If the local community wants to continue to protect the forest, so that it does not experience damage such as being encroached on or burned, it seems necessary to implement a profit sharing scheme with them.
This thinking is contained in the concept Benefit Sharing Mechanism (BSM) or benefit sharing mechanism, as an alternative incentive in the forestry sector, which is carried out through needs mapping through identifying the rights and benefits of communities around the forest up to the household level.
Based on the press release received Mongabay Indonesia, Friday (29/01/2016), the BSM concept was offered by Article 33 Indonesia in a public discussion on 19 January 2016, with civil society representatives including Forest Watch Indonesia (FWI), Auriga Nusantara, Epistema Institute, HuMa, PWYP Indonesia, JPIK and Sajogyo Institute. On that occasion, several fiscal gaps were discussed, such as conservation trust funds and incentive/disincentive schemes as stated in the Environmental Protection and Management Law; earmarking Profit Sharing Fund (DBH); village income; and access to Special Allocation Funds (DAK).
"The DAK that can be used to finance BSM includes environmental and forestry DAK and regional public infrastructure DAK," explained Joko Tri Haryanto from the Center for Climate Change Financing Policy, Fiscal Policy Agency of the Ministry of Finance, as the responder.
The public discussion was also attended by academics, civil society representatives and policy makers, most of whom were expert staff from Commission IV DPR RI from various factions.
Nur Masripatin, Director General of Climate Change Control at the Ministry of Environment and Forestry, welcomed the proposals and recommendations for the fiscal gap, especially those that allow benefit sharing mechanisms to move quickly in areas under existing regulations while looking at which regulations need to be improved. This is the right momentum after the COP 21 event in Paris, which is in line with efforts to reduce emissions, deforestation and forest degradation through the active involvement of all stakeholders, especially local communities around forests.
BSM research using fiscal gaps has been explored through a series of research that has been carried out by Article 33 since 2013. What was first initiated by Article 33 through a series of research in Bungo Regency, Jambi, was through earmarking natural resource revenue sharing funds received by regions at the district level, especially from the Forest Resources Provision (PSDH) and mining production fees.
The targeted incentive recipients are the Datuk Sinaro Putih indigenous people, who have routine independent patrol activities to protect their customary forests. This effort was then submitted to the BSM scheme by Article 33. Assistance through social deliberation for needs mapping was carried out together with the Bungo Regency government. The achievement obtained is the commitment of the regional government to follow up on this incentive scheme, because it has good implications for forest sustainability.
Because of these achievements, further research is directed at looking at other fiscal gaps besides DBH. The fiscal gap remains the main study for BSM because it is considered more long-term. Apart from that, on the basis of Article 33 paragraph 3 of the 1945 Constitution, that state control over natural resources is used for the greatest prosperity of the people, fiscal use is a manifestation of the state's presence in sustainable forest management which also improves the welfare of the people within it.
Muhammad Robbi Qawi, researcher at Article 33 Indonesia, is pushing for two Government Regulations (PP) regarding Environmental Economic Instruments (IELH) to be issued in accordance with Law no. 32/2009 concerning Environmental Protection and Management (PPLH). These two PPs, regarding conservation trust funds and incentive/disincentive schemes, can become a legal umbrella for benefit sharing mechanism schemes. It is hoped that the stipulation of this PP will encourage local governments to allocate incentive budgets for local forest communities who contribute to conservation.
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