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INDONESIA’S FORESTRY LONG TERM
DEVELOPMENT PLAN 2006-20025
THE MINISTRY OF FORESTRY OF INDONESIA Jakarta, May 2006
Published by : Centre for Forestry Planning and Statistics, Forestry Planning Agency – The Ministry of Forestry of Indonesia Manggala Wanabakti Building, Block VII, 5 Floor; Jl. Gatot Subroto Jakarta, 10270 Phone/Fax: +62 21 5720216 © The Ministry of Forestry of Indonesia 2006 ISBN: Edited by: Basoeki Karyaatmadja; Muhammad Koeswanda; Chaerudin Mangkudisastra; Belinda Arunarwati; Efsa Caesariantika; Arie Sylvia Febriyanti Printed by : World Bank Jakarta
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INDONESIAN NATIONAL FORESTRY STATEMENT 1
Indonesian forest resources, which function as one of the components of the life support system, constitute a trust from God for the people of Indonesia to be wisely managed so that they can provide optimal and sustainable benefits. Up to now, Indonesian forest resources have provided benefits as one of the main financing modes of national economic development, in the form of economic growth, labour absorption and regional development. The commitment to manage forest resources is already in effect and aims toward forest preservation and sustainable development. In fact at this time, however, there are still weaknesses in management that are causing a decline in quantity and quality of forest resources, which at last are causing the appearance of environmental damages, economic losses, and social impacts at a very worrying level. It is recognized that there is a diversity of desires, goals, and interests to various parties, including local, national and even global communities, for the benefits of forest resources. The solution for overcoming the issues above will be based on agreement by concerned forest sector stakeholders, based on equity and justice, as well as highlighting proposed management principles and existing values. Starting now, the Indonesian nation had determined to make every effort to manage forest sustainability, prioritizing in the short run the protection and rehabilitation of forest resources for the greatest possible prosperity and justice for people.
1 Based on multi-stakeholder consultations in 6 main regions (Sumatra, Java-Bali, Nusa Tenggara, Borneo, Celebes, Maluku,, and Papua) in 2001-2005 and agreed in a National Workshop in December 2005.
MINISTER OF FORESTRY OF THE REPUBLIC OF INDONESIA
REGULATION OF THE MINISTER OF FORESTRY
Number : P.27/Menhut-II/2006
Concerning
INDONESIA’S FORESTRY LONG TERM DEVELOPMENT PLAN 2006-20025
MINISTER OF FORESTRY,
Consider : a. that, the act Number 41 of 1999 concerning Forestry, in particular article 20, and the act Number 25 of 2004 concerning National Development Planning System in which mandate to arrange Indonesia’s Forestry Long Term Development Plan 2006-2025;
b. that, to follow up the above mention, The Ministry of Forestry need to arrange Indonesia’s Forestry Long Term Development Plan 2006-2025;
c. that, due to the circumstance above, Indonesia’s Forestry Long Term Development Plan 2006-2025 is necessary to decide into a Regulation of the Minister of Forestry.
Refer to : 1. Act Number 5 of 1990 concerning Conservation of Natural Resources and its Ecosystems;
2. Act Number 24 of 1992 concerning Spatial Planning;
3. Act Number 23 of 1997 concerning Environmental Management;
4. Act Number 41 of 1999 concerning Forestry;
5. Act Number 25 of 2004 concerning National Development Planning System;
6. Act Number 32 of 2004 concerning Local Government;
7. Government Regulation Number 25 of 2000 concerning Authority of Government and Authority of Provinces as Autonomous Territories;
8. Government Regulation…….
8. Government Regulation Number 34 of 2000 concerning Forest Administration, Forest Management Planning, Forest Utilization, and Forest Land-Use for Non-Forestry Purposes;
9. Government Regulation Number 44 of 2004 concerning Forestry Planning;
10. Presidential Decision Number 187/M of 2004 concerning Development of the Indonesian United Cabinet;
11. Presidential Regulation Number 7/M of 2005 concerning National Mid-term Development Plan 2004-2009;
12. Presidential Instruction Number 7 of 1999 concerning Performance Accountability of Government Institutions;
13. Minister of Forestry Decision Number SK456/ Menhut-VII/2004 concerning Five Priority Policies on Forestry in the National Development Program of the Indonesia United Cabinet;
14. Decision of Head of National Administration Institute, Number 239/IX/8/2003 concerning Revised of the Guideline for Arranging Report of Performance Accountability of Government Institutions.
DECIDES
to stipulate :
FIRST : Indonesia’s Forestry Long Term Development Plan 2006-2025, as annexed to this regulation,
SECOND : Indonesia’s Forestry Long Term Development Plan 2006-2025 is arranged as a direction and reference for :
a. Development of Strategic Plans of The Ministry of Forestry ;
c. Development of Sub-National Forestry Development Plans;
d. Coordination of inter sectors long term planning;
e. Control of development activities under the Ministry of Forestry.
THIRD : To instruct Echelon I in the Ministry of Forestry to:
a. Elaborate Indonesia’s Forestry Long Term Development Plan 2006-2025 toward strategic forestry planning in shorten term;
b. Develop Report on Performance Accountability of Government Institution for their respective units based on Indonesia’s Forestry Long Term Development Plan 2006-2025.
FOURTH………
FOURTH : This regulation shall come into effect at the date of its stipulation.
Issued in : JAKARTA
On : May 17, 2006
Declaring that this copy MINISTER OF FORESTRY complies with the original, Director of Legal and Organisational Affairs, Signed
Signed
SUPARNO, SH H.M.S. KABAN, SE., M.Si. Personnel No. 080068472 Cc: 1. Executive Official of National Audit Agency 2. Coordinating Minister for Economic Affairs 3. Minister of Finance 4. State Minister of National Development Planning/Head of National Development
Planning Board 5. All Governors in Indonesia 6. Head of District/Municipality in Indonesia 7. Echelon I Officials in the Ministry of Forestry 8. Head of Provincial Forest Services in Indonesia
ANNEX : Regulation of Minister of Forestry Number : P.27/menhut-II/2006 Date : May 17, 2006
CONCERNING
INDONESIA’S FORESTRY LONG TERM
DEVELOPMENT PLAN 2006-20025
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PREFACE
Sustainable forest resources management as mandated in the Basic Law 1945 Article 33 obligates to the government to have the legally basis, encompassing short term, middle term, and long term planning implication which fully integrated vertically and horizontally. Therefore, simultaneous and iterative process needed within the preparation of those planning toward achieving the benefits, existence, sustainability of the forest resources, and people’s prosperities.
The Governance system development from centralized to decentralized (the autonomy era) and refer to the riel condition of forestry sector prosecutes huge endeavor within transparent manner, to ensure the direction and contribution of forestry sector could cross boundary time and space, and it could be carried out more harmonized, convergent and focus, starting from the management unit up to the central level.
Based on the logical framework and fulfillment of obligation as mentioned above, Ministry of Forestry established Indonesia’s Forestry Long Term Development Plan 2006 – 2025 which intended to raise the common perception of all parties concerning the forestry sector.
Indonesia’s Forestry Long Term Development Plan remains highly strategic and important as a forestry development scenario toward national development within the next 20 years, where this document has been prepared within a year since April 2005. Discussion and public consultation have conducted through 2 national workshops by involving various stakeholders including technical expert, to scope several points of multi sectors and related knowledge. Dialogues among those relevant stakeholders yield significant contributions such as alternates scenario, empirical fact and logical concept to prepared Indonesia’s Forestry Long Term Development Plan.
Based on awareness, that the movement of strategic environmental in the forestry sector is dynamic internally and externally, and related to other sectors even a global influence, therefore Indonesia’s Forestry Long Term Development Plan viewed as an iterative process within possibilities on review which might timely happened in accordance with National long term interest.
Regardless of the negative occurrence within the arrangement of this Indonesia’s Forestry Long Term Development Plan, the Ministry of Forestry wishes to express its sincere appreciation and gratitude to the officials and numerous individuals who have contributed and actively involved to the preparation of this document, as a guidance to manage Indonesian forest resources in the future.
The Ministry of Forestry hope, Indonesia’s Forestry Long Term Development Plan 2006 – 2025 could be utilized as a guideline and a reference for further understanding toward strategic forestry planning in shorten term, and concurrently as a source of indicators measurement of Performance Accountability of Government Institution in forestry sector.
MINISTER OF FORESTRY
Signed
H.M.S. KABAN, SE, MSi
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LIST OF CONTENT
Page
PREFACE ........................................................................................................................ i
LIST CONTENT ............................................................................................................. ii
LIST OF FIGURE ........................................................................................................... iv
LIST OF TABLE ............................................................................................................ vi
GLOSSARY...................................................................................................................... vii
BAB I INTRODUCTION ........................................................................................... 1
I.1 FOREWORD .................................................................................................... 1 I.2 DEFINITION .................................................................................................... 2 I.3 PURPOSE AND GOAL .................................................................................... 2 I.4 LEGAL BASIS ................................................................................................. 2 I.5 ASSUMPTIONS ............................................................................................... 3 I.6 FORESTRY LONG TERM DEVELOPMENT PLANNING
FORMULATION PROCESS ........................................................................... 3
BAB II THE STATE OF FORESTRY UNTIL 2004 ................................................ 5
II.1 FOREST RESOURCES .................................................................................... 5 II.2 STRATEGIC ENVIRONMENTAL CONDITIONS ....................................... 10 II.3 STRATEGIC ISSUES FOR FORESTRY DEVELOPMENT .......................... 12 II.4 FORESTRY DEVELOPMENT POTENTIAL.................................................. 25 BAB III VISION AND MISSION FOR FORESTRY DEVELOPMENT 2006-
2025 .................................................................................................................... 30
III.1 VISION .............................................................................................................. 30 III.2 MISSION ........................................................................................................... 32 BAB IV FORESTRY LONG TERM DEVELOPMENT DIRECTION 2006-2025
............................................................................................................................33
IV.1 MAIN OBJECTIVE........................................................................................... 33 IV.2 THE CREATION OF A STRONG INSTITUSIONAL FRAMEWORK
FOR FORESTRY DEVELOPMENT ...............................................................35
IV.3 ACHIEVING INCREASED VALUE AND SUSTAINABLE PRODUCTIVITY OF FOREST RESOURCES .............................................. 37
IV.4 FORESTRY PRODUCTS AND SERVICES THAT ARE ENVIRONMENTALLY FRIENDLY AND COMPETITIVE, AND THAT HAVE HIGH ADDED VALUE ........................................................................
42 IV.5 CREATING AND ENABLING FORESTRY INVESMENT CLIMATE ....... 44 IV.6 PROMOTION OF FOREST PRODUCT AND SEVICES................................ 45
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IV.7 IMPROVING SOCIAL WALFARE AND RAISING SOCIETY’S ACTIVE ROLE IN SUPPORTING RESPONSIBLE AND EQUITABLE FOREST MANAGEMENT ..............................................................................
46 BAB V THE ROLE OF FORESTRY DEVELOPMENT 49 BAB VI CLOSING ........................................................................................................ 53 REFERENCE ...................................................................................................................... 55
ACKNOWLEDGMENT .................................................................................................... 58
iv
LIST OF FIGURE
No Page
Figure 1. Indonesia’s biodiversity ............................................................................... 5
Figure 2. Development of Indonesia’s protection zones by size (left axis) and number (right axis) over time.......................................................................
6
Figure 3. Community honey bee production ............................................................... 7
Figure 4. Forest product exports (left axis) and contribution to GDP (right axis) up to 2003.....................................................................................................
8
Figure 5. Natural forest concessions (HPH) until 2004............................................... 8
Figure 6. Forestry revenues, 1999 to 2004 (trillion Rp) .............................................. 9
Figure 7. Employment in the forestry sector until 2002.............................................. 9
Figure 8. Planned versus achieved reforestation (1984-2003) .................................... 13
Figure 9. Area of the forest area cleared up to 2004 ................................................... 14
Figure 10. Development of HTI plantations up to 2004................................................ 15
Figure 11. Roundwood production from HPH up to 2004 ............................................ 16
Figure 12. Production of non-timber forest products up to 2002 .................................. 16
Figure 13. Area of forest fires up to 2004 ..................................................................... 17
Figure 14. Change in forest cover in Sumatra 1988 – 2000 .......................................... 19
Figure 15. Declining tiger population in sumatra.......................................................... 20
Figure 16. Conflict between tigers and humans ............................................................ 20
Figure 17. Percent forest cover and rural poor .............................................................. 21
Figure 18. Employment classification of rural poor and non-poor, 2002 ..................... 22
Figure 19. Educational level of national civil servant in forestry at central and regional levels ..............................................................................................
