Jakarta - The SIAP II Consortium - consisting of WWF-Indonesia, Transparency International Indonesia, and the Indonesia Working Group on Forest Finance - launched the Practical Guide to the Introduction of the Forestry Sector for Banking, today (29/10) in Jakarta. In collaboration with the Financial Transaction Reports and Analysis Center (PPATK) and the Financial Services Authority (OJK), the guide series is also supported by the United States Agency for International Development (USAID).

The Practical Guide to Forestry Sector Introduction for Banking is divided into two series, namely 'Getting to Know Forestry Sector Customers' which introduces screening tools in financing in the forestry sector; and 'Getting to Know Forestry Sector Development for Banking' which outlines the role of banking in promoting better practices in the forestry sector as well as a snapshot of the development of the forestry industry.

According to WWF-Indonesia CEO, Dr. Efransjah, "With the declining prospects of the forestry sector, investment in this sector is classified as high risk for financial sector players. This risk can be reduced by getting to know more about its character, dynamics, actors and stakeholders. In addition, with the increasing complexity of problems in all sectors, cooperation between the government, business actors and civil society organizations is needed to improve governance in order to increase trust among banks in particular. By prioritizing financing to those who prioritize accountability, transparency and sustainability, banks can participate in encouraging improved governance in the forestry sector."

Derrick Brown, Acting Executive Director of USAID in Indonesia, said, "USAID welcomes the launch of this Practical Guide Series on Introduction to the Forestry Sector for Banks. To be able to change the banking paradigm towards the forestry sector, banking practitioners need comprehensive information about forestry in Indonesia. It is hoped that this understanding will help national and global banks consider suitable investments to support, especially in the forestry sector." Brown also added, "USAID collaborates with the Government of Indonesia to fight corruption, promote accountability and protect citizens. USAID also supports the efforts of civil society organizations and community groups to promote accountability at every level. Through the right investments, USAID partners with Indonesia to strengthen a democracy that is fair and accountable, and politically and socially stable."

This Guidance Series is the result of several focused discussions conducted over the past two years by the SIAP II consortium with government, civil society organizations, the forest industry and banks. The Guidance Series contains criteria and practical ways for banks to select investment finance in the forestry sector. Sustainable financing is expected to help improve the forestry sector, support environmentally friendly practices, and avoid forest destruction.

For more information, please contact:

• Willem Pattinasarany, SIAP II BMP Coordinator, willempattinasarany@gmail.com
• Dyah Ekarini, SIAP II Communications and Media Coordinator, drini@wwf.or.id