The Batang Toru Forest Ecosystem (BTFE), located in North Sumatra, Indonesia, encompasses more than 240,000 hectares of forest across three regencies: South Tapanuli, North Tapanuli, and Central Tapanuli. This ecosystem represents the last remaining intact forest frontier in the province and serves as a critical habitat for globally and locally significant biodiversity, including the critically endangered Tapanuli orangutan, as well as other mammals such as the Sumatran tiger and pangolin. The region also contains valuable resources, including minerals, energy reserves, and agroforestry products such as coffee, rubber, benzoin, bananas, and cocoa, which support the livelihoods and well-being of approximately 300,911 residents across 196 villages within the area[1].
This ecosystem also provides critical freshwater resources that support smallholder agriculture throughout the Tapanuli region, including agroforestry in upland areas and oil palm plantations in lowland zones. Furthermore, a 2021 study conducted by Conservation International (CI) found that water originating from BTFE helps maintain the peatland water levels in lowland areas, which is essential for minimizing fire risks and preventing carbon emissions.
The governance of BTFE is complex and characterized by limited coordination. Consequently, portions of the forest have become fragmented, reducing habitat for endangered wildlife and degrading vital ecosystem services. Establishing a long-term presence and fostering strong relationships with key stakeholders is therefore imperative.
Konservasi Indonesia (KI) has facilitated multi-stakeholder collaboration to enhance the protection and integrated management of BTFE. These collaborative efforts have resulted in several notable achievements, including:
- Advocacy with the Provincial Government of North Sumatra, resulting in the establishment of the Batang Toru Forest Ecosystem (BTFE) Protection and integrated management Working Group (POKJA), which brings together diverse stakeholders from government, the private sector, NGOs, and academia.
- Facilitation of POKJA in developing the Integrated Management Plan (IMP). This plan was formulated with contributions from local communities, forest management authorities, NGOs, producers, and other stakeholders. It serves as a strategic blueprint for achieving long-term outcomes in conservation, restoration, and sustainable management within BTFE.
- Facilitation of a study on sustainable financing mechanisms, which identified potential sustainable finance mechanisms to support the implementation of the IMP.
- Support for an integrated communication strategy aimed at delivering desired outcomes through well-planned and effective messaging related to BTFE.
Specifically, the sustainable financing mechanism is designed to reduce the dependency of conservation activities on a single funding source. Ideally, such financing should also provide economic incentives, enhance cost management efficiency, support the development of alternative livelihoods for local communities, and allocate resources for conservation initiatives.
To operate the Integrated Management Plan (IMP) and its associated Project Work Plan and Governance Framework through sustainable financing mechanisms, decision-makers require a credible economic assessment, ecosystem service valuation, and a multi-year sustainable financing strategy.
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