Forest Conservation & Fiscal Transfers

Deforestation in Indonesia has fallen substantially since 2015, but the economics that drove it have not fundamentally changed. Sustaining the decline depends on whether forest-dependent communities and regional governments capture real value from intact landscapes.

Results-based payments arrive slowly and rarely reach the village level. Benefit-sharing mechanisms are contested, and social forestry permits are often issued without the working capital needed to make them viable.

We trace results-based finance from source to village, model benefit-sharing scenarios, and design working-capital instruments for social forestry enterprises.