Trends of Forest Policy in Indonesia

1. Trends of Forest Policy in Indonesia • An Intensive Lecture by Mustofa Agung Sardjono Professor of Social Forestry, Faculty of Forestry/ Director of the Center for Social Forestry Mulawarman University (Indonesia) The University of Tokyo (Japan), July 14 2007

2. Contents: • Introduction: Forest, Forestry and Forest Policy • Forest Policy Dynamics over the Century • Forest Policy Characters during Hegemony of the New Order • Regional Autonomy Era: Opportunity or Threats for Forest and Community • Closing Remarks: Future Perspective

3. Introduction: Forest, Forestry and Forest Policy in Indonesia Forest criteria: • (Relatively) large areas • (Predominantly) trees and other vegetations with environments • (Closely) interrelated to be integrated ecosystem • (Officially) declared by Government State Forest Area

4. Definition? Views: • Economy • Ecology • Legal Forest Areas with and/or without vegetation Forest Area State Forest Statistic Bias? Non-Forest Area Private Forest

5. * Independence country in 1999; ** Papua; *** Total Land Area (incl. forest = 191,342,425 Hectares Source: FWI/GFW (2001; with some modifications)

6. Figure: Indonesian Archipelago and Distribution Percentage of Forest Area

7. Forestry? • All aspects related to forest and its management (e.g. technique, legislation, institution, science, administration) • Official body: Ministry of Forestry, manages forests, forest products, and forest areas to optimize: * functions (production, climate, protection, and socio-cultural) and * benefits (economy, ecology, and social)

8. Forest Policy? • Official statements/directions • Forest management • Primary goals * Forest sustainability * Community welfare • Under the principles: * Maximum/progressive yield * Sustained resource * Equitable benefits Natural Resources under control of the State

9. Forest Resource Forestry Forest Policy Components Functions Benefits Principles Abiotic Production Maximum/ Progressive Yield Economy Biotic Climate Sustained Resource Ecology Cultural Protection Social Equitable Benefits Man Socio-cultural Diagram: Interrelation between Forest, Forestry and Forest Policy in Indonesia

10. Indonesian Forest Policy Dynamics over the Century • Pre Independence or Colonial Period (XVIII C to 1945) • Independence or Old Order Period (’46 – ’65) • Development or New Order Period (’65 – ’98) • Transition (from Reformation to Regional Autonomy) Period (’98 – 2001) Regional Autonomy Era (2001->?)

11. Important Forest Policies:Pre Independence or Colonial Period Dutch: • ‘Domein Verklaaring’ 1870 (state ownership) • Long-term concession (> 75 years) • Policy issues: forest utilization and protection • A scorched-earth policy (1942 – transition) Japan: • Forest for war (weapons, boats, fortress, etc) • Forest conversion (into agricultural lands) • Military powers rule forests

12. Independence or Old Order Period • Rearrangement of land tenure (issued Act No. 5/1960 on Basic Agrarian) • Decentralization of Forest Administration (Gov.Reg. No. 64/1957) • Establishment Ministry of Forestry (1964) • Development State-Own Forest Enterprises in Java and Kalimantan (started 1961)

13. Development or New Order period Forestry: • Forestry Act 5/1967; followed by Gov.Reg./PP 21/1970 on Forest Concession Forest Products Utilization • Silvicultural Systems (CFNR; CFAR and ISC/ TPI) • Forest Land Use: PF= 45%; TF= 21%; NR&RF= 13% and CF= 21%) • Export-log Ban (Decree Three Ministers= Forestry, Industry and Trade)

14. Industrial timber plantation (HTI) program (also HTI in the frame of Transmigration program) • Act No. 5/1990 on Conservation of Biodiversity and its Ecosystem • Commitment on Sustainable Forest Management (Eco-labeling) implementation, started 2000 • Obligation to do rural develop-ment program (PMDH) for HPH and HTI (started 1991) • Minister Decree on CBFM/CF (started 1995; also SK-DTI for traditional community in Lampung/ 1998)

15. Non-Forestry • Act No. 4/1982 (revised by No. 23/1997) on Environmental Management (obligation to HPH and HTI to do Environment Impact Assessment) • Act No. 24/1992 on Spatial Planning resulted Provincial and District/City Spatial Plan

16. NEW ORDER REGIME PERIOD 1998 The 70’s The 80’s The 90’s Transition Economic Aspects Ecological Aspects Social Aspects 1966 Diagram:Trends and Focus of Indonesian Forestry Policies during New Order Regime for the Last Three Decades of Twentieth Century

