What Carbon Sequestration Requirements Apply Under PERMENLHK P.70/2017?

1.0 Introduction and Regulatory Context

Peraturan Menteri Lingkungan Hidup dan Kehutanan Republik Indonesia Nomor P.70/MENLHK/SETJEN/KUM.1/12/2017 (PERMENLHK P.70/2017) represents Indonesia's landmark regulatory framework for implementing Reducing Emissions from Deforestation and Forest Degradation, Role of Conservation, Sustainable Management of Forest and Enhancement of Forest Carbon Stocks (REDD+). Established on December 29, 2017, and promulgated on January 24, 2018 through Berita Negara Republik Indonesia Tahun 2018 Nomor 161, this regulation provides the operational blueprint for Indonesia's commitment to reduce greenhouse gas emissions while enhancing forest carbon stocks.

The regulation responds to Indonesia's ambitious Nationally Determined Contribution (NDC) targets under the Paris Agreement: achieving a 29% unconditional reduction and up to 41% conditional reduction in greenhouse gas emissions compared to Business as Usual (BAU) projections by 2030. The forestry sector plays a central role in this mitigation strategy through the Land Use, Land Use Change and Forestry (LULUCF) category. PERMENLHK P.70/2017 translates international climate commitments into actionable domestic policy, establishing clear procedures for measurement, reporting, verification, safeguards, and result-based payment mechanisms.

This regulatory framework builds upon Indonesia's ratification of the United Nations Framework Convention on Climate Change (UNFCCC) through Undang-Undang Nomor 6 Tahun 1994, the Kyoto Protocol through Undang-Undang Nomor 17 Tahun 2004, and the Paris Agreement through Undang-Undang Nomor 16 Tahun 2016. By adopting a national approach with subnational implementation, PERMENLHK P.70/2017 creates a scalable system that accommodates provincial, district, and site-level forest carbon activities while maintaining consistency with national REDD+ strategies and international reporting obligations.

The regulation's significance extends beyond carbon accounting. It establishes comprehensive safeguards to protect biodiversity, ecosystem services, community rights, and sustainable livelihoods. Through the Sistem Informasi Safeguards (SIS) and Sistem Registri Nasional (SRN), PERMENLHK P.70/2017 ensures transparency, prevents double counting, and creates accountability mechanisms for all REDD+ activities across Indonesia's 113.2 million hectares of forest reference area.

For forest managers, concession holders, local governments, and conservation practitioners, PERMENLHK P.70/2017 creates new opportunities to monetize carbon sequestration while fulfilling mandatory reporting and verification requirements. This analysis examines the regulation's definitions, operational requirements, implementation framework, and practical implications for stakeholders engaged in forest-based climate mitigation.

2.0 Key Definitions and Scope

PERMENLHK P.70/2017 establishes 39 technical definitions in Pasal 1 that form the conceptual foundation for REDD+ implementation in Indonesia. These definitions align with UNFCCC COP decisions while adapting international frameworks to Indonesia's ecological, social, and institutional context. The following provisions are presented verbatim in Indonesian with English translations.

Pasal 1 (Selected Core Definitions) - Verbatim Indonesian:

"1. Hutan adalah suatu kesatuan ekosistem berupa hamparan lahan berisi sumberdaya alam hayati yang didominasi pepohonan dalam persekutuan alam lingkungannya, yang satu dengan lainnya tidak dapat dipisahkan.

2. Deforestasi adalah perubahan secara permanen dari areal berhutan menjadi tidak berhutan.
3. Deforestasi Gross adalah perubahan secara permanen tutupan hutan alam tanpa memperhitungkan pertumbuhan kembali (regrowth) dan atau pembuatan hutan tanaman.
4. Deforestasi Nett adalah perubahan secara permanen tutupan hutan, dengan memperhitungkan pertumbuhan kembali (regrowth) dan/atau pembuatan hutan tanaman.
5. Degradasi Hutan adalah penurunan kuantitas tutupan hutan dan stok karbon selama periode tertentu.
6. Konservasi Karbon adalah kegiatan perlindungan terhadap stok karbon.
7. Pengelolaan Hutan Lestari adalah pengelolaan hutan berdasarkan keseimbangan aspek ekonomi, ekologi dan sosial.
8. Peningkatan Stok Karbon Hutan adalah penambahan stok karbon hutan melalui kegiatan penanaman, pengayaan (enrichment planting) dan pemeliharaan tegakan."

English Translation and Analysis:

1. Forest is defined as an ecosystem unit comprising land containing biological natural resources dominated by trees in their natural community, which cannot be separated from one another.
2. Deforestation constitutes permanent conversion from forested to non-forested areas.
3. Gross Deforestation refers to permanent change in natural forest cover without accounting for regrowth or plantation establishment.
4. Net Deforestation refers to permanent forest cover change accounting for regrowth and/or plantation establishment.
5. Forest Degradation means decreased forest cover quantity and carbon stock over a specific period.
6. Carbon Conservation encompasses protection activities for carbon stocks.
7. Sustainable Forest Management involves forest management balancing economic, ecological, and social aspects.
8. Forest Carbon Stock Enhancement means increasing forest carbon stocks through planting, enrichment planting, and stand maintenance.

