Katingan Conservation Area: A Global Peatland Capstone Project 
                                                             October 2008 
                 
                Starling Resources is currently working with a client to develop an avoided deforestation (AD) project 
                on a peatland in the Province of Central Kalimantan, Indonesia.  This AD project is a direct response 
                to recent studies on how tropical peatland degradation results in massive losses of carbon store and 
                carbon emission due to peat decomposition and fires associated with land clearance for oil palm 
                           1
                plantation . 
                 
                This project aims to trigger a global cascading effect because it creates a precedent for an 
                Indonesian private sector-led peat conservation initiative at scale with triple bottom-line goal: 
                achieving economic, social, and environmental success.    
                 
                With support from the Ministry of Forestry of the Republic of Indonesia, this project implements a 
                bottom-up approach to decreasing GHG emissions by developing a community sponsored, owned, 
                operated, and managed vision of peatland conservation.   
                 
                Project area: Kabupaten Katingan and Kotawaringin Timur, Central Kalimantan 
                                                                                                     
                                                                 
                1 University of Leicester (2007, December 15). Carbon Dioxide Expelled From Peatland When Natural Swamp Forest Is 
                Converted To Oil Palm. ScienceDaily. Retrieved February 18, 2008, from http://www.sciencedaily.com 
                /releases/2007/12/071206235448.htm 
                                                                        
                                                                        
                                                                                                                PT Starling Asia 
                                                                                              Jalan Bypass Ngurah Rai No. 121x 
                                                                                                   Sanur 80227, Bali, Indonesia 
                                                                              Phone: +62-361-285-298, Fax: +62-361-284-178 
                                                                                                  http://starlingresources.com 
                  Starling Resources: Katingan Peatland Conservation – October 2008 
              
                  Facts 
                  Size:             225,000 hectares; 
                  Location:         Kabupaten Katingan and Kotawaringin Timur, Central Kalimantan; 
                  Staffing:         Management staff: 15 people; consultants and specialists: 15 people; field staff: 103+ 
                                    people; and members of local community involved in participatory monitoring activities; 
                  Capital           Water management system (e.g., dams to block illegal canals), fire mitigation equipment, 
                  investments:  field and remote sensing monitoring technology, vehicles, native species planting, etc.; 
                  Funding:          100% Indonesian funding at USD 8 million currently;  
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                  Return:           Baseline annual Central Kalimantan lowland peat deforestation rate of 2.2% (1985-2000)  
                                    is reduced by at least 85% resulting in potentially 1.8 million mT CO  emission avoided 
                                             3                                                              2
                                    annually ; 
                                    60% mT CO  available for purchase; 
                                                  2
                  Risks:            VER demand, illegal logging, peat conversion to oil palm plantation, forest fires, 
                                    encroachment, water table integrity; 
                  Legal:            Permit for Ecosystem Restoration (Ijin Usaha Pemanfaatan Hasil Hutan Kayu Restorasi 
                                    Ekosistem dalam Hutan Alam) for 60 years with a possibility of 35-year extension granted 
                                    by the Ministry of Forestry; Permit for Environmental Service Utilization (Ijin Usaha 
                                    Pemanfaatan Jasa Lingkungan) for 30 years granted by the Ministry of Forestry and the 
                                    Provincial Government of Central Kalimantan 
                                    The area is originally classified as production forest (Hutan Produksi); 
                  Timeline:         60-year tenure, implementation stage: 68 staff hired by mid 2009, operation and monitoring 
                                    stage: full staffing by end-2009; 
                  Taxes:            30% Indonesian corporate tax; 
                  Unique:           Reducing Emissions from Deforestation and Forest Degradation (REDD) Indonesia pilot 
                                    project recognition, maximum possible return to community, compliance with CCBA and 
                                    VCS standards, independent third-party verification and audit. 
                  New Game Business Model and Global Significance 
                  This AD project is pursuing a transparent strategy that overturns the existing ways of creating and 
                  appropriating value by transforming production to conservation forest. This new game business 
                  model: 
                  • Implements community-led bottom-up peatland conservation project design; 
                  • Enables local community sustainable enterprise capacity building; 
                  • Creates first-mover advantage; 
                  • Sets benchmark for Indonesian private sector-led climate change mitigation;  
                  • Decreases the threat of oil palm plantation expansion through regional value creation. 
                  Building on the momentum created by the Bali COP, successful implementation of this AD project 
                  will demonstrate Indonesia’s leadership in effective tropical peatland conservation, carbon 
                  sequestration, and sustainable development. This paradigm shift develops positive momentum for 
                  REDD inclusion in the post-Kyoto scheme.  
                  Management Experience 
                  This project will be led by a trans-disciplinary core team with personal, professional, and spiritual 
                  commitment to resolve land conflict, institute sustainable community development, adopt a regional 
                  land-use planning approach and implement innovative biodiversity protection with combined 60+ 
                  years experience.  
                  Join us in restoring the Emerald of the Equator. 
                              Rezal Kusumaatmadja, Managing Director, mobile: +62 (0)813-3808-8836,  
                  Contact:
                  email: rezal@starlingresources.com, web: http://starlingresources.com  
                                                                   
                  2 Hooijer, A., Silvius, M., Wösten, H. and Page, S. 2006. PEAT-CO2, Assessment of CO2 emissions 
                  from drained peatlands in SE Asia. Delft Hydraulics report Q3943 (2006) 
                  3 The biomass carbon stocks were estimated using IPCC Good Practice Guidance Tier-1 approach for national greenhouse gas 
                  inventory (IPCC 2006, Gibbs et al. 2007).  This does not include the below-ground carbon stock estimate for peatland.  
                                                                                                                                          
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