The Leuser Ecosystem is the largest conservation area in SE Asia. At almost 3 million hectares, it encompasses a great diversity of habitats from coastal beaches, peat swamps, lowland forests, montane forests and alpine meadows. It is this mix of habitats that may account for its rich biodiversity and the fact that its is the last place remaining that has viable populations of Sumatran rhino, orangutan, tiger, elephant and clouded leopard in the same geographic area. 

Much has been achieved since the Leuser Ecosystem was designated by Presidential Decree in 1998, including the demarcation of boundaries in the field, the termination of all logging concessions and the development of a broad public constituency of support. But now the expansive and fertile lowlands (totalling some 500,000 hectares) are under severe threat from oil plantation interests and sponsored settlement along with the enabling infrastructure such as roads. In some areas local communities are encroaching into the steep foothills of the mountainous core.

Almost 90% of the Leuser Ecosystem lies in the province of Aceh which until 2005 suffered from civil war. As part of the peace accord the management of the Leuser Ecosystem in Aceh was delegated to the provincial government, and the Aceh government in turn established a special management authority (BPKEL) to undertake this work. This is the first time in Indonesia where the management of a conservation area has been fully delegated to the provincial level, and it marks a very positive opportunity to build on local support and to utilise professionals (as opposed to civil servants) to undertake conservation management. The decree under which BPKEL was established also allows the organization to acquire funds from both private and public sources and in this way to become sufficiently capitalised to do a proper job. In the three years since its formation BPKEL has focused on building up its manpower with dedicated and skilful staff. It is clear now however that to deal with the growing significant funding gap is an urgent priority.

This project, if approved, would not only significantly develop the capacity of BPKEL in undertaking its conservation management responsibilities but would also address the growing challenges of integrating development with conservation, restoring essential wildlife corridors, and moving towards sustainable financing with a mixture of government allocations, and revenues generated from partnerships with the private sector. If successful the contribution to the mitigation of climate change would be significant. << Read less

Strenghthen the capacity of the Leuser Ecosystem Management Authority to carry out its duties; Harmonise development plans with conservation strategies; Protect and restore the Leuser Ecosystem; Achieve Sustainable Financing

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In contrast to many conservation areas, the Leuser Ecosystem was designed from the outset on the basis of the migration patterns of wide ranging species, such as elephants and fruit bats, and on the habitat needs to support viable populations of large mammals – Sumatran tiger, Sumatran Orangutan, and Sumatran Rhino. The area thus incorporates the key wildlife corridors in its design and is of sufficient size to support approximately 800 elephant, 400 tiger, and more than 1000 rhino  (although the current population of this species is currently only about 120 individuals). No other reserve has breeding populations of Sumatran rhino, and only recently have efforts been made to establish a second population of the Sumatran Orangutan (in Jambi province). While Sumatran tigers exist and breed elsewhere, their populations are locally small and the future of most of these isolated populations is in doubt. Aceh is realistically the last hope for the Sumatran elephant ; nowhere else is there sufficient habitat for these wide ranging species to move and access the forage to support large numbers.

The species mentioned above are also indicators of a great diversity of lesser species. There are seven species of hornbill in Leuser, one species of Argus pheasant, seven species of wild cat, eight varieties of Mango, six varieties of Durian, at least five kinds of citrus, etc. A study carried out by Y.Wind in the 1980s identified the lowlands of the Leuser Ecosystem as having some of the highest biodiversity in the whole of Sumatra.

In addition to harbouring such high biodiversity, the Leuser Ecosystem provides a regular water supply for some four million people including the industrial heartland of Aceh, its rivers formally supported high concentrations of fish and provided a major source of protein to the downstream communities, and it has a role in regulating local climate which has direct benefits for the growing of oil palm in areas outside the Leuser Ecosystem 

The standing carbon store in the Leuser Ecosystem has been estimated at around 1.5 billion tonnes. This does not include the carbon sequestered in the 160,000 hectares of deep peat swamps that are part of the Leuser Ecosystem. << Read less

Under the Indonesian Law No 11, 2006 and by virtue of the decree of the Government and Parliament of Aceh establishing the Leuser Ecosystem Management Authority, BPKEL is given the responsibility of promoting and regulating the sustainable utilisation of the Leuser Ecosystem’s services. The Decree also provides for BPKEL to derive fees, royalties and/or revenues from such commercial activities. 

