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Concept Paper

General information
PT. Mohairson Pawan Khatulistiwa is a logging concession area located in
Ketapang District, West Kalimantan (see Figure 1). The concession was awarded
by the Ministry of Forestry (MoF) as described in the decree No:
SK.216/MENHUT-II/2008 issued on 9 June 2008, but the company has not
operated since then. The area is ± 48.440 hectares located in the group of Tulak
and Pawan river forests (see Table 1). It was part of logging concessions
managed by PT. Marsela Wana Sekawan, PT. Sumber Baru Jaya Utama and PT.
Pulau Maya.

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Figure 1. Location of PT. Mohairson Pawan Khatulistiwa in Ketapang, West


Mohairson Pawan Khatulistiwa in Ketapang. the price is flexible and open for negotiation.Concept Paper Table 1. Based on the Landsat-7 ETM+ (Path/Row 121/61 observed on 23 June 2007) analysis. If a carbon project will be established in this area. West Kalimantan District Forestry of Ketapang Provincial Forestry of West Kalimantan Tulak and Pawan rivers 1 – 25 m above see level Sub DAS Tulak and DAS Pawan The 48.440 Hectares 110o 02’ 30” . District of Ketapang. Currently. Meanwhile. which 32% of them is peat swamp forest (15.110 o 15’20” E and 1 o 35’ 30” . which is one of the best peat carbon offsetting potentials and attractive for investors to start business in developing carbon markets.501 ha).440 hectares assigned by MoF was merely administrative permission only. Geographic location 3. the area consists of large peat swamp forest with the depth of 3-15 m. 6. this logging concession area is suitable for a restoration ecosystem due to its characteristic of degraded forests and rich in biodiversity (orangutan). Forest group Altitude Watershed area Descripntin ± 48. the boundary coordination activity needs to be conducted as mandated by the MoF regulations. Prospective carbon activity The area has such quality for restoration ecosystem. Hence. An initial field survey conducted by Flora and Fauna Indonesia (FFI) estimated that around 500700 orangutan are living in the area. additional funding (around $ 2.5 millions without all taxes. More importantly.704 ha or 84%). 7. It found that the area has already been degraded and not feasible for timber forest production. West Kalimantan No Area 1. However. there is no activity in the area. it has not been validated in the field. Therefore.Location of PT. the area is mainly consisted of secondary swamp forest (about 40. Although boundary was defined on maps in the technical document proposed by the company. the Mohairson Pawan Khatulistiwa management is interested in selling the concession and asking for around $3. Forestry administration 5.1 o 48’ 00” S Sub District of Muara Pawan. Group 2. Government administration 4.4 millions) is needed to start up the project upfront 2 .

) Capitals and equipment : $ 3 – 4 millions : $ 1. It is also important to note that the current carbon value has been fluctuating from $5-10 per metric ton in different markets.5 millions Total : $ 8 – 11. The concession is potential to carry out several carbon offsetting activities and generate significant revenues. taxes.5 millions tCO2e : 2 – 2. IGL) Jl. camps. IUPHHK.1. RT 03/RW 06 Kelurahan Cimahpar. etc. etc. Prepared by: PT. total revenues generated from the project would be around $84 – 90 millions. Jawa Barat Tel. 0251 657171 Iwan Setiawan 3 .5 – 26 millions tCO2e : not estimated Total : 28 – 30 millions tCO2e Assuming the lowest carbon price is $3. Tumenggung Wiradireja No 216. the project will need additional $15 – 30 millions (total around 23. The following is possible activities and estimated emissions produced for 30 years operational period: Improved Forest Management (IFM) REDD (avoided unplanned deforestation) Peat rewetting and conservation Biodiversity (REDD+) : 0. Fax. Kecamatan Bogor Utara.5 – 1. including takeover cost and risk assessments are needed to have better overviews on how much money are required to start the project and can be generated during the project period.Concept Paper depending on activities (technical and administrative).5 millions If the annual operational cost is around $0.5 millions : $ 0. 0251 657002.5 – 1.5 millions tCO2e : 25.) Carbon and biodiversity surveys Roads Buildings (office. IndoGreenLife (PT.5 – 2 millions : $ 1 .0 millions : $ 1 – 1. the project could offer considerable benefit to investors (at least more than $50 millions for 30 years). The followings are coarse estimated pre-production investment: Concession takeover Planning (AMDAL.5 millions : $ 1 – 1. Initial appraisals.41. it is advisable that both investment and revenue estimations are rough calculations.5 – 1 millions.5 millions) for 30 years period. However. Therefore.

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