Denpasar, January 2003 

  1. Background

The present situation of Indonesia’s tropical forest is under heavy pressure than ever before.  Improper management of the precious resources in the past, coupled with the economic recession and decentralization process, has made forestry development a very complex task.  Deforestation and degradation of Indonesia’s tropical forests have been at an alarming rate. The interpretation landsat image in 2000 indicated that the forest area needed to be rehabilitated accounting for approximately 43.704 million hectares. Deforestation rate is estimated to have been 1.6 million hectares per year for the past ten years, and even about 2.1 million hectares for the past three years.

Anxiety about the condition of the forest resources has pushed the Government of Indonesia to take necessary measures to slow down the process of forest degradation; but the circumstances have been so complex that we need supports from other parties, including the donor community. The stakeholder consultation forum, established in January 2000, identified a number of important issues in the sector.  Further to the identified of 12 commitment agreed by the Government of Indonesia and the Consultative Group on Indonesia (CGI), the Ministry has shortened the list to five the most pressing issues as priority to be taken immediately, without disregarding the remaining issues. They are: (1) Combating Illegal Logging, (2) Controlling Forest Fire; (3) Restructuring Forest-Based Industries; (4) Forest Rehabilitation and Conservation; and (5) Decentralization of the Forestry Sector.   Social forestry which is believed as an appropriate tool to generate income and improve social welfare of the community live within and surrounding the forest, will essentially be embodied in the implementation of the measures taken for the five priority issues.

Attempts are being made by the Ministry of Forestry to deal with major issues including policy, regulations and operation guidelines at the field levels.  Log export ban policy which is followed by soft landing policy through quota reduction from more than 20 million m3 in the year 2002 to become 6.9 million m3 in the year 2003.  To further enhance sustainable forest management as a mandatory approach, the MoF has appointed eligible 12 Independent Assessor Institutions in Sustainable Forest Management to evaluate the performance of all forest concessionaires in Indonesia. In the first phase, 27 forest concessionaires would be evaluated.  It was planned that by the end of December 2002, the evaluation and recommendations for the 27 forest concessionaires would be finalized.   

The Wanalaga Operation, a cooperation with the Indonesia Police, and the Wanabahari Operation in cooperation with the Indonesia Navy which found hundreds of cases and confiscated  trucks, boats, and foreign-flag ships carrying thousands of timber are among the fruitful measures taken. Other measures include the implementation of a new policy where forest plantation development should only be focused in the bare land and deforested land.  For the next 10-20 years Indonesian forestry will essentially be confined by the era of rehabilitation and conservation.

Just recently, on January 2003, Minister of Forestry and National Army Chief Commander  had come to an agreement to jointly execute the operations to combat illegal logging practices in several selected areas including national parks.

This report  address the progress, expectations and constraints faced in dealing with the  12 forestry commitments from June to mid January 2003.  

  1. Progress Report (period of   June – mid January  2003)

    1. Combating Illegal Logging


      The government’s commitment to combat illegal logging has been followed by concrete activities.  Many actions related to forestry law enforcement, especially in combating illegal logging are being conducted, among others are:

      1. Presidential Instruction on Combating Illegal Logging at Gunung Leuser National Park and Tanjung Putting National Park.

      2. Joint Ministerial Decree on Log Export Ban (between Minister of Forestry and Minister of Industry and Trade)

      3. Cooperation between the Ministry of Forestry and the National Indonesian Police on Wanalaga Operation; Cooperation between the Ministry of Forestry and the Indonesian Navy on Wanabahari Operation;

      4. Ministerial Decree on Moratorium of Ramin

      5. Ministerial Decree on Wood Utilization Permit (IPK), Forest Product Harvesting Rights (HPHH), IPPK Control and P2LHP, P3KB status.

      6. Joint agreement between Minister of Forestry and National Army Chief Commander (Panglima TNI) to give a pressure to the illegal loggers, especially in some severe areas.

      The Wanalaga operation has been conducted through out the country (with the exception of Nanggroe Aceh Darussalam, Maluku and North Maluku)  in accordance with law enforcement on forest crime including timber theft, illegal cutting and timber trading.  The operation has found 1,031 cases with 1,277 suspects and confiscated of 317,954.9 cubic meters of timber; 125,868 pieces of logs; 11,161 pieces of planks; and 28.5 tons of Cendana Wood. The operation had also confiscated 39 unit  of cutting equipment, 6 units of heavy equipment, and transportation equipment including 72 unit of ships, 201 unit of trucks and 45 units of motor cycles.  The total loss was estimated about IDR 286.159 billion (at IDR  900,000.00 per cubic meter of timber).