22
Figure 20. Educational level of national civil servant and private sector employees, 2002..............................................................................................................
23
Figure 21. Human resources in forestry research and development (Litbang).............. 24
Figure 22. Results of illegal logging cases, 2003 .......................................................... 24
Figure 23. Classifications of the forest area .................................................................. 25
Figure 24. Education levels of forestry employees ....................................................... 26
Figure 25. Global import trends of forest products ....................................................... 27
Figure 26. Use of oil palm timber for panel .................................................................. 28
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Figure 27. Plant and wildlife exports, 2000–2004......................................................... 28
Figure 28. Visitors to conservation areas ...................................................................... 29
Figure 29. Target for developing KPH institutions up to 2025 ..................................... 35
Figure 30. Program for developing forestry human resources until 2025..................... 36
Figure 31. Target for measuring the forest area by 2025 (million ha) ......................... 38
Figure 32. Scenarios of decreasing forest degradation in the forest area 2025 ............. 38
Figure 33. Target for watershed revitalization by 2025 ................................................ 39
Figure 34. Development of independent conservation areas by 2025........................... 40
Figure 35. Target for reducing the number of protected species by 2025..................... 41
Figure 36. Target for inventories of all timber and commercial wildlife species by 2025.............................................................................................................. 42
Figure 37. Roundwood production scenario until 2025 ................................................ 44
Figure 38. Target for private forest (hutan rakyat) areas by 2025................................. 48
vi
LIST OF TABLE
No Page
Table 1. Production capacity changes of Indonesia’s forestry industries 1985-2002 (million m3).....................................................................................................
17
Table 2. Global veneer, plywood and pulp production, 2003 ....................................... 18
Table 3. Distribution of critical land in and outside the forest area (million ha) .......... 19
Table 4. Population and poverty distribution in Indonesia 2003 .................................. 21
Table 5. Plant and animal species and levels of endemism by island ........................... 26
Table 6. Three scenarios for forest sector development 2006-2025 ............................. 31
Table 7. Matrix of roles in forestry sector development ............................................... 49
CHAPTER I. INTRODUCTION
I.1. Foreword
a. Forestry development is done based on principles of benefit and sustainability, community, justice, unity, transparency, and integrity with the purpose achieving the greatest possible fair and sustainable prosperity for the public.
b. In accordance with Act no. 41/1999 concerning forestry, the goal of forestry development is to:
1) Guarantee the existence of forests with adequate area and coverage that is proportional;
2) Optimize various functions of the forest and its ecosystem including its waters which include conservation, protection, timber and non timber production, and environmental services functions in order to achieve social, cultural, and economic benefits that are balanced and sustainable.
3) Increase watershed (DAS) support capabilities.
4) Encourage community participation.
5) Ensure an equitable and sustainable distribution of benefits.
c. To support the goal of forestry development, policies and guidance are required. These must be formulated in an integrated and comprehensive planning mechanism. This should be in the form of a long term plan which takes a macro perspective and more technical and operational medium-term and annual plans.
d. Forestry development is an integrated part of national development; hence forestry planning processes is an inseparable part of national development plans.
e. National development planning is based on Act no. 25/2004 concerning the National Development Planning System. Forestry sector development planning, aside from referring to the above law, also refers to Government Regulation No. 44/2004 concerning Forestry Planning and to Government Regulation No. 20/2003 concerning Government Work Plans.
f. The Forestry Development Plan also refers to the vision for a future Indonesia which is laid out by MPR Decree No. VII/2001 and the Indonesian Development Vision and Mission for an Indonesia that is safe, just and prosperous.
g. To realize forestry development in a consistent, flexible, and sustainable manner, a long term forestry development plan is needed. This plan must include a vision, missions, targets and directions for forestry sector development over the next 20 year period (2006-2025).
h. A Forestry Long Term Development Plan (RPJP) for 2006-2025 will accommodate the main national forestry issues that are part of the existing National Forest Program identified since 2001 as well as issues that may develop in the future.
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I.2. Definition
a. The forestry RPJP 2006-2025 is a long term forestry sector planning document. It is an elaboration of the forestry management goals set out in Act No. 41 Year 1999, of the vision and mission for a future Indonesia, and of the development vision of a safe, just, and prosperous Indonesia, with a vision and direction for forestry sector development over the next 20 years.
b. The forestry RPJP 2006-2025 is an inseparable part of national long term development plans as stated in the National RPJP 2006-2025.
c. The forestry RPJP 2006-2025 is compiled for the national level to be used as reference for the forestry medium-term development plans, at all levels (national, provincial, regency/municipality and to be used as reference for other forestry macro activity plans.
I.3. Purpose and Goal
The Forestry RPJP 2006-2025 is established with the purpose of providing a guide and reference for all forestry stakeholders to realize the goal of forestry development in accordance with the mutually agreed development vision and mission.
The goal of this Forestry RPJP is to maintain consistency in the management of forestry development from one period to the next in accordance with forestry resources management principles, without being affected too much by political change or other non-technical influences.
I.4. Legal Basis
The legal basis for the Forestry RPJP 2006-2025 is as follows:
a. Act Number 25 Year 2004 concerning the National Development Planning System;
b. Act Number 41 Year 1999 concerning Forestry.
c. Act Number 32 Year 2004 concerning Regional Government;
d. Act Number 5 Year 1990 concerning Natural Resources and Ecosystem Conservation;
e. Act Number 24 Year 1992 concerning Spatial Planning;
f. Act Number 5 Year 1994 concerning Ratification of the Convention on Biodiversity;
g. Act Number 6 Year 1994 concerning the Ratification of the Convention on Climate Changes;
h. Act Number 23 Year 1997 concerning Environmental Management;
i. Act Number 17 Year 2004 concerning the Ratification of the Kyoto Protocol;
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j. Government Regulation Number 44 Year 2004 concerning Forestry Planning;
k. Government Regulation Number 34 Year 2002 concerning Forest Spatial Arrangement and the Compilation of Forestry Management, Forest Utilization, and Forest Area Usage Plans;
l. Government Regulation Number 68 Year 1998 concerning Nature Conservation Area and Nature Reserve Area;
m. Government Regulation Number 35 Year 2002 concerning Reforestation Funds;
n. Government Regulation Number 47 Year 1997 concerning National Spatial Planning Plans;
o. Government Regulation Number 25 Year 2000 concerning Governmental Authority and Provincial Authority as Autonomous Regions;
p. Government Regulation Number 45 Year 2004 concerning Forest Protection.
I.5. Assumptions
In order to create realistic long-term targets of forestry development several basic assumptions are made. These assumptions are used as considerations in the analysis of various strategies. The basic assumptions include the following:
a. Forestry development occurs normally and receives political support from various sectors and stakeholders.
b. The main driving force of the forestry sector is fully committed to implementing forestry development.
c. Forestry development stakeholders are actively involved in planning, monitoring and evaluating the Forestry RPJP.
d. National security and political, social and economic stability are maintained.
e. Forestry sector development receives adequate financial support.
I.6. Forestry long term development planning formulation process
The compilation of the Forestry RPJP is done in a transparent, participative, integrated and responsible manner in reference to Act Number 25 Year 2004 concerning National Planning Systems and Act Number 41 Year 1999 concerning Forestry as well as other related laws.
This RPJP was created through a process of communication and consultation with various stakeholders including experts. The initiation of the RPJP creation process began in December 2004 with a workshop on national forestry sector analysis in Jakarta. Follow-up meetings to compile the RPJP were held in August 2005 in
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Bogor to discuss the scenario, vision, mission, and direction of forestry development. The series of meetings in compiling the RPJP was finalized with a national workshop in December 2005 in Jakarta to focus the direction of forestry development for the next 20 years.
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Source: Pusat Informasi Kehutanan
Figure 1. Indonesia’s biodiversity
CHAPTER II . THE STATE OF FORESTRY UNTIL 2004
II.1 Forest Resources
a. Biodiversity
As of 2005, the government has designated 126.8 million ha as Forest Area. Of this area 23.2 million ha are classified as conservation forest, 32.4 million ha are classified as protection forest, 21.6 million hectares are designated as limited production forests, 35.6 million hectares are designated as production forest, and 14.0 million hectares are designated as conversion forest.
Indonesia is among nations with the highest levels of biodiversity, or third after Brazil and Columbia. This is reflected in the amount of biodiversity that Indoensia has which includes: 515 mamal species (12% of all mamal species in the world), 511 reptile species (7.3% of all reptile species in the world), 1,531 bird species (17% of all bird species in the world), 270 amphibian species, 2,827 invertebrate species, and 38,000 plant species (IBSAP,2003) (Figure 1).
In an effort to save this natural wealth the government has put in place Government Regulation No. 7 year 1999 on the Preservation of Wildlife and Plant Life which places 57 threatened plant species and 236 threatened wildlife species under protection. Furthermore, to regulate the global trade of endangered plants and wildlife, Indonesia is a signatory to CITES and has registered 1,049 plant species and 603 wildlife species under the treaty’s Appendix I and Appendix II. Indonesia is also a signatory and active member of the Convention on Biodiversity (UN-CBD), the Convention on Climate Change (UN-FCCC), the Convention on Land Degradation (UN-CCD), and the Convention on Wetland Conservation (RAMSAR).
However in regards to forest and forest ecosystem management, Indonesia continues to experience many problems such as forest area and ecosystem degradation and a decline in biodiversity. The decline in natural biodiversity resource distribution (SDAH) is caused, among other things, by over utilization of plant and wildlife as well as their ecosystem, alteration in forest area
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Source: Statistik Kehutanan (2004) Figure 2. Development of Indonesia’s protection zones
by size (left axis) and number (right axis) ti
0
2
4
6
8
10
12
14
16
18
94 95 96 97 98 99 00 01 02 03 04Years
Mill
ion
hect
ares
0
20
40
60
80
100
120
140
units
The cumulative extent of national parks The cumulative extent of nature recreational parks
designations, natural disasters, and forest fires. Forest fires in 1997/1998 involved a total land area of 5.2 million ha and is recorded as the most extensive tropical forest fires of the 20th century. In 2004, degraded Forest Area amounted to 59.17 million ha, while critical land outside Forest Area amounted to 41.47 million ha. Some of this land is scattered along the 282 river watersheds that have been prioritized for rehabilitation.
In order to maintain Indonesia’s ecosystem and biodiversity, by 2004 the government had declared land and sea conservation areas in the following amount : 50 units of National Parks (Taman Nasional, TN), 116 units of Natural Parks (Taman Wisata Alam, TWA), 18 units of Forest Parks (Taman Hutan Raya, TAHURA), 14 units of Game Parks (Taman Buru, TB), 228 units of Preservation Areas (Cagar Alam, CA), and 76 units of Wildlife Sanctuaries (Suaka Margasatwa, SM) ( Figure 2 ).
Aside from this, preventative and suppressive forest security operations are conducted to protect the ecosystem and the biodiversity by combatting illegal logging activities, forest clearing activities and activities that lead to forest fires. Within the last 5 years (2000-2004), the government has conducted land and forest rehabilitation efforts in the form of reforestation activities on 469,256 ha located within the Forest Areas, and reforestation (or regreening) on 1,785,149 ha of land located outside of the Forest Area, including community forests. These efforts still fall short of expectations, hence in the next five years the government aims to rehabilitate Forest Areas and ecosystems in the amount of 5 million ha through the National Forest Rehabilitation Movement (Gerakan Rehabilitasi Hutan, GERHAN), to establish 5 million ha of plantation forest, and to create 2 million ha of private forests (hutan rakyat).
b. Demographic and cultural considerations
Indonesia’s population in 2003 was 219.9 million people (BPS, 2005). Around 48.8 million Indonesians live in and around the Forest Area and among these, around 10.2 million people are classified as poor (CIFOR, 2000 and BPS, 2000).
Around 6 million Indonesians make their living directly from forests, and of these around 3.4 million people are employed in the private forestry sector. Traditionally, communities around forests derive their livelihoods from utilizing wood and non-wood forest produce, such as rattan, dammar resin, gaharu, and honey (Figure 3).
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Source: Pusat Informasi Kehutanan Figure 3. Community honey bee production.
Generally communities in and around the Forest Area have less access to quality infrastructure, education, health services, and housing than urban communities. Housing and environmental sanitation as well as public facilities are also inadequate.
Forest resources are important for communities in and around forests. This is manifested in the culture of communities which places traditional values (local wisdom) derived from the interaction of people with forest resources. However, changes in forest conditions and opening of access to forest resources lead to friction within the cultural value system with regard to the forest and its ecosystem.