REDD+ Framework Definitions

PERMENLHK P.70/2017 defines the technical instruments necessary for REDD+ implementation:

Pasal 1 (Technical Instruments) - Verbatim Indonesian:

"14. Perangkat Reducing Emissions from Deforestation and Forest Degradation, Role of Conservation, Sustainable Management of Forest and Enhancement of Forest Carbon Stocks yang selanjutnya disingkat Perangkat REDD+ adalah instrumen pelaksanaan REDD+ yang terdiri atas Strategi Nasional, Forest Reference Emission Level (FREL)/Forest Reference Level (FRL), Measuring, Reporting, Verifying (MRV), National Forest Monitoring Systems (NFMS), Instrumen Pendanaan, Safeguards dan Sistem Informasi Safeguard REDD+, Sistem Registri Nasional (SRN).

16. FREL/FRL adalah benchmark atau acuan tingkat emisi untuk mengukur kinerja negara baik nasional dan Sub Nasional dalam upaya pengurangan emisi Gas Rumah Kaca (GRK) dalam implementasi REDD+ dengan ditetapkan berdasarkan data dan informasi yang mampu menggambarkan tingkat emisi rerata aktivitas REDD+ pada rentang waktu tertentu.
17. Measuring, Reporting, Verifying (MRV) untuk REDD+ adalah kegiatan pengukuran, pelaporan, dan verifikasi terhadap capaian aksi mitigasi yang telah diklaim oleh penanggung jawab aksi di tingkat nasional dan pelaksana di tingkat Sub Nasional.
18. Safeguards adalah kerangka pengaman yang melindungi dan menjaga agar tidak terjadi atau menekan sekecil mungkin terjadinya dampak negatif dari dilaksanakannya kegiatan REDD+ dan mendorong sebanyak mungkin dampak positif, baik dari aspek tata kelola, sosial, maupun lingkungan."

English Translation:

14. REDD+ Instruments comprise the implementation tools for REDD+ consisting of National Strategy, Forest Reference Emission Level (FREL)/Forest Reference Level (FRL), Measuring, Reporting, Verifying (MRV), National Forest Monitoring Systems (NFMS), Funding Instruments, Safeguards and REDD+ Safeguard Information System, National Registry System (SRN).
15. FREL/FRL serves as the benchmark or emission level reference for measuring national and subnational performance in greenhouse gas (GHG) emission reduction efforts under REDD+ implementation, established based on data and information capable of describing average emission levels of REDD+ activities over a specific timeframe.
16. Measuring, Reporting, Verifying (MRV) for REDD+ encompasses measurement, reporting, and verification activities for mitigation action achievements claimed by national action leaders and subnational implementers.
17. Safeguards constitute protective frameworks that shield against and minimize negative impacts from REDD+ activity implementation while promoting maximum positive impacts across governance, social, and environmental aspects.

Financial and Institutional Definitions

Pasal 1 (Financial Mechanisms) - Verbatim Indonesian:

"26. Pembayaran Berbasis Kinerja (result based payment) adalah insentif positif atau pembayaran yang diperoleh dari hasil capaian pengurangan emisi yang telah diverifikasi dan manfaat selain karbon.

30. Nationally Determined Contribution (NDC) adalah kontribusi negara pihak (parties) dalam penurunan emisi gas rumah kaca global yang ditargetkan akan dicapai pada Tahun 2030.
31. Pelaksana REDD+ adalah pemerintah daerah, pengelola kesatuan pengelolaan hutan, pemegang izin di bidang hutan dan lahan, pengelola hutan serta pengelola hutan hak."

English Translation:

26. Result-Based Payment represents positive incentives or payments obtained from verified emission reduction achievements and non-carbon benefits.
27. Nationally Determined Contribution (NDC) constitutes party country contributions to global greenhouse gas emission reductions targeted for achievement by 2030.
28. REDD+ Implementers include local governments, forest management unit managers, forest and land permit holders, forest managers, and customary forest managers.

These definitions establish the legal architecture for Indonesia's REDD+ implementation, creating specific technical meanings that govern carbon accounting, monitoring, verification, and payment mechanisms across all forest carbon activities in Indonesia.

3.0 Core Requirements and Provisions

PERMENLHK P.70/2017 establishes comprehensive operational requirements for REDD+ implementation across four primary domains: scope and approach, FREL/FRL establishment, measurement and verification systems, and registry requirements. These provisions create mandatory frameworks for all forest carbon activities in Indonesia.

3.1 National Approach with Subnational Implementation

Pasal 4 - General Provisions (Verbatim Indonesian):

"(1) Cakupan pelaksanaan REDD+ meliputi wilayah nasional dengan implementasi di Sub Nasional.

(2) Pelaksanaan REDD+ dilakukan melalui upaya pengurangan emisi dari deforestasi dan degradasi hutan, konservasi stok karbon hutan, pengelolaan hutan berkelanjutan, dan peningkatan stok karbon hutan.

