition – Raising Peatland and Environmental Awareness in Central Kalimantan

Special Edition – Mintin Island, The Hidden Paradise

Protecting Forest to Preserve Local Customs

Building Partnership Through Non-Timber Forest Product

Protecting The Sleeping Papuan Giant

Jayadi Paembonan, from Art to Permaculture

Preserving Panglo Tradition

Returning 33 Reptile Back to Their Habitats

Restoring Central Kalimantan’s Rubber to Its former Glory

Lahmuddin, Guardian of Orangutan

Total number produced from Oct-Dec 2016: 13

Videos

Peat Forest Restoration Program in Sebangau National Park

Norhadi and Zero Burning Land Clearing Method

Exotic Lorentz

Akhmad Tamanuruddin and Zero Burning Land Clearing Method

Katingan-Kahayan Today

Farming to Prevent Fire

Leuser’s Support

Total number produced from Oct-Dec 2016: 7

USAID LESTARI Quarterly Report Year 2, October 1 – December 31, 2016 P a g e | 64

Story From the Field

Protecting the Sleeping Papuan Giant November 29, 2016

When he first arrived in Papua to begin a new career as the regional head of a section of Lorentz National Park, Johan Nendisa, was aghast. He was unpleasantly surprised by how heavy his responsibilities would be. Actually, his reaction is reasonable; the agency is understaffed for such a heavy job of taking care a 2.5- million-hectare large national park, the largest in South East Asia. Lorentz National Park is one of the most ecologically diverse national parks in the world. The park is one of only three tropical regions with glaciers in the world. At 5,030 meters above sea level, snow covers the highest peak of the mountain. Far away from the mountains, its coastal areas are home to mangrove forests. Besides its outstanding biodiversity, some glaciers in Jaya Peak sometimes disappear into the ground in Ballem Valley. Johan realizes that there is an imbalance between workload and available human resources. He has been trying to come up with effective and efficient work division, work scheme, and strategy to fulfill his duty in Lorentz. “This area is so huge, but our personnel are limited. However, we must fulfill our duty. This area is vital to the livelihoods of the surrounding communities,” said Johan.

As he walked to a meeting room with the USAID LESTARI team in Mimika, he kept telling his stories. Right in front of the entrance to the room, he gave a friendly smile to his guests as a welcoming gesture. According to his colleagues, Johan is indeed a warm and likeable person. He is a good conversationalist and makes friends very easily. That is how he handles his job. He is aware that he has to build a good rapport with the surrounding communities to obtain their trust. In 2014, Johan left his family in Ambon to take a new position as the regional head of National Park Service of Lorentz National Park. He had no reason to turn down the offer. After he graduated from Faculty of Administration of Pattimura University, he began his career in Regional Forestry Agency of South Sulawesi in 1992. Since that point, he never stopped caring for the environment. At first, he found the job difficult because he had never been involved in or studied the field previously. But his passion for the environment motivates him to continue to learn. Johan said,“It is something normal [to leave home for work]. We have to be ready to be placed anywhere because it is our life’s choice. It is hard at the beginning, but continuous learning and strong motivation will eventually overcome the obstacle.” His tone quickly changed when he started talking about the sleeping giant, Lorentz National Park. As the regional head of National Park Service of Lorentz National Park, he is in charge of supervising the national park which is located in Mimika and Asmat Regencies. His friendly mannerism helps him do his work. However, the disappointment on his face was obvious when he talked about the needed resources to protect the national park. The patrol route in Lorentz National Park is difficult and very expensive. One patrol costs dozens of millions of rupiah. “How can it be possible to secure 48% of this national park with only six personnel. Try to imagine that,” said Johan while reluctantly smiling. His story is indeed ironic. Half of the national park is 2.5 million hectares large. That means one personnel is responsible for 184,000 hectares. The figure is unbelievable. The involvement of local communities becomes an absolute necessity. Involving local communities is Johan’s secret recipe. He actively reminds his staff to maintain good relationships and build partnerships with the locals. Request for additional personnel and budget has been made previously, but there was no response. Furthermore, according to Johan, alumni of Forestry Vocational School are often unaccommodated and live unprosperously. “That is the reality. We must continue involving local communities because that really eases our work,” said Johan. For several times, he asked administrative employees to help in the field. According to Johan, administrative work in the office is not heavy. But the fact that they have to do something that they were not initially assigned for is ironic.

Multi-Stakeholder Forum

National Parks are supposed to be protected from destructive human activities and pollution. According to Law 5/1990 about Conservation of Natural Resources and Its Ecosystems, National Park is, “a natural conservation area with pristine ecosystem and managed by zonation system for research purposes, science, education, cultivation, tourism, and recreation.” Lorentz National Park has approximately 630 species of birds and 123 mammals, and is decorated with outstanding cultural diversity. Growing population pressures and economic interests necessitated the declaration of the park as a World Heritage Site by UNESCO in 1999.

