Indonesia Resources

MCA Feasibility Analysis Project Overview — English, Bahasa (pdfs, ~276k)

Coral Triangle, Eastern Tropical Pacific, Gulf of California, and Gulf of Mexico MCA Feasibility Analysis Proposal (pdf, 240k)

Findings and Recommendations — MCA Analysis for the Coral Triangle/Indonesia (pdf, 3,600k)

Indonesia Analysis

Status: In-depth

The information below is based on a feasibility analysis for Marine Conservation Agreements (MCAs) in the Indonesian portion of the Coral Triangle undertaken by The Nature Conservancy (TNC) in November and December 2009 (for the full report, see the Resources Box at right).

Overview

In 2009, TNC identified 20 known and suspected MCAs and one De facto MCA (DMCA) in Indonesia, ranging in scale from 12 hectares to 36,600 hectares. TNC also identified 20 opportunities and 21 direct economic incentives that can be used to move forward programmatically with MCAs. Revenues from ecotourism and mariculture were two forms of sustainable financing that had been achieved at existing MCA and DMCA sites.

TNC’s analysis revealed that the necessary enabling conditions for MCAs are generally present in Indonesia, but experiences with MCA projects in the field have been mixed. MCAs are being used and are making positive impacts but are not achieving their full potential primarily due to issues of design, execution, and timing. TNC also found, however, that well designed, executed, and timed MCAs can significantly help other ocean and coastal management strategies protect important marine biodiversity. The key lessons learned from experiences with MCAs in Indonesia are:

A committed project champion is crucial for success.
Early and frequent stakeholder engagement is necessary.
Transparency in all project phases is necessary to build trust, understanding, and acceptance.
Project objectives must account for local community needs beyond marine conservation.
Adaptive project management should include trial s and occasional errors.
Funding, time and expertise will likely be needed for capacity building.
MCAs should not be used as a "build it and set it free" approach.
Long-term implementation is best undertaken by local entities.
Clear targets and milestones should be used for regular project evaluations.

Aquaculture site in the Lesser Sunda region, Indonesia. Photo © Jay Udelhoven/TNC

Roles of MCAs in Indonesia

MCAs can be applied under a number of different circumstances, employing various activities by a variety of entities. However, TNC’s analysis revealed that MCAs in Indonesia are primarily being used and can likely serve in the future in three specific roles:

To initiate protective actions that fill vacant functional or geographic niches within existing or proposed MPAs that have existing management activities by government agencies
To initiate protective actions within existing or proposed MPAs which have no existing management activities by government agencies (“paper parks”)
To initiate and implement protective actions outside existing or proposed MPAs in areas lacking government intervention but which also require immediate attention

MCA Mechanisms in Indonesia

TNC identified four primary mechanisms to implement MCA projects in Indonesia — traditional law, nature tourism concessions, collaborative management agreements, and coastal concessions.

Traditional Law: The unwritten “adat” law in Indonesia gives local communities traditional rights for exploration, management, exploitation, and conservation. In addition to the Indonesian Constitution of 1945, the Adat Law is recognized by Act No. 5, 1960, the Agrarian Act, which states that “the applicable law for land, water and air space is under Adat Law, providing that it does not conflict with national interests or disrupt the unity of the nation. These community rights therefore should be consistent with national interests and in accordance with written laws and regulations”. The traditional adat law is recognized in the far eastern and western parts of the country and has already been the basis for several MCAs. While not common, adat is reportedly present in some central Indonesia areas as well, specifically in Lombok. These traditional laws can be used to enter into MCAs with local communities, which has already been successful. However, moving forward programmatically with MCAs, it will be important to also seek official recognition for MCAs through one or more of the legal options below.

Nature Tourism Concessions: Nature-oriented tourism can be undertaken in parks (including national marine parks) by cooperatives, state enterprises, private companies, and individuals for a period of up to 30 years after obtaining a Concession for Nature Tourism (IPPA) from the Minister of Forestry. IPPAs can, however, be revoked under certain circumstances. At this time, it is unclear if the Marine Affairs and Fisheries Department will have this same authority when it assumes responsibilities for managing some national marine parks that are currently under the authority of the Forestry Department.

