In late 2009, Indonesia made a voluntary commitment to reduce its greenhouse gas emissions by 26 per cent by 2020, or by 41 per cent with international assistance, compared to business as usual. The country aims to achieve 87 per cent of this goal by reducing emissions from deforestation and peatland conversion. In a step towards achieving these emission reductions, a decree was signed in 2011 putting into effect a two-year moratorium on issuing new permits for use of primary natural forest and peatland. This ‘Inside story on climate compatible development’ by the Climate and Development Knowledge Network (CDKN) argues that the moratorium could be an important contribution to climate compatible development and is a policy for other forest-rich countries to watch. The brief provides a number of key recommendations highlighting the importance of coordination and cooperation for successful implementation.