Design for a District Level Natural Capital Assessment in Central Kalimantan
Summary
The paper argues that land in Indonesia is systematically undervalued because current assessments fail to comprehensively account for ecosystem services and lack integration with spatial planning and licensing processes. To address this, the authors propose a district-level natural capital assessment pilot, specifically recommending Kotawaringin Timur due to its high concentration of high conservation value areas under plantation status and its potential for low-emission oil palm productivity gains. The proposed methodology integrates Ministry of Environment and Forestry Regulation No. 15/2012 and Ministry of Finance Regulation No. 98/PMK.06/2010, utilizing a combination of GIS, inventories, participatory approaches, and expert judgment to inform a 'Production and Protection' approach to land management.
Key insights
- Current land valuations in Indonesia are incomplete and systematically underestimate the value of land and ecosystem services due to difficulties in accessing consistent spatial data.
- There is a significant disconnect between forest and non-forest spatial planning in Indonesia, with the former governed by the Forestry Law and the latter by the Law on Spatial Planning, leading to inconsistent land use allocations.
- Indonesian government agencies use conflicting and inconsistent regulations for land valuation, and forest utilization licenses are not issued based on the economic valuation guidelines for forest ecosystems.
- A district-level assessment is more suitable than a provincial-level one because it provides higher detail, allows for targeted variables based on localized conservation values, and is more cost-effective.
- Analysis shows that 58.12% of Central Kalimantan's area could benefit from an improved land management approach to align land use allocations with conservation characteristics.
- Kotawaringin Timur is identified as the ideal pilot district because it has the highest amount of high conservation value area under plantation status (27,502 hectares) and the lowest percentage of such area under protected status (2.89%).
- In Kotawaringin Timur, approximately 48,839 hectares of high conservation value areas are at risk of oil palm expansion because they are classified as convertible production forest.
- The proposed natural capital assessment methodology integrates Ministry of Environment and Forestry Regulation No. 15/2012 and Ministry of Finance Regulation No. 98/PMK.06/2010 using a mix of GIS, inventories, participatory approaches, and expert opinions.
Cite the original document
- APA
- Raina, L., & Wijaya, M. E. (2016). Design for a District Level Natural Capital Assessment in Central Kalimantan. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2016/12/Design-for-a-District-Level-Natural-Capital-Assessment-in-Central-Kalimantan.pdf
- Chicago
- Raina, Leela, and Muhammad Ery Wijaya. Design for a District Level Natural Capital Assessment in Central Kalimantan. Climate Policy Initiative, 2016. https://www.climatepolicyinitiative.org/wp-content/uploads/2016/12/Design-for-a-District-Level-Natural-Capital-Assessment-in-Central-Kalimantan.pdf.
- Wikipedia
- {{cite report |last1=Raina |first1=Leela |last2=Wijaya |first2=Muhammad Ery |title=Design for a District Level Natural Capital Assessment in Central Kalimantan |publisher=Climate Policy Initiative |date=October 2016 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2016/12/Design-for-a-District-Level-Natural-Capital-Assessment-in-Central-Kalimantan.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{raina2016design, author = {Raina, Leela and Wijaya, Muhammad Ery}, title = {{Design for a District Level Natural Capital Assessment in Central Kalimantan}}, institution = {Climate Policy Initiative}, year = {2016}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2016/12/Design-for-a-District-Level-Natural-Capital-Assessment-in-Central-Kalimantan.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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