Indonesia and the United States signed Debt for Nature Swap (DNS) agreement aimed at financing forest conservation in Sumatra, Indonesian Forestry Minister M.S. Kaban said in Jakarta.

Kaban said that the conservation financed by DNS will cover a total area of 7 million hectares in three regions.

"This will also support the conservation of endangered species such as Sumatran tigers, orangutans and elephants," the Jakarta Post quoted Wednesday the minister as saying on the sidelines of the DNS signing ceremony.

The DNS signing was conducted by the United States Ambassador to Indonesia Cameron R Hume and Indonesian Finance Ministry's director general of debt management Rahmat Waluyanto on Tuesday.

The total amount of funds, accumulated from a principal debt of US$19.6 million plus interest in eight years and augmented by contribution from Non Government Organizations (NGOs), would reach US$30 million.

Areas that would be financed by the DNS funds are Batang Gadis National Park in North Sumatra, Bukit Tigapuluh National Park in Central Sumatra and Way Kambas National Park in Lampung.

U.S.-based Conservation International Foundation and Indonesian the Kehati Foundation are appointed to oversee the efficacy of the conservation efforts financed by the DNS funds.

Representing the U.S. government, ambassador Hume said that the agreement marks the 15th Tropical Forest Conservation Act. Previously U.S. has provided similar assistance to Belize, Botswana, Colombia and Costa Rica.

The DNS, Hume said, contains three agreements namely the debt reduction agreement between the U.S. and Indonesian government, the swap fee agreement between the U.S. government and the NGOs and forest conservation agreement between the Indonesian government and the NGOs.

The World Bank in its 2007 report said that Indonesia is the world's third largest greenhouse effect producer.

(Xinhua News Agency July 1, 2009)