The Government has made extensive efforts to maintain the cultural conditions of communities in and around forests, including efforts to accommodate community rights in forest management through forestry regulations and laws.
c. Economic considerations
Commercial exploitation of natural forests began in 1967 and was one of the main drivers of the Indonesian economy from 1980 to 1990. During this period, Indonesia secured substantial global market share in tropical timber products through its exports of logs, sawn timber, plywood and other timber products.
Foreign exchange earnings from forest product exports in 1985 are estimated at USD 1.2 billion. As the composition of exported forest products shifted from logs to processed products, such as sawn timber, plywood, panels, molding and furniture, foreign exchange contributions from forest products continued to rise. In 2003, the reported level of Indonesian forestry commodity exports was USD 6.6 billion, or 13.7% of total non-oil and gas exports. This export consisted of plywood, sawn timber, and processed timber in the amount of USD 2.8 billion, pulp and paper in the amount of USD 2.4 billion, furniture in the amount of USD 1.1 billion and other processed timber products in the amount of USD 0.3 billion (BPS, 2004). But the portion of GDP accounted for by the forestry sector declined between 1997 and 2003 (Figure 4).
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This decline was accompanied by a decline in the number of natural forest concessions (HPH) from 575 in 1993 to 287 in 2004 (Figure 5).
Nominal government forestry revenue from the reforestation fund (Dana Reboisasi/DR), IHPH/PSDH and IHPH fees fluctuated between IDR 3.33 trillion (1999) and IDR 4.01 trillion (2004) (Figure 6).
Source: SMCP-GTZ (2004) and BPS (2005) Figure 4. Forest products exports (left axis) and contribution
to GDP (right axis) up to 2003
Source: Statistik Kehutanan (2004) Figure 5. Natural forest concessions (HPH) until 2004
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
85 89 90 97 98 99 00 01 02 03Years
Bill
ion
US
D
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Gro
ss D
omes
tic P
rodu
ct (G
DP)(%
)
Export Value Billion USD GDP (%)
0
10
20
30
40
50
60
70
93 94 95 96 97 98 99 00 01 02 03 04Years
Milli
on H
ecta
res
0
100
200
300
400
500
600
700
Uni
ts
M illion Hectares Number of Units
8
According to Simangunsong (2004), the level of employment in the forestry sector reached a peak in 1997, when it accounted for 338,000 workers, or around 1.23% of the Indonesian labor force. During the period following the economic crisis (1997- 2002) this amount fell to 1% (Figure 7).
The actual amount of labor absorbed by the forestry sector is much larger if small scale industries, such as small scale sawn timber, furniture, agroforestry and non timber forest production are included.
Source: Statistik Kehutanan (2004) Figure 6. Forestry revenues, 1999 to 2004 (trillion Rp).
Source: Simangunsong, GTZ (2004) Figure 7. Employment in the forestry sector until 2002
0
20
40
60
80
100
120
140
80 85 89 90 97 98 99 00 01 02Years
Uni
ts
Planting Forest Forest Concessionaries Sawn Timber Industry
Plywood Industry Pulp and Paper Industry
3.330
3.020
3.305
2.929
2.723 4.0
10
0.00.51.01.52.0
2.53.03.54.04.5
99 00 01 02 03 04Years
Trilli
on
Revenue (Trillion)
9
Different from Simangunsong (2004), national statistics report that the amount of labor absorbed in forestry industries and forest businesses in 2000 was 3.1 million people, with an average annual income of IDR 7.3 million per person for those working in Forest Concession (HPH) and IDR 3.3 million per person for those working in processing industries (BPS, 2000).
In general forestry has played a major role in regional development through logging roads which provide access to remote areas for local communities, through the provision of work opportunities, and through an increase in regional government and community income.
II.2. Strategic environmental conditions
a. Forestry decentralization
Act Number 22/1999 on Regional Autonomy largely shifted authority for the coordination of regional level government programs from provincial to regional governments. This has obvious implications for forestry sector development programs. Regional governments have greater authority in implementing forest related programs including technical assistance, and forest development financing, giving the regencies greater authority in carrying out sectoral programs.
However, because regional governments have been given increased authority while their capacity is still underdeveloped, implementation of sectoral and area programs have been slow. Also, without coordination being undertaken by provincial governments, communication between the central and regional government has not been smooth.
To anticipate this situation, the Center for Regional Development Control (Pusat Pengendalian Pembangunan Regional, Pusdal) was established to coordinate and communicate forestry programs between regional, provincial and central governments. In 2005 the government had established four Pusdal (Sumatra, Java and Nusa Tenggara, Kalimantan, and Eastern Indonesia Region).
Other sectors also face coordination difficulty in development and this created pressure to replace Act No. 22/1999 with Act No. 32/2004. This newer regulation does not segregate the authorities of regional, provincial and central governments but requires a common effort in administering national governance. This is based on three main principles:
1. Government Efficiency;
2. Externalities;
3. Accountability
This change has implications for forestry development. The responsibility for coordinating at the regional level, which formerly was held by the Pusdal institutions, is given back to the provincial level. The Pusdal institutions continue to concentrate on coordinating development activities between provinces in certain regions such as Sumatra and Kalimantan.
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The unique characteristics and priorities of each region complicate the integration of regional and central level programs. For this reason the decentralization process is carried out in phases, taking into account the capacity of each region.
b. Decentralization of fiscal policy
Together with the Regional Autonomy Law, the government issued Act No. 17/2003 concerning State Finances and Act No. 33/2004 concerning Fiscal Balance between the Central Government and Regional Governments. The budget allocation between central and regional governments generally takes place through the allocation of General Funds Allocation (Dana Alokasi Umum/ DAU) and Special Allocation Funds (Dana Alokasi Khusus/ DAK) as well as tax and natural resources income sharing.
The amount of DAU allocated to regions is determined by factors that include the area, population, building material price index, poverty level, regional GDP, natural resources index, and human resources index of the respective region. The amount of regional DAK is determined by the amount of revenue generated from the exploitation of natural resources in the region. Thus the amount of DAK allocated to a region and revenues generated from natural resources exploitation in the region are correlated, without terms that require these funds to be reinvested in the natural resources sector from which they derived.
At the same time, current regulations allow regional governments to explore means of generating additional funds (Local Revenue/Pendapatan Asli Daerah/PAD) through levies on revenues generated from sectoral activities such as forestry, mining and transportation.
This fiscal framework will have significant impacts on forestry sector development. In order to maximize their allocation of DAU, DAK, and PAD, regions will have the incentive to exploit their forest resources to the greatest extent possible. The sustainability of this income will depend on the sustainability of the forest utilization. As long as natural resource exploitation can be done based on principles of sustainability, regional revenue can be maintained and even increased.
c. Legal reform and law enforcement
The three main national development strategies until 2009 are: 1) 6.6% annual national economic growth; 2) development of the real sector; and 3) revitalization of agricultural development and rural economies. These strategies require simple regulations that facilitate national economic growth. For these regulations to be successful good governance along with strong and consistent law enforcement will be required.
Analysts observe that many regulations in the forestry sector are overly complicated, are not in the best interest of the people, are inconsistent, and overlap with regulations at the regional levels or with regulations from other sectors. This creates a burden for investors, and the public and it hinders forest sector performance. The many regulations established by regional governments add to the complexity of implementing national forestry development programs.
11
To reduce forestry bureaucracy, and to promote national economic development, the government issued an Investment Climate Enhancement Policy Package (Presidential Instruction No. 3/2006). It was hoped that this package would lead regions and sectors to initiate legal reforms that would be in favor of investors, the public at large, and especially poor communities.
In the forestry sector, the government has identified several cross-sectoral regulations, including Government Regulations and Ministerial Decrees/Regulation issued by the Minister of Forestry, that are overly bureaucratic. However, the legal reform process will be time consuming and will depend on the central and regional governments’ ability to implement good governance and coordination of legal reforms. This in turn will depend on successful law enforcement and control from the stakeholders in the forestry sector.
d. Global commitments
Global attention will continue to be focused on the development of Indonesia’s forestry sector. Globally, forest management principles were agreed upon during the Earth Summit in 1992. These principles were elaborated in various conventions and agreements including the Convention on Biodiversity (UNCBD, 1992), the Convention to Combat Desertification (UNCCD, 1994), the Convention on Climate Change (UNFCCC, 1994), the Kyoto Protocol (1997), the United Nation Forum on Forests/International Arrangement on Forests (UNFF/IAF, 2006) and the International Tropical Timber Agreement (ITTA, 2006).
Forestry development will be indirectly affected by other conventions such as the Convention on International Trade of Endangered Species (CITES, 1978), the Convention on Wetlands (RAMSAR, 1971) and global trade agreements.
Global commitments and agreements have a direct bearing on Indonesian forestry development and stakeholders need a clear understanding of these, so that Indonesia can benefit from membership in these conventions.
II. 3. Strategic issues for forestry development
a. Good governance
Forestry sector development requires good government that is free from corruption, efficient, transparent and participative in program and policy making, and also consistent in implementing those policies. Furthermore, public policies and programs must be accountable to the public.
This can only be achieved if forestry stakeholders are actively involve in monitoring government effort in the forestry sector.
12
-
50
100
150
200
250
300
350
84 86 88 90 92 94 96 98 00 02Years
1000
hec
tare
sSucceed Implemented Planned
Source: Statistik Kehutanan (1984-2003) Figure 8. Planned versus achieved reforestation (1984-2003).
(40% 3-year survival rate is assumed for planted trees)
This could be through supervision as well as assistance in assuring that an agreed level of government performance can be achieved.
Furthermore, there is a need for regulations that provide incentives for government officials to perform well, and disincentives for poor performance. These regulations must be accompanied by consistent law enforcement so that poor performance can be detected and corrected early on.
Weak governance has, among other things, led the government to achieve a low level of success in carrying out the rehabilitation of land and Forest Areas during the last 20 years (Figure 8). Therefore, good governance is an important issue in future forestry development.
b. Tenure
According to Act No. 41/1999 concerning Forestry, forest lands that have been designated by the government as Forest Area are under the authority and management of the Ministry of Forestry. This regulation is in line with Article 33 of the 1945 national constitution, which mandates that “the land, the waters and the natural riches [of Indonesia] shall be controlled by the State and exploited to the greatest benefit of the people.
Article 67 of Act No. 41/1999 mandates the government to issue government
regulations to manage and guarantee the rights of customary communities living in the Forest Area and whose existence has been acknowledged. Also, the Basic Agrarian Law (Act No. 5/1960) guarantees the claims of customary communities living in the Forest Area.
A lack of clear regulations on the settlement of conflicts over forest land
management between communities and state-appointed parties has led to controversy over recognition of ownership rights. More issues in this respect surfaced as the government attempted to promote communication between parties with an interest in resolving these tenure issues.
Tenure issues are often difficult to resolve as some customary (adat) communities
have limited capacity to delineate the extent of their control and ownership rights. Errors in determining these borders may trigger new conflicts. Thus there is a need for communication between government and other forestry stakeholders to resolve the tenure issue (Figure 9).
13
c. Spatial management
Sustainable national development, aside from requiring resources, requires sufficient land area to accommodate housing, farming, urban, agricultural, transportation, mining and other needs. These needs will be met stepwise through the conversion of forest land to non forest land.
According to Act no. 24/1992 concerning Spatial Planning, land allocation is carried out through spatial land use delineation processes in each province and regency. This is done through technical reviews and analysis of local sectoral land requirements. The end result is often determined through consensus among relevant sectors.
By the end of 2005, the government had delineated spatial management plans for 31 out of the 33 provinces of Indonesia. The spatial management plans of the remaining provinces, Riau and Central Kalimantan, are in the completion phase. However, few of the 440 regencies of Indonesia have developed regency spatial management plans.
The other factor that brings spatial management issues to the surface is the regulation which has been elaborated in Article 21 sub article (4) and Article 22 Sub Article (5) Act Number 24 on Spatial Management. This law calls for reviews of spatial management plans of provinces and regencies to be carried out every five years. However, in line with increasing efforts to promote regional development in the last five years, provincial and regency divisions have occurred all over Indonesia creating difficulty in implementing spatial management policies.
Complexity and lack of clarity in provincial and regency level spatial management has created uncertainty in land allocations, which obstructs government efforts to optimize the forest sector’s functions as a driver of the economy and as a livelihood support system.
Also, territorial issues often arise with neighboring countries in border areas. These areas were initially considered as hinterlands, but through increasing cooperation with
Source: Statistik Kehutanan (2004) Figure 9. Area of the Forest Area cleared up to 2004. Source:
Statistik Kehutanan (2004) ; the line indicates annual forest clearance, the area indicates the cumulative loss.
