Background

Building on the Memorandum of Understanding signed between the Government of Indonesia and the United Kingdom on October 12th 2000, the Ministry of Forestry and the Department for International Development (DfID) signed a Letter of Arrangement on October 11th 2008, committing an initial GBP 5 million for a period of three years (2008 – 2011) to a second phase of the Forest Governance and Multistakeholder Forestry Programme (MFP). This builds on an initial GBP 25 million investment under the first phase of MFP (2000 – 2006).

The Program seeks to support forest governance reform, with a particular focus on negotiation and implementation of an EU – Government of Indonesia Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (FLEGT-VPA). The program objectives are to strengthen government and civil society partnerships at local and national levels to build capacity, empower community forest managers and develop and implement policy. In particular, the program will work to nurture and strengthen its network of Community Foundations in the regions, established with previous program support. Over the next three years, program will also work with stakeholders to identify and implement governance reforms necessary for Reducing Emissions from Deforestation and Degradation (REDD) implementation.

The program design provides for tiered grant-making, to permit broad-based engagement around a range of partners at national, regional and local levels. Key sector entry points include: (i) trade measures; (ii) legal and judicial reform; (ii) land tenure and spatial planning; (iii) access to finance and business development services; (iv) corporate governance; and (v) the carbon markets.

The second phase of MFP (MPF2) will adopt the same area-based approach as the first previous phase, working through with existing partners and project sites in Java, Sumatra, Kalimantan, Sulawesi, Nusa Tenggara and Papua. By mobilizing existing assets, MFP2 will focus on scaling up action for policy reform, while also ensuring the sustainability of previous investments. Where these existing partnerships and sites have their constraints, the program will also respond to opportunities and needs beyond its current focal areas.

Programme Direction set out under the Letter of Arrangement establishes the principles of engagement between the DFID and the Ministry of Forestry. This now has been worked into an Implementation Framework and Standard Operating Procedures for the Service Provider, for approval by the Steering Committee.

The Implementation Framework set outs: a programme logframe, the partnership mechanism for engaging with the Ministry of Forestry and other national agencies, local government, civil society and the Community Foundations; and related processes for capacity building, monitoring and evaluation, communication and information, and shared learning..

The programme logframe and other elements of the Implementation Framework were developed jointly by representatives of the Ministry of Forestry, DFID and the Service Provider (Yayasan Kehati) over a period of 4 months (April - July 2008).