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Forest clearing is Lorentz’s biggest threat. The threat is multiplied by the presence of animal poaching and illegal wildlife trade, especially birds. The intention of those actions is clear: money. The presence of illegal and destructive activities in Lorentz is unsurprising considering the fact that most of the people who live surrounding the park are still economically unprosperous. Papuan cockatoos are targeted by poachers. To address this problem, Johan cooperates with village headmen to educate the community about the importance of the national park. He believes that this strategy can minimize illegal poaching. “The local people often excuse themselves by claiming that bird poaching is necessary to fund their children’s education. Socialization from one village to another will not stop. If we keep doing this [socialization and education], we can reduce the threat against the national park,” said Johan. Johan admits that the limited number of personnel and the abundant entry points provide a conducive situation for crimes to occur. Even though humans have the basic right to exploit natural resources, that right has to be exercised wisely. We have to take into account the sustainability of the ecosystem that supports the lives of many. Johan realizes that repressive measures will be ineffective because poaching was a cultural tradition and a source of income for the locals before the area was declared a World Heritage Site. His only option is to engage in a dialogue with local communities. He believes that the Multi-Stakeholder Forum facilitated by LESTARI is an appropriate initiative to socialize the importance of preserving the national park. The forum can also become an avenue where stakeholders meet and plan to work together to secure the national park from animal poaching and illegal wildlife trade. “Building and maintaining harmonious relationships with different parties are vital to the attempt to protect the area. If we fail to do so, the national park is expected to be destroyed,” he said. Animal poaching still frequently occurs. Managing and protecting the forest is not cheap. Building partnerships with different parties allows them to share resources and minimize expenses. Furthermore, Johan believes that future obstacles will be far more challenging, and the management team will not be able to solve them alone. Ultimately, the preservation of the national park is in the hands of the local communities. Their environmental awareness and local wisdom can manifest into precautionary measures that can effectively prevent illegal acts. Involving local communities in a multi-stakeholder forum is necessary to achieve successful conservation. Failing to work collaboratively with the local people may result in ecological disasters such as flooding, drought, and social conflicts. Johan knows that for a fact. For that reason, we have to work together to maintain ecological balance. “We have to embrace every stakeholder to protect Lorentz National Park together,” he said.

Figure 27. Johan Nendisa, informing local residents and village officials on the importance of

protecting forest areas situated close to residential areas

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Challenges and Opportunities

As the Year 2 Work Plan is rolled out, synergy among different components and activities is the key to establishing significant impact across the landscape.

More clearly defined activities in the Year 2 Work Plan will reduce the reliance on project-based SOWs and ensure more routine, technical content-driven work.

Ensure staff and partners understand and utilize the ToC and therefore LESTARI interventions demonstrate and target links that ultimately contribute to the project’s overall reduced deforestation and improved biodiversity conservation results.

To meet requests in various provinces and districts, most notably in Aceh and Papua, LESTARI has developed and is implementing procedures to inform police/military/security authorities of large gatherings, public consultations and visits of foreigners to the LESTARI landscapes.

The present LESTARI landscape approach has been first to represent schematically where LESTARI activities are mutually-reinforcing within focal village clusters, then undertake actual mapping of activities, and finally to map where lasting improved management has been realized. This kind of inter-activity modality can then be replicated with appropriate guidelines across an entire District, e.g., through a SK Bupati or better still PerBup. Thus far this approach has been developed in the following sub-landscapes that have been the focus of support for RPJMDes:

-Pulang Pisau, Katingan-Kahayan Landscape – sub-village clusters around Desa Garung -Gayo Lues, Leuser Landscape – sub-village clusters around Desa Sangir, Desa Agusen, and Desa Kenyaran -Aceh Selatan, Leuser Landscape – sub-village cluster around Desa Lawe Cimanok

With the dismantling of the National REDD+ Agency, there is a clear lack of national government leadership on MRV for REDD+ and other climate change mitigation efforts from the forest and land use sectors. Without this, provinces and other sub-national entities face a difficult time engaging in any tangible climate change mitigation contributions and/or market opportunities. This also represents an ongoing constraint for LESTARI’s climate change mitigation efforts at the landscape level.

Priorities for Next Quarter

Provide ongoing capacity building, operational, and technical support from Jakarta-based senior staff and STTA for landscape-based staff and subcontractors. This also includes regular engagement – at least two weeks per month – of senior LESTARI technical staff at the landscape level. Emphasis will be placed on utilization of the ToC to guide all field activities.

Conduct and document periodic technical and financial reviews of subcontractors and remind them of required financial audits.

In coordination with COR, deepen coordination with other donor-funded initiatives impacting LESTARI landscapes (Donor Working Groups on Climate Change,

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UKCCU, Norway’s REDD+ Partnership Program, World Bank and ADB FIPs, EU and KfW).

Recruit for Jakarta-based Monitoring, Evaluation & Learning Coordinator

Work with WWF to mobilize new staff for Mappi-Bouven Digoel and Cyclops Landscapes.

Create compelling, creative visualization and video products that feed into and inform MSFs on technical matters.

Continue to package and disseminate project achievements, impacts, and findings through Briefs, Stories From the Field, and other communication products.

Build and disseminate knowledge products for improved gender integration for partners.