0
1000
2000
3000
4000
5000
6000
97 98 99 00 01 03 04Years
1000
hec
tare
s
14
neighboring countries, are becoming priority areas. This requires a new approach to dealing with border areas, and bilateral agreement on the spatial management of these areas will be necessary to accelerate their development.
d. Forest management
Indonesia’s forests were first formally managed by the Dutch colonial government. Forest management began in Java as well as in some of the other regions. After self-rule, intensive forest management was extended outside of Java through Forest Concession Rights (Hak Pengusahaan Hutan, or HPH), starting in the mid-1960s. The underlying forest management principles were gradually refined and were applied through various management regimes including the Indonesian Selective Felling System (TPI) and the Indonesian Selective Felling and Planting System (TPTI). However, these regimes were not properly followed. As a result, the quality and quantity of forest resources and forest ecosystems gradually declined in almost all Forest Areas in Indonesia.
By the end of 1980, in an effort to maintain timber production levels, the government launched an industrial plantation program (Hutan Tanaman Industri, or HTI). However, because of low plantation performance, the HTI effort did not help in slowing the decline in Indonesia’s timber production. By 2004, the total land area of HTI plantations was only 3.25 million ha or 56% of the 5.8 million ha target which was set in 1994. According to felling licenses issued, the production of HTI plantations reached only 7.33 million m3 in 2004 (Figure 10).
Timber production from natural forests continued to decline from 27.56 million m3 in 1987 to 5.14 million m3 in 2004 of which 3.51 million m3 came from HPH concessions
0
2
4
6
8
10
12
1986 1993 1998 2003
Years
Milli
on h
ecta
res
Kum. Luas PerijinanKumulatif PenanamanRencana Penanaman
Cumulative License Areas
Cumulative Planting Areas
Plantation Planning
Source: Statistik Kehutanan (2004) Figure 10. Development of HTI plantations up to 2004 (million ha).
15
and 1.63 million m3 came from conversion areas (IPK). The number of HPH concessions and associated industries also declined from 538 in 1987 to 287 in 2004 (Figure 11).
The decline in timber production followed a reduction in the quality of natural forest ecosystems in Indonesia which also led to a decline in production of non-timber forest products (Figure 12).
The uncontrolled extraction of timber from natural forests and large-scale conversion led to a build up of flammable material on forest floors, which has caused an increase in the frequency of forest and land fires. Global warming has exacerbated this problem (Figure 13).
Source: Statistik Kehutanan (2004) Figure 11. Roundwood production from HPH up to 2004
Source: Statistik Kehutanan (2004) Figure 12. Production of non-timber forest products up to 2004
-
2,000
4,000
6,000
8,000
10,000
95 96 97 98 99 00 01 02Years
DAM AR KOP AL
0
5
10
15
20
25
30
84 87 90 92 94 96 98 00 02 04Years
Mill
ion
m3
16
To reduce the rate of forest ecosystem degradation, the government has made certification mandatory for concession holders and has created a more conservative exploitation system. However to date, these efforts have not achieved positive outcomes as there are indications of extinction over 100 species in Indonesia, including species of Dipterocarpaceae, Ramin (Gonistylus spp.) and Merbau (Intsia bijuga and I. palembanica) (IUCN, 2000; CITES, 2004, 2000; CITES, 2004; CITES Plan Committee, 2004).
e. Forest industries
In the mid-1970s forest industries expanded, largely through accelerated production of sawn timber and plywood made from natural forest timber. In the following decades, the plywood industry underwent rapid expansion and Indonesia became the main global plywood producer (Daryanto 2006).
However, declining timber production from natural forests in the mid-1990s and an increased attention to sustainable forest management, led the forest industries to shift to planted timber sources for production of pulp, paper board, panels, sawn timber and furniture (Simangunsong, 2004, Table 1). Table 1. Production capacity changes of Indonesia’s forestry industries 1985-2002 (million m3)
Indsutry and Installed Capacity Production Year
Sawmill Plymill Pulpmill Papermill Sawnwood Plywood Pulp paper
1985 8,8 6,3 0,0 0,9 7,1 4,6 0,0 0,5
1989 10,6 10,1 0,7 1,5 10,4 8,8 0,5 1,2
1990 10,8 10,2 1,0 1,7 9,1 8,3 0,7 1,4
Source: Statistik Kehutanan (2004) Figure 13. Area of forest fires up to 2004
0
50
100
150
200
250
300
350
400
450
500
550
97 98 99 00 01 02 03 04
Years
100
0 he
ctar
es Forest Fire Areas
17
Indsutry and Installed Capacity Production Year
Sawmill Plymill Pulpmill Papermill Sawnwood Plywood Pulp paper
1997 11,6 9,8 4,3 7,2 7,2 9,6 3,1 4,8
1998 11,0 9,4 4,3 7,5 7,1 7,8 3,4 5,5
1999 11,0 9,4 4,5 9,1 6,6 7,5 3,7 6,7
2000 11,0 9,4 5,2 9,1 6,5 8,2 4,1 6,8
2001 11,0 9,4 5,6 9,9 6,8 7,3 4,7 7,0
2002 11,0 9,4 6,1 10,1 6,5 7,6 5,0 7,2
By the end of 2003, Indonesia accounted for a production of less than 10% of the global total forest production, making it lag behind the USA, Brazil, Canada and Finland. In panel production, Indonesia has been surpassed by Malaysia and the Republic of Korea. Similarly in 2004, Indonesia produced only 2.59 million tons of pulp, or less than 2% of global production (FAO, 2004, Table 2).
Table 2. Global veneer, plywood and pulp production, 2003
Country Production Veneer + Plywood
(Million m3)
Pulp Production (Million
Tonne)
China 25 18
USA 15 53
Indonesia 7 2,6
Malaysia 5 -
Brazil 4 9
Canada 3 26
Japan 3 11
Rusia 2 7
India 2 3
Republic of Korea 2 -
Others 13 31
Total 80 186
There were several reasons for the decline of Indonesia’s forest industries. Mismanagement of forest resources led to a shortage of sustainable raw material supplies. This was exacerbated by the slow development of industrial timber plantations. Other reasons include conflict over tenure with local communities, high business transaction costs
Source: Simangunsong, GTZ (2004)
Source: FAO (2005) dan Statistik Kehutanan (2005) -- : no data
18
which weakened global competitiveness, and inadequate infrastructural support for the industry.
f. Degradation and conservation of biodiversity
More than 30 years of inadequate forest management practices, as mentioned above, resulted in a decline of biodiversity and degradation of the forest ecosystem. By the end of 2004, 59 million ha of the Forest Area had reportedly been degraded and the rate of forest degradation between 2000 until 2004 is estimated to be at 2.8 million ha per year (Baplan, 2004) (Figure 14).
At the same time, the number of watersheds in a critical condition increased from 36 to 282 between 1983 and 2004 (Table 3). Most watershed degradation outside Java can be attributed to mismanagement of commercial forest operations. Table 3. Distribution of critical land in and outside the Forest Area (Million ha)
Island Critical Area
Outside the
Forest Area
Percent Critical
Area in the Forest
Area
Critical Area
Within the Forest
Area
Percent Critical
Area within the
Forest Area
Sumatera 4,35 17% 1,99 9%
Java 1,70 18% 0,37 12%
Bali - NTT 1,31 32% 0,36 11%
Kalimantan 4,57 22% 2,61 7%
Sulawesi 0,95 14% 0,97 8%
Source: WCMC (1988) and Badan Planologi Kehutanan (2000) Figure 14. Change in forest cover in Sumatra, 1988-2000
19
Island Critical Area
Outside the
Forest Area
Percent Critical
Area in the Forest
Area
Critical Area
Within the Forest
Area
Percent Critical
Area within the
Forest Area
Maluku 0,51 65% 0,18 3%
Papua 1,72 100% 1,65 5%
Total 15,11 22% 8,14 7%
The decline in watershed and forest ecosystem quality led to a decline in forest ecosystem functions. These include environmental services such as the provision of clean water for housing, industry and irrigation, and the capacity to reduce sedimentation and erosion. Habitats of some native and rare wildlife and plant species have also been lost.
Habitat loss has resulted in the extinction of several wildlife and plant species and has also given rise to conflicts between large mammals, such as elephants and tigers, with communities around forests. Between 1996 and 2004 there were more than 152 cases of tiger conflicts with communities leading to the deaths of 25 people, dozens of injuries, and the loss of hundreds of livestock (Sinaga, 2005, Figure 15 and 16).
The impacts of forest loss and degradation have forced the government to make costly investments to rehabilitate Forest Areas. In addition to foreign aid flowing into the sector, the government allocated IDR 10.51 trillion to the forestry sector over the last 15 years.
g. Poverty Forest and ecosystem degradation lead to a decline in the capacity of people living
close to forests to access natural resources. The problem is worsened by weak government capacity to provide education and health services in these areas. Even though there may not
Source: BPS, Stastistik Indonesia (2002), Departemen Kehutanan, (2002)
Figure 15. Declining tiger population in SumatraSource : Sinaga, 2005 Figure 16. Conflict between tigers and humans
0
200
400
600
800
1000
1200
1978 1983 1988 1993 1998 2003Years
num
ber o
f pop
ulat
ion
20
be a positive correlation between forest degradation and poverty, and poverty is not the main responsibility of the forestry sector, commercial utilization of forest areas has indirectly reduced local people’s access to forest resources (Sumarjani 2006).
Poverty is also an issue of global concern, and in 2002 international leaders agreed on the Millennium Development Goal (MDG), which aims at a 50% reduction of global poverty by 2015. Globally, poverty is also connected to the environment which is why the MDG was reconfirmed at the World Summit in New York in 2005, which stated that global efforts to end poverty can only succeed if they are integrated with efforts to address issues in forestry and the environment.
In Indonesia there are more than 10 million poor people living in and around the Forest Area (Table 4 and Figure 17).
Table 4. Population and poverty distribution in Indonesia, 2003 (millions)
Island Population Rural Population Poor Rural Poor
Jawa 127,00 65,11 21,24 12,90
Sumatera 44,56 29,40 8,13 5,79
Sulawesi 15,31 11,02 2,69 2,32
Kalimantan 11,65 7,44 1,38 1,00
Bali & NTT 11,43 7,75 2,47 1,76
Maluku 2,07 1,53 0,52 0,45
Papua 2,35 1,79 0,92 0,87
Indonesia 214,37 124,04 37,34 25,08
Source: BPS, Susenas (2003)
Source: BPS, Susenas (2003) dan Departemen Kehutanan (2003) Figure 17. Percent forest cover and rural poor
0
10
20
30
40
50
60
70
80
Sumatera Java Borneo Sulawesi Bali & NTT Maluku Papua
Perc
ent
% Forest Cover % Rural Poor
21
However, the solution to this problem is not the sole responsibility of the forestry sector, and it must be resolved in an integrated manner with other sectors through poverty eradication programs coordinated by the Office of the Coordinating Minister for People’s Welfare (Figure 18).
h. Human resources in the forestry sector Human resources in the forestry sector are the backbone of forestry development.
This requires a large number of skilled individuals with a vision for the future, who are creative, innovative, globally competitive, dedicated, and in possession of high moral standards. However, the current situation falls short of these expectations. Based on an analysis of the educational level of human resources, most civil servants (76%) in the central and regional governments only have a senior high school education (SLTA) (Figure 19).
Source: Bappenas (2003) Figure 18. Employment classification of rural poor and non-poor, 2002
Source: Statistik Kehutanan (2004) Figure 19. Educational level of national civil servants in forestry at
central and regional levels
65%19%
11%5%
Bachelor at Central Level Senior High School at Central Level
Bachelor at Regional Level Senior High School at Regional Level
9.71
14.29
8.67
10.24
10.42
7.65
13.79
44.71
43.73
40.2
46.99
48.09
31.65
58.57
0 10 20 30 40 50 60 70 80
Productive Age
Pre Productive Age
Un-Employed
Potential Worker
Worker
Unemployment
Partial Unemployment
Percent (%)
Poor Non-Poor
22
If private sector employees are included, the proportion of all employees in medium and large scale forestry industries with only a high school education would be 82% (Figure 20).
Assuming that the professional capacity of forestry workers is correlated to their educational qualification, then human resource development in the forestry sector is in need of serious attention.
i. Research and development
Forestry policy and development should be based on results of research and development so that a high level of accountability can be reached. However, limited human resources and limited capacity in research and development, has prevented this from being carried out satisfactorily.
Human resource capacity dedicated to research and development is still limited and focused on basic scientific tasks such as species inventories and short term fundamental research. Currently the Ministry of Forestry’s Research and Development Agency (FORDA) only has 26 researchers and 6 research professors. These are almost entirely stationed in central government offices, far from the Forest Area (Figure 21).