(3) Pelaksanaan REDD+ sebagaimana dimaksud pada ayat (2) dapat didukung dengan kegiatan:
a. peningkatan kapasitas institusi dan sumberdaya manusia;
b. penguatan kebijakan dan perangkat REDD+;
c. penelitian dan pengembangan; dan/atau
d. kegiatan prakondisi (enabling condition) lainnya.

(4) Pembayaran berbasis kinerja (result based payment) dapat memasukkan manfaat selain karbon (non carbon benefit)."

English Translation:

"(1) REDD+ implementation coverage encompasses national territory with subnational implementation.

(2) REDD+ implementation is conducted through efforts to reduce emissions from deforestation and forest degradation, conserve forest carbon stocks, manage forests sustainably, and enhance forest carbon stocks.

(3) REDD+ implementation as referred to in paragraph (2) may be supported by activities:
a. institutional and human resource capacity building;
b. policy and REDD+ instrument strengthening;
c. research and development; and/or
d. other enabling condition activities.

(4) Result-based payments may include non-carbon benefits."

Matrix 1: REDD+ Activity Categories and Supporting Interventions

3.2 Forest Reference Emission Level (FREL/FRL) Requirements

Pasal 8 - FREL/FRL Establishment (Verbatim Indonesian):

"(1) FREL/FRL ditetapkan berdasarkan data dan informasi yang mampu menggambarkan tingkat emisi setara aktivitas REDD+ pada rentang waktu tertentu.

(2) FREL/FRL sebagaimana dimaksud pada ayat (1) dinyatakan dalam satuan ton karbondioksida ekuivalen per tahun (CO₂e/tahun).

(3) FREL/FRL sebagaimana dimaksud pada ayat (1) dan ayat (2) disusun dengan mengacu pada prinsip transparansi, akurasi, konsistensi, lengkap/menyeluruh, dan sejalan dengan Keputusan COP.

(4) FREL/FRL Nasional disusun pada skala Nasional oleh Direktur Jenderal selaku National Focal Point UNFCCC.

(5) FREL/FRL Nasional digunakan sebagai acuan untuk penentuan FREL/FRL Sub Nasional.

(6) FREL/FRL Sub Nasional ditetapkan berdasarkan hasil perhitungan FREL/FRL Nasional dan batas atas per satuan Sub Nasional.

(7) Untuk menjamin kesesuaian antara FREL/FRL Sub Nasional dengan FREL/FRL Nasional, digunakan buffer yang ditetapkan dengan mempertimbangkan kondisi biogeofisik, kepentingan pembangunan dan tingkat resiko tidak tercapainya target pengurangan emisi.

(8) Guna memenuhi prinsip sebagaimana dimaksud pada ayat (3) dan meningkatkan kualitas hasil penghitungan FREL/FRL dari waktu ke waktu maka dilakukan peninjauan kembali paling lama setiap 5 (lima) tahun sekali."

English Translation:

"(1) FREL/FRL shall be established based on data and information capable of describing emission levels equivalent to REDD+ activities over a specific timeframe.

(2) FREL/FRL as referred to in paragraph (1) shall be expressed in tons of carbon dioxide equivalent per year (CO₂e/year).

(3) FREL/FRL as referred to in paragraphs (1) and (2) shall be compiled with reference to principles of transparency, accuracy, consistency, completeness/comprehensiveness, and alignment with COP Decisions.

(4) National FREL/FRL shall be compiled at National scale by the Director General as UNFCCC National Focal Point.

(5) National FREL/FRL shall be used as reference for determining Subnational FREL/FRL.

(6) Subnational FREL/FRL shall be established based on National FREL/FRL calculation results and upper limits per Subnational unit.

(7) To ensure consistency between Subnational and National FREL/FRL, buffers shall be used established by considering biogeophysical conditions, development interests, and risk levels of not achieving emission reduction targets.

(8) To fulfill principles as referred to in paragraph (3) and improve FREL/FRL calculation quality over time, reviews shall be conducted at least every 5 (five) years."

Matrix 2: FREL/FRL Requirements and Compliance Framework

3.3 Measurement, Reporting, and Verification (MRV) System

Pasal 9 - MRV Framework (Verbatim Indonesian):

"(1) Untuk menerima pembayaran atas hasil capaian pengurangan emisi (result based payment), pelaksanaan REDD+ sebagaimana dimaksud dalam Pasal 6 ayat (2) huruf a, harus dapat diukur, dilaporkan dan diverifikasi.

(2) Pengukuran, pelaporan dan verifikasi pelaksanaan REDD+ periode pertama (sampai dengan 31 Desember 2020), menggunakan Wilayah Pengukuran Kinerja (WPK) REDD+ Nasional tercantum dalam Lampiran IIA yang merupakan bagian tidak terpisahkan dari Peraturan Menteri ini.

(3) Wilayah Pengukuran Kinerja (WPK) REDD+ harus ditinjau kembali sesuai dengan hasil peninjauan kembali FREL/FRL Nasional."

Pasal 10 - Measurement Requirements (Verbatim Indonesian):

"(1) Pengukuran sebagaimana dimaksud dalam Pasal 9 dilakukan oleh pelaksana REDD+ paling lama setiap 2 (dua) tahun sekali.

