Financial Governance and Indonesia’s Reforestation Fund during the Soeharto and Post-Soeharto Periods, 1989–2009: A Political Economic Analysis of Lessons for REDD+

Background

In this occassional paper, CIFOR notes how Indonesia is in an unique position to utilize the REDD+ initiative to increase revenue and reduce loss of forest cover, overall contributing to the reduction in global carbon emmssions. In order to offer lessons for the future, this paper examines the financial management and government practices of the country's Reforestation Fund over the past two decades.

Conclusions & Takeaways

Through examining the Reforestation Fund during the Soeharto and Post-Soeharto eras, the paper identifies several main lessons, including the need to strengthen financial management and revenue administration, to address corruption and fraud, to monitor, report, and verify financial transactions, to remove misaligned incentives, to ensure accountability, and distribute benefits equally.