17. Transition Period (Reformation to Regional Autonomy) Forestry • Revision of Forestry Act No. 5/1967 with Act No. 41/1999 (and other related regulations) • Improving Minister Decree on CF (three times) • Handing-over some authorities of forest governance to local governments e.g. small scale timber concession • Institutional restructuring by incl. Crop-estates into Forestry Department • (Idea) Developing Forestry Regional Manage-ment Board

18. Non-Forestry • Act No. 22/1999 (revised by 32/2004) on Regional Government and Act No. 25/1999 (revised by Act No. 33.2004) on financial balance between Central and Local Governments • Gov. Reg. No. 5/2000 on Authority Distribution (incl. in forestry affairs) • Decree of Minister for Agrarian (and Head of Land Board) No. 5/1999 (on Resolution of Customary Land Claims)

19. Forest Policy Characters during Hegemony of the New Order Positive • More clear and more focused forestry development plan (annual, mid-term/5 years, long-term 25 year) • Availability of all needed instruments (regulations, forest land use, silvicultural system, hierarchical administration etc.) • Significant leap from first tropical timber exporter (in the ’70s) to top plywood and sawn-timber producer (in the ’80’s)

20. Primary contributor of country revenue from export (in the ’80’s= USD 200 mill./year; in the beginning of the ’90s= USD 2.0 bill/year; and almost USD 20.0 bill. or about 10% total GDP before monetary crisis 1997)

21. ACTIVITY OBJECTIVE TARGET • Economy • Various forest • products - industry • Job opportunity and • income sources • Country revenue and • regional development • Forestry • Development • Production or • Utilization • Conservation • and Regene- • ration • Monitoring or • Controlling • Sustainability • Forest • (sustained • resource) • Product • (sustained • yield) • Ecology • Hydrology • Germ-plasma • Soil protection • Climate Flow Diagram of Forestry Development Concept during New Order (PELITA VI)

22. Negative • Increasing annual deforestation rate (in average 2.8 mill.Ha.) and degraded forests (at least 56.0 mill.Ha. in the beginning of the year 2000) • Insignificant roles in reducing poverty (ranging 35.0 to 40.0 mill. people in the beginning of XXI C) and limiting living space of local communities (about 70.0 million people living in and around forests)

23. Centralized WHY ? Homogenous Capitalistic ECOLOGY AND ECONOMY DISASTERS Authoritarian Monopolistic Exploitative Characters of Conventional Forest Policy in Indonesia during New Order

24. Regional Autonomy: Threat and Opportunity for Forest and Community Threats • Multi-interpretation concerning Autonomous Region  Central vs Local Governments  contra-productive • Low-quality of human resource  ethnocentrism and decentralization of collusion • Weak law-enforcement (relationship and political interests) • Increasing horizontal conflicts (e.g. impacts of resource scarcity and administrative boundary)

25. Increasing demand to earn incomes from natural resource esp. mining and crop-estate  conversion of forested into non-forested areas Opportunities • Decentralization cover politics, administration and fiscal (through Fiscal Act 25/99 rev.33/04) • Decentralization of Forest Management becoming the first priority of the Ministry of Forestry • Existing supports from international programs and funding agencies • Better local creativity and initiatives (some cases) concerning forest and people (i.e. Kubar)

26. BASIC LAW 1945 AND DECISION OF PEOPLE ASSEMBLY Agrarian Act No. 5/1960 Spatial Plant Act No. 24/1992 Environmental Management Act No. 4/1982 Rev. No. 23/1997 ACT Forestry Act No.5/1967 Rev. 41/1999; Biodiversity and Ecosystem Act No. 5/1990 Regional Governance Act No.22/1999 Rev.32/2004 Financial Balance Act No.25/1999 Rev.33/2004 GOVERNMENT REGULATION Forest Governance Gov.Reg.No.34/2002 Rev. 06/2007 Government Authority Gov.Reg. 25/2000 Loc. Gov.Control Gov.Reg. No.20/2001 Reforestation Fund Gov.Reg. No. 35/2002 Loc.Institution Structure Gov.Reg. No. 8/2003 Local (Provincial/District/City) Regulation Local Biophysical and Socio-Economical Specific Issues and Needs Interpretation of Juridical Hierarchy and Consideration for Local Regulation Development

27. Table: Interpretation of Forest Policy Focus in Different Periods Note: S = Small; M= Medium; L= Large

28. Table: Ecological, Social and Economic Trends of Forestry in Indonesia for the Last Three Decades (<2000 and >2000) Note: ND= No Data available

29. Some Policies and Implementation of Social Forestry • Indonesian Basic Law 1945 (Article 33): All natural resources incl. forests are under control of the state (as a single regulatory agent) for the welfare of community  People as the core of forest policies? • Other questions: • Forest for People or Forest from People? • People First, Sustainable Forests Follow or • Sustainable Forest First, People Follow?