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MONITORING AND EVALUATION Progress This Quarter Updating MIS Application. The start of the second year of LESTARI is marked by change made in organizational structure through the addition of a 2nd DCOP which effected LESTARI’s MIS approval mechanism for activity SOW, report and travel. In reponse to this, for the duration of 2 months the M&E team worked together with MIS developer team (PT. TMS) in improving the followig 3 key functions in the application: 1) Create additional monitoring feature for MIS admins; 2) Create 2 final approval channel/function which are as follows, DCOP 1 will be in charge of final approval process for Papua landscapes and technical themes 2 & 3, while DCOP 2 will be in charge of final approval process for Aceh and Kalimantan landscapes as well as technical themes 1 & 4; 3) Assess and improve on features that have not been working optimally. As of December 2016, all of these changes have been implemented, and the MIS is now running smoothly. Recruitment for Monitoring, Evaluation, and Learning (ME&L) Coordinator. As a result of the changes made in the LESTARI organizational structure, Erlinda Ekaputri who previously served as ME&L Coordinator, has been promoted as the new DCOP of LESTARI. A recruitment process has been set into motion to find a suitable candidate to fill her previous position. Based on the interview conducted, 1 candidate met the criteria and will effectively join LESTARI in February 2017. Designing Methods of Baseline Data Collection for Socio-economic Aspect of Community/Society. M&E worked together with the knowledge management team to design a basic data collection method (baseline survey) to gather data on community socio-economic aspect which is a target of LESTARI’s livelihood activity. LESTARI is expected to have standardized baseline data as well as a reference to measure impact of the before and after result of the livelihood program intervention. Data Collection and Verification. The M&E team regularly conduct data collection and verification of data that are considered to contribute to the achievement of the LESTARI AMEP indicator. Data that has been verified on a regular basis will be recorded in the LESTARI MIS. Join Pre-award Survey for Grantees. Work closely with the Grant team on the pre-award survey process of the chosen grantee. M&E provided feedback to every LESTARI indicator that has been chosen and targeted by the grantee as well as ensuring that the process of collecting and reporting on indicator achievement goes well.

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GRANTS FUND Progress This Quarter Within this quarter, LESTARI continued the pre-award process from RFA-004 (Collaborative Forest Management and Sustainable Livelihoods), where 4 grants were approved by USAID and 1 commenced with implementation. G-002 Orangutan Conservation in Western Leuser Bufferzone – Continues Yayasan Orangutan Sumatera Lestari – Orangutan Information Center (YOSL-OIC) continued to implement an initiative entitled Community-led Conservation of Orangutan Habitat in the Kluet Protected Area, South Aceh. OIC established permaculture demoplots and completed a series of permaculture trainings for communities in Lawe Melang and Koto Manggamat Villages. Human Orangutan Conflict Response Unit (HOCRU) activities also continued with the HOCRU hotline becoming operational. HOCRU works with communities adjacent to Leuser National Park to support human-wildlife conflict mitigation, map areas of conflict, and educate communities on methods for conflict mitigation and prevention. G-003 Orangutan Conservation in Bukit Baka Bukit Raya National Park – Under

Implementation

Borneo Orangutan Survival Foundation (BOSF) continued to release rehabilitated

orangutans in Bukit Baka Bukit Raya National Park (TN BBBR), with 8 orangutans released

on October 5-6, 2016 and another 11 orangutans released on December 6 and 8, 2016.

Capacity building for TN BBBR management staff also started following up on the

cooperation agreement between BOSF and TN BBBR signed on August 9, 2016, with staff

participating in field practice of orangutan monitoring activities. In addition to getting national

and international media coverage from the release events, awareness raising activities to

reach youth at schools has also started. Combining FGD, play, and storytelling,

schoolchildren in Tumbang Tabulus and Batu Panahan villages participated in the

awareness raising activities on the importance of orangutan conservation and general

environmental conservation issues, including establishing school gardens (kebun sekolah).

G-004 Co-management and Livelihoods in South Aceh – Signed and Under Implementation The grant application from Forum Pala Aceh (FORPALA) was approved on November 8, 2016 and implementation started on November 22, 2016 with a kick-off meeting held in Tapaktuan attended by FORPALA team and LESTARI staff. LESTARI committed IDR 1,921,816,500 for a period of 21 months to FORPALA to assist communities in 15 villages in South Aceh to develop sustainable livelihoods based on nutmeg and improve forest conservation in their villages. FORPALA will also facilitate communities in two villages (Jambo Papeun and Bukit Meuh) to develop a co-management agreement with KPH. The grant will also work closely with LESTARI’s own team to develop PPP agreements for nutmeg products, both for spices and essential oils. To strengthen the project, FORPALA and the communities they work with will also contribute IDR 177,425,000 to the project budget. The grant is expected to contribute the following results to LESTARI’s work in Leuser Landscape, in particular the South Aceh region:

1,000 hectares of biological significance and/or natural resources under improved natural resources management as a result of USG assistance (indicator #2)

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7 community champions engaged in advocacy interventions (indicator #8)

1 co-management agreement signed that secured community rights and benefits (indicator #11)

600 people receiving USG supported training in natural resources management and/or biodiversity conservation (indicator #12)

600 people receiving livelihood co-benefits (monetary or non-monetary) (indicator #14)

2 new USG-supported public-private partnerships (PPPs) formed (indicator #16) G-005, G-006, and G-007 – Approved Three more grants were approved by USAID towards the end of this quarter. The grantees are currently preparing for implementation that will commence in January 2017.

