This paper analyses the risks for corruption in REDD+ readiness activities in Indonesia and the conditions that may influence potential outcomes. REDD+ is a mechanism designed under the United Nations Framework Convention on Climate Change to enhance the role of forests in curbing climate change, which include forest conservation and activities that increase carbon stocks. The Government of Indonesia has been introducing policies and regulations, creating coordinating mechanisms and initiating demonstration projects to prepare for REDD+. The REDD+ readiness phase in Indonesia involves significant funding from public and private sources. This paper focuses on the readiness phase because this is the period during which policies, institutions, systems and processes are designed.These will influence the presence or absence of risks and conditions for corruption in subsequent phases. The research relied on analysis of relevant legislation, interviews with agency officials, literature reviews and media reports. As Indonesia stands at the forefront in REDD+ policy reform and institutional design, it is hoped the analysis will also inform other forest-rich tropical countries and the donor community.