Apr 16, 2017
Conservation and rehabilitation
Community livelihoods
Concession
ConcessionWithin a landscape, everyone affects everyone. Sustainable landscape management manages the interconnectedness among the users of the landscape, creating synergies.
Corporations who own concessions also need to participate in sustainable landscape management, including but certainly not limited to through financing, because they can’t afford not to.
The cost of not managing the landscape far outweighs the cost of managing it sustainably.
Why landscape matters
Indonesia can produce 40 million tons of CPO by 2020 without expanding plantations.
• The bulk of inefficiency is among the smallholders.• 5.9 million ha of
plantations, about 42 percent of total plantations, producing 11.3 million tons of CPO, about 36 percent of total production.• Productivity: 1.9
tons/ha.
Smallholders are key to sustainable palm oil production in Indonesia.
• Doubling the productivity of smallholders is key• 1 – 1.5 million smallholders in
Indonesia, holding between 4 – 6 ha of plantations each.• Doubling the productivity from
1.9 to 3.7 tons/ha increases production from 11.3 to 21.8 million tons.• Increased productivity to 21.8
million tons will increase revenue of the smallholders.
© oilpalmindia.com
Financing landscape management and smallholder development
Conservation and Restoration
Community livelihoods
Concession
Concession
Grant, investment, loan, blended investments, de-risking facility
Banks, impact investors
Public funding, Philanthropies
Guarantee and offtaking
Belantara’s Financing Facilities
Grants Small Grants (which includes also Mini Grants and Micro Grants);Partnership Grants (requires co-financing)
Investments Own Investment or majority / minority position;
Investment De-risking
Blended financing with others’ investment facility to allow for reallocation of risks.