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This country profile reviews the drivers of deforestation and forest degradation in Indonesia, sets out the institutional, political and economic environment within which REDD+ is being implemented in Indonesia, and documents the process of national REDD+ policy development during the period 2007 – early 2012. While Indonesia is committed at the national and international level to addressing climate change through the forestry sector, there are clearly contextual challenges that need to be addressed to create the enabling conditions for REDD+. Some of the major issues include inconsistent legal frameworks, sectoral focus, unclear tenure, consequences of decentralisation, and weak local governance. Despite these challenges, however, REDD+ opens up an opportunity for improvements in forest governance and, more broadly, in land use governance. More democratic political-economic processes in general, greater freedom of civil society and the press, and heightened awareness of environmental issues can help build support and solidify policies in this direction.