      The Wanabahari operation has been conducted to mainly control illegal timber transportation and trade as well as smuggling to overseas through the sea.  The operation carried out in January, February, March and April 2002 captured 6 unit of ships, 4 unit of ships, 24 ships and 1 ship, respectively.  Recently, 3 unit of foreign ships have been  investigated caused by illegal logging activities.

Besides Wanabahari and Wanalaga operations, the Ministry of Forestry in cooperation with the relevant agencies have also carried out forest protection operation at the field level, such as:

  1. On June 6, 2002.  The MV Asean Premier court session has been started  in Sorong Courts.   It is a breakthrough in forestry cases where Forestry Investigator (PPNS Kehutanan) directly does the investigation.   The ship’s captain is charged of 1 year and 3 month of  prison and fined of Rp. 10 million.

  2. On June  27, 2002, an integrated Operation of Forest Protection in Entikong (bordering area of Indonesia and Malaysia) has detained of 15 trucks and its illegal logs.   Four of 15 trucks are Malaysian truck and the rest are Indonesian truck.   According some intelligent information, there are more than 75 trucks of logs are smuggled every day to Malaysia through Entikong Border Check Point and the activities are back up by some government officers.

  3. On July 11,2002, a Jakarta Coast Guard Police Patrol (SATPOL AIRUD) detained Tongkang Virgo Sejati III and its 5.230 m3 of logs in Kepulauan Bangka Belitung Province.    The logs has been  transported from Sanggau (Kalbar Province) and it only  attached with a document of SKSHH for 1.892 m3.   Law enforcement’s Flying Team from Jakarta has been sent to back up the cases for further judicial processes.

  4. In July  2002, an Integrated Operation had confiscated  ± 1,000 m cubic  of Ramin  and arrested 1 suspect in Barito Selatan.

  5. During August – September 2002, an integrated operation had arrested 2 suspects of illegal loggers in Bukit Barisan Selatan National Park and confiscated 4,018 m3 logs; 60 m3 raw timbers; 180 pcs sawn timber; I unit bulldozer; 2 units loader and 2 units truck.

  6. Wanalaga operations : suspects of illegal logging under investigation by police in 2002 are 971 cases with 1,075 suspects, on the other hand in 2001 are 1,031 cases with 1,277 suspects,  State potential finacial lost in 2002 is 11.7 billion rupiah (Rp. 11.7 M) and in 2001 is 286,1 billion rupiah (Rp. 286,1 M).

  7. Wanabahari operations :  In 2002 the Indonesia navy has arrested 5 ships; 3 ships are foreigner’s and 2 ships are Indonesia. State potential financial lost in 2002 is 447 billion rupiah and in 2001 is 63,6 billion rupiah.

In supporting the follow up action of the findings, the Ministry of Forestry set up a Flying Team (mobile) of Law Enforcement of which the members comprise of justice institutions, such as the National Police, attorney general, and the Indonesia Army.  The Flying Team has conducted its duties in several locations, such as East Kalimantan, Papua, East Java, Jambi, Riau and Central Kalimantan.

To enforce the forestry law effectively, some actions will be taken by the Ministry of Forestry, such as :

  1. To strengthen cooperation with the National Police and the Indonesian Navy focusing on the implementation of operation and follow up actions of the cases found.

  2. To strengthen cooperation with the National Police and Ministry of Justice on combating illegal logging and continuing the process in prosecution of illegal loggers and other forest criminal cases to the court. 

  3. To continue National campaign on Combating Illegal Logging, particularly for forestry staffs at the central and field levels.

  4. To improve mechanism on timber distribution, particularly in Java in order to counter  timber smuggling from out of Java inslands.

  5. To develop an integrated development approach in 9 national parks of which illegal logging activities are rampant (Berbak, Bukit Tiga Puluh, Kerinci Seblat, Meru Beitiri, Gunung Palung, Betung Kerihun, Tanjung Putting, Kutai, and Lore Lindu National Parks).

  6. To strengthen coordination between central forestry offices and local forestry offices to combat illegal logging. 

  7. To encourage motivation and spirit of staff in implementing forest protection by implementing incentive – disincentive system considering the forest protection operation’s findings of which its legal aspects are being discussed within the Ministry of Forestry.

