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Understanding forest revenue and just transition in land use sector in Indonesia

The ongoing study, led by Daemeter Consulting, assesses how the Indonesian government collects and shares revenue from the country's forests. As part of the UK's Forest Governance, Markets and Climate (FGMC) programme, the study provides a vital baseline for a new 10-year initiative focused on fairer forest governance. The study examines non-tax revenues (known as PNBP) from timber, carbon credits, and other forest products. It compares what the government actually collects against what it could potentially collect, measuring overall efficiency.

The study also tracks how much revenue is reinvested into sustainable forest management and what percentage reaches local communities through revenue-sharing mechanisms. Using a combination of official data analysis, regulatory review, and key informant interviews, the project delivers a practical, repeatable framework. This allows the FGMC programme to measure progress over the next decade, identify barriers to effective collection, and support reforms that ensure forest resources benefit both the state and the communities who depend on them.

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