Programme Overview
The Foreign, Commonwealth, and Development Office of the UK Government (FCDO), in collaboration with the Development and Planning Ministry (Bappenas) of the Government of Indonesia, have developed a partnership agreement for the Low Carbon Development Initiative (LCDI). The first phase of LCDI assistance was implemented from 2017 to 2021.
Currently, the programme has entered a new phase of assistance from 2023 to 2027. Oxford Policy Management Limited (OPML) has been contracted by FCDO to deliver and manage the implementation of LCDI Phase II in collaboration with the Government of Indonesia (GoI), primarily Bappenas, along with relevant line ministries and the pilot provinces of the programme. The assistance will support the implementation of LCDI Phase II at both the national and subnational level to enable the Government of Indonesia to meet its emissions reductions targets as mentioned in its medium-term development plan (RPJMN). The programme will cover:
- Building political support for low-carbon development within and outside of government.
- Building knowledge and understanding of the LCDI Phase II approach among those who are responsible for implementing it within GoI;
- Supporting implementation of the LCDI approach, especially through provincial and national development plans; and
- Raising ambition to the highest levels set out in the LCDI report.
Integrating gender equality and social inclusion (GEDSI) into low-carbon development is essential, as vulnerable groups like women and people with disabilities are disproportionately impacted by climate change. Inclusive policies not only help mitigate these effects but also enable these groups to actively contribute to climate goals and benefit from new opportunities such as job creation. Indonesia’s LCDI2 program aims to mainstream GEDSI to ensure equitable and sustainable outcomes. This includes to embed GEDSI into LCDI pilot projects and Innovation and Technology Fund (ITF).
LCDI is also supporting the piloting of innovative technologies that are initiated to reduce carbon emissions at the local level, while also empowering the community. This initiative was designed to drive the adoption of innovative solutions that can accelerate the transition to inclusive low-carbon development. Through this initiative, LCDI supports pilot projects that integrate technological advancements with sustainable and inclusive practices, ultimately contributing to reducing greenhouse gas emissions and promoting cleaner technology alternatives.
Project Overview
The Directorate General of Marine Management (c.q. Directorate of Ecosystem Conservation and Directorate of Marine Services), Ministry of Marine Affairs and Fisheries (KKP), is overseeing the revision of Ministerial Regulation (Permen) No. 1/2025 to align with Presidential Regulation No. 110/2025 on Carbon Economic Value Instruments and National GHG Emission Control. This revision aims to harmonize marine and fisheries sector policies with the national climate framework, particularly in implementing carbon economic value (NEK) instruments.
The draft revision introduces NEK instruments in the blue carbon sector, including carbon trading (GHG offset), results-based payments (RBP), and carbon levies. Benefit-sharing mechanisms are recognized as a key component of the document. However, as the regulation provides only high-level norms, it lacks detailed operational guidance for implementing benefit-sharing under RBP. Leaving gaps in transparent fund flow arrangements, fair and structured benefit allocation, and clear MRV systems, a detailed document on the benefit sharing mechanism, especially regarding the seagrass ecosystem under RBP is required to be operationalized. Without more detailed technical regulation, there is a risk of inconsistent implementation, potential conflicts in benefit distribution, and weak accountability in managing RBP instruments.
The Directorate of Ecosystem Conservation (KE), KKP, has requested support from the LCDI program to develop a draft regulation that will provide technical guidance for operationalizing benefit-sharing mechanisms, particularly those financed through RBP instrument. This draft will translate the revised Ministerial Regulation No. 1/2025 into a more detailed Ministerial Decree (Keputusan Menteri) Indonesia.
The regulation is proposed in the form of a Ministerial Decree, given the wide distribution of seagrass ecosystems across national waters and the cross-directorate mandates involved (e.g., Marine Management and Marine Spatial Planning). Beyond the revised Permen, the technical regulation is expected to cover fund flow arrangements from RBP sources to beneficiaries, criteria and designation of beneficiaries, benefit-sharing schemes and proportions, fund disbursement to local and community levels, MRV systems, institutional arrangements and stakeholder roles, as well as considerations for women and persons with disabilities.
Objectives
The objectives of this activity are to:
- Develop a technical document on benefit-sharing mechanisms for blue carbon (seagrass ecosystems) for the Result-based Payment (RBP) instrument under NEK implementation, integrating GEDSI principles to ensure inclusivity across all stages.
- Provide a policy draft as a derivative of Ministerial Regulation No. 1/2025 Indonesia Marine Affairs and Fisheries, outlining the benefit-sharing mechanism as an operational legal framework, that:
- Complies with Indonesian legal drafting standards,
- Is aligned with higher level regulations, and
- Is clear, implementable, and legally robust.
How to Apply:
Interested organisation / company are invited to submit their technical and financial proposals (in Indonesian Rupiah) via email to a5043procurement@opml.co.uk with subject: Consultancy Service for Legal Drafting Services for the Regulation Development on Benefit Sharing Mechanisms.
A template for the financial proposal can be requested by contacting the same email address.
The submission deadline is 24 May 2026 at 23:00 WIB (Jakarta time).
Applicants are strongly advised to carefully review the attached TOR prior to submission.
More Information
- Attachment