  8. To Develop networking with local NGO’s.

  9. Preparing Presidential Decree concerning Combating Illegal Logging with 11 members of law enforcement institutions.

Regarding illegal logging, there are many progresses in the international and regional levels since the Forest Law Enforcement and Governance (FLEG) Meeting with a significant result in the form of the Ministerial Declaration (Bali 11-13 September 2001). Notable progresses among others are, the MoU between the government of Indonesia and the Government of Great Britain and Northern Ireland on eradicating illegal logging and illegal trade, the Asia Forest Partnership (AFP) initiative with the Government of Japan and cooperation with the government of China Republic and Malaysia to combat illegal log trade.  We are also noticed so many encouraging developments which have been taken place such as FLEGT and the Congo Basin Initiatives by the government of the United States. With regards to our effort to eradicate illegal timber trading, we have signed a MoU to strengthen cooperation with the People’s Republic of China (PRC) where both countries agreed to work together to stop a flow of illegal logs.

Constraints / Problems :

  1. High demand of timber or over capacity of forest industry

  2. Lack of law enforcement.

  3. Lack of control and insecure forest resources.

  4. Different perception, vision and mission on illegal logging among related institutions at all levels.

  5. Low income of people in and around the forests.

  6. Lack of qualified staff at the field level.

Suggestions :

  1. The Government shall not specify forest resources as an economic prime mover.

  2. Specifying Illegal Logging as a top-case priority through Presidential  Decree.

  3. Improving forest security operations.

  4. Monitoring  and evaluating Illegal Logging judicial process.

  5. Making required budget available and improving infra-structure.

  6. Establishing Forest Police Special Unit at all levels.

  7. Improving dialogue and communication, socialization and campaign of the forestry law and regulation (UU no. 41/1999, PP 34/2002, PP 35/2002, etc)

  8. Establishing Inter-Department Joint Task Force to evaluate regulations in province level which against the higher regulations.

  9. Evaluating the implementation of Wanalaga and Wanabahari Operations.

  10. Improving control mechanism on any illegal logging practices.

  11. Empowering socio-economic of the local community.

  1. Controlling of  Forest and Land Fire

Efforts :

The government continues to control forest and land fires through institutional strengthening, human resource development, provision of equipment and facilities,  development of early warning and detection system, and law enforcement.

To further control forest and land fire based on National Law and Regulations such as Act No. 23/1997 on Environment and Act No. 41/1999 on Forestry, the Government enacted Regulation No. 4/2001 concerning Control of Environment Degradation and/or Pollution related to Forest and/or Land Fires. In addition, Director General of Forest Protection and Nature Conservation formulated technical guidelines concerning forest fire. In correspond to the recent fire breaks, some actions have been taken such as:

  1. The Ministry of Forestry issued letter to all Governors to activate Forest Fire Control Station 24 hours a day.

  2. Integrated Team of the Ministry of Forestry went to West, Central, and East Kalimantan to identify fire causes and to set up proper actions.

  3. Some reporters of electronic (INDOSIAR, TVRI, LATIVI, SCTV, RCTI) and printed media visited burnt areas in West and Central Kalimantan, Jambi and Riau Provinces.

  4. DG PHKA issued the decrees concerning Guidelines of Forest Fire Control Brigade, and establishment of Forest Fire Control Brigade for North Sumatera, Riau, Jambi, West and Central Kalimantan.

South Sumatera Forest Fire Management Project (SSFFMP) is continue based on a Memorandum of Understanding between the Ministry of Forestry and the European Union signed on December 21, 2001. 

Under the Government of Japan (JICA) Project, forest fire suppression equipments had been distributed to Way Kambas, Berbak, Bukit Tigapuluh, and Gunung Palung National Parks. In addition, a rehabilitation of the degraded national park by forest fire had been conducted in Way Kambas National Park under Government of Japan assistance.  Forest Fire Training Centre had also been established at Bukit Tiga  Puluh National Park under Forest Fire Prevention and Management Project 2 (FFPMP2) – JICA.

Forest Fire  Suppression Brigades called “Manggala Agni” had been established in North Sumatera (12 Brigades, 180 members), Riau (16 Brigades, 240 members), Jambi (14 Brigades, 210 members), West Kalimantan (16 Brigades, 240 members) and Central Kalimantan (14 Brigades, 210 members). The Brigades have been operated in Sulawesi, Kalimantan and Sumatera in coordination with local forestry institutions, local community, and other parties. In 2003, the Brigades will also be established in ten provinces, i.e. Java-Bali, South Sumatera, Lampung, South Kalimantan, South Sulawesi and Central Sulawesi.  