(2) Pengukuran sebagaimana dimaksud pada ayat (1) dilakukan dalam rangka penghitungan pengurangan emisi dan/atau konservasi stok karbon hutan dan/atau peningkatan stok karbon hutan pada periode waktu tertentu pada tingkat nasional dan Sub Nasional."

Pasal 11 - Reporting Requirements (Verbatim Indonesian):

"(1) Pelaksana REDD+ harus melaporkan hasil capaian pengurangan emisi dan/atau konservasi stok karbon hutan dan/atau peningkatan stok karbon hutan paling lama setiap 2 (dua) tahun sekali.

(2) Pelaksana REDD+ yang memasukan kegiatan sebagaimana dimaksud dalam Pasal 4 ayat (3) dan ayat (4) harus melaporkan hasil pelaksanaannya.

(3) Pelaporan pelaksanaan REDD+ di tingkat Sub Nasional dilakukan oleh pelaksana REDD+ kepada Direktur Jenderal selaku National Focal Point UNFCCC melalui SRN.

(4) Pelaporan pelaksanaan REDD+ di tingkat nasional dilakukan oleh National Focal Point kepada sekretariat UNFCCC."

Pasal 12 - Verification Requirements (Verbatim Indonesian):

"(1) Verifikasi dilakukan untuk memastikan bahwa pengukuran berikut pelaporan yang disampaikan oleh pelaksana REDD+ sudah benar dan menganut prinsip transparansi, akurasi, kelengkapan, konsistensi dan menghindari penghitungan ganda (double counting).

(2) Verifikasi sebagaimana dimaksud pada ayat (1) dilakukan paling lama setiap 2 (dua) tahun sekali.

(3) Untuk kepentingan result based payment, proses verifikasi kegiatan REDD+ dilakukan pihak ketiga (verifikator independen).

(4) Hasil pelaksanaan verifikasi sebagaimana dimaksud pada ayat (1) dilaporkan oleh verifikator independen kepada Direktur Jenderal selaku National Focal Point UNFCCC melalui SRN."

English Translation Summary:

Pasal 9-12 establish mandatory MRV requirements: (1) All REDD+ activities seeking result-based payment must be measurable, reportable, and verifiable; (2) Measurement must occur at least every 2 years by REDD+ implementers; (3) Reporting must occur at least every 2 years through SRN to the National Focal Point, who reports to UNFCCC; (4) Independent third-party verification must occur at least every 2 years, adhering to transparency, accuracy, completeness, consistency, and double-counting avoidance principles.

Matrix 3: MRV Timeline and Responsibility Matrix

4.0 Implementation Framework

PERMENLHK P.70/2017 establishes four critical implementation mechanisms: the National Registry System (SRN), Safeguards Information System (SIS), funding architecture, and institutional responsibilities. These frameworks operationalize REDD+ activities and ensure compliance with international standards.

4.1 National Registry System (Sistem Registri Nasional)

Pasal 13 - SRN Requirements (Verbatim Indonesian):

"(1) Pelaksanaan REDD+ sebagaimana dimaksud dalam Pasal 3 harus didaftarkan dan dicatat di Sistem Registri Nasional (SRN).

(2) Registri REDD+ di Sistem Registri Nasional (SRN) ditujukan untuk:
a. pendataan aksi dan sumberdaya REDD+; dan
b. menghindari penghitungan ganda (double counting) terhadap aksi dan sumberdaya REDD+ sebagai bagian pelaksanaan prinsip clarity, transparency dan understanding (CTU).

(3) Registri sebagaimana dimaksud pada ayat (1) untuk pelaksanaan REDD+ di tingkat Nasional dan Sub Nasional mencakup data dan informasi:
a. FREL/FRL;
b. hasil MRV;
c. pelaksanaan safeguards;
d. pendanaan;
e. kegiatan pendukung; dan
f. kontribusi terhadap capaian NDC.

(4) Pengelola Sistem Registri Nasional bertanggung jawab menjaga konsistensi antara data dan informasi pelaksanaan REDD+ di tingkat nasional dan Sub Nasional dan penghindaran penghitungan ganda."

English Translation:

"(1) REDD+ implementation as referred to in Article 3 must be registered and recorded in the National Registry System (SRN).

(2) REDD+ registry in the National Registry System (SRN) is intended to:
a. collect data on REDD+ actions and resources; and
b. avoid double counting of REDD+ actions and resources as part of implementing clarity, transparency and understanding (CTU) principles.

(3) Registry as referred to in paragraph (1) for REDD+ implementation at National and Subnational levels includes data and information on:
a. FREL/FRL;
b. MRV results;
c. safeguards implementation;
d. funding;
e. supporting activities; and
f. contribution to NDC achievement.

(4) National Registry System managers are responsible for maintaining consistency between REDD+ implementation data and information at national and Subnational levels and avoiding double counting."

4.2 Safeguards Information System

Pasal 14 - SIS Requirements (Verbatim Indonesian):

"(1) Sistem Informasi Safeguards (SIS) ditujukan untuk menyediakan informasi implementasi safeguards secara transparan, konsisten, dan dapat diakses oleh semua pihak.