Even with this limited amount of human resources, forestry R&D is able to produce patented forestry products. However, forestry R&D support facilities are far from adequate and none of the R&D laboratories today has ISO 1725 certification.
Foreign language publications by forestry R&D are limited and this impedes promotion and networking with researchers at a global level. If R&D is to become a determining factor in the course of forestry development, serious attention needs to be given to development of human resources, research facilities and supporting infrastructure for R&D.
Source: BPS (2002) dan Statistik Kehutanan (2004) Figure 20. Educational level of national civil servants and private sector
employees, 2002
8% 13%
10%69%
Civil Servant with Bachelor Degree Civil Servant with Senior High School Degree
Private Sector with Bachelor Degree Private Sector with Senior High School Degree
23
j. Forestry crimes
Forestry crime generally involves some form of illegal forest resource extraction and trade. This crime occurs as a result of unsustainable forest management and poor forest governance. Drivers of forest crime include demand for timber, inconsistent law enforcement, and poverty among communities living near forests (Figure 22).
Source: Statistik Kehutanan (2004) Figure 21. Human resources in Forestry Research and Development
(FORDA)
Source: Statistik PHKA (2004) Figure 22. Results of illegal logging cases, 2003
293
8762 51
0
50
100
150
200
250
300
Number of Cases Investigation P-21 Judgment
050
100150200250300350400450
Num
ber o
f Peo
ple
Head Quarter Regional Office
Phd Master First Graduate Bachelor Other
24
Forestry crimes also tend to be more prevalent in border areas which tend to be more isolated, less developed and poorer than other areas.
Since 1990, in an effort to reduce forestry crime, the government has conducted various forest law enforcement operations. At the global level, the government has engaged in bilateral cooperation, including the signing of an MoU with the UK, and participation in the Forest Law Enforcement and Governance (FLEG) process, in the EU Forest Law Enforcement, Governance and Trade (FLEGT) process and the Asia Forest Partnership (AFP). However, so far these efforts have not yielded real results, and additional efforts are needed to effectively combat forest crime.
II. 4. Forestry development potential
To achieve forest sector development, all potential development areas of the sector must be targeted, managed, and promoted. These areas include:
a. The Indonesian Forest Area
Forests are a critical natural resource for Indonesia because of their economic, social and environmental functions. In 2004, the total area classified as Forest Area was 126.8 million ha. This area is divided into classifications of conservation forest (23.2 million ha), protected forests (32.4 million ha), limited production forests (21.6 million ha), production forest (35.6 million ha), and convertible production forests (14 million ha) (Figure 23). With over 60% of land area in Indonesia classified as Forest Area, forest resources have a significant potential for promotion, management and utilization for the benefit of Indonesia’s people.
18%
26
17%
8%
11%
05
1015
2025
3035
40
Juta
ha
KSA/KPA HL HPT HP HPK
Mill
ion
Hec
tare
s
Conservation Areas
Protection Forest
Limited Production Forest
Production Forest
Source: Statistik Kehutanan (2004) Figure 23. Classifications of the Forest Area
Conversion Production Forest
25
b. Biodiversity
Indonesia has high levels of biodiversity which can contribute to forest sector development and national development in general (Table 5). Only a small portion of existing biodiversity in forests has been commercially exploited. Additional species should be developed for commercial exploitation. This must be done according to principles of sustainability to ensure long lasting benefits.
Table 5. Plant and animal species and levels of endemism by island
Island Birds Endemism
(%)
Mamals Endemism
(%)
Reptiles Endemism
(%)
Plants Endemism
(%)
Sumatera 465 2 194 10 217 11 820 11
Jawa Bali 362 7 133 12 173 8 630 5
Kalimantan 420 6 201 18 254 24 900 33
Sulawesi 289 32 114 60 117 26 520 7
NT 242 30 41 12 77 22 150 3
Maluku 210 33 69 17 98 18 380 6
Papua 602 52 125 58 223 35 1030 55
c. Forestry Human Resources
Only 13% of people employed in the public and private forestry sector (not including universities and NGOs) have a university level education. There are 85 people with Doctorate Degrees, 742 people with Masters Degrees, 8,210 people with undergraduate degrees, 3,743 people with college degrees and 58,101 people with a high school education. Assuming that human resource capacity will increase, this will become an important driver of forestry development (Figure 24).
Sumber: IBSAP (2003)
Source: BPS (2002) dan Statistik Kehutanan (2002) Figure 24. Education levels of forestry employees
82%
13% 5%
(Phd, Master, Under Garduate) Bachelor Senior High School
26
d. Market demand for forestry products and services
Global demand for plywood, sawn timber, moulding, and furniture will continue to rise. In 2010 panel based timber consumption is expected to reach 320.4 million m3, or up 256% from 1990. This provides an important opportunity for the Indonesian forestry industry to supply this market demand (FAO 1990). Based on the amount of resources available, and current capacity, as well as continuing efforts to develop the forestry sector, Indonesia will be able to benefit from this opportunity (Figure 25).
e. The Clean Development Mechanism
The rate of forest degradation in the last five years was 2.8 million ha per year, and the area of Forest Area to be rehabilitated has reached 59.17 million ha. At the same time, the government’s ability to carry out rehabilitation is limited and alternative funding sources are needed.
The Clean Development Mechanism (CDM) is one option for financing the rehabilitation of damaged areas within the Forest Area. This mechanism has been simplified and provides incentives linked to carbon trading. Indonesia is able to offer non-forested areas that are eligible for funding through the CDM. The form of rehabilitation through the CDM can be as community or industrial forests.
However, to qualify for CDM funding, several conditions need to be met, including clear land rights. Meeting these conditions will be a challenge for the forestry sector in the future.
f. Research and development
By 2004, the Forest Research and Development Agency (FORDA) had developed various innovations that can be used to support forestry development. Among key research results is a patented palm oil processing method (right no. H3. HC. 04.02. D/5265). Timber
Source: WWW. FAO.org/FAOSTAT (2005) Figure 25. Global import trends of forest products
0
5
10
15
20
25
30
35
40
45
98 99 00 01 02 03 04
Bill
ion
USD
Plywoods Sawn Timber Pulp Furniture
27
from oil palms is a potential alternative source of raw material for forestry industries in the future. Other research results involve genetic engineering, bio-diesel production, mycorrhizae, and a registered computer program for a timber atlas (registration number 026347). These research results can contribute to future forestry development (Figure 26).
g. Environmental services and non-timber forest products
In addition to providing forest products, Indonesia’s forests are an important source of environmental services and services without a tangible market value. However, resource exploitation has been largely focused on timber production, while non-timber forest products and environmental services have not been managed to the fullest extent possible. Even so, from 2000 to 2004, foreign exchange revenue from plant and wildlife exports reached USD 4.17 million and USD 20.32 million respectively. Birds and nests of swallows account for 62% of foreign exchange generated by wildlife exports. Orchids account for 83% of foreign exchange generated by plant exports (Figure 27).
Source: Badan LITBANG (2006) Figure 26. Use of oil palm timber for panel
Source: Statistik PHKA (2004) Figure 27. Plant and wildlife exports, 2000-2004
83%
Orchid GaharuPakis Daun Lidah BuayaSikas Ramin
62%
Mammal Reptil Amphibi AvesArthropoda Arwana Fish Molusca Coral
28
Eco-tourism is another source of foreign exchange related to the forestry sector. From 1994 to 2004, over 16 million people visited national park conservation areas (Figure 28).
Source: Statistik PHKA (2004) Figure 28. Visitors to conservation areas
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
94 96 98 00 02 04
Years
Vis
itor (
1000
)
Cumulative of Visitors Domestic Visitors Foreign Visitors
29
CHAPTER III. VISION AND MISSION FOR FORESTRY DEVELOPMENT 2006-2025
III.1 Vision
There are three scenarios for long term forestry development in Indonesia:
a. Forestry development continues unchanged;
b. National and forestry development will progress in response to market demand and social requirements;
c. Forest sector development will be supported by all sides and forestry’s contribution to sustainable development and public prosperity will increase and Indonesia’s position in the global forestry sector will rise.
Underlying the second and third scenarios is the assumption that, over the next 20 years, market demand and social needs for forest resources will increase in line with population growth in Indonesia. Also, as social awareness of forestry issues grows, there will be an increase in forestry oversight and greater civil society involvement in sustaining forest resources. Principles of sustainability in the forest sector will continue to gain importance in public perception.
For these reasons, the third development scenario has been chosen as a goal (Table 6), in the hope that forest resources, including forest ecosystems and various forest functions, will provide a basis for forestry development that:
a. Provides employment opportunities, in particular for domestic workers;
b. Produces non-timber and timber forest products;
c. Fulfills the demand for non-timber and timber raw materials;
d. Provides water services for the development of the non-forestry sector;
e. Provides protection from floods and droughts;
f. Maintains the quantity and quality of the forest as a life support system;
g. Contributes toward increased welfare and poverty alleviation, particularly for those living within and near forest areas.
30
Table 6. Three scenarios for forest sector development, 2006-2025
Status Quo Scenario Forestry Development based on high market and society demands
Forestry Development with the support of various parties
Gov
erna
nce
Complicated bureaucracy and public service
Escalating conflict on forest resources
Declining support from other sectors
Reformation on bureaucracy and public service
Support from other sectors and involvement from various parties are not dominant factors.
Reformation on bureaucracy and public service.
Development involving various parties
Forestry development that is integrated with other sectors
Econ
omic
Con
tribu
tion
Inefficient usage of forest resources
Declining economic contribution
Development is only concentrated on the large-scale level.
The usage depends on market and demand.
Increasing contribution towards Gross Domestic Product.
Development still concentrated on the large-scale level.
A more efficient and comprehensive forest resources usage.
Increasing contribution towards Gross Domestic Product.
Development will be integrated among small-, medium-, and large-scales.
Soci
ety
Wel
fare
Low contribution towards the increase of society welfare
Low involvement in the development from societies surrounding/within forests.
Macro-economic indicators-oriented forestry development.
Commitment towards society involvement in forestry development has not yet been institutionalized.
Society-welfare-oriented forestry development
Give preference to the involvement of societies surrounding/within forests in forestry development.
Fore
st R
esou
rces
Sus
tain
abili
ty The production of forest
resources that is not sustained.
Increasing degradation of ecosystem and forest resources.
Decreasing value of ecosystem and forest resources.
Declining bargaining power in global level.
Commitment towards the fulfillment of society and market needs becomes a more important consideration
Sustained usage and forest resources’ production restoration become necessities.
Give preference to forest resources’ quality and quantity restoration efforts.
Increasing appraisal towards ecosystem and forest resources.
Improving bargaining power in global level.
Thus, if properly managed and supported by various relevant sectors, Indonesian forest resources have the capacity to become a pillar of sustained development. Based on this, the development vision for the forestry sector can be summarized as follows:
“Forestry as a pillar for sustainable development by 2025”
This vision for long-term development is in line with forestry development goals laid out in Act No. 41/1999 concerning Forestry. These goals include the contribution of forestry to the greater welfare of the people in an equitable and sustainable manner. Also, this vision is in accord with the national development vision for 2006 to 2025 which aims at an “Advanced, Independent, and Just Indonesia”.
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III.2. Mission
To achieve the above long-term vision, six forestry development missions have been established as follows:
a. To create a strong institutional framework for forestry development. This mission is established to support the harmonization of social, environmental, and economic contributions of forest resources. This requires the establishment of forest management institutions that are efficient, cost-effective, properly managed, and that have appropriate scope. Management authority needs to be decentralized yet nationally integrated and must be based on principles of sustainability.
b. To increase the value and sustainable productivity of forest resources. This is meant to guarantee the sustainability of forest resource contributions to national development. This sustainability will depend on, among other factors, the continued existence of the Forest Area, the maintained hydrological functions of watersheds, the conservation of biodiversity, and the realization of the potential value of forest resources to support sustainable national development.
c. To develop forestry products and services that are environmentally friendly, competitive, and that have a high added value. This mission is meant to encourage the development of forestry products and services, while taking into account the availability and sustainability of forest based raw materials. The forestry processing sector is expected to become more efficient through advances in research and improvements in technology, leading to greater competitiveness, less waste, less environmental impacts, and a higher contribution to GDP.
d. To develop an enabling forestry investment climate. This mission aims to develop and sustain forestry investment in the processing industry, in timber production, and in environmental services, while avoiding market distortions (monopolies and oligopolies) and illegal practices through the application of good governance and incentives. Incentives for small to medium sized enterprises (SMEs) in the forestry sector are expected to lead to increases in employment, social welfare, and efficiency, and to greater forestry contributions to the economy.
e. To increase the level of exports of forestry products and services. This mission is meant to increase the added value of forestry exports to global and regional markets. Diplomatic negotiations in overcoming trade barriers will become increasingly important for Indonesia’s forestry exports to reach high values. Increasing the value of forestry exports will restore the sector’s prominent role as a contributor of national revenue.
f. To improve social welfare and raise society’s active role in supporting responsible and equitable forest management. This mission is meant to guarantee the equitable and sustainable distribution of forest benefits, and to encourage society’s participation in managing forest resources proportionally according to their capacity and ownership of these resources. Forests will produce greater benefits which will be equitably distributed with special emphasis on forest dependent communities.
