Research ReportRegional DevelopmentInternal Research

Political Economy of Benefit Sharing Mechanism for Mitigating Deforestation and Forest Degradation: The Case of Musi Banyuasin, South Sumatra

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Ekonomi Politik Mekanisme Distribusi Manfaat (Benefit Sharing Mechanism) untuk Mitigasi Deforestasi dan Degradasi Hutan: Kasus Musi Banyuasin, Sumatera Selatan

Publication FormResearch Report
Publication TitlePolitical Economy of Benefit Sharing Mechanism for Mitigating Deforestation and Forest Degradation: The Case of Musi Banyuasin, South Sumatra (2014)
ProjectsThis study analyzes the political economy of benefit distribution mechanisms (BSM) to mitigate deforestation and forest degradation in Musi Banyuasin, South Sumatra. The current Revenue Sharing Fund (DBH) scheme has not been effective in providing incentives to prevent forest destruction, although deforestation in Indonesia is still high. This study proposes a BSM scheme based on forestry and/or mining revenues that combines institutional approaches and public participation. The political economy analysis is conducted by distinguishing actors into demand-side (from outside the bureaucracy) and supply-side (from within the bureaucracy) to understand how this scheme is accepted and implemented at the regional level.

This study examines the benefit distribution mechanism (BSM) for mitigating deforestation and forest degradation in Musi Banyuasin, South Sumatra. The existing Revenue Sharing Fund (DBH) scheme has not been effective in providing incentives to prevent forest destruction, even though deforestation in Indonesia is very high. This study proposes a BSM that combines institutional and public participation approaches, adapted to Indonesia's public financial system, to encourage more efficient management of PSDH and Reforestation Fund (DR).

Political economy analysis at the regional level was conducted to see the attitudes of actors from outside the bureaucracy (Civil Society Organizations, Indigenous Community Groups, Political Parties) and within the bureaucracy (Local Government) towards the BSM scheme. This study aims to identify actors who are more influential in the implementation of the BSM policy in Musi Banyuasin.

This report is part of a study prepared by Article 33 Indonesia on deforestation and forest degradation mitigation policies based on forestry and mining sector revenues. For more complete information on the analysis results and proposed policies, please access the links below.

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