(2) Implementasi safeguards harus memenuhi prinsip, kriteria, dan indikator yang dijabarkan lebih lanjut ke dalam Alat Penilai Pelaksanaan Safeguards (APPS).

(3) Prinsip, kriteria dan indikator Alat Penilai Pelaksanaan Safeguards sebagaimana dimaksud pada ayat (2) tercantum dalam Lampiran IIIA dan IIIB yang merupakan bagian tidak terpisahkan dari Peraturan Menteri ini.

(4) Pelaporan implementasi safeguards dalam pelaksanaan REDD+ di tingkat Sub Nasional dilakukan oleh pelaksana REDD+ kepada Direktur Jenderal selaku National Focal Point melalui SIS REDD+."

English Translation:

"(1) The Safeguards Information System (SIS) is intended to provide information on safeguards implementation transparently, consistently, and accessible to all parties.

(2) Safeguards implementation must fulfill principles, criteria, and indicators further elaborated in the Safeguards Implementation Assessment Tool (APPS).

(3) Principles, criteria and indicators of the Safeguards Implementation Assessment Tool as referred to in paragraph (2) are set forth in Annexes IIIA and IIIB which are inseparable parts of this Ministerial Regulation.

(4) Reporting of safeguards implementation in REDD+ implementation at Subnational level is conducted by REDD+ implementers to the Director General as National Focal Point through REDD+ SIS."

4.3 Funding Architecture

Pasal 16 - Funding Sources (Verbatim Indonesian):

"Sumber pendanaan REDD+ dapat berasal dari:
a. hibah;
b. kerjasama/pembayaran program atau kegiatan yang berbasis kinerja (result-based payment);
c. anggaran pendapatan dan belanja negara; dan/atau
d. sumber lainnya yang sah."

Pasal 18 - Funding Allocation (Verbatim Indonesian):

"Peruntukan pendanaan REDD+, meliputi:
a. pembayaran berbasis kinerja (result based payment) terhadap:
1) pengurangan emisi dari deforestasi dan degradasi hutan, konservasi stok karbon hutan, pengelolaan hutan berkelanjutan, dan peningkatan stok karbon hutan; atau
2) pengurangan emisi dari deforestasi dan degradasi hutan, konservasi stok karbon hutan, pengelolaan hutan berkelanjutan, dan peningkatan stok karbon hutan dan manfaat selain karbon.
b. kegiatan pendukung:
1) peningkatan kapasitas institusi dan sumberdaya manusia;
2) penguatan kebijakan dan perangkat REDD+;
3) penelitian dan pengembangan; dan/atau
4) kegiatan prakondisi (enabling condition) lainnya."

Pasal 19 - Eligible Recipients (Verbatim Indonesian):

"Penerima pendanaan REDD+ terdiri atas:
a. lembaga Pemerintah di tingkat Nasional dan Sub Nasional;
b. organisasi masyarakat sipil;
c. dunia usaha;
d. lembaga penelitian/pendidikan; atau
e. kelompok masyarakat."

Pasal 20 - Disbursement Mechanisms (Verbatim Indonesian):

"(1) Penyaluran pendanaan untuk pelaksanaan REDD+ sebagaimana dimaksud dalam Pasal 18 huruf a, didasarkan pada capaian kinerja pelaksanaan REDD+.

(2) Penyaluran pendanaan untuk kegiatan pendukung sebagaimana dimaksud dalam Pasal 18 huruf b, dilakukan melalui pembayaran berdasarkan program kerja/kegiatan yang diusulkan.

(3) Penyaluran pendanaan REDD+ melalui mekanisme:
a. pembayaran berbasis hasil;
b. hibah;
c. perdagangan karbon; dan
d. mekanisme lainnya sesuai peraturan perundang-undangan.

(4) Penyaluran pendanaan REDD+ sebagaimana dimaksudkan pada ayat (1) dan ayat (2) dapat dilakukan:
a. langsung dari Bank Kustodian kepada pelaksana REDD+; atau
b. dalam hal pelaksana REDD+ tidak memiliki kapasitas untuk mengakses secara langsung, penyaluran pendanaan dapat dilakukan dari Bank Kustodian melalui Lembaga Penyalur Nasional (National Intermediaries)."

English Translation Summary:

REDD+ funding sources include: grants, result-based payment cooperation/programs, national budget, and other lawful sources (Pasal 16). Funding allocation covers: (a) result-based payments for emission reductions and carbon stock enhancement (with or without non-carbon benefits); and (b) supporting activities including capacity building, policy strengthening, research, and enabling conditions (Pasal 18). Eligible recipients include: government institutions (national and subnational), civil society organizations, business entities, research/education institutions, and community groups (Pasal 19). Disbursement occurs through: result-based payment, grants, carbon trading, or other legal mechanisms, either directly from Custodian Bank to implementers or through National Intermediaries for capacity-constrained implementers (Pasal 20).

Matrix 4: REDD+ Funding Framework and Access Requirements

4.4 Institutional Roles and Responsibilities

Pasal 22 - Monitoring and Evaluation (Verbatim Indonesian):

"(1) Direktur Jenderal selaku National Focal Point bertanggung jawab melaksanakan pemantauan dan evaluasi terhadap pelaksanaan REDD+.

