Acting Governor of East Kalimantan Akmal Malik projects that BUMD SKS will manage carbon funds

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Acting Governor of East Kalimantan Akmal Malik projects the Regional Owned Enterprise (BUMD) PT Sylva Kaltim Sejahtera (SKS) which is engaged in the forestry sector in the province to manage carbon funds as one of the original sources of regional income.

"We want BUMD to be the spearhead of the government to do business. Of course they have to structure their business prospects well," he said in Samarinda, Sunday.

He said, SKS has the potential to develop the economic value of carbon through the Forest Carbon Partnership Facility (FCPF) scheme which is a cooperation program between the Indonesian government and the World Bank.

"BUMD SKS is moving the forestry sector which has a very small contribution, less than Rp10 million per year. Well we will encourage this BUMD to later try to manage the carbon fund. Later the management of carbon funds will be transferred from the East Kalimantan government to SKS," he said.

His party also opens the possibility to collaborate between SKS and other BUMDs that have good performance, such as the Kaltimtara Regional Development Bank or PT Bara Kaltim Sejahtera.

"There is no thought of a merger yet. But let's see first, every BUMD has its benefits. It's just a matter of how to process it," said Akmal Malik.

East Kalimantan Province (Kaltim) managed to get funds of 110 million US dollars or around Rp1.7 trillion from the World Bank. The fund is a reward for East Kalimantan's efforts to reduce greenhouse gas emissions through the REDD+ program.

The REDD+ program is a program to reduce emissions from deforestation and forest degradation, conservation, sustainable management, and increasing forest carbon reserves.

The program is evaluated by the World Bank through the Forest Carbon Partnership Facility-Carbon Fund (FCPF-CF) mechanism. The World Bank has also disbursed a down payment of 20.9 million US dollars or around Rp329 billion.