Based on hotspot monitoring data during dry season of 2002, 11.439 (37,53%) hotspots occurred in forest areas and 19.044 hotspots (62,47%) outside forest area (plantation, transmigration, etc.).

Problems :

  1. External :

    1. Lack of awareness in controlling forest fire (prevention, suppression and post-fire trauma).

    2. The Ministry of Forestry is considered to be the only responsible institution on fore fire suppression and management.

  2. Internal :

    1. There are still many constraints in forest fire control related to hierarchy of conduct at the field level.
    2. Slash and burn system for land preparation is still applied as the main alternative.
  3. The Ministry of Forestry is also considered to be responsible on land fire outside the forest areas (oil palm plantation and small scale farm land).

Suggestions :

  1. Finalizing Government Regulation  on forest protection.

  2. Providing optimal management operational supports (budgeting, materials, etc).

  3. Forest-fire as a DISASTER shall be stated in the regulation, so that all stake-holders must involve in preventing forest fire.

  4. Establishing forest fire brigades at province and district levels and technical implementation unit (UPT) of DG PHKA. 

  5. Developing operation areas based on level of danger.

  6. Proposing necessary supports to develop fire extinguishing training center with required equipments.

  7. Proposing research and development activities on the usage of fire to be save, cheap and low impact to the environment.

  8. Promoting anti forest and land fire campaign.

  1. Forest Industry  Restructuring

Efforts :

Strategies for Forest Industry Restructuring are arranged based on raw material supply-demand approach:

  1. Synchronizing forest plantation development to industry capacities; increasing wood supply from community forests to supply  raw material for industries; and encouraging raw material  from timber plantations.

  2. Controlling raw material supply; machine re-engineering; improving recovery (efficiency in using raw material) and  diversity of wood products.

Steps on policies for Forest Industrial Restructuring which have been executed by MoF :

  1. Formulating and Publishing policies on industrial development guidelines and plan for Indonesian wood management;

  2. Issuing regulations concerning responsibility and industrial development based on Government Regulation 34 of 2002.

  3. Forest Industrial Restructuring under the supervision of IBRA;

  4. Encouraging development of  non wood forest products industries;

  5. Involving all stakeholders (central and local government, entrepreneur, and NGO, etc.) on Forest Industrial Restructuring;

  6. Law enforcement for forest industries that using illegal logs.

Action Programs :

  1. Implementing recommended strategy by ITTO Review Mission on industrial forestry development in Indonesia;

  2. Continuing activities of restructuring  team (HPH, HTI and  wood-based industry forestry, including HPH, HTI, and wood-based industries under  the supervision of IBRA);

  3. Re-inventory  of forest industries in collaboration with Central Bureau of Statistics (BPS) and Ministry of Industry and Trade (Deperindag);

  4. Improving coordination with Deperindag, IBRA and Coordinating Ministry of Industrial, Finance and Economic through IDCF forum.

Recent information which is published by IBRA stated the follow up of assessment of 129 debtors in forestry sector (HPH, HPHTI, and wood based industries) with accumulated debts of IDR 13,722 trillions had been classified as follows :

  1. At preliminary  stage, 24 companies with total debts of Rp. 750,6 billions.

  2. At preliminary restructuring stage, 39 companies with total debts of  Rp. 2,697 trillions.

  3. At restructuring and implementation stage, 51 companies with total debts of Rp. 9.594  trillions.

  4. At the litigation  process, 15 companies with total debts of Rp. 680,3 billions.

  1. Based on  the assessment of wood supply and demand, machinery condition, and financial condition of the industries under supervision of IBRA, the Minister of Forestry has proposed following actions to the State Minister for State Owned Enterprises :

    1. Closing down  four industries due to the major problems of unsustainable supply of raw materials.

    2. Capacity down-sizing for two industries due to limited supply of raw materials.

    3. Revoking of five concessionaires.

  2. To promote the implementation of restructuring wood- based industries, the Ministry of Forestry has been formulating Criteria and Indicators to assess wood-based industries with regard to their achievement in sustainable forest management implementation.  Furthermore, a possibility of evaluation of wood-based industries carried out by independent bodies is being reviewed.