(2) Pemantauan dan evaluasi sebagaimana dimaksud pada ayat (1) dilaksanakan paling sedikit 1 (satu) kali dalam satu tahun.

(3) Hasil pemantauan dan evaluasi sebagaimana dimaksud pada ayat (2) dilaporkan kepada Menteri."

English Translation:

"(1) The Director General as National Focal Point is responsible for conducting monitoring and evaluation of REDD+ implementation.

(2) Monitoring and evaluation as referred to in paragraph (1) shall be conducted at least 1 (one) time per year.

(3) Monitoring and evaluation results as referred to in paragraph (2) shall be reported to the Minister."

The Director General of Climate Change Control (Direktur Jenderal Pengendalian Perubahan Iklim) serves as the UNFCCC National Focal Point and bears primary responsibility for: (1) compiling National FREL/FRL; (2) establishing Subnational FREL/FRL; (3) receiving subnational MRV reports through SRN; (4) reporting to UNFCCC Secretariat; (5) managing SRN and SIS REDD+; (6) providing technical guidance to subnational REDD+ institutions; (7) conducting annual monitoring and evaluation; and (8) reporting to the Minister of Environment and Forestry.

Provincial-level REDD+ Management Institutions (Lembaga Pengelola REDD+ Sub Nasional) coordinate REDD+ implementation within their jurisdictions, while REDD+ Implementers (forest managers, concession holders, government agencies, communities) conduct activities, measure carbon changes, report through SRN, and access funding based on verified performance.

5.0 Practical Implications

PERMENLHK P.70/2017 creates significant operational obligations and opportunities for all stakeholders involved in forest management, carbon sequestration, and climate mitigation in Indonesia. The regulation's implementation generates compliance requirements, funding access pathways, liability considerations, and strategic planning imperatives that affect diverse actors from national agencies to community forest groups.

5.1 Compliance Obligations for Forest Concession Holders

All forest concession holders—including those holding timber concessions (IUPHHK), ecosystem restoration concessions (IUPHHK-RE), social forestry permits (Hutan Desa, Hutan Kemasyarakatan, Hutan Tanaman Rakyat), and customary forest rights (Hutan Adat)—must register REDD+ activities in SRN if they claim carbon sequestration benefits or seek result-based payments. This registration obligation applies regardless of whether activities are funded through result-based payment mechanisms, carbon trading, or internal corporate sustainability programs.

Concession holders implementing activities that reduce deforestation, prevent degradation, conserve carbon stocks, practice sustainable forest management, or enhance carbon stocks must measure carbon changes at least every 2 years using methodologies aligned with National FREL/FRL and report results through SRN to the Director General. These measurements require technical capacity in carbon accounting, forest inventory, and remote sensing interpretation, necessitating investment in specialized personnel or third-party technical service providers.

Independent third-party verification becomes mandatory for concession holders seeking result-based payments. Verification must adhere to transparency, accuracy, completeness, consistency, and double-counting avoidance principles, requiring engagement with accredited verifiers and implementation of robust documentation systems. Verification cycles of at least every 2 years create recurring compliance costs that concession holders must incorporate into operational budgets.

Safeguards implementation and reporting through SIS REDD+ represents an additional compliance layer. Concession holders must assess their activities against principles, criteria, and indicators defined in Annexes IIIA and IIIB of the regulation, covering governance, social, and environmental dimensions. This assessment requires systematic data collection on community engagement, biodiversity impacts, land tenure security, benefit distribution, and grievance mechanisms—areas that may fall outside traditional forest management competencies.

5.2 Strategic Opportunities for Carbon Revenue Generation

PERMENLHK P.70/2017 creates multiple revenue pathways for REDD+ implementers. Result-based payments based on verified emission reductions represent the primary mechanism, with payments potentially covering both carbon benefits and non-carbon benefits such as biodiversity conservation, watershed protection, and livelihood improvements. The inclusion of non-carbon benefits in payment calculations creates incentives for integrated landscape approaches that deliver multiple environmental and social co-benefits.

Carbon trading mechanisms provide an alternative revenue stream, though implementers must ensure compliance with Pasal 21 requirements for SRN registration and avoid double counting between result-based payment claims and carbon credit sales. The regulation's integration with the National Registry System creates transparency that facilitates credible carbon credit transactions while preventing fraudulent double claiming of emission reductions.

Grant funding for supporting activities—including capacity building, policy strengthening, research and development, and enabling conditions—offers additional financial resources beyond direct carbon payments. These grants can fund infrastructure development, technical training, stakeholder consultation processes, legal support, and monitoring technology that enhance REDD+ implementation capacity. Organizations with limited carbon accounting capacity may strategically prioritize grant funding for enabling activities while building capability for future result-based payment access.

The five-year FREL/FRL review cycle (Pasal 8(8)) creates strategic planning horizons for implementers. Those who reduce emissions below their allocated FREL/FRL baseline during one period may face adjusted baselines in subsequent periods, creating incentives for continuous improvement rather than single-period optimization. Strategic implementers will balance current period emission reductions with long-term carbon stock management to sustain revenue generation across multiple FREL/FRL periods.