G-005 for Institute for Promoting Sustainable Livelihood Approach (InProSuLA), which will work with the communities in 4 villages in Gayo Lues District to develop a partnership with KPH and support sustainable livelihood initiatives based on coffee and rice.

G-006 for Yayasan Tambuhak Sinta (YTS), which will work with communities in 8 villages in Gunung Mas District to submit applications for social forestry licenses to KLHK and develop a partnership with the private sector to improve forest management in the area.

G-007 for Yayasan Javlec Indonesia (JAVLEC), which will work with communities in 5 villages in Gayo Lues District to submit applications for social forestry licenses and strengthen co-management with sustainable livelihoods based on ecotourism and coffee.

G-008 – Under USAID review A request for approval has been submitted to USAID for LESTARI to support Atjeh International Development (AID) to implement its program entitled Program for Sustainable Aceh Community and Forest. It is expected to be conducted for a period of 24 months. The grant activity is designed to support collaborative forest management in Aceh Barat Daya District through social forestry and development of sustainable livelihoods based on nutmeg.

Figure 28. Evacuation of adult male Orangutan facilitated by HOCRU, LESTARI,

and local community in Lawe Cimanok, Aceh

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Challenges and Opportunities SAM registration continues to be a challenge for the organizations applying for

LESTARI grants. The registration under two separate databases (DUNS at D&B Indonesia and NCAGE at Ministry of Defense), on top of the online SAM registration itself requires quite a lot of resources, as they have to acquire the paid local DUNS registration and go to the Ministry of Defense office in Jakarta. From the interview with the official at the Ministry of Defense responsible for administering the NCAGE registration in Indonesia, the local DUNS registration (as opposed to the online registration) is needed to enable greater harmonization between DUNS and NCAGE registration processing. The sensitive SAM registration system does not allow different entries from the two separate databases, such as having different words for the same meaning (examples: Jl and Jalan, no and number, etc). When the SAM registration does not allow this, the process provides an American phone number to discuss or a live chat, but the time difference and the language limitations make it a bit difficult for the organizations to troubleshoot. LESTARI has been assisting the organizations in this process by providing the basic online steps, as well as the steps to be done in Indonesia. However, since there is no mock processing available, our assistance cannot go into too much detail.

Some LESTARI grantees were planning to develop a partnership with KPH in their areas. With the issuance of the new Permen 83/2016 on Social Forestry, the procedure has become a bit longer than that under the previous regulation. For some grantees in Aceh, there is a new qanun on Kehutanan Aceh issued at around the same time. This new qanun provides an opportunity for Aceh organizations to work with another regulation in promoting collaborative management with the communities.

Priorities for Next Quarter Sign and start implementation of G-005, G-006 and G-007

Continue and complete pre-award process for the remaining six organizations as part of RFA-004.

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NATIONAL INITIATIVES Progress This Quarter The LESTARI team ensures that lesson learns from the initiative at the landscapes level can contribute to support broader change at the national level. This includes showcasing best practices and success stories from the landscapes to be scaled up at the national level. It also involves informing challenges in implementing particular policy actions in the landscape, hence contributing to policy improvement at the national level. During this quarter, key national-level highlights included the following:

LESTARI team continued to engage in the national task force of SMART to advocate national adoption of SMART in the conservation areas. In this quarter, LESTARI provided technical inputs for the development of SMART Implementation Module. The module has been finalized and in the process of being formally included in the curriculum in the Pusdiklat Kehutanan. The module will be used by SMART facilitators to carry out SMART trainings;

A coordination meeting for FMU national roadmap was held on November 25-26 inviting FMU representatives in Indonesia, including those from LESTARI landscapes. The meeting was jointly supported by LESTARI, BIJAK, MFP 3, and GIZ Forclime. The meeting resulted in recommendations to be followed up further at the national and landscape levels.

LESTARI team continued to closely collaborate with the national working group on social forestry initiative to support the achievement of social forestry targets in Indonesia, which is aligned with LESTARI’s co-management results. The team delivered presentations in numerous events held by the working group and participated actively in the regular meetings.

Collaborating with PIKA, LESTARI continued to carry out activities for supporting zonation plan improvement in targeted conservation areas in LESTARI landscapes to support the One Map Policy Initiative. LESTARI STTA also supported PIKA in the development of a guideline book for conservation area zonation. The book is currently being utilized by Technical Implementation Unit (UPT) of MoEF to design and implement their zonation system.

Ministry of Agrarian and Spatial Planning (ATR) welcomed the opportunity to learn about LESTARI’s experience to refine their draft guidelines for spatial planning at the village cluster level (kawasan perdesaan) aimed at making RTRWK (in their words) more “implementatif”.

LESTARI participated in the organized roundtable discussion on gender integration in natural resources management organized by BIJAK and explored opportunities to align landscape initiatives with national initiatives to promote gender and social inclusive policies on natural resources management.

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Meetings were held with Departments of Village Affairs, Home Affairs, and Agrarian Affairs and Spatial Planning to ensure alignment with national standards and policy making in geospatial planning. LESTARI was invited to be a member of Sustainable Rural and Regional Development Forum Indonesia (SRRED-RI) consisting of the above Departments as well as WWF, Public Works, and the Coordinating Ministry for the Economy.