Under a Joint Venture Agreement signed in 2008, the Government of Aceh and the private sector partner will develop businesses in the fields of Eco-tourism, renewable energy, and REDD to derive commercial returns. The costs of undertaking such business will include an agreed fee (in the order of two million dollars per year) to ensure the protection of the source of these services – namely the Leuser Ecosystem. The profits from these enterprises will be mainly reinvested in developing new sustainable enterprises with an aim to developing the local economy rather than providing direct payments to local communities. The current private sector partner is currently under review on account of questions concerning the ability to fully capitalise the joint venture company.

In addition to revenues and fees, the Government of Aceh and the National Government are both obliged by law (Act No 11, 2006) to provide regular budget allocations. At the moment these allocations total around 500,000 US dollars per year but this is inadequate to cover even routine expenses. BPKEL is working with the Aceh parliament to consider much more realistic funding in the future.

To give confidence to some future donors – both private and institutional – the project will propose the establishment of a Purpose Trust in which funds for the conservation of Leuser might be held and disbursed as appropriate. << Read less

Currently BPKEL employs 190 people drawn from communities situated near the boundary of the Leuser Ecosystem. The Project intends to build this number to at least 800 over the next two years. So there are direct employment opportunities. In addition, local people will be involved in all conservation activities such forest restoration, fire prevention (during the dry season), awareness generation events, research studies and censuses, and specific protection operations. BPKEL works with more than 40 local NGOs in its efforts to build a solid constituency of support for the conservation of the Leuser Ecosystem.

As a matter of fact all planning involves local community leaders as well as local government officials. The Leuser Ecosystem Management Plan took two year years to complete on account of spending considerable time with local communities, local officials, and informal leaders.

As stated above, the Project will promote the participation of the private sector and will ensure that the benefits of this partnership will benefit the local communities. This will however not involve providing regular cash gifts to individuals (there are at least two million people living around the Leuser Ecosystem). Neither will it hand out cash gifts to communities – there are more than 2000 villages near the borders of the Leuser Ecosystem. Instead, the benefits from REDD credits (if in fact a market develops), ecotourism, sustainable energy and agricultural product processing, will create employment opportunities for local people and contribute to a growing regional economy. Of course the indirect benefits from ecological services can not be underestimated and it has been calculated that, if Leuser Ecosystem is properly protected, 60% of the value of its services accrue to local communities. << Read less

In 2007 the Act No 27/2007 concerning Spatial Planning was passed. This law outlined very specific actions for implementing the national spatial plans and both these and the accompanying maps are the guidelines for provincial and sub-provincial (district) detailed spatial plans. It also spells out how special areas of national importance are to be managed. In a follow up Government Regulation (PP 27 2008) The Leuser Ecosystem in Aceh is identified as one of these areas and is given the highest rating – as a National Strategic Area – on account of its biodiversity and its importance as a water source. All future planning and activities in the Leuser Ecosystem (in Aceh) must follow these regulations.

The legal framework for REDD in Indonesia is still in flux with no final legislation being created. Aceh will conform to the National procedures and will of course register any credits generated. In the meantime Aceh will undertake a sub national approach including generating a provincial baseline – which would be an activity anticipated for this project.

This project will also (and has already done so) follow the guidelines set out in the National Biodiversity Action Plan for Indonesia. << Read less

Goal 1.2: To integrate protected areas into broader land- and seascapes and sectors so as to maintain ecological structure and function
Goal 1.4: To substantially improve site-based protected area planning and management
Goal 1.5: To prevent and mitigate the negative impacts of key threats to protected areas
Goal 2.2: To enhance and secure involvement of indigenous and local communities and relevant stakeholders
Goal 3.1: To provide an enabling policy, institutional and socio-economic environment for protected areas
Goal 3.2: To build capacity for the planning, establishment and management of protected areas
Goal 3.4: To ensure financial sustainability of protected areas and national and regional systems of protected areas
Goal 3.5: To strengthen communication, education and public awareness
Goal 4.1 - To develop and adopt minimum standards and best practices for national and regional protected area systems
Goal 4.3: To assess and monitor protected area status and trends
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