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CHAPTER IV. FORESTRY LONG TERM DEVELOPMENT DIRECTION, 2006-2025
IV.1. Main objectives
The long term goal of the forestry sector is to increase the people’s prosperity in a sustainable and equitable manner. In accordance with this goal and the forestry development vision for 2006 to 2025, the following main objectives have been established:
a. The creation of a strong institutional framework for forestry development. This will be demonstrated by:
1). The establishment of efficient, cost-effective and accountable forest management institutions. This covers government, private, and community institutions at the central, province and region/village levels. Also the establishment of a forest management unit which is in line with the distribution of forest resources for the sustainable benefit of national forest resource functions and potential.
2). The development of sufficient competent and professional human resources in the forestry sector. These human resources will be located in the most appropriate areas.
3). The proportional increase of society’s role in the forestry sector.
4). The synergistic institutionalization of roles, rights, responsibilities, and connections between communities and forest management institutions. This would be supported by laws and regulations that provide for the interests of all forestry stakeholders.
b. Increased value and sustainable productivity of forest resources. This will be demonstrated by:
1). Guaranteeing the existence of the Forest Area at an optimal size. This will be achieved by increased legal provisions and legitimization of the Forest Area at a sufficient area that is proportionally distributed, a decrease in forest degradation, and an increase in forested areas and expansion of planted forest.
2). Optimization of the hydrological services of watersheds to ensure:
a). Increased forest ecosystem quality;
b). Maintenance of ground water supplies, stable river flows, and continued clean water supplies to meet the needs of society and downstream economic activities;
c). Prevention of land slides, flooding, and drought.
3). Conservation of biodiversity in conservation areas and Forest Area with other functions. Reaching a stable conservation area which is comprised of National Parks (TN), Nature Parks (TWA), Forest Parks (TAHURA), Game Parks (TB), and Preservation Areas (CA). Conservation of forest resources will be supported by appropriate policies and regulations as well as through the use of biological resources for research and commercial purposes.
4). Optimal utilization of forest resources for forest products (timber and non-timber), recreational activities, and environmental services to enhance the forestry sector’s
33
contributions to the national economy, employment, and to contribute to reducing poverty by at least 50% near the Forest Area and nationally, by 2025.
c. Forestry products and services that are environmentally friendly and competitive, and that have a high added value. This will be demonstrated by:
1). A forestry contribution to GDP three times as large as the contribution in 2005 which was 1.3% of GDP. The increased contribution to GDP will be achieved through an increase in the market value of forestry products and services in line with: increased timber production from plantation forests; increased rattan, resin, honey and silk production; growth in the seed and seedling industry; and greater utilization of forests for recreation and environmental services. This will lead to a more diverse source of national non-tax forest revenue.
2). A structure and performance of Indonesia’s forest industry that is more competitive and environmentally friendly. The priority of Indonesia’s forestry industry structure will be on sawn timber, panels, moulding, furniture, plywood, and pulp and paper, with the use of advanced technology and adjustment of raw material supply derived from forest plantation and community forest, at an international standard.
3). Development of innovative forestry products as a result of research and development conducted by public and private forestry research institutions with a more efficient, effective and environmentally friendly management system.
d. An enabling forestry investment climate. This will be demonstrated by:
A safe and profitable industry that benefits investors and the public, and contributes to national economic growth and employment. As markets for environmental services and non-timber forest products develop, the forestry industry, including SMEs, will benefit.
e. Promotion of forestry products and services. This will be achieved through a consistent promotion of Indonesia’s forestry products and services in all activities related to forest products trade.
f. An active role of society in supporting responsible and equitable forest management. This will be demonstrated by:
1). Guaranteed increase of revenue to communities through a profit sharing system that is transparent and equitable using the tripartite approach between the government, private, and community in determining a good profit sharing system.
2). Community independence in forest management through clearly defined management rights for the Forest Area, through community group empowerment, and through multi-stakeholder participation. Communities will have a clear understanding of their rights and responsibilities in managing forests which will be according to applied norms and principles.
3). Increase of area of independent and sustainable private forests (hutan rakyat) which support the forest’s contribution to community livelihoods.
4). Resolution of social conflict related to forest management so that communities are able to do sustained forest management and obtain lasting benefits.
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IV.2. The creation of a strong institutional framework for forestry development A strong institutional framework supported by dynamic regulations is one of the
keys to forestry’s successful contribution to national development. This can be achieved through:
a. Reform of the existing institutional structure to create an enabling framework for a stronger and sustainable forestry sector.
b. Systematically strengthening human resources in the forestry sector to increase the sector’s global competitiveness.
c. Reform of forestry regulations and bureaucracy to increase work opportunities in forestry and to decrease poverty levels in and around the Forest Area.
a. Reform of the existing institutional structure to create an enabling framework for a stronger and sustainable forestry sector. Several steps will be taken to achieve this goal, including the following:
1). Forestry institutions are systematically developed in accordance with principles of good governance and sustainable forestry and community empowerment with considerations of cost-effectiveness and scale.
2). The forestry institutional framework is restructured to allow government bodies at the central, provincial, regional, and forest management unit levels to efficiently provide services, including facilitation and regulation. This will be in the form of Forest Management Unit (Kesatuan-kesatuan Pengelolaan Hutan/KPH) which will be in line with regional independence in an era of decentralization and principles of sustainable forest management. The creation of forest management institutions will consider the abilities and local conditions of each region as well as its position in the market chain (Figure 29).
Figure 29. Target for developing KPH institutions up to 2025 (units)
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3). Empowerment of community forestry groups to improve community bargaining power and sense of ownership in regards to forest management. This will be done through greater recognition of local management rights and traditional knowledge in forest management, and through increased community access and responsibility in forest utilization, especially for communities living in and near the Forest Area.
4). Revitalization of forestry business institutions aimed at scale adjustment, business efficiency, and global competitiveness in upstream and downstream processing.
b. Strengthening of forestry sector human resources. This will be achieved through several steps, including:
1). Systematic and professional strengthening of forestry human resources to provide sufficient numbers of competent employees to all levels (upstream to downstream) and all sectors (public and private).
2). Development of the forestry training and educational system. Training and education in the forestry sector could be improved by involving formal academic institutions as well as other public and private institutions (Figure 30).
3). Improved standardization of qualifications and increased number of forestry professionals in all forest management organizations to increase the capacity of these organizations to carry out their tasks. For public institutions, the emphasis will be on improved service, facilitation, regulatory functions, and creativity including the ability to respond to advances in technology and science to produce goods and services.
Figure 30. Program for developing forestry human resources until 2025
( )
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4). Strengthened worker rights through a clear career and social security system that is based on expertise, innovation, creativity and performance. This will lead to a strong work ethic and competitiveness in all areas of forest management.
c. Forest sector regulatory reform. This will be achieved through several steps, including:
1). Reform of regulations related to forest management will be carried out based on clear stakeholder rights and roles, and on principles of equitable benefit distribution. The reform process will be transparent and participative and will accommodate the interests of various stakeholders in the context of sustainable forest management and social welfare improvement.
2). Rights, roles and responsibility will be re-allocated, along with forest resource benefits, based on the land use classifications of areas. Regulations will be aimed at developing sectoral and regional performance standards, criteria and indicators and an integrated Forest Area in the context of sustainable forest management and social welfare improvement.
3). Transparent operating procedures and coordination systems between government levels, sectors, and countries will be adopted. These will create a system of incentives to support sustainable forest management.
IV.3 Achieving increased value and sustainable productivity of forest resources The value, sustainable productivity, and national development contribution of forest
resources will be increased by:
a. Maintaining the existence of a forest and Forest Area which is sufficiently large and proportionally distributed.
b. Ensuring optimal watershed (DAS) management to maintain the quality and hydrological functions of forest ecosystems.
c. Conserving forest resources as a life support system.
d. Optimizing the potential of forest resources for production of timber and non-timber products.
a. Maintaining the existence of a forest and Forest Area which is sufficiently large and proportionally distributed. This will be achieved through several steps, including:
1). Firming the status and functions of the Forest Area by harmonizing spatial delineations, carrying out a gazettement of the Forest Area, and increasing the amount of forest management units. Harmonization of land use zones is a very important and strategic phase since forests and the Forest Area are important to various parties including non-forestry sectors and various government levels. Therefore agreements between stakeholders in establishing forest-related land use regulations will be necessary to guarantee the fixed status of forest areas. A gazetted
37
forest area will strengthen the legal basis of the Forest Area. The increase in the number of forest management units in the Forest Area will guarantee stable forest management and prevent irresponsible clearing of forest (Figure 31).
2). Forest degradation will be decreased through: the continuation of forest rehabilitation activities (Rehabilitasi Hutan dan Lahan/RHL) by communities; increasing the area of plantation forests in degraded forest areas; and improving the forest management system (Figure 32).
3). Deforestation will be reduced by increasing the legal awareness of communities and implementing laws clearly and consistently. This is in line with the national long
Figure 31. Target for measuring the Forest Area by 2025 (million ha)
( )
Figure 32. Scenarios of decreasing forest degradation in the Forest Area 2025
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60
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term priority on law enforcement. Improved law enforcement will enable the control of irresponsible behavior allowing the existence of the Forest Area to be secured.
b. Ensuring optimal watershed (DAS) management to maintain the quality and hydrological functions of forest ecosystems. This will be achieved through several steps, including:
1). Encouraging policies and watershed management that are cross-sectoral and cross-regional, and that allocate management responsibility along the water supply chain. This will be based on efforts to create stakeholder awareness of the importance of watershed functions for activities in various sectors (including: agriculture, fisheries, clean water supply, river transportation, industry, trade, and electricity generation), and of the role of closed forest cover in watersheds to reduce flooding, erosion, and drought (Figure 33).
2). Increasing the role of communities in sustainable and transparent watershed management. Communities will have a role in all stages of watershed management from planning, to implementation. This will conform with existing technical watershed management norms and will improve watershed functions for the benefit of all.
3). Strengthening policies and promoting CDM as a mechanism for improving rehabilitation. Increasing social awareness of the watershed rehabilitation program.
Figure 33. Target for watershed revitalization by 2025
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337
282
458
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300
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Wat
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)
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c. Conserving forest resources and creating benefits from biodiversity, eco-tourism, and other environmental services. This will be achieved through several steps, including:
1). Strengthening forest conservation policies both inside and outside formal conservation areas. Policies in conservation areas (such as TN, TWA, CA, SM, TAHURA, and TB) will be aimed at protecting and preserving biodiversity making these areas a refuge where protected species can flourish. Such policies need to be deregulated in order to improve management and the ability to make use of advances in research and technology. Improved ecosystem management must be supported by the existence of a stable Forest Area and by professional human resources.
2). Conservation policy can be decentralized in stages by creating an incentive system that promotes conservation of forest resources.
3). Development and management of protected areas (TN, TWA, CA, SM, TAHURA, and TB) will gradually become semi-independent and financially independent so that the government’s role will be to provide technical assistance, regulations, and development supervision (Figure 34).
4). Forest resource conservation outside of the Forest Area is carried out by the public with incentives from the government. This is expected to lead to the rehabilitation of several threatened species.
5). Populations of endangered species are rehabilitated for commercial and non-commercial purposes. This can be carried out by governmental and non- governmental institutions as well as the public (Figure 35).
Figure 34. Development of independent conservation areas by 2025
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60
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100
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04 09 14 19 24Years
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Authority National Park Semi Authority National Park Authority Nature Recreational Park
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6). Ensuring public accountability in conservation area management, by involving multiple stakeholders in management. This will involve strengthening and improving cooperation in conservation area management between various stakeholders, including communities, through mutually beneficial approaches.
d. Optimizing the potential of forest resources for production of timber and non-timber products. This will be achieved through several steps, including:
1). Conducting an inventory of forest resources to measure their current potential and value. An inventory will be regularly carried out to produce quality data and information on forest resources. Information collected will include species, their distributions, and their status. Inventory activities will be carried out to fulfill planning requirements at the national, provincial, regency, and forest management unit levels. To measure the status and changes of potentials and values of forest resources at various levels, a Forest Resources Index (Neraca Sumber Daya Hutan/ NSDH) will be developed (Figure 36).
