How it works
- 1Develop innovative business models
- 2Demonstrative feasibility
- 3Expand throughout Indonesia
The Borneo Initiative has developed innovative business models for sustainable forest management that benefit both communities and forest management units. We support the adoption of these business models at landscape level to demonstrate their economic, technical, social and environmental feasibility. As a next step we support the expansion of the program to other areas on Kalimantan, Papua and elsewhere in Indonesia to achieve our 10-year goals.
Case studies
‘Papua and West Papua to conserve forests covering over 80% of its land’
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Background
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Background Papua and West Papua are known for their tropical forests with unique biodiversity. While deforestation has increased in recent years, these forests are among the most pristine in the world. They are home to a range of endemic animals such as the Bird of Paradise, the Cassowary and the Tree Kangaroo as well as a unique flora.
The tropical forests function as carbon sinks, which are reservoirs that absorb more carbon than they release. For this reason, these forests can be effective in fighting climate change.
Mining, forestry and large agriculture companies lease much of the forested lands in Papua and West Papua. Some of their proposed plans require the clear cutting of forests, which are a threat to sustainable forestry.
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The Borneo Initiative
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The Borneo Initiative The Borneo Initiative encourages sustainable forestry in Indonesia. We provide coaching, training and financial support to help forestry companies go through the lengthy FSC certification process.
Having an FSC label ensures the public that a particular wood product comes from sustainable forestry practices. In the last 10 years, The Borneo Initiative supported the FSC certification of over 1 million hectares of forests in Papua and West Papua Provinces.
To preserve the pristine forests of Papua and West Papua and its biodiversity, the Borneo Initiative believes we must go beyond FSC certification and embrace nature-based solutions.
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Nature based solutions are
part of the answer -
Nature based solutions are part of the answer The provincial governments of Papua and West Papua have pledged to conserve the tropical forests with policies that combine economic growth with low carbon emissions. As a result, the clear-cutting of forests has been stopped.
Since their forests are so large and biodiverse, nature-based solutions work particularly well. Carbon offsets is a good example of a nature-based solution. Other possibilities include compensation for forest restoration, tree planting and biodiversity management. These services are provided by partners of the Borneo Initiative.
Papua and West Papua are a good fit for our services. By acting now, the provincial governments can gain a first mover advantage and attract investment in sustainable forest management.
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Background Papua and West Papua are known for their tropical forests with unique biodiversity. While deforestation has increased in recent years, these forests are among the most pristine in the world. They are home to a range of endemic animals such as the Bird of Paradise, the Cassowary and the Tree Kangaroo as well as a unique flora.
The tropical forests function as carbon sinks, which are reservoirs that absorb more carbon than they release. For this reason, these forests can be effective in fighting climate change.
Mining, forestry and large agriculture companies lease much of the forested lands in Papua and West Papua. Some of their proposed plans require the clear cutting of forests, which are a threat to sustainable forestry.
-
The Borneo Initiative The Borneo Initiative encourages sustainable forestry in Indonesia. We provide coaching, training and financial support to help forestry companies go through the lengthy FSC certification process.
Having an FSC label ensures the public that a particular wood product comes from sustainable forestry practices. In the last 10 years, The Borneo Initiative supported the FSC certification of over 1 million hectares of forests in Papua and West Papua Provinces.
To preserve the pristine forests of Papua and West Papua and its biodiversity, the Borneo Initiative believes we must go beyond FSC certification and embrace nature-based solutions.
-
Nature based solutions are part of the answer The provincial governments of Papua and West Papua have pledged to conserve the tropical forests with policies that combine economic growth with low carbon emissions. As a result, the clear-cutting of forests has been stopped.
Since their forests are so large and biodiverse, nature-based solutions work particularly well. Carbon offsets is a good example of a nature-based solution. Other possibilities include compensation for forest restoration, tree planting and biodiversity management. These services are provided by partners of the Borneo Initiative.
Papua and West Papua are a good fit for our services. By acting now, the provincial governments can gain a first mover advantage and attract investment in sustainable forest management.
‘Ratah Timber diversifies to ensure biodiversity and forest sustainability’
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Background
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Background PT Ratah Timber runs a forest management unit on the Island of Borneo in Indonesia. The company operates in an area where the last Sumatran Rhinoceroses of Kalimantan still roam. Forest Management Units cover over half of all forests in the Kalimantan region and these natural forests have a high level of biodiversity. In the recent past, many such forests were cleared to develop lucrative oil palm plantations. While this benefits national and local economies, it also threatens biodiversity and traditional livelihoods. To thrive and successfully compete with large-scale agriculture, forest companies must adapt by operating differently and by creating partnerships to share land with local communities.
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The Borneo Initiative
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The Borneo Initiative Thanks to a new government regulation implemented in 2020, companies can now diversify their activities. This regulation requires sizeable investment and a different type of management.
The Borneo Initiative advises companies how to balance profits, biodiversity and community development.
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Sustainable forestry
and biodiversity -
Sustainable forestry and biodiversity Diversification allows Ratah Timber to increase future revenue in a way that ensures long-term survival of the forests and their biodiversity.
