US, Indonesia sign debt for nature agreement
WASHINGTON, June 30, 2009 (AFP) – The United States and Indonesia signed an agreement in which the largest Southeast Asian nation will commit to protect tropical forests in return for reduced debt payments to Washington, officials said Tuesday.
It is the largest debt-for-nature swap under the US Tropical Forest Conservation Act passed in 1998 and aimed at providing debt relief to developing countries that protected forests, the US Treasury said.
The swap with Indonesia was made possible through contributions of $20 million by the US government and a combined donation of $2 million from two environmental groups—US based Conservation International and Indonesia’s KEHATI, a Treasury statement said.
“The agreements will reduce Indonesia’s debt payments to the United States government by nearly $30 million over the next eight years,” it said.
“In return, the government of Indonesia has committed these funds to support grants to protect and restore the country’s tropical forests.”
Indonesia is one of the most biologically diverse nations and, according to the statement, funds generated by this program will help protect several forest areas on the large island of Sumatra.
These forests are home to species found only in Indonesia, including the endangered Sumatran tiger, elephant, rhino and orangutan, and will provide important ecosystem services such as maintaining freshwater supplies, the statement said.
Source: Grist (Agence France-Presse)
