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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


Meanwhile.1 o 48’ 00” S Sub District of Muara Pawan.440 Hectares 110o 02’ 30” . It found that the area has already been degraded and not feasible for timber forest production.110 o 15’20” E and 1 o 35’ 30” . this logging concession area is suitable for a restoration ecosystem due to its characteristic of degraded forests and rich in biodiversity (orangutan). District of Ketapang.440 hectares assigned by MoF was merely administrative permission only. More importantly. Group 2.Concept Paper Table 1. Based on the Landsat-7 ETM+ (Path/Row 121/61 observed on 23 June 2007) analysis. Geographic location 3. However. the area is mainly consisted of secondary swamp forest (about 40. Therefore. which 32% of them is peat swamp forest (15. it has not been validated in the field. Forestry administration 5.501 ha). which is one of the best peat carbon offsetting potentials and attractive for investors to start business in developing carbon markets. 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. Currently.4 millions) is needed to start up the project upfront 2 . the area consists of large peat swamp forest with the depth of 3-15 m. West Kalimantan No Area 1. Forest group Altitude Watershed area Descripntin ± 48.5 millions without all taxes. there is no activity in the area.Location of PT. If a carbon project will be established in this area. Government administration 4. additional funding (around $ 2. An initial field survey conducted by Flora and Fauna Indonesia (FFI) estimated that around 500700 orangutan are living in the area. Prospective carbon activity The area has such quality for restoration ecosystem. the boundary coordination activity needs to be conducted as mandated by the MoF regulations. the Mohairson Pawan Khatulistiwa management is interested in selling the concession and asking for around $3. Mohairson Pawan Khatulistiwa in Ketapang. Hence. the price is flexible and open for negotiation. Although boundary was defined on maps in the technical document proposed by the company.704 ha or 84%). 7. 6.

The followings are coarse estimated pre-production investment: Concession takeover Planning (AMDAL.41. 0251 657171 Iwan Setiawan 3 .5 millions : $ 1 – 1.5 millions If the annual operational cost is around $0.) Carbon and biodiversity surveys Roads Buildings (office. total revenues generated from the project would be around $84 – 90 millions. taxes. Tumenggung Wiradireja No 216.5 millions tCO2e : 2 – 2.5 – 2 millions : $ 1 . Kecamatan Bogor Utara. etc. 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+) : 0.5 millions : $ 0.5 – 26 millions tCO2e : not estimated Total : 28 – 30 millions tCO2e Assuming the lowest carbon price is $3.5 – 1. the project could offer considerable benefit to investors (at least more than $50 millions for 30 years). IndoGreenLife (PT.) Capitals and equipment : $ 3 – 4 millions : $ 1. camps.1.5 millions Total : $ 8 – 11. Therefore. The concession is potential to carry out several carbon offsetting activities and generate significant revenues. it is advisable that both investment and revenue estimations are rough calculations. However. IGL) Jl. It is also important to note that the current carbon value has been fluctuating from $5-10 per metric ton in different markets. Prepared by: PT. 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. IUPHHK. the project will need additional $15 – 30 millions (total around 23.5 – 1 millions.Concept Paper depending on activities (technical and administrative).5 millions) for 30 years period. Initial appraisals. RT 03/RW 06 Kelurahan Cimahpar. Fax.5 millions tCO2e : 25. 0251 657002. Jawa Barat Tel.5 – 1. etc.0 millions : $ 1 – 1.

com Phone: 08129282724 4 .Concept Paper Email: indogreenlife@gmail.