5.3 Institutional Capacity Requirements

Successful REDD+ implementation under PERMENLHK P.70/2017 demands institutional capabilities spanning carbon science, MRV technology, financial management, safeguards monitoring, and stakeholder engagement. Organizations lacking these capabilities must invest in capacity development or form partnerships with entities possessing complementary expertise.

Carbon measurement requires expertise in forest inventory methods, remote sensing analysis, carbon pool quantification, and greenhouse gas accounting aligned with IPCC guidelines and UNFCCC technical decisions. Implementers must either develop in-house capacity or contract specialized consultants to conduct biennial measurements meeting the accuracy and completeness standards necessary for verification acceptance.

MRV systems require information management infrastructure capable of collecting, storing, analyzing, and reporting spatially-explicit carbon data integrated with activity data and safeguards information. This infrastructure typically involves geographic information systems (GIS), forest monitoring platforms, carbon accounting software, and database management systems—technical investments beyond traditional forest management capabilities.

Financial management capacity becomes critical for implementers accessing multiple funding streams. Organizations must track expenditures, demonstrate co-financing requirements, manage fiduciary accountability to funders, and allocate payments appropriately among stakeholders. When accessing funds through National Intermediaries (Pasal 20(4)(b)), implementers must demonstrate sufficient financial management systems to satisfy intermediary due diligence requirements.

Safeguards implementation and reporting demand social and environmental assessment capabilities. Implementers must conduct participatory assessments using APPS tools (Lampiran IIIA and IIIB), document implementation processes, collect stakeholder feedback, monitor grievances, and report through SIS REDD+. This social accountability requires skills in community facilitation, conflict resolution, participatory monitoring, and transparent communication—capabilities distinct from technical forest management.

5.4 Legal Risks and Liability Considerations

PERMENLHK P.70/2017 creates potential legal liabilities for non-compliance, fraudulent reporting, or safeguards violations. While the regulation itself focuses on procedural requirements rather than criminal penalties, implementers face reputational, financial, and regulatory risks from non-compliance.

Fraudulent emission reduction claims or falsified MRV data could trigger multiple consequences: (1) revocation of result-based payments and requirement to return received funds; (2) exclusion from future REDD+ funding access; (3) reputational damage affecting carbon credit marketability and partnership opportunities; (4) potential prosecution under broader anti-fraud statutes; and (5) civil liability to parties harmed by fraudulent carbon claims.

Safeguards violations—particularly those affecting indigenous peoples' rights, community tenure, or biodiversity conservation—create legal exposure under Indonesian environmental and human rights law beyond PERMENLHK P.70/2017 itself. Implementers causing social harms while claiming REDD+ benefits may face civil suits, administrative sanctions under environmental permitting regulations, and international scrutiny affecting carbon credit certification and corporate partnerships.

The mandatory SRN registration requirement (Pasal 21) creates compliance obligations with enforcement potential. Implementers conducting REDD+ activities without proper registration may be denied funding access, face challenges in carbon credit certification, or encounter difficulty in demonstrating legal compliance to international partners and investors.

The regulation's transitional provision (Pasal 23) required implementers with existing international carbon trading agreements to conform with PERMENLHK P.70/2017 by December 31, 2019. While this deadline has passed, implementers with legacy arrangements must ensure their current activities, MRV systems, and reporting mechanisms align with the regulation's requirements to maintain legal standing and avoid potential challenges to their carbon credit legitimacy.

5.5 Integration with Broader Climate Policy Framework

PERMENLHK P.70/2017 functions as one component of Indonesia's comprehensive climate mitigation architecture. The regulation explicitly integrates with the National REDD+ Strategy, NDC implementation strategy (Pasal 7(2)), the National Forest Monitoring System (SIMONTANA/NFMS), and international reporting obligations under the Paris Agreement's transparency framework.

Recent regulatory developments have further shaped the REDD+ implementation landscape. Peraturan Menteri Lingkungan Hidup dan Kehutanan Nomor 7 Tahun 2023 on Carbon Trading Procedures in the Forestry Sector establishes detailed carbon trading mechanisms that operationalize Pasal 20(3)(c) of PERMENLHK P.70/2017. Implementers seeking to monetize carbon credits must navigate both regulations, ensuring consistency between REDD+ registration requirements and carbon trading authorization procedures.

Presidential Regulation No. 98/2021 on Carbon Pricing establishes Indonesia's carbon tax and emissions trading system, positioning the forestry sector as a net carbon sink through REDD+ activities. This policy context creates potential for forestry REDD+ credits to be used as offsets in Indonesia's domestic carbon market, expanding revenue opportunities beyond international result-based payment mechanisms.

The Economic Instrument for Environmental Management (Perpres 46/2017, cited in PERMENLHK P.70/2017's legal basis) provides the overarching legal foundation for market-based environmental mechanisms including carbon trading, payment for ecosystem services, and environmental funds. REDD+ implementers must understand how their forest carbon activities interface with broader environmental economic instruments to maximize financial returns and ensure regulatory compliance across multiple policy frameworks.

