Debt-for-nature exchange deal between US and Indonesia
The United States and Indonesia have struck a deal that will see US$28.5 million intended to repay Indonesia's debts to the US transferred into a fund to preserve Borneo's forests.
The forests of Borneo are an important habitat for a wide range of species, and are also an important asset in keeping carbon out of the atmosphere. Over the years, expansion of oil palm plantations, illegal logging activities and mining have contributed to a rapid loss of forest cover.
The deal between the US and Indonesia will ensure that periodic grants are given to a number of district governments, who will channel the funds towards the development of already degraded lands in their district.
Indonesia has undertaken a number of efforts to stop illegal logging in the country. This includes the current debt-for-nature exchange deal with the United States and a timber trade deal signed with the European Union earlier this year.
The full story on the debt-for-nature exchange deal can be found here.