Strategic Partnership for Sustainable Forests: LPHD Telaga and CFES Sign Cooperation Agreement on Distribution of Environmental Service Compensation Funds (PES Funds)

Telaga Village, January 17, 2025 – As a concrete step to support sustainable environmental preservation and local community empowerment, the Village Forest Management Institution (LPHD) Telaga and Community Forest Ecosystem Services (CFES) officially signed a strategic cooperation agreement. This agreement aims to implement the Environmental Services Reward Fund (PES Fund) distribution scheme, an environmental-based incentive mechanism that provides rewards and appreciation for community contributions in managing and protecting forest ecosystems. 

This cooperation marks an important milestone in village forest management, affirming both parties’ commitment to ensuring the sustainability of the Village Forest while also improving the welfare of the Telaga Village community. The signing of this agreement also underscores the importance of transparency, accountability, and effectiveness in the management of the PES Fund. 

The event, held at the Telaga Village Hall, was attended by various parties, including representatives from LPHD Telaga, CFES, KPHP Katingan Hilir, the Village Government, traditional leaders, religious leaders, women’s groups, youth, and local communities, with a total of 50 invited participants. 

Ahmad Yani, Chair of LPHD Telaga, expressed his appreciation for CFES's support and explained the importance of this collaboration for the future of the village forest. “With the assistance from CFES, we can manage the village forest in a better and more responsible way. This cooperation not only protects the Village Forest but also strengthens community empowerment in the village. Our hope is that the PES Fund, when managed transparently, can provide real benefits to all parties, including the village government, women’s groups, business groups, traditional institutions, and youth,” said Ahmad Yani.

On the other hand, Eka Muliawati, Acting Chairperson of the CFES Management Board, emphasized the importance of this cooperation as part of a strategic step for community-based forest preservation. “Through the PES mechanism, communities receive real appreciation for their active role in forest conservation. We are optimistic that this cooperation will be the beginning of a better, more sustainable management system with long-term impact for both the community and the ecosystem,” said Eka. 

Support for forest preservation and transparent management of the PES Fund was also conveyed by Tomie, the Head of Telaga Village. He emphasized the importance of accountability from all parties involved so that the benefits of this program can be fully felt.

“I ask all parties under the LPHD to be responsible and transparent in the implementation of this program. The Telaga Village Forest is a community asset, and this cooperation is a major step in strengthening forest preservation and supporting better village development,” said Tomie. He also stressed the need for the community to protect the forest from threats of forest fires and illegal logging, which had been successfully mitigated since 2020. 

This spirit of collaboration was echoed by Riwut Mipi, a representative of KPHP Katingan Hilir, who highlighted the great potential of this cooperation in supporting sustainable forest management, despite the limitations faced by KPHP.

“We are grateful for the assistance provided by CFES in this scheme. In the future, we hope to establish cooperation in creative economic programs that support sustainable forest management. We will connect LPHD Telaga with relevant agencies to realize this cooperation potential,” said Riwut. 

Scope of Cooperation

In this agreement, both parties agreed on a scope of cooperation which includes: 

• Implementation of management and protection of Village Forest areas with High Conservation Value (HCV) based on community efforts in the Telaga Village Forest. 
• Regulation of procedures for activity implementation, financial management, and reporting systems for beneficiaries through the PES Fund distribution mechanism. 
• Mechanisms that regulate fund distribution, beneficiary identification, performance indicators, rewards and sanctions, grievance mechanisms, and oversight mechanisms. 

With the cooperation agreement valid for the next five years, this scheme is expected to support sustainable forest management while improving the economic welfare of the local community. As part of the event, a focus group discussion (FGD) had previously been held involving beneficiaries and stakeholders to strengthen synergy and collaboration in future program implementation. 

About LPHD Telaga

The Village Forest Management Institution (LPHD) Telaga is an institution responsible for managing the Telaga Village Forest with principles of sustainability and local community empowerment, in accordance with the village forest management permit granted by the Ministry of Environment and Forestry in 2018. 

About CFES

Community Forest Ecosystem Services (CFES) is a network of civil society organizations committed to supporting community-based natural resource management. CFES aims to realize sustainable forest management that delivers the greatest possible ecosystem benefits for the environment and community welfare.