The LESTARI team had a series of meetings with Dirjen PHPL of MoEF who is in charge of all production forests in Indonesia, including HPH concessionaires. As national authority, Dirjen PHPL has a strong interest in enforcing RIL as obligatory practice for all HPHs. LESTARI has been requested to facilitate the process together with APHI and TBI, especially in developing national standards on RIL performance. LESTARI is currently working with APHI & TBI to facilitate the process.

At the international forest certification conference (PEFC) moderated by CIFOR, LESTARI was invited to be a member of an expert panel to present information on the landscape-based approach to improved land management. The well-received contribution concluded with a five-point approach, ranging from initiatives to increase collaboration and coordination among the diverse set of land users in the landscape to the importance of establishing credible and transparent metrics for tracking the impact of landscape-based approaches to increase accountability and informative replicable models.

LESTARI participated in the National Minyak Atsiri (Essential Oils) Conference in Banda Aceh in October. Together with Dewan Atsiri Indonesia, LESTARI successfully sponsored a pledge for zero deforestation from the industry, including private sector, local government, farmers, and community stakeholders.

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LANDSCAPE INITIATIVES

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Leuser Landscape

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Quarter 1, Year 2 Highlights

A draft Qanun on Environmental Protection and Management has been signed in Aceh Selatan. LESTARI facilitated this process by providing technical inputs and utilizing the MSF in Aceh Selatan for public consultation of the draft regulation.

During the National Conference on Essential Oils in Banda Aceh, LESTARI facilitated a draft multi-sector Zero Deforestation Pledge. Signatories of the pledge included 96 private companies, 59 community organizations, 31 universities/academia, Bappeda Aceh, Aceh Selatan Forestry Office, and LESTARI.

A “Blogger Gathering” was held to promote the Leuser ecosystem and raise awareness regarding the threats it faces. During the workshop, bloggers, social media activists, and media campaigners created the hashtag #CareLeuser aimed at inspiring a younger audience and building constituencies for conservation.

MSF Gayo Lues was successfully utilized by LESTARI team member PT Hydro to conduct its first public consultation to gather inputs from stakeholders and identify potential Payment for Environmental Services.

Recognizing the importance of detailed spatial planning for the Susoh river basin in Aceh Barat Daya District, the Bupati designated it as a Strategic Area. This enables updating of the SEA to include optimal scenarios for improved zonation in the national park (TNGL) and forest management unit (KPH V) as well as in private land.

Through LESTARI support, 3 pilot villages completed their village development plans (RPJMDes) that incorporate a vision for sustainable forest stewardship through co-management and sustainable livelihoods.

7 SMART patrol teams are currently carrying out routine patrolling activities in Gunung Leuser National Park (4 teams) and Rawa Singkil Nature Reserve (3 teams) in order to detect and mitigate threats and improve CA management effectiveness.

Wildlife Conservation Unit (WCU) carried out 10 investigations targeting illegal trafficking of ivory, hornbill, Sumatran tiger skin, pangolin, and online wildlife marketing. In collaboration with TNGL and local police, the team supported law enforcement efforts and monitored the court processes of 9 cases. 3 cases have been finalized and the perpetrators are being prosecuted.

Wildlife Response Unit (WRU) carried out activities to mitigate human-wildlife conflicts. This included 5 human-tiger, 3 human-elephant, and 2 human-orangutan conflicts in Leuser Landscape. The team continued to facilitate capacity building for villages to enable them to independently mitigate conflicts (Masyarakat Desa Mandiri). Two targeted villages (Lesten and Batu Natal) have established community task forces to mitigate human-wildlife conflicts.

Implementation of the PPP For Organic Cacao in Aceh with PT Kampung Kearifan Indonesia continued in Aceh Selatan, Gayo Lues, and Aceh Tenggara Districts. Activities focused on providing technical assistance at the demoplots while strengthening the institutional capacity of farmers through the Internal Control System (ICS). A second PPP for nutmeg is currently under finalization with private sector partner PT Givaudan.

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Katingan-Kahayan Landscape

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Quarter 1, Year 2 Highlights

A Youth Voice (Pemuda Bicara) event was held in Central Kalimantan in collaboration with Indonesia Nature Film Society (INFIS), Mongabay Indonesia, WWF, BOSF, media, and the youth community. The main themes were IFLM and peatland restoration. In addition to inspiring the next generation of environmental champions, the event also intended influence local policymakers.

The LESTARI-supported SEA / KLHS for Central Kalimantan Province continued to be operationalized. The draft forms of the Strategy Plans for Regional Agencies explicitly aligned with KLHS recommendations for Low Emissions Strategy, Green Economy, and Sustainable Landscapes.

The technical working group (Tim 9) of the Pulang Pisau MSF conducted field visits related to IFLM. Tim 9 welcomed assurances that any LESTARI support requested by local government to construct a demonstration set of compacted peat dams would be preceded by FPIC compliant with USAID and BRG guidelines.

For the Sustainability Screening Tool (SST), progress was made in both technical development and working with local stakeholders to establish how the SST can fit into the existing government business process. Two of the SST modules, SIMDS (Sistem Manajemen Data Spasial) for spatial data coordination, and SIMPLE (Sistem Monitoring Perizinan dan Lisensi) for licensing and permitting query, were presented to and keenly welcomed by the Governor of Central Kalimantan.

