Funding Instrument Working Group of the REDD+ Task Force Jakarta held a discussion entitling “REDD+ 101: Opportunity in REDD+ Investment”. The discussion marked the commencement of series of discussion on REDD+ relationship with business which will be held up to December 2012.
The discussion with about 60 participants here was held at Le Meridien Hotel Jakarta on July 25, 2012. They come from financial and investment components including practitioners of banking, security, finance consultant, and government.
Four keynote speakers led the discussion including Agus Sari, the chair of Funding Instrument Working Group of REDD+ Task Force, who explains REDD+, Iwan Wibisono, a forestry expert of the same Working Group, and Irfa Ampri, Ph.D., the head of Climate Change Financing and Multilateral Policy Center of the Finance Ministry.
“REDD+ is deemed an opportunity to provide financial benefit to forest without cutting instead of forest with cutting. Thus, this opportunity will create a new industry which requires attentive focus, good research, in-depth risk analysis on its sustainability,” said Agus Sari.
Similarly, Irfa Ampri said that REDD+ could be regarded as a way to boost up economic growth. With good management, REDD+, green economy, and sustainable development will not threat the national development goal, high economic growth. In fact, this will help ease the goal achievement.
The confidence on business potential from international framework of environmental conservation here has encouraged P.T. Rimba Makmur Utama to develop peat land restoration and conservation in Katingan and Kotawaringin Timur, South Kalimantan. Director of Rimba Makmur Utama, Dharsono Hartono, expressed his optimism noting that preserving environment will in turn provide significant benefit as it is the case with other business. However, all processes are underway currently.
As to Dharsono Hartono, there are three crucial things in this light, namely license, market, and incentive. “Would the management of those three points here be not well-prepared, Indonesia can hardly get REDD+ benefit despite the fact that our country is deemed one of the countries with largest forest in the world,” said Dharsono highlighting argument on high transaction value for business development due to various uncertainty.
Dharsono’s will meets the need. Agus Sari asserted that that is the job of his Working Group to ensure the availability of an international standard financial instrument for REDD+ implementation in Indonesia. Working quality would be hardly attainable without financial business support. “Therefore, socialization through this sort of forum is needed indeed,” said Agus Sari.
On the other hand, however, some participants admitted that they had just known REDD+ terminology and its potential business through this discussion forum. They expressed their interest to know further the issue. For the reason, Agus pledged the next forum would be held by involving more practitioners, regulators, and other financial business observers.