Jambi Provincial governor, Honorable Zumi Zola Zulkifli, and The Sustainable Trade Initiative (IDH) signed a Memorandum of Understanding to collaborate on improving commodity production by smallholders and plantations, and conserving forests and peatlands in the province.
IDH will support the provincial government to develop and implement a green growth strategy – through policies, law enforcement and land-use management – to foster economic growth while safeguarding the natural resources. The two parties will further work together with the national government to protect, restore and sustainably manage fragile peat ecosystems.
Fitrian Ardiansyah, IDH Indonesia’s country director: “We need to find innovative ways to produce commodities, where production goes hand-in-hand with forest and peat protection. The provincial government is very keen to find solutions and we are honored to be joining forces in making this happen.”
An integral and innovative aspect of the IDH strategy is building Production, Protection and Inclusion (PPI) compacts: agreements between farmers, companies and governments to enhance the sustainability and productivity of land and secure community livelihoods by diversifying their income sources in exchange for natural resource protection. The resulting commodities produced in these areas are favored by international buyers, who seek to delink their sourcing from deforestation.
Jambi lost almost 600,000 hectares of forest to agriculture and mining between 1990 and 2016. Its high deforestation rate and the conversion of peat swamps means it emits a lot of greenhouse gases. Yet, agriculture is the cornerstone of the province’s economy, making up a quarter of its GDP and being the main source of income for thousands of smallholder farmers. Its main products include internationally traded commodities such as palm oil and rubber.
IDH will link the compacts in Jambi to international markets and the financial sector. The PPI compacts provide solutions for companies to meet their sustainability commitments through responsible and traceable sourcing. At the same time, international impact investors and financiers can invest to scale up the intervention.
Through its landscape program, IDH works with governments, companies and communities in South Sumatra, West Kalimantan and Aceh, as well as globally across Asia, Africa and Latin America on sustainable production and sourcing.