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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 executive summary from the Climate Policy Initiative examines the economic risks of palm oil monocropping for independent smallholders in the Berau regency of Eastern Kalimantan, Indonesia. It argues that while palm oil is a popular livelihood, it is insufficient to cover minimum living costs and increases food security risks. The report recommends crop diversification—specifically with maize and cocoa—as a more profitable and resilient alternative that aligns with sustainability goals.

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.

The report proposes the Sustainable Village Development Index (IDM+) to bridge the gap between national sustainability goals and village-level action in Indonesia. By adding 10 ecological indicators to the existing Village Development Index, the IDM+ provides a metric for regencies to implement Ecological Fiscal Transfers (EFT). Using Berau Regency as a case study, the report suggests a mixed fiscal approach—combining performance-based incentives with affirmative assistance—to encourage sustainable land use and climate action without marginalizing low-performing villages.

This statement by the Climate Policy Initiative argues that Indonesia should utilize its COVID-19 stimulus packages to transition toward a green, resilient, and inclusive economy rather than reinforcing fossil fuel dependence. The author suggests three primary adjustments: accelerating green industry growth through fiscal policy, diversifying and decentralizing essential resources like energy and food, and decoupling economic growth from resource use to reduce vulnerability to market shocks.

This executive summary by the Climate Policy Initiative analyzes the economic transition of the Berau District in East Kalimantan, Indonesia, from a coal-dependent economy to one based on palm oil. The study finds that shifting from coal to a palm oil mono-crop is unsustainable and risks food security. It recommends a transition plan focusing on RSPO certification, increasing production efficiency, diversifying into other high-value crops like pepper and cocoa, and developing downstream processing refineries to capture added value and increase government revenue.

The report finds that Berau Regency can meet its palm oil production goals and fill its mill capacities by increasing productivity on existing land rather than expanding into forests. While company plantations operate efficiently, smallholders face significant barriers, including lack of land certificates (only 28% have them), limited access to finance, and poor integration into the supply chain, often forcing them to sell to distant mills or intermediaries. Additionally, Berau lacks CPO refineries, meaning most crude palm oil is exported to other provinces or Malaysia, limiting local value addition.

This report by the Climate Policy Initiative analyzes the Indonesian Village Fund, a fiscal instrument established in 2015 to promote rural economic development and reduce welfare gaps. While the fund has grown significantly in size and provides over 50% of village revenue, the study finds that spending is overwhelmingly directed toward transportation infrastructure rather than sustainable land use or environmental protection. The report identifies critical gaps in technical capacity, regulatory guidance, and coordination between village and district planning, offering five strategic recommendations to align the fund with sustainability goals.

This report by the Climate Policy Initiative (CPI) examines the use of Natural Capital Assessment (NCA) to optimize land resource allocation in Indonesia. It argues that integrating social, biophysical, and economic data into spatial planning can help Indonesia achieve economic growth targets while minimizing deforestation and social conflict.

This briefing by the Climate Policy Initiative explores the use of Natural Capital Assessment (NCA) to optimize land resource allocation in Indonesia. It argues that by integrating social, biophysical, and economic data into spatial planning, Indonesia can meet economic growth targets while reducing deforestation and community conflict.

This policy brief by the Climate Policy Initiative (CPI) outlines mechanisms for synchronizing the use of Indonesian Village Funds (Dana Desa) with regional development planning to improve efficiency, effectiveness, and accountability in public services.

This report by the Climate Policy Initiative (CPI) analyzes the palm oil supply chain in the Berau district of East Kalimantan, Indonesia. It examines the potential for increasing production through yield improvement rather than land expansion to support regional sustainability goals. The study identifies significant inefficiencies facing smallholders, including lack of land tenure and financing, while noting that large plantation companies operate more efficiently. It also highlights the absence of local refineries, which results in most crude palm oil (CPO) being exported from the region raw.