National Target 20: Identification of resources and budget effectiveness in the implementation of sustainable management of biodiversity

Biodiversity conservation and sustainable use of biological resources require effective financing. Based on the review of the 2010-2014 budget and the estimation of funding requirements for the management of conservation areas in 2015-2020, the average needs for biodiversity management will reach USD 18.62 per ha per year or USD 718 million per year. In addition, an average staff of 49 people is needed per 100,000 ha or 18,912 people for all Indonesian conservation areas. Estimated funds for the management of the conservation area are lacking at approximately USD 13.5 per ha per year, with an accumulation of USD 521.9 million per year. Funding sources related to the management of biodiversity in Indonesia are coming from the government, private sector, public and foreign grants. Funding sourced from the government is included in the State Revenues and Expenditures Budget (APBN) and the Regional Revenues and Expenditures Budget (APBD) in the development programs related to the management of biodiversity. Funds from the private sector and the national community have shown quite a good reliability in terms of the amount and mechanism of funding. Local private funds are generally available in the form of investments or loans. Funding through grants or funding for social development is carried out through companies’ corporate social responsibility (CSR). Biodiversity funding through the use of CSR funds is still limited to CSR of companies or industries that have biodiversity-based business activities, such as plantations, animal husbandry, food and beverage processing, cosmetics producers and renewable energy. Private companies that rely on the use of natural materials, such as herbal medicine (jamu) companies also provide added value to the use and development of biodiversity in Indonesia. In such conditions, for the effective biodiversity management, the identification of financial resources for biodiversity conservation and increasing budget efficiency is required.