30. Forest Act No. 5/1967 Act No. 41/1999 Based on Area Status Based on Function Private Forest State Forest Conservation Forest Urban Forest Protection Forest Customary Forests Private Forests Production Forest Village Forests Joint/Collaborative Forest Management Community Forests Agroforestry Forest Villages Development Programs Social Forestry Figure: Indonesian Social Forestry Schemes based on Forest Status and Functions(Forestry Act and Regulations)

31. Social Forestry Policy Classification State Forest Areas Areas in “Status – Quo” Private Lands People Control over their Forest Management Areas (Devolved Management?) People Authorities to Manage the Forest Areas (Delegated Management?) People Rights to Manage the Forest Areas (De-concentrated Management?) People Involvements in the Forest Managements (Concentrated Management?) Government Preferences

32. Area under management of PERHUTANI Administrative Area of Village A Administrative Area of Village B • PHBM in PERHUTANI Java (Example 1: Concentrated Management): • Local community receive production sharing (timber up to 20%/NTFP>20%); • Local community can utilize space partly for Tumpangsari/Agroforestry • Local community may apply as ‘contractor’ for some activities • Local community develop their own Forest Management Institution as the • partner of Perhutani (Lembaga Masyarakat Desa Hutan) • Local Governments (and in future also other official services) are involved

33. Protection Forest ‘Free’ (i.e.without HPH) Production Forest (HP) Village Administrative Boundary Conservation Areas • HKm/Community Forest (Example 2: De-concentrated Management) • Local community groups receive permit to manage state forest areas ( in ge- • neral only unproductive/critical forests) for 5 Years and possible to be ex- • tended until 35 years • Local community groups can manage timber, NTFPs and ecological services • based on forest functions • Legal based Management (i.e. Cooperative) or Joint Management

34. State Forest Area under Traditional Practices Village Area Village Area or • KDTI/Forest under Special Purpose (Example 3: Delegated Management) • Local (usually indigenous) community groups receive authority to manage • the State Forest based on their own Institutions but not for commercial • purposes) • Local traditional community group may utilize forest products and services) • Local traditional community may not change the forest status (Customary • Forest based on Government version)

35. To be Communal Forest State Forest • Customary Forest (proposed by NGOs) (Example 4. Devolved Management) • Local (traditional) community own the forest and manage the resource • based on their own institution and objectives and they are absolutely free • from any political as well as economic interventions) • (Remarks: Conditions to reclaim customary forests a.l.: 1) Existed traditional • territory incl. boundary; 2) Existed members and social structure of Traditi- • onal group; 3) Existed traditional norms and institution; 4) Recognition • from the Head of the District for points 1 – 3)

36. Closing Remarks: Future Perspectives Dilemmatic Problems of Indonesian Forestry: • How to increase economic revenue? • How to conserve remaining forests? • How to increase forest benefits for poor people?

37. DEGRADED FORESTS REHABILITATION 2004 Forest Resources CF PF I F • Combating Illegal Logging • Mitigating Forest Fires • Restructuring Forestry Sector • Rehabilitating and Conserving Forest Resources • Strengthening Forest Decentralization SOCIAL FORESTRY • Strategies: • Rehabilitation • Conservation • Utilization CONSERVATION SUSTAINABLE DEVELOPMENT • Figure: Macro Policy of the Forestry Ministry (2001-2004) • Notes: CF (Conservation Forests); PF (Protection Forests); IF (Production Forests);

38. 2004-2009 2001 - 2004 • Combating Illegal Logging • Mitigating Forest Fires • Restructuring Forestry Sector • Rehabilitating and Conserving Forest Resources • Strengthening Forest Decentralization • Combating Illegal Logging • Increasing Local Community Welfare • Restructuring Forest Industries • Rehabilitating Land Degradation and Reforestation • Designating Forest Areas • Strategies • 2004-2009: • ? • Figure: Macro Policy Changes of the Forestry Ministry in Indonesia

39. Proposed Alternatives • Logging Moratorium (Example: Thailand) • Sustainable Forest Management (Example: Malaysia) • Community Based Forest Management (Example: Nepal) • Restructuring Forestry Institution (Example: The Philippines) Success??

40. Thank You Domo Arigato Gozaimashita Terima Kasih