With LESTARI support, four villages in Banama Tingang Subdistrict (Pulang Pisau) obtained Village Forest Permits, which cover 2,016 hectares of forest area. The initiative is expected to bring benefit to 931 households in these villages. The permits were handed over by President Jokowi during his visit to Pulang Pisau District on December 20, 2016. There are 3 villages in Pulang Pisau District, 2 villages in Gunung Mas, and 5 villages in Katingan District that have submitted applications and are currently waiting for permit issuance.

Following participatory discussions with CA managers regarding alignment of priorities and achievement of targets, joint annual work plans (RKT) were signed by LESTARI and Bukit Baka Bukit Raya National Park and Sebangau National Park.

SMART patrol training and testing were completed in both Sebangau and Bukit Baka Bukit Raya National Parks. 2 patrol teams will become operational within each NP next quarter.

The PPPs for community rubber are under implementation. The initiative focuses on rehabilitation of rubber plantations, educating farmers in implementing Good Agricultural Practices as well as integrated fire management, and improving harvesting techniques to enable them to fetch higher prices.

The LESTARI team completed its baseline analysis on all 7 HPHs within the landscape to identify the current condition of RIL implementation and develop a list of action items to be fulfilled by each HPH prior to receiving training.

LESTARI grantee BOSF continued implementation G-003 by releasing 19 rehabilitated orangutans in Bukit Baka Bukit Raya National Park.

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Lorentz Lowlands Landscape

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Quarter 1, Year 2 Highlights

33 reptiles were reintroduced to the Minajerwi mangrove area with support from LESTARI, BKSDA Mimika, PT. Freeport Indonesia, and Reptiles Timika Communities (TRC). LESTARI provided communications support via social media and produced a Story From the Field covering this initiative.

An updated SEA in Mimika emphasized the recognition of traditional areas and prevention of conversion of land adjacent to mangrove areas in the revision of the district spatial plan.

MSF Mimika facilitated a dialogue between local government (BKPRD) and the Institution for Empowerment of the Amungme and Komoro Peoples (Lembaga Pemberdayaan Masyarakat Amungme dan Komoro, LPMAK) together with PT Freeport regarding development of a sustainable sago production and factory initiative that will require appropriate redesignation of spatial planning functions.

MSFs in Mimika and Asmat focused technical priorities on expanding communications outreach related to mangrove ecosystem conservation and preventing wildlife trafficking.

Co-management training engaging adat communities in Mimika and Asmat District were held to broaden their perspectives and understanding on the options for co-management, which was followed by community facilitation in 5 villages to build a common vision for improved forest management and sustainable livelihoods.

Following participatory discussions with CA managers regarding alignment of priorities and achievement of targets, a joint annual work plan (RKT) was signed by LESTARI and Lorentz National Park.

The LESTARI team, BKSDA Papua, and Lorentz National Park staff members, carried out a survey of pig-nosed turtles in Mamats and Cateria River area in Asmat. The survey results will serve as baseline data for continuous monitoring of its population and distribution. The species was chosen for long-term surveying and monitoring due to its high rate of illegal wildlife trafficking. In addition, LESTARI worked with KSDA Timika, PT Freeport, and Lorentz National Park to conduct a feasibility study on the release site in Far East Mimika District, Mimika.

SMART patrol training and testing were conducted in Lorentz National Park in order to support NP authorities to more effectively detect and mitigate threats. One more round of testing will take place before SMART patrol rollout next quarter.

A Story From the Field, entitled Protecting the Sleeping Papuan Giant, shared local perspectives from Lorentz National Park authorities on the challenges of protecting mangrove forests and the rich biodiversity resources that they harbor. The importance of including local communities’ voices, including through LESTARI-supported MSF, in conservation initiatives was highlighted.

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Mappi-Bouven Digoel Landscape

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Quarter 1, Year 2 Highlights

An assessment on sustainable livelihood development through local commodities and value chain mapping has been finalized. Two workshops have been organized in Keppi and Tanah Merah to present initial results and acquire inputs from local stakeholders. The result of this activity will be combined with the land suitability assessment to develop a strategy plan for the landscape. The expected output is a strategic plan to foster partnerships with private sector entities to rationalize land use (especially in the land conversion sector, such as palm oil) and develop and improve the livelihoods of local communities. The final report is currently being edited and will be shared with MSF members and other relevant stakeholders.

MSF Mappi Lestari Sejuta Rawa (MSF MALESERA), leveraged an increase of formally-approved local government support from Rp 287,040,000 is fiscal year 2016 to Rp 664,206,000 in 2017 as reflected in the government budget implementation document (DIPA).

MSF sessions were held in Mappi and Bouven Digoel which focused technical thematic priorities on: tenurial conflict and the importance of strengthening indigenous people’s voices in policymaking; growing pressure on forest and land area designated for investment; land use permit and licensing accountability; tenure conflict between indigenous people and licensed corporations; and horizontal conflict between communities caused by unclear village borders.

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Sarmi Landscape

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Quarter 1, Year 2 Highlights

Given the ongoing political constraints involving rival factions from within the government, LESTARI governance initiatives and work with communities to safeguard forests in Sarmi Landscape continued to be postponed.