Their joint program with local communities has increased the incomes of local forest communities. The long-term nature of the program means communities can now invest in better land management. This breaks the vicious cycle of ever-increasing expansion through extensive agricultural practices that are no longer sustainable.
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Background PT Ratah Timber runs a forest management unit on the Island of Borneo in Indonesia. The company operates in an area where the last Sumatran Rhinoceroses of Kalimantan still roam. Forest Management Units cover over half of all forests in the Kalimantan region and these natural forests have a high level of biodiversity. In the recent past, many such forests were cleared to develop lucrative oil palm plantations. While this benefits national and local economies, it also threatens biodiversity and traditional livelihoods. To thrive and successfully compete with large-scale agriculture, forest companies must adapt by operating differently and by creating partnerships to share land with local communities.
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The Borneo Initiative Thanks to a new government regulation implemented in 2020, companies can now diversify their activities. This regulation requires sizeable investment and a different type of management.
The Borneo Initiative advises companies how to balance profits, biodiversity and community development.
-
Sustainable forestry and biodiversity Diversification allows Ratah Timber to increase future revenue in a way that ensures long-term survival of the forests and their biodiversity.
Their joint program with local communities has increased the incomes of local forest communities. The long-term nature of the program means communities can now invest in better land management. This breaks the vicious cycle of ever-increasing expansion through extensive agricultural practices that are no longer sustainable.
Our 10 year plan
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Develop business models
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Develop business models Deforestation can be structurally reduced, and forest loss can be reversed. To achieve this, sustainable forest management must become more rewarding, so it can compete with agricultural development. Also, the rewards from forest management must provide social, environmental and economic benefits for communities, forest management companies and government alike.
The Borneo Initiative has developed business models for both households and companies. These models aim to optimize the use of available forests and generate revenues from forest restoration, tree plantations and agro-forestry. The business models include new revenue streams such as carbon, and can be tailored to include revenue from funding for forest restoration, tree plantation etc. Throughout the 2020 – 2030 period, the business models will be continuously updated and expanded.
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Demonstrate feasibility
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Demonstrate feasibility The feasibility of the business models is demonstrated at the landscape level, where communities, forest companies, local government and civil society need to work together. Together with the KPH – Forest Management Units of the Government of Indonesia – we work on the establishment of sound forest management plans in which company – community partnerships play a central role. We aim to work with up to 8 KPH on an area of approximately 2,000,000 ha. The forest management plans will include both the management of intact forests as well as degraded forests. Secure land access is an important concern for both communities and companies. Therefore, titling of forest lands for communities will be an important part of the program. Additionally, agreements between companies and communities on shared land-use inside concessions constitute a major innovation of our program.
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Expand throughout Indonesia
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Expand throughout Indonesia We want to contribute to the transformation of forest management in Indonesia. At the 2030 horizon, we hope to achieve sustainable management on 11 million hectares of natural forest and the restoration of a further 4 million hectares of degraded forest. What this requires:
Excellent partners – We nurture our network of partners spanning government, civil society, the corporate sector and international organizations. We will continue to add meaningful partners to the team.
Geographic coverage – We are active in most forest areas in Indonesia but will continue to expand and intensify our coverage.
Enabling environment – Expansion requires an enabling policy environment in Indonesia as well as effective international incentive structures.
We systematically work on all the above to achieve our 10-year ambition.
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Develop business models Deforestation can be structurally reduced, and forest loss can be reversed. To achieve this, sustainable forest management must become more rewarding, so it can compete with agricultural development. Also, the rewards from forest management must provide social, environmental and economic benefits for communities, forest management companies and government alike.
The Borneo Initiative has developed business models for both households and companies. These models aim to optimize the use of available forests and generate revenues from forest restoration, tree plantations and agro-forestry. The business models include new revenue streams such as carbon, and can be tailored to include revenue from funding for forest restoration, tree plantation etc. Throughout the 2020 – 2030 period, the business models will be continuously updated and expanded.
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Demonstrate feasibility The feasibility of the business models is demonstrated at the landscape level, where communities, forest companies, local government and civil society need to work together. Together with the KPH – Forest Management Units of the Government of Indonesia – we work on the establishment of sound forest management plans in which company – community partnerships play a central role. We aim to work with up to 8 KPH on an area of approximately 2,000,000 ha. The forest management plans will include both the management of intact forests as well as degraded forests. Secure land access is an important concern for both communities and companies. Therefore, titling of forest lands for communities will be an important part of the program. Additionally, agreements between companies and communities on shared land-use inside concessions constitute a major innovation of our program.
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Expand throughout Indonesia We want to contribute to the transformation of forest management in Indonesia. At the 2030 horizon, we hope to achieve sustainable management on 11 million hectares of natural forest and the restoration of a further 4 million hectares of degraded forest. What this requires:
Excellent partners – We nurture our network of partners spanning government, civil society, the corporate sector and international organizations. We will continue to add meaningful partners to the team.
Geographic coverage – We are active in most forest areas in Indonesia but will continue to expand and intensify our coverage.
Enabling environment – Expansion requires an enabling policy environment in Indonesia as well as effective international incentive structures.
We systematically work on all the above to achieve our 10-year ambition.