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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.