Aceh retains some of Sumatra's most intact forest, including the Leuser Ecosystem, yet the districts that bear the opportunity cost of conservation receive no fiscal recognition for it.
The project designs an ecological fiscal transfer formula, simulates its distributional effects across all 23 districts and cities, and supports the provincial government in drafting the enabling regulation.
Objectives
Design an EFT formula using forest cover, protected area and water catchment indicators
Simulate fiscal outcomes for all districts under three policy scenarios
Draft the enabling provincial regulation (Pergub)
Build monitoring capacity within the provincial finance agency