Therefore, LESTARI activities in this landscape continued to focus on preparations for RIL-C training for timber concessions. The LESTARI team completed a baseline analysis on 2 HPHs (PT. Wapoga Mutiara Timber and PT. Salaki Mandiri Sejahtera, together covering more than 200,000 hectares in the landscape) in order to determine the current condition of RIL implementation and develop a list of action items to be fulfilled by each HPH prior to receiving training. Both HPHs agreed to fulfill the prerequisites through signing a commitment letter.

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Cyclops Landscape

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Quarter 1, Year 2 Highlights

LESTARI-supported community mapping in 12 villages in and around Cyclops Nature Reserve was completed. This will be used to inform CA management. The team has also completed a socio-cultural survey in Sereh village to be utilized as a baseline for sustainable livelihoods and co-management initiative in the village.

Community facilitation has been initiated in 2 priority villages for the development of RPJMK and village regulation (peraturan kampung/Perkam) in Cyclops.

The Sahabat Cyclops MSF session was held which focused technical thematic priorities on: the need for a specific regulation to protect Cyclops as a major water resource and the potential for developing Sahabat Cyclops as a provincial-level MSF.

SMART patrol training and testing were conducted in Cyclops Nature Reserve in order to support authorities to more effectively detect and mitigate threats. 3 patrol teams will become operational next quarter.

The LESTARI team continued providing technical support for the completion of conservation area management plans in Cyclops Nature Reserve. The management plan has been finalized and submitted to Conservation Area Directorate (KK) for final review and approval. National consultation and review of the management plan draft will be held by KK Directorate at the end of January, engaging BKSDA Papua and LESTARI team. The completion of CA management plan will improve the METT score in Cyclops Nature Reserve.

The LESTARI team in Cyclops facilitated the completion of the zonation plan in Cyclops Nature Reserve in close engagement with BKSDA Papua and PIKA representative. The final draft has been submitted to Jakarta to be approved soon.

A coordination meeting was held between LESTARI and BKSDA Papua (Cyclops Nature Reserve) for the implementation of Year 2 activities supported by LESTARI. The meeting concluded with the signing of a joint annual work plan (RKT).

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Papua Provincial Initiatives

Quarter 1, Year 2 Highlights

At the Papua Provincial level, LESTARI continued to support the Information System for Spatial Planning (SIMTARU). During this quarter, this support consisted of a strengthening of digital linkages with provincial service agencies as well as Sarmi and Mimika Districts where there are significant LESTARI landscapes. An important step was the linkage of SIMTARU to the one-stop-shop for natural resource licensing in Jayapura including capacity-building. Verification was obtained of the registration of two draft Governor’s decrees for SIMTARU development, one on establishment and the other on licensing, legally-ready for signing. Importantly, digital space was provided in SIMTARU for the listing of customary lands mapped through participatory means but not yet formally registered and recognized.

An extension of the SIMTARU support work was support to the provincial BAPPEDA to formulate a SoP for the spatial planning coordination agency (BKPRD) to monitor and evaluate spatial plan implementation including the extent of compliance of natural resource licensing. A follow-up activity increased BKPRD capacity accordingly both at the provincial and district levels. The Departments of ATR, Home Affairs, and BIG also contributed.

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APPENDIX 1: LESTARI PROGRESS MATRIX – FIRST QUARTER FY 2017

Indicator Target of FY 2017

Actual (Q1)

Actual (Q2)

Actual (Q3)

Actual (Q4)

% of Completion (Accumulative Actual vs

Target)

Remarks LOP

Target

% of Completion (Accumulative All Year

vs LOP)

#1 – Percentage reduction in GHG emissions as a result of USG assistance measured using actual emissions compared to REL (Outcome – contributes to FACTS 4.8-7)

Not measured

Not measur

ed

Not measur

ed

Not measur

ed

Not measur

ed - - 41% 0%

#2 – Number of hectares of biological significance and/or natural resources under improved natural resource management as a result of USG assistance (Outcome –FACTS 4.8.1-26)

1.7 M - On process 8,700,000 0%

#3 – Percentage reduction in poaching (Outcome)

10% - On process 40% 0%

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Indicator Target of FY 2017

Actual (Q1)

Actual (Q2)

Actual (Q3)

Actual (Q4)

% of Completion (Accumulative Actual vs

Target)

Remarks LOP

Target

% of Completion (Accumulative All Year

vs LOP)

#4 – Number of public policies addressing climate change and/or biodiversity conservation introduced, changed or adopted consistent with citizen input (Outcome)

9 3 33%

District requlation (Qanun Perlindungan dan Pengelolaan Lingkungan Hidup Aceh Selatan) was ratified by the plenary of DPRK on December 20, 2016. LCP’s recomendation from IFACS were integrated into this Qanun.

Academic Paper for Provincial Regulation (Perda Provinsi) on “Pengendalian Kebakaran Hutan dan atau Lahan” in Central Kalimantan Province was being introduced into legislature.

Academic paper of draft local regulations on perlindungan dan pengelolaan daerah penyangga Cagar Alam Pegunungan Cyclops was in the head of legal process and will be introduced into local legislation program (Prolegda).