Figure 35. Target for reducing the number of protected species by 2025.
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38
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50
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04 09 14 19 24
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47.65
1273
1017
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17601650
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2). Developing an intensive silviculture and cultivation system for plantations and natural forests. This will be done through improvements in regulations, implementation of research and development results, and through field tested silviculture innovations. More intensive forest management will lead to an efficient and effective use of forest resources leading to increased value.
3). Inventories and identification of non-productive forest areas will allow those areas to be allocated for tree plantation development. Inventories will also provide data on land suitability, existence of conflict, availability of labor, and access in order to identify areas suitable for plantations.
4). Adopting productive and reliable technologies that produce high quality marketable forest products (timber and non-timber) from natural and planted forests. In natural forests an intensive silviculture system will be adopted that involves enrichment planting with local species. Further research will be conducted to optimize the management of non-timber forest products such as rattan, eaglewood (gaharu), dammar resin and other commercial non-timber forest products.
IV.4 Forestry products and services that are environmentally friendly and competitive, and that have high added value Forests and their ecosystems produce numerous goods and services that provide
environmental, social and economic benefits. Use of these products needs to balance requirements for achieving environmental friendliness, competitiveness and high market value. Several steps can be taken to achieve the goal of producing forestry goods and services that are environmentally friendly, that have high added value and that are globally competitive:
Figure 36. Target for inventories of all timber and commercial wildlife species
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a. Diversifying forest products and services that are of high quality and environmentally friendly.
b. Creating a healthy and competitive forestry industry structure.
c. Providing results of innovative and applied forestry research and development.
a. Diversifying forest products and services that are of high quality and environmentally friendly. This is achieved through several steps, including:
1). Using innovation and creativity in the production of forestry goods and services. Products must be market oriented, of a high standard, environmentally friendly, and competitive in the global market. Forestry’s research and development division (FORDA) should evaluate forestry products based on these criteria.
2). Diversification of Non-Tax State Revenue (PNBP) from the Forest Area. Until now, forestry revenues have been limited to fees applied to timber and non-timber forest product extraction (PSDH, DR, IIUPHK and environmental service fees). Fees would also be applied to non-forestry activities in the forest zone, such as mining and plantation development. These fees would be used for funding forestry activities.
3). Applying an incentive system to promote the productivity of workers in the forest industry.
b. Creating a healthy and competitive forestry industry structure. This will be achieved through several steps, including:
1). Developing innovative and environmentally friendly forest product technologies for creating high added value and market oriented products. This technology will be assessed and developed by governmental and private research and development institutions.
2). Developing an optimal industry structure based on raw material supply potentials, market demand, technology development and availability of capital. The allowable amount and types of forestry operations may be restricted for different locations. To achieve this, regulations and coordination with related institutions will be necessary.
3). Facilitating the availability of sustainable and legal raw materials from natural and planted forests as well as from alternative sources. To achieve this, an information system for forest raw material supply and demand is needed.
4). Supporting the policy for establishing 7 million hectares of planted forest by 2025 to supply 64 million m3 of timber per year. This includes providing incentives for investment in forest plantations. On a national scale, promotion of forestry investment is part of the goal of creating a favorable.
43
5). Human resources development in the forestry sector through improved education, training, and exchange programs.
c. Providing results of innovative and applied forestry research and development. This will be achieved through several steps, including:
1). Providing incentives for research innovations through awards for efforts that result in useful research products.
2). Creating a climate that is conducive to applied research and development.
3). Creating mutually beneficial linkages between research institutions and beneficiaries of research results, and disseminating forestry research and development results widely.
4). Supporting research that can result in useful results for forestry development in the future.
IV.5 Creating an enabling forestry investment climate
Business sustainability in the forestry sector requires an enabling business climate that can guarantee a production process that matches market demand to sustainable forest production. To achieve this, the forest sector requires business certainty, security, and profitability. Steps to achieve an enabling forestry business climate include:
a. Regulatory reform relating to forest management, marketing of forest products, and forestry sector investment. The system of incentives, especially for forestry investment, needs to be reviewed and reformulated.
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d Pr
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• HTI Based Industrial Development• Increase Export• Legal, Enduring and CompetitiveShort Term
Medium Term
Fase 2: RE-ENGINEERING2013-2020
• Gap Almost Balanced• “Retool” Industry for Efficiency• Focus on High Value Products
Fase 1: RESTRUCTURIZATION Now until 2012
• Intensify Planting • Increase HTI Productivity• Reduce Forest Crime and Debt • Build Alternative Sources• Temporarily Reduce Production
Source : ITTO/FORDA, USAID/NRM-Bappenas-MFP, CIFOR/WB dalam Dephut (2005)
Figure 37. Roundwood production scenario until 2025
44
b. Providing incentives for SMEs in the forestry sector.
c. Developing markets for NTFPs and environmental services, and supporting the creation of infrastructure, market access, and technical support from research and development.
d. The forestry and related sectors will support the establishment of an Alternative Financial Institution (Lembaga Keuangan Alternatif/LKA) that can assist in providing capital for community businesses around the forest.
e. Supporting the creation of a mechanism for a reciprocal relationship between workers and investors.
IV.6 Promotion of forest products and services
To increase products and services from forests, long-term forestry development is aimed at:
a. Increasing domestic and foreign market demand for forestry products.
b. Increasing the foreign exchange contribution from timber and non-timber forestry products.
c. Making use of international agreements and international cooperation in the forestry sector.
a. Increasing domestic and foreign market demand for forestry products. This will be achieved through:
1). Promotion of forestry products through domestic and foreign exhibitions.
2). Diversifying forestry products to meet market trends.
3). Certifying forestry products to increase global competitiveness.
b. Increasing the foreign exchange contribution from timber and non-timber forestry products. This will be achieved through:
1). Efforts to develop a globally oriented forestry sector through the development of an information system and promotion of timber and non-timber forest products. This will be done by:
a) Following a global market approach.
b) Using global strategic planning.
c) Adopting advances in transportation and communication technology.
d) Applying international standards to timber and non-timber forestry products.
e) Responding to changing demands in market countries.
2). Diplomatic efforts to address tariff and non-tariff barriers. This will be done through:
45
a) Strengthening the national position in international trade discussions, especially those related to the forest product trade, to increase competitiveness and access to export markets.
b) Creating a positive image for Indonesian forestry products that is based on sustainability and international quality and certification standards.
c. Making use of international agreements and international cooperation in the forestry sector. This will be done through:
a) Raising the role of international cooperation through active involvement in international forestry organizations and forums, and seeking opportunities for improving national forestry development.
b) Developing forestry human resources to achieve global competency which is developed and independent. This will be aimed at raising the capacity to strengthen inputs to international conventions and agreements that are related to forestry sector development in Indonesia. This effort will also strengthen relations and cooperation with international actors.
c) Socializing and disseminating results of international agreements and negotiations to increase stakeholder awareness, understanding and benefits.
IV. 7 Improving social welfare and raising society’s active role in supporting responsible and equitable forest management
Social benefits and public participation in equitable and responsible forest management can be achieved by:
a. Securing increased benefits for people working in the forestry sector by establishing an equitable and transparent incentive system.
b. Creating community independence in forest management by providing clear forest management rights, strengthening institutions, and promoting stakeholder participation.
c. Increasing the area of independent private forests (hutan rakyat) and supporting the forest’s function as a life support system for communities.
d. Managing social conflict related to forest resource management.
a. Securing increased benefits for people working in the forestry sector by establishing an equitable and transparent incentive system. This will be achieved through:
1). Improving infrastructure and facilitating technical and information services in and around forest areas. Infrastructure improvements should begin with existing infrastructure which can be fixed or improved. Technical and information services should be improved after communities are made aware of existing technical and information services.
2). Promoting integrated forest management by promoting the use locally produced seeds, creating markets for forestry products, and improving access to micro-credits.
46
These attempts should make use of existing forestry schemes, such as community forestry schemes and should be supported by technical guidance and research.
3). Creating regulations that benefit communities involved in the forestry sector or in sustainable forest management.
4). Creating an area-specific profit sharing system.
b. Creating community independence in forest management by providing clear forest management rights, strengthening institutions, and promoting stakeholder participation. This will be achieved through various steps, including:
1). Supporting the effort to grant rights to manage the Forest Area to communities within the Forest Area. This must be based on efforts to co-manage forests with local people, allowing all parties to benefit from forest management.
2). Supporting strengthening of community forest management institutions and the role of local government bodies and community organizations in forest management. Strong forestry institutions require a sharing of authority and responsibility and accountability from various parties. This effort is needed to formalize and implement appropriate policies with involved parties.
3). Promoting community participation and facilitating an active role for stakeholders in shaping community independence. The creation of forest management units managed by local communities, independently or in partnership with the government, will improve local capacity and help bring about community organizations for managing forest resources. Local people will be given the opportunity to provide inputs to forest management from the planning to implementation stage.
4). Developing [institutional of] a village economy to support community independence in forest management. This effort will be based on the willingness to empower communities to achieve independence and to increase their prosperity.
c. Increasing the area of independent private forests and supporting the forest’s function as a life support system for communities. This will be achieved through various steps, including:
1). Recognizing forest management rights on lands with traditional management rights (ulayat). The traditional rights would be identified through in-depth research to avoid mistakes in rights allocation which would lead to problems later on.
2). Regularly improving local people’s capacity to be involved in forest management, from the planning stage to the management stage.
3). Developing community forestry industries and markets for community forestry products. Small-scale industries that rely on community forests have great potential to increase the income of local people living in and near forests and can make a direct contribution to the national poverty eradication program.
4). Developing policies that support the growth of community forestry businesses. This effort is aimed at creating an enabling business climate for community forestry, so
47
that community forestry businesses can contribute raw materials to industries and households for domestic and foreign markets (Figure 38).
5). Creating regulations that guarantee a market for sustainable small forestry businesses. This would help create a healthy and equitable industry that would be nationally and globally competitive.
d. Managing social conflict related to forest resource management. This will be achieved through various steps, including:
1). Giving communities and prominent community figures an increased role. The role of prominent community figures is needed to end existing social conflict and to avoid wider social conflict.
2). Improving regulations on the active roles of communities, government, and the private sector in managing forest resources. Current regulations still do not provide sufficient room for the role of communities and other actors in forest management. For this reason, stakeholders need to become more involved in creating regulations. This will help bring together different viewpoints on forest resource management, which will eventually reduce the potential of social conflicts related to forest management.
3). Developing a mechanism for co-management of forest resources between local people, government and other stakeholders. To reduce conflict, the mutual agreement of stakeholders should be made clear through a transparent and accountable mechanism.
Figure 38. Target for Private Forest (hutan rakyat) area by 2025
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CHAPTER V. THE ROLE OF FORESTRY DEVELOPMENT
The success of forest resources management in the context of national development, depends on support from related parties and sectors. In the long-run the connection to other sectors will become more strategically important, and only collaboration in the use of the forest resources can guarantee the success of the forestry development vision and mission.
An analysis of the roles in forestry development demonstrates the intra-sectoral role in suporting the long-term forestry development mission. The table below identifies several sectors that have a role in supporting long term forestry development.
Table 7. Matrix of roles in forestry sector development FORESTRY DEVELOPMENT MISSION 2006-2025
S
E
C
T
O
R
To materialize a firm forestry organization
To establish and increase productivity and value of sustainable forest resources
To develop forest product and service that are environmentally friendly, competitive with high added value
To establish conducive business climate on forestry sector
To increase forestry product and service export
To improve the welfare and increase the involvement of the community on fair and responsible forest management
S-1 Support on strengthening governmental organization.
-
- - - -
S-2 Establishment and strengthening of Forestry SOE
Education on management and finance.
Coordination on the marketing of product
Regulation and deregulation
- -
S-3 Coordination and support on establishment of Kesatuan Pemangkuan Hutan (KPH) organization
- Support on Forest Area reinforcement.
- Coordination to convert ex-Forest Area to become plantation
- Coordination on plantation timber utilization to fulfill industrial raw material requirement
- Community involvement on establishment of plantation in ex-Forest Area
S-4 Coordination and support on the establishment of KPH organization
- Recognition upon Forest Area that has been appointed, gazetted, and established.
- Support on Forest Area development.
- Coordination on distribution of land certificate outside Forest Area
- Coordination on the mapping of land utilization.
