On 13 June 2008 the Prime Minister of Australia and the President of Indonesia announced the Indonesia–Australia Forest Carbon Partnership. This Partnership is the centrepiece of Australia’s assistance on climate change, and builds on long-term practical cooperation between Indonesia and Australia.
The Partnership is supporting strategic policy dialogue on climate change, the development of Indonesia's National Carbon Accounting System, and implementing demonstration activities in Central Kalimantan.
In line with recommendations from an independent review conducted in March 2011, the Sumatra Forest Carbon Partnership (SFCP) will not proceed as originally planned. No on-the-ground work has been undertaken on the SFCP.
The Indonesia-Australia Forest Carbon Partnership (IAFCP) has a budget of up to $100 million. The Australian and Indonesian Governments are currently discussing alternative approaches to work in Sumatra under this partnership.
AusAID conducts independent reviews of its aid activities, such as the one undertaken for the IAFCP, to independently assess progress and make recommendations to improve performance and ensure that program outcomes are being achieved, local communities are benefiting, and aid funding achieves value for money.