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This report by the Climate Policy Initiative proposes the 'Indeks Desa Membangun Plus' (IDM+), a reformed evaluation index designed to incentivize sustainable land use and environmental preservation at the village level in Indonesia. Using Berau Regency in East Kalimantan as a case study, the report argues that existing fiscal transfer mechanisms fail to reward ecological performance and suggests a mixed fiscal instrument approach to provide both incentives for high-performing villages and affirmative support for those with low ecological scores.

This research paper by the Climate Policy Initiative proposes the Sustainable Village Development Index (IDM+) to integrate environmental sustainability into Indonesia's village-level governance. The authors argue that existing evaluation tools fail to measure ecological performance, leaving villages without clear metrics or fiscal incentives to implement sustainable land use and climate actions. The paper suggests using IDM+ as a basis for Ecological Fiscal Transfers (EFT) to reward high-performing villages and support those with low performance, using a case study in Berau Regency to demonstrate the mechanism's potential.