Provincial and district governments play critical roles in REDD+ implementation through Subnational REDD+ Management Institutions. These institutions coordinate implementers within their jurisdictions, facilitate access to the National Intermediary funding channel (Pasal 20(4)(b)), provide technical assistance, and ensure consistency between local development planning and REDD+ strategies. Implementers should actively engage with provincial REDD+ institutions to access technical support, funding facilitation, and policy coordination.

5.6 Transitional Considerations and Future Outlook

The regulation's first implementation period (through December 31, 2020) used the National FREL/FRL established in Lampiran IA, covering 113.2 million hectares of forest area that had natural forest cover in 1990. Subsequent periods use revised FREL/FRL established through five-year review cycles (Pasal 8(8)), with the current period operating under FREL/FRL updated through Ministerial Decree.

Implementers who commenced activities under the first FREL/FRL period must track how baseline adjustments in subsequent periods affect their carbon accounting and revenue potential. Areas with high historical emission reductions may face more stringent baselines in future periods, potentially reducing future result-based payment eligibility. Strategic carbon management requires long-term planning that anticipates baseline adjustments and maintains sustainable emission reduction trajectories.

Technological advances in remote sensing, artificial intelligence for forest monitoring, and blockchain-based carbon registries are transforming REDD+ implementation capabilities. The regulation's flexible approach to NFMS development (Pasal 1 definition 17 emphasizes systems "yang sudah tersedia serta fleksibel dan memungkinkan untuk dilakukan perbaikan"—"built from existing systems and flexible to allow improvements") enables incorporation of new monitoring technologies as they become available and cost-effective.

International climate finance architecture continues evolving, with the Green Climate Fund, Forest Carbon Partnership Facility, REDD+ Early Movers Programme, and bilateral result-based payment agreements providing funding under frameworks consistent with PERMENLHK P.70/2017. Indonesian implementers can access these international funding sources by demonstrating compliance with the regulation's MRV, safeguards, and registry requirements, which align with international REDD+ standards.

The integration of REDD+ with Indonesia's Forestry and Other Land Use (FOLU) Net Sink 2030 strategy creates ambitious targets for the forestry sector to transition from net emissions to net carbon sequestration. PERMENLHK P.70/2017 provides the operational framework for this transition, with successful implementation critical to achieving Indonesia's enhanced NDC commitments under the Paris Agreement.

Implementers should monitor regulatory developments in related policy areas including: (1) carbon trading procedures (Permen LHK 7/2023 and subsequent revisions); (2) domestic carbon pricing mechanisms (implementing Perpres 98/2021); (3) sustainable forest management certification requirements; (4) indigenous peoples and local community rights recognition; and (5) biodiversity conservation policies. These interconnected regulatory frameworks shape the operating environment for forest-based carbon sequestration and create both compliance obligations and strategic opportunities.

Conclusion

PERMENLHK P.70/2017 establishes Indonesia's comprehensive regulatory framework for REDD+ implementation, translating international climate commitments into actionable domestic policy. The regulation creates mandatory requirements for measurement, reporting, verification, safeguards, and registry registration that apply to all forest-based carbon sequestration activities. Through result-based payment mechanisms, carbon trading provisions, and grant funding for enabling activities, the regulation incentivizes emission reductions while ensuring environmental and social safeguards.

For forest concession holders, government agencies, conservation organizations, and community forest managers, PERMENLHK P.70/2017 creates both compliance obligations and revenue opportunities. Successful navigation of this regulatory framework requires institutional capacity in carbon accounting, MRV technology, financial management, safeguards monitoring, and stakeholder engagement. Implementers must register activities in SRN, conduct biennial measurements aligned with National FREL/FRL, engage independent verifiers, implement safeguards using APPS tools, and report through designated channels to the Director General as National Focal Point.

The regulation's integration with Indonesia's broader climate policy architecture—including the National REDD+ Strategy, NDC implementation strategy, carbon trading regulations, and domestic carbon pricing mechanisms—creates a comprehensive enabling environment for forest-based climate mitigation. As FREL/FRL baselines are reviewed every five years and monitoring technologies advance, implementers must maintain adaptive management approaches that sustain emission reductions across multiple implementation periods while generating verifiable carbon and non-carbon benefits.

PERMENLHK P.70/2017 represents a critical instrument for Indonesia's transition to a FOLU Net Sink by 2030, positioning the forestry sector as a central pillar of national climate mitigation strategy. Through transparent, verifiable, and safeguarded REDD+ implementation, Indonesia advances both its international climate commitments and domestic sustainable development objectives—creating pathways for forest conservation to generate measurable economic, environmental, and social value.

Legal Reference:
Peraturan Menteri Lingkungan Hidup dan Kehutanan Republik Indonesia Nomor P.70/MENLHK/SETJEN/KUM.1/12/2017 tentang Tata Cara Pelaksanaan Reducing Emissions From Deforestation and Forest Degradation, Role of Conservation, Sustainable Management of Forest And Enhancement of Forest Carbon Stocks. Established December 29, 2017; Promulgated January 24, 2018; Berita Negara Republik Indonesia Tahun 2018 Nomor 161.

Official Source: https://peraturan.go.id/id/permen-lhk-no-p-70-menlhk-setjen-kum-1-12-2017-tahun-2017

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