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The report evaluates two alternative income streams for oil palm smallholders in Central Kalimantan to mitigate risks from climate change and market volatility. Beef cattle farming, utilizing oil palm leaf waste for feed, is found to be highly profitable with a potential net profit of IDR 2 million per month, though it requires significant upfront capital. Fish cultivation, specifically tilapia and silver catfish, offers a lower-investment alternative, with tilapia providing a potential annual net profit of IDR 7.4 million. Both options are deemed feasible and scalable to help diversify rural incomes and support a green growth strategy in the region.

The report analyzes the governance and utilization of Indonesia's Village Fund, finding that while the fund has grown significantly and is a major revenue source for villages, it is predominantly spent on transportation infrastructure. The authors identify five key challenges—including a lack of technical capacity, misaligned planning between village and district levels, and insufficient regulatory guidelines—that hinder the fund's potential to support environmental conservation and sustainable land use. To address these, the report recommends integrating village priorities into district planning, empowering the Village and Community Empowerment Office, creating specific sustainability guidelines, adopting a 'negative-list' for spending, and introducing a sustainability variable into the fund's allocation formula.

This working paper by the Climate Policy Initiative, supported by PILAR and UNPAR, proposes a framework for district-level natural capital assessment in Central Kalimantan, Indonesia. It argues that current land valuations underestimate the true value of ecosystem services and are hindered by inconsistent government regulations and data gaps. The paper recommends a pilot assessment in Kotawaringin Timur due to its high concentration of palm oil infrastructure and critical high conservation value areas.

The paper argues that current land valuation in Indonesia fails to account for critical ecosystem services such as carbon stocks and water provision, leading to suboptimal land-use decisions. It proposes a new valuation approach combining GIS, participatory methods, and expert opinion to align conflicting government regulations. The authors specifically highlight Kotawaringin Timur as a priority area for this approach due to its high deforestation rates, significant concentration of palm oil mills, and the presence of 27,502 hectares of high conservation value areas that are currently under-protected.

The study identifies that over half of Central Kalimantan's land area consists of High Conservation Value (HCV) zones, with approximately 61.6% of these areas currently threatened by planned development. The analysis focuses on five specific HCV categories—protected areas, large natural landscapes, transition ecosystems, rare/endangered ecosystems, and specific environmental services—to provide a scientific basis for the province's spatial planning and sustainable development goals.

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.

The assessment finds that 60% of Central Kalimantan's land area contains High Conservation Value (HCV) areas, with 62% of these areas threatened by development. The report identifies critical hotspots in five districts and highlights logging and spatial planning as primary drivers of forest loss, which declined by 32% between 1973 and 2012.

In 2011, Indonesia disbursed at least IDR 8,377 billion (USD 951 million) in public climate finance, with the domestic government providing 66% of these funds. The majority of domestic spending (73%) targeted 'indirect activities' such as policy development, primarily in the forestry sector. International development partners contributed 34% of the total, with a stronger focus on direct mitigation and adaptation projects, particularly in energy. The report identifies significant tracking gaps, especially regarding adaptation finance, and highlights the limited role of local governments and the untapped potential of state-owned enterprises (SOEs) in delivering climate action.

The document analyzes the transition from a highly centralized forestry regime to a decentralized system in Indonesia. It finds that district governments, driven by the need for locally generated revenue (PAD), have established 'district timber regimes' characterized by the issuance of small-scale logging permits and the legalization of illegal timber. While local communities have gained more access to resources, profits largely accrue to capital providers. Furthermore, conservation areas are increasingly viewed as economic burdens, leading to threats of reclassification and encroachment.

The document investigates how decentralization in Indonesia has interacted with existing social power structures and histories of violence to create new conflicts over resource control. It argues that decentralization is not a neutral administrative shift but a process that can normalize violence, empower new ethnic elites, and facilitate illegal resource extraction when not accompanied by effective law enforcement and reinvestment guidelines. The author highlights the role of 'preman' (thugs) and the continued involvement of the military in illegal logging, suggesting that the shift from a centralized 'preman state' to a decentralized system has often merely replaced one set of elites with another.

The report analyzes four smallholder oil palm models in Central Kalimantan: cooperative plasma, company-managed plasma, individual partnership, and independent smallholders. It finds that collective and company-managed models significantly outperform individual and independent models in terms of yield, profit, and risk management. The cooperative model is highlighted as the most beneficial for sustainable livelihoods, while independent smallholders face systemic barriers in finance, supply chains, and market access.