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[KOMPAS] Remuneration for Environmental Services: Allocation of Proceeds is Expected to be Appropriate

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Joko Tri Haryanto, researcher at the Center for Climate Change Financing Policy, Fiscal Policy Agency of the Ministry of Finance, Thursday (7/1), at the Development Study Forum discussion at the Article 33 Indonesia office in Jakarta, said that the government budget system does not yet recognize the concept of income sources related to expenditure goals. (earmarks). However, in practice, the concept is applied to education (20 percent) and health (5 percent) budgets.

On the other hand, concepts earmarks not working, such as Motor Vehicle Tax which should ideally be returned for transportation development. In reality, its purpose is uncertain.

"After the rewards or payments for environmental services enter the APBD, don't forget to monitor their use," said Joko, who has conducted studies on the preparation of environmental service fees in Pagar Alam, South Sumatra, and Pangandaran in West Java. Because there is no legal basis, earmarks it depends on regional political budgeting commitments.

Komara Djaja, an expert in urban and regional planning economics at the University of Indonesia, said that environmental service fees need a legal umbrella to provide clarity on the rules of the game. "The legal umbrella can help pay environmental services back (for their allocation) to the environment," he said.

Payment or compensation for environmental services is a payment given by environmental service users to environmental service providers. These services can be in the form of water, tourism, genetic resources and education.

Contacted separately, the Director of Environmental Impact Prevention, Regional and Sector Policy, Ministry of Environment and Forestry, Laksmi Wijayanti, confirmed that it would include regulations earmarks This is in the Draft Government Regulation (RPP) on Environmental Economic Instruments that he prepared. "It's useless if you pay, but there is no guarantee after sales," he said.

Contents of the RPP for Environmental Economic Instruments, including the issue of Remuneration for Environmental Services. The RPP is targeted for completion in June 2016.

Pietra Widiadi, WWF Indonesia's Green/Blue Economic Strategic Leader, hopes that regulations will not damage existing environmental service compensation practices in the field. He gave the example of cooperation in return for environmental services between PDAM in Lombok and communities that have maintained water sources for the last 10 years.

"Just provide a clear framework. "Don't let the rules destroy the existing cooperation," he said.

Joko added that the RPP for Environmental Economic Instruments prepared by the Ministry of Environment and Forestry was too broad. He showed the contents of the RPP regarding monetary, fiscal and environmental insurance.

The points regulated concern income (taxes, levies, entrance fees, payments for environmental services), provision of income (elimination/reduction of taxes, research grants, and environmental funding), and non-income (depositrefund, ecolabel, insurance, reclamation guarantee). "There are 19 instruments combined into one PP. In fact, it can be confusing," he said.

(ICH)

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