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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


Prospective carbon activity The area has such quality for restoration ecosystem. An initial field survey conducted by Flora and Fauna Indonesia (FFI) estimated that around 500700 orangutan are living in the area. Geographic location 3.440 hectares assigned by MoF was merely administrative permission only. Group 2. it has not been validated in the field. 7.110 o 15’20” E and 1 o 35’ 30” . the area consists of large peat swamp forest with the depth of 3-15 m. 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. 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. the Mohairson Pawan Khatulistiwa management is interested in selling the concession and asking for around $3. Although boundary was defined on maps in the technical document proposed by the company. the boundary coordination activity needs to be conducted as mandated by the MoF regulations.440 Hectares 110o 02’ 30” . this logging concession area is suitable for a restoration ecosystem due to its characteristic of degraded forests and rich in biodiversity (orangutan).Concept Paper Table 1. Hence. Currently. the price is flexible and open for negotiation. Government administration 4. 6.501 ha). the area is mainly consisted of secondary swamp forest (about 40. additional funding (around $ 2. there is no activity in the area. Forest group Altitude Watershed area Descripntin ± 48. Forestry administration 5. District of Ketapang.Location of PT. However. West Kalimantan No Area 1.4 millions) is needed to start up the project upfront 2 . which 32% of them is peat swamp forest (15. Meanwhile.704 ha or 84%). More importantly.1 o 48’ 00” S Sub District of Muara Pawan. Therefore. Mohairson Pawan Khatulistiwa in Ketapang. It found that the area has already been degraded and not feasible for timber forest production.5 millions without all taxes. which is one of the best peat carbon offsetting potentials and attractive for investors to start business in developing carbon markets.

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.) Carbon and biodiversity surveys Roads Buildings (office.5 millions tCO2e : 2 – 2. RT 03/RW 06 Kelurahan Cimahpar. IndoGreenLife (PT.5 – 26 millions tCO2e : not estimated Total : 28 – 30 millions tCO2e Assuming the lowest carbon price is $3. taxes.5 millions If the annual operational cost is around $0. Therefore. total revenues generated from the project would be around $84 – 90 millions.0 millions : $ 1 – 1.1. Jawa Barat Tel. etc. It is also important to note that the current carbon value has been fluctuating from $5-10 per metric ton in different markets.41.) Capitals and equipment : $ 3 – 4 millions : $ 1.5 millions : $ 0. Kecamatan Bogor Utara.5 – 1. Fax. Prepared by: PT. the project will need additional $15 – 30 millions (total around 23. However. Initial appraisals. 0251 657002.5 – 1 millions. the project could offer considerable benefit to investors (at least more than $50 millions for 30 years). 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. camps.5 millions) for 30 years period. IUPHHK. The followings are coarse estimated pre-production investment: Concession takeover Planning (AMDAL. Tumenggung Wiradireja No 216. etc. it is advisable that both investment and revenue estimations are rough calculations.5 millions : $ 1 – 1.5 millions tCO2e : 25. The concession is potential to carry out several carbon offsetting activities and generate significant revenues. IGL) Jl.5 millions Total : $ 8 – 11.Concept Paper depending on activities (technical and administrative). 0251 657171 Iwan Setiawan 3 .5 – 1.5 – 2 millions : $ 1 .

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