Looking southwest towards the border of Komodo National Park from Labuan Bajo, Indonesia. Photo © Jay Udelhoven/TNC

Collaborative Management Agreements: A decree of the Minister of Forestry enables collaborative management of nature sanctuaries and nature conservation areas by several entities, including: the national government, regional governments, community groups, individuals (both Indonesian and foreigners), NGOs (local, national, and international), private companies, and scientific/educational entities. The collaborative management agreement describes, among other things, the management parameters of the relevant area, obligations of each party, and the duration of the collaboration. Activities that may be performed under the collaborative agreement include developing infrastructure, zoning, management planning, inventorying and monitoring, restoration, nature-oriented tourism, environmental education, media outreach, social-culture research, enforcement, capacity building, and public participation.

Similar to nature tourism concessions, it is unclear if this authority will transfer to the Marine Affairs and Fisheries Department along with the transfer of management responsibilities for some national marine parks and other marine areas currently under the Forestry Department’s jurisdiction. It is also unclear how many collaborative management agreements currently exist. Lastly, the advantages and disadvantages of entering into a collaborative management agreement versus a nature tourism concession are uncertain. TNC is aware of at least one MCA in Indonesia – the PNK MCA at Komodo National Park – that was implementing using a collaborative management agreement. In the PNK project, activities in addition to ecotourism that were undertaken included conservation, monitoring, community development, alternative livelihoods, and capacity building. While this appears to be a potentially viable option for future MCAs, before this mechanism is used again careful attention should be paid to the lessons learned from the PNK experience.

Coastal Concessions: Coastal areas and small islands are governed by a relatively new law, No. 27 of 2007, under the auspices of the national Minister of Marine Affairs and Fisheries and the provincial or regional offices of Marine Affairs and Fisheries. Law 27/2007 provides for a new concession right, the Right to Manage Coastal Waters (Hak Pengusahaan Perairan Pesisir or “HP-3”). HP-3 covers the sea surface and water column (down to the seabed) within prescribed areas. Procedures to apply for registration, granting and revocation are to be elaborated in a government regulation which to date has not been developed. Consequently, no HP-3s have been or can be issued. Once implementing regulations are developed, HP-3 concessions may be granted to Indonesian citizens, legal entities established under Indonesian law, and indigenous communities. Since the law does not specify, legal entities may include commercial entities/companies, associations, foundations, cooperatives, and educational entities. HP-3 concessions may be granted for 20 years and can be extended for another 20 years. HP-3s may be granted for areas outside of MPAs for conservation, education and training, research and development, marine cultivation, tourism, sustainable fisheries and marine business/industries, and organic farming.

Other Legal Mechanisms: TNC identified two additional mechanisms that could potentially be used to establish MCAs through a formal legal framework. However, before these laws can be applied for such purposes, further policy analysis will be needed. The additional laws include: Licenses for Environmental Services (Izin Usaha Pemanfaatan Jasa Lingkungan “IUPJL”) and Partnership Agreements.

MCA Projects in Indonesia

The known and suspected MCA and DMCA projects in Indonesia provide examples in which government agencies, local villages and fishing groups are owners, managers, and users of areas and resources targeted for conservation activities. The projects also illustrate how international non-governmental organizations, local non-governmental organizations, and private businesses can enter into agreements with the owners, managers, and users for conservation purposes. The existing projects include various types of agreements and goals, including:

Contracts with user groups to change fishing gear, habits, areas, and livelihoods
Contracts and leases with local villages for the establishment, management, enforcement or support of marine protective areas and actions for reef and reef fish, turtle conservation, and tourism purposes
Leases with local villages for aquaculture/mariculture operations
Concessions with governments for tourism and MPA management
Purchase and sale agreements with private entities for conservation purposes

Information about several Indonesian MCA projects can be found through the links below:

Atlas Pearl Farm
Binerean Cape (external site)
Gili Eco Trust (external site)
Misool Eco Resort
Operation Wallacea Fish Project (external site)
PT Putri Naga Komodo (external site)
Wakatobi Dive Resort (external site)

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