The Job Creation Law and REDD+: Possible synergies and challenges

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Key messages

  • The Job Creation Law is intended to improve economic development through deregulating investment procedures and supporting entrepreneurialism in a typical market-oriented business model. The stronger legal basis for social forestry and multi-business forestry permit are intended to promote forest and environmental sustainability.
  • As an overarching law, it mandates the alignment of other sectoral regulations. Synchronization between economic sectors is needed to ensure the sustainability of forest functions in supporting emission reduction.
  • Both Job Creation Law and REDD+ promote entrepreneurialism, but efforts to generate rural ‘green’ jobs should also focus on aspects pertaining to rural labour markets, migration, and whether the appropriation of only forest-use rights (with highly technical requirements) would really benefit emission reductions and the livelihoods of marginalized rural communities.
  • Before UUCK amendment is ready and ratified, it is important for the government to determine WPK area for results-based payments (a government-led program) and carbon trading purposes (which can be assigned to private sector).
  • Further research is needed to understand to what extend Job Creation Law would affect the integrity of REDD+ designated areas (WPK), and how the law and REDD+ can together promote the creation of rural ‘green’ jobs and foster emission reduction from forestry sector.
Authors: Dwisatrio, B.; Nofyanza, S.; Moeliono, M.; Pham, T.T.; Dharmawan, I.W.S.
Subjects: law enforcement, forestry, private sector, rural communities, economic development
Publication type: Brief, Publication
Year: 2022

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