Political Economy of Benefit Sharing Mechanism for Mitigating Deforestation and Forest Degradation: The Case of Berau, East Kalimantan

This study explores the political economy of the benefit sharing mechanism (BSM) in efforts to mitigate deforestation and forest degradation in Berau Regency, East Kalimantan. Focusing on the management of Forest Resource Provision (PSDH) and Reforestation Fund (DR) through the Revenue Sharing Fund (DBH) scheme, this study highlights the importance of designing effective incentive mechanisms for forestry sector actors. This approach aims to encourage more sustainable forest management while addressing institutional challenges in public financial management. Thus, this study provides an important foundation for understanding how BSM can contribute to more inclusive and sustainable mitigation of deforestation and forest degradation.

This report is part of a study prepared by Article 33 Indonesia to map strategic issues related to mitigating deforestation and forest degradation through an institutional approach. Each region, including Berau, has unique political economic characteristics. This study seeks to identify strategies that best suit local conditions, while involving key actors from the bureaucracy (supply-side) and civil society (demand-side). This analysis aims to provide data-based policy recommendations that are relevant to policy makers at the regional level.

This article is part of a series of studies on “Political Economy of Benefit Distribution Mechanisms for Mitigating Deforestation and Forest Degradation”, which explores the potential for forestry and/or mining revenue-based policy directions to support sustainable forest management. For more complete information on the research results and proposed policy recommendations, please visit the link below.

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