28 21%

#5 – Number of sub-national government with improved licensing and permitting mechanism (Outcome)

2 -

Sustainable Screening Tool (SST) was on development process in Central Kalimantan Province. Department of Public works- Province Spatial will coordinate all data spatial and will use this SST.

Governor regulation for Papua Province’s Information System for spatial planing (SIMTARU) was on process.

14 0%

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Indicator Target of FY 2017

Actual (Q1)

Actual (Q2)

Actual (Q3)

Actual (Q4)

% of Completion (Accumulative Actual vs

Target)

Remarks LOP

Target

% of Completion (Accumulative All Year

vs LOP)

#6 – Number of sub-national government incorporating high quality SEA-LEDS & LCPs into draft spatial plans, zonation regulation or draft mid-term development plan (Outcome)

6 1 17%

SEA/LEDS recomendation have incorporated into RPJMD Central Kalimantan 2016-2021.

SEA/LEDS for spatial plan (RDTR) and zoning regulation in Aceh Barat Daya District was in the process of development.

Existing SEA-LEDS in Gayo Lues was in process of reviewing and updating.

SEA/LEDS for Central Kalimantan Province Spatial Plan (RTRWP) was on finalization of draft (0) and it will be publicly consulted.

SEA/LEDS was in the process of updating and integration into RTRWK revision in Mimika District

14 7%

#7 – Number of Multi Stakeholder Forum (MSF) operational as citizen based mechanisms for public input on land use (Outcome)

7 1 14%

1 MSF in Aceh Selatan (FORLAST) has operationalized.

2 MSF in Pulang Pisau and Palangkaraya routinely facilitated series of dialogues on technically relevant themes

MSFs in Mappi got local budget support for MSF operationalisation.

MSFs in mimika engaged in advocay of RTRWK revision.

14 7%

#8 – Number of community champions engaged in advocacy interventions (Output)

175 17 10%

17 people (Male: 14 ; Female: 3) engaged in various advocacy intervention such as district regulation (Qanun PPLH) and Academic Paper for Provincial Regulation in Central Kalimantan.

500 8%

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Indicator Target of FY 2017

Actual (Q1)

Actual (Q2)

Actual (Q3)

Actual (Q4)

% of Completion (Accumulative Actual vs

Target)

Remarks LOP

Target

% of Completion (Accumulative All Year

vs LOP)

#9 – Number of people reached by LESTARI communication programs to improve awareness and understanding of LEDS and biodiversity conservation (Output)

3,550 26,399 744%

26,399 people (Male: 14,933 ; Female: 11,466) reached mostly through printed media, television, social media, blog and radio publications.

15,000 980%

#10 – Number of Conservation Areas (CAs) with at least 70 point in METT scores across LESTARI landscapes (Outcome)

0 - - 6 0%

#11 – Number of co-management agreements signed that secure community rights and benefits (Output)

10 4 40%

4 Co-management agreements signed in the form of social forestry in Tangkahen, Tumbang Tarusan, Tambak, dan Bawan Village, Banama Tingang Sub-district, Pulang Pisau District with total area is 2,016 Ha.

40 13%

#12 – Number of people receiving USG supported training in natural resources management and/or biodiversity conservation (Output – FACTS 4.8.1-27)

3,920 240 6%

240 people (Male: 164; Female: 76) received trainings.

10,000 12%

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Indicator Target of FY 2017

Actual (Q1)

Actual (Q2)

Actual (Q3)

Actual (Q4)

% of Completion (Accumulative Actual vs

Target)

Remarks LOP

Target

% of Completion (Accumulative All Year

vs LOP)

#13 – Amount of investment mobilized (in USD) for climate change as supported by USG assistance (Output – FACTS 4.8.2-10)

4,750,000 94,656 2%

Amount $ 94,656 (IDR 1,263,246,000) has been mobilized from local government, community and private sector. 20,000,000 18%

#14 – Number of people receiving livelihood co-benefits (monetary or non monetary) (Outcome)

7,500 52 0.7%

52 people (male: 35; female: 17) as member of KUBK have received economic benefits from the sale of Bokar bersih.

30,000 0.2%

#15 – Number of private sector firms that have improved management practices as a result of USG assistance (Outcome –FACTS 4.6.2-9)

2 - -

LESTARI has conducted baseline analysis for 11 concessionnaires ( 9 in Kalimantan; 2 in Papua) and engaged a third party under sub-contract mechanism to conduct RIL-C trainings. In addition, LESTARI were in process to make standarization of RIL for national scale.

10 0%

#16 - Number of new USG-supported public-private partnerships (PPPs) formed (Output – FACTS PPP 5)

6 1 17%

One Public-Private Partnership was signed by CV Mitra Sidirepo and LESTARI. Two parties agreed to do cooperation in terms of procurement, distribution, and use of biological products to support the implementation of strengthening smallholder rubber farmers.

20 20%

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APPENDIX 2: LESTARI RESULTS FRAMEWORK

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APPENDIX 3: STAFFING PLAN

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LESTARI

Wisma GKBI, 12th Floor, #1210 Jl. Jend. Sudirman No. 28, Jakarta 10210, Indonesia

Phone: +62 21 574 0565 Fax: +62 21 574 0566

Email: [email protected]