- - - -
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FORESTRY DEVELOPMENT MISSION 2006-2025
S
E
C
T
O
R
To materialize a firm forestry organization
To establish and increase productivity and value of sustainable forest resources
To develop forest product and service that are environmentally friendly, competitive with high added value
To establish conducive business climate on forestry sector
To increase forestry product and service export
To improve the welfare and increase the involvement of the community on fair and responsible forest management
S-5 Coordination and support on the establishment of KPH organization
- Support on Forest Area reinforcement
- Coordination on the regulation of Forest Area utilization for mining purposes
- - - -
S-6 Coordination and support on the establishment of KPH organization
- Support on Forest Area reinforcement.
- - Development of forestry SME.
- Synchronization of laws and regulations.
- Support on forestry decentralization.
- Coordination on the development of community forestry.
S-7 Coordination and support on the establishment of KPH organization
- Support on Forest Area reinforcement.
- Coordination on forest fire management.
- Coordination within comprehensive team.
- Coordination on the implementation of industry development EIA and forest management.
- - -
S-8 - Coordination and support on the establishment of KPH organization
- Coordination on the rehabilitation of watershed together with regional forestry institution
- Support on Forest Area reinforcement.
- Coordination on the finalization of Forest Area for transmigration program
- Manpower support for the development of HTI through HTI Trans program.
- mitigation of forest encroachment
- Coordination on the development of education and training for utilization of environmentally friendly forest products for native community and transmigration community.
Development of forestry SME
- Coordination on economy empowerment of community surrounding the forest
S-9 Coordination and support in the establishment of SME forestry organization
- - Fostering of forestry SME
- Fostering of community surrounding the forest SME.
S-10 - - Coordination on industry license in
Coordination on industry raw
- -
50
FORESTRY DEVELOPMENT MISSION 2006-2025
S
E
C
T
O
R
To materialize a firm forestry organization
To establish and increase productivity and value of sustainable forest resources
To develop forest product and service that are environmentally friendly, competitive with high added value
To establish conducive business climate on forestry sector
To increase forestry product and service export
To improve the welfare and increase the involvement of the community on fair and responsible forest management
the context of forestry industry restructuring
material arrangement
S-11 - - Coordination on banning of forestry commodity export.
Coordination on determination of forestry commodity export
Coordination on determination of tariff
-
S-12 - Foreign diplomacy, assistance and cooperation for SFM
- Promotion and diplomacy
Diplomacy on determination of tariff and barrier
-
S-13 Support from watershed management institution
- Coordination on the establishment of Forest Area in accordance to its function in RTRWN and Island-RTR.
- Control on the utilization of inter-sectoral space.
- Coordination on national Forest Area inventory.
- Protection of watershed and DTA for conservation of water source.
- - - - Coordination on community involvement to save the watershed and DTA through GN-RHL.
- Infrastructure improvement for community business in forestry sector.
S-14 - Coordination on the formulation of HTI development investment policy.
- Investment support for forestry industry restructuring.
- -
S-15 Review and support on the development of forestry organization
Review and support for development of forest resource potential
Review and support for development of forest product and service program
Review and support for development of conducive forestry climate program
Review and support for increase of forest product and service export
Review and support for development of business pattern in order to improve community welfare
S-16 - Facilitation and support on establishment of organization for community that manage the forest
- Facilitation of the development of
- Facilitation on stakeholder involvement in Forest Area status and function consolidation
- Facilitation of multiple stakeholders involvement in conservation
- - Facilitation on industry development and marketing of community’s forest product.
- Facilitation on development of policies that support
- - Support and facilitation on the establishment of community forest and formation of community based forestry.
- Facilitation on provision of forest management rights
51
FORESTRY DEVELOPMENT MISSION 2006-2025
S
E
C
T
O
R
To materialize a firm forestry organization
To establish and increase productivity and value of sustainable forest resources
To develop forest product and service that are environmentally friendly, competitive with high added value
To establish conducive business climate on forestry sector
To increase forestry product and service export
To improve the welfare and increase the involvement of the community on fair and responsible forest management
natural resource management mechanism
activities.
community’s business.
for community.
- Facilitation and support on community business empowerment.
S-17 - - Maintain and improve HTI management system.
- Participate in protection of conservation area
- Participate in the development of non timber business/ ecotourism
- Conduct the new system of agro-forestry management
- Involve in research network
- Maintain/ renew forestry machinery that can support forest management
- Participate in maintaining the sustainability of timber production
- Cooperate in applicable research program
Involve in profit organization
Involve in profit organization
- Involve in social forestry development
- Cooperate on seeds procurement
- Develop community’s participation
- Community development program
Note:
S - 1 : Role of Ministry of Supervision of State Apparatus S - 2 : Role of State Owned Enterprises S - 3 : Department of Agriculture S - 4 : National Land Agency S - 5 : Department of Energy and Natural Resource S - 6 : Department of Home Affairs S - 7 : Ministry of Environment S - 8 : Department of Manpower and Transportation S-9 : Department of Cooperative S-10 : Department of Industry S-11 : Department of Trade S-12 : Department of Foreign Affairs S-13 : Department of Public Work S-14 : Role of Capital Investment Coordination Board S-15 : Role University S-16 : Role of NGO S-17 : Role of Forestry SOE
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CHAPTER VI. CLOSING
The Forestry Long Term Development Plan for 2006-2025 contains a vision and strategy for forestry sector development which serve as a guide for the government and the public for implementing forestry development over the next 20 years. This forestry plan also serves as a guide for compiling Sub-National Forestry Long Term Development Plans (RPJP Kehutanan Daerah), Central and Regional Government Forestry Strategic Plans, and Forestry Work Plans (Renja KL) to achieve the vision of:
“Forestry as a pillar for sustainable development by 2025”
A sustainable Indonesian forest sector that contributes to public prosperity requires dependable human resources which are capable of using modern forestry management technologies, which are forward thinking, and which are supported by adequate infrastructure and facilities.
Forestry development over the next 20 years will be directed towards the following achievements:
A. To create a strong institutional framework for forestry development.
B. To increase the value and sustainable productivity of forest resources.
C. To develop forestry products and services that are environmentally friendly, competitive, and that have a high added value.
D. To develop an enabling forestry investment climate.
E. To increase the level of exports of forestry products and services.
F. To improve social welfare and raise society’s active role in supporting responsible and equitable forest management.
To achieve the aspiration of sustainable forestry that is able to provide benefits to the Indonesian population, forestry development will emphasize:
A. Reforming the structure, institutions, and regulations to support the creation of an efficient, equitable and sustainable forest resource management climate.
B. Securing a suitable quantity and quality of forest within the Forest Area and its proportional allocation between areas, sectors and time.
C. Development of globally competitive human resources in the forestry sector.
D. Development and use of the potential of non-timber forest products.
E. Benefiting from forest functions and services and institutionalization and compensation mechanisms.
F. Raising the level of forest product growth through a healthy forest industry structure and competitive technology.
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G. Developing a proportional distribution of small-scale, medium-scale, and large-scale forestry businesses.
H. Develop industrial plantation forests and community forests as a source of raw material to raise the production of forest products.
I. Achieving global marketing of competitive and environmentally friendly forest goods and services.
J. Raise the local, regional and national revenue contributions of the forestry sector.
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REFERENCE
Directorate General of Forestry Research and Development, 2003. Statistic for Directorate General Forestry Research and Development 2002, Directorate General Forestry Research and Development, Jakarta.
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________________, 2003. Strategic and Action Plan on Indonesia Biological Diversity 2003-2020, National Document, Jakarta.
Indonesian Statistic Agency, 2002. Indonesia Statistik 2002. Indonesian Statistic Agency, Jakarta.
_________________, 2003. National Socio-Economic Survey 2002. Indonesian Statistic Agency, Jakarta.
_________________, 2004. Indonesia National Income 2000 - 2003. Indonesian Statistic Agency, Jakarta.
_________________, 2005. Indonesia Statistic 2005. Indonesian Statistic Agency, Jakarta.
Ministry of Forestry, 1985. Indonesia Forestry Statistic 1983/1984. Ministry of Forestry, Jakarta.
__________________, 1986. Indonesia Forestry Statistic 1984/1985. Ministry of Forestry, Jakarta.
__________________, 1987. Indonesia Forestry Statistic 1985/1986. Ministry of Forestry, Jakarta.
__________________, 1988. Indonesia Forestry Statistic 1986/1987. Ministry of Forestry, Jakarta.
__________________, 1989. Indonesia Forestry Statistic 1987/1988. Ministry of Forestry, Jakarta.
__________________, 1990. Indonesia Forestry Statistic 1988/1989. Ministry of Forestry, Jakarta.
__________________, 1991. Indonesia Forestry Statistic 1989/1990. Ministry of Forestry, Jakarta.
__________________, 1992. Indonesia Forestry Statistic 1990/1991. Ministry of Forestry, Jakarta.
__________________, 1993. Indonesia Forestry Statistic 1991/1992. Ministry of Forestry, Jakarta.
__________________, 1994. Indonesia Forestry Statistic 1992/1993. Ministry of Forestry, Jakarta.
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__________________, 1995. Indonesia Forestry Statistic 1993/1994. Ministry of Forestry, Jakarta.
__________________, 1996. Indonesia Forestry Statistic 1994/1995. Ministry of Forestry, Jakarta.
__________________, 1997. Indonesia Forestry Statistic 1995/1996. Ministry of Forestry, Jakarta.
__________________. 1998. Indonesia Forestry and Estate Statistic 1996/1997. Ministry of Forestry, Jakarta.
__________________. 1999. Indonesia Forestry and Estate Statistic 1998/1999. Ministry of Forestry, Jakarta.
__________________, 2000. Indonesia Forestry and Estate Statistic 1999/2000. Ministry of Forestry, Jakarta.
__________________, 2001. Indonesia Forestry Statistic 2000. Ministry of Forestry, Jakarta.
__________________, 2002. Indonesia Forestry Statistic 2001. Ministry of Forestry, Jakarta.
__________________, 2003. Indonesia Forestry Statistic 2002. Ministry of Forestry, Jakarta.
__________________, 2004. Indonesia Forestry Statistic 2003. Ministry of Forestry, Jakarta.
__________________, 2005. Indonesia Forestry Statistic 2004. Ministry of Forestry, Jakarta.
__________________, 2005. Statistic for Directorate General for Forest Protection and Nature Conservation 2004. Ministry of Forestry, Jakarta.
__________________, 2005. Restructuring and Revitalization of Indonesia Forestry Industrial. Ministry of Forestry, Jakarta.
__________________, 2006. Statistic for Directorate General Forest for Protection and Nature Conservation 2005. Ministry of Forestry, Jakarta.
Ministry of Forestry and ITTO, 2004. Strategies for Development of Sustainable Wood-Based Industry in Indonesia: Log Supply Capacities. Ministry of Forestry and ITTO, Jakarta.
. 2004. Strategies For The Development of Sustainable Wood-Based Industry in Indonesia: Wood Based Industry. Ministry of Forestry and ITTO, Jakarta.
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Food and Agriculture Organization. 2005. Forestry. 17 March 2006. http//www. FAO/FAOSTAT. Org.
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International Tropical Timber Organization. 2000. Annual Review and Assessment of the World Timber Situation. ITTO, Yokohama
Simangunsong, B.C.H. 2004. The Economic Performance of Indonesia’s Forest Sector in the Period 1980-2002. Briefing Paper #4. Ministry of Forestry and GTZ-SMCP, Jakarta.
Timotius, 2000. Econometric Analysis on Plymill Development in Indonesia 1975 – 2010: A Simulation Policy. Disertation. Un-published.
World Summit on Sustainable Development. 2002. Plan of Implementation of the World Summit on Sustainable Development, Johannesburg.
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ACKNOWLEDGEMENT
Indonesia’s Forestry Long Term Development Plan 2006-2025 is developed as direction and reference in the preparation of more detail forestry development planning in the next twenty year.
Completion of Forestry Long Term Development Plan owes to the support and participation of many parties during the preparation process, both from within and outside the Ministry of Forestry. Therefore, the authority would like to extend gratitude and appreciation to: Officials in the Ministry of Forestry., management team of forestry donor agency (SMCP-GTZ, MFP-DFID, World Bank), Visionary Tim who set through the DG decision of Forestry Planning Agency No. S.37/VII-REN/2005, date 12 July 2005, and related to other Departments/Institutions also others distinguish parties who have contributed and actively involved to the preparation of this document.
The World Bank supported the printing of this document. Recycled paper of the quality and durability by the Ministry was not available in Indonesia.
We do hope that Indonesia’s Forestry Long Term Development Plan 2006-2025 could be utilized as a guideline and a reference for further understanding toward strategic forestry and shorten term planning.