New bilateral partnership between Indonesia and Norway

Klima- og miljøminister Epsen Barth Eide signerte avtalen sammen med Indonesias miljø- og skogminister Siti Nurbaya Bakar i Indonesias hovedstad Jakarta 12. september 2022. Photo: Biro Humas KLHK

The new partnership between Norway and Indonesia will involve broader engagements on forest and climate, including results-based contributions. Indonesia will press forward with its emissions reduction targets and at a signing ceremony in Jakarta today, the two countries announced their new partnership.

A new Memorandum of Understanding (MOU) between Indonesia and Norway was signed by Indonesia’s Minister for Environment and Forestry Ms. Siti Nurbaya Bakar and Norway’s Minister for Climate and the Environment Mr. Espen Barth Eide in support of Indonesia’s efforts to reduce greenhouse gas emissions from Forestry and Other Land Use (FOLU). Eide hailed Indonesia for reducing its deforestation for each of the past six years and now reporting the lowest level in 20 years.

Indonesia contains the third largest extent of tropical forest on the planet. Deforestation has steadily decreased over the last years. Indonesia has reported that deforestation in 2019/2020 was 115,500 hectares, almost 90% down from 1.09 million hectares in 2014/2015

The centerpiece of Indonesia’s forest policies is its “FOLU Net Sink 2030 Operational Plan”, an ambitious plan to achieve a net sink in the forestry and other land use sector by reducing emissions from deforestation, forest degradation and carbon-rich peatlands as well as absorbing more carbon through restoration of forests, peatlands and mangroves. Despite facing similar continued economic pressures as other tropical forest countries, Indonesia aims to reduce deforestation to the extent where forest regrowth annually removes 140 million tons CO2 more than the remaining emissions resulting from forest and peatland utilization by the end of the decade.

«Indonesia is a global leader in reducing deforestation, delivering globally significant climate mitigation and biodiversity protection”, said Mr. Barth Eide. «Its success is a result of strong government policies. Today we are proud to embark on a new partnership to support the Indonesian government’s impressive results and ambitious plans.»

The new forest and climate partnership encompasses a results-based model, where Indonesia sets the strategy and manages the funds, while Norway contributes annual results-based financial contributions for Indonesia’s emission reductions. The ministers will meet regularly to discuss the partnership and other climate and forest related issues.  Norway’s International Climate and Forest Initiative (NICFI) will channel disbursements directly to Indonesia’s Environment Fund (Badan Pengelola Dana Lingkungan Hidup/BPDLH), to support Indonesia’s implementation of the FOLU Net Sink 2030 Operational Plan.


Norway’s support recognizes Indonesia’s continued efforts to meet its nationally determined contribution (NDC) under the Paris Agreement on climate change. The MoU signed today affirms Indonesia’s remarkable leadership and effectiveness in reducing deforestation.

Following the signing of the intergovernmental MoU the two countries will enter into a contribution agreement for results-based contributions to the Indonesia Environment Fund. Norway will support a portion of national level and third-party verified emission reductions from deforestation and forest degradation for forest years 2016/2017 to 2019/2020 based on the existing MRV protocol. Contributions for results generated 2020/2021 onwards will be based on a mutually agreed updated MRV protocol. The first results-based contribution will amount to USD 56 million for verified emission reductions in the forest year” 2016/2017 (August 2016 through July 2017). Additional results-based contributions will be annually as emission reductions are verified for subsequent years.