  3. To revise MoF Decree No. 943/Kpts-VI/2001 jo No. 3500/Kpts-II/2002 concerning  the establishment of Working Group on Restructuring of Forest Concessionaires, Wood-based Industries under the supervision of IBRA, to be the Decree No. 10189/Kpts-II/2002 concerning Industrial Restructuring Team.

  4. To conduct field investigation on performance of two industries, particularly wood-based industries under the supervision of IBRA as stated in MoF Decree No. 6884/Kpts-II/2002. In addition, evaluation has being prepared by Independent Assessment Agency (LPI).

  5. The Minister of Forestry has delivered a letter No. 1098/Menhut-VI/2002 of 3 July 2002 to Coordinating Minister of Economic to postpone the selling of wood-based industries under the supervision of IBRA to give a time for performance evaluation aimed at efficiency, competitiveness, and sustainability of the industries.

  6. To implement sustainable forest management especially in the natural production forests, the GOI formulated “soft landing policy” in order to reduce the exploitation of natural forests gradually.  The quota for sustainable national wood-production from natural production forests in 2003 is 6,892 millions m3.

  7. Based on Joint Decree between the Ministry of Forestry and the Ministry of Industry and Trade No. 803/MPP/Kep/12/2002 – No. 10267/Kpts-II/2002 of 13 December 2002, Forestry Industry Revitalization Board has been established  which consist of entrepreneurs in forestry sector. It is aimed to enhance the sustainability of natural forests, to enhance the competitiveness, added-value and forest products export performance.

  8. As a follow up of Government Regulation No. 34 of 2002, the authority to monitor, control, guide, and to develop primary forest industries has been transformed from the Ministry of Industry and Trade to the Ministry of Forestry since 30 December 2002.

  9. Further discussions among the institutions involved e.g. Ministry of Economic, Ministry of Industry and Trade, Ministry of State Owned Enterprises and Ministry of Forestry to adjust of Ministry of Forestry’s recommendation on wood-based industries restructured with regard to forestry sector restructuring is required.   Regarding to Reforestation Fee (DR) monitoring, Ministry of Forestry has been developing the information system of wood supply administration in cooperation with Bank Mandiri.

Problems :

  1. Different perception among Ministry of Forestry, Ministry of Industry and Trade, and State Minister of State-Owned Enterprises cq. IBRA on Forest Industries Restructuring :

    1. The Ministry of Forestry concern to preserve forest resources.

    2. The Ministry of Industry and Trade concern to improve productivity and export of forest products.

    3. IBRA concern to maximize debt recovery that is restructured into the banking system.

  2. IBRA has sold the assets of forest-industries debtors under the supervision of IBRA without considering that the industries does not have  sustainable raw materials.

  3. Lack of intensive coordination among related departments concerning forest industries in the long run. 

  4. Quota of national production from natural production forests in 2003 may widen the gap between wood supply and demand. 

  5. The development of new industries still continue without considering sustainability of   raw material.

  6. As decentralization implemented, certified Field Supervisors of forest products graders are becoming limited.

Suggestions :

  1. Finance Sector Policy Committee (KKSK) should coordinate the restructuring problems with related institutions (Ministry of Forestry, Ministry of Industry and Trade, IBRA, Local Government).

  2. To establish international cooperation in formulating strategy and verification activities.

  3. To enhance coordination with related-institutions to follow up the results of industries evaluation that are suspected to buy and to process illegal logs.

  4. To strengthen the capability of provincial government on industrial evaluation.

  5. To increase the ability and skill of Supervisors of Forest Products Graders in coordination with regency government.

  1. Reforestation and Forest Industries Capacity

Efforts :

Plantation forest development program in Indonesia has been commenced since early 1990 with the establishment of Industrial Plantation Forest (HTI). There are three major objectives in establishment of Industrial Plantation Forest, i.e. :  a) to improve quality and productivity production forest areas, b) to build alternative source of wood supply for wood-based industry; and c) to develop appropriate system for reforestation and forest rehabilitation program in production forest areas especially in degraded areas.

Up to December 2002, the MoF has designated 230 plantation forest concession areas of 9.676.756 Ha to 230 Concessionaires consist of : a) 40 Industrial Plantation Forest Concessionaires for Pulp (HTI-Pulp) of 5.557.518 Ha; b) 180 Industrial Plantation Forest Concessionaires for Non Pulp (HTI-Non Pulp)  of 3.989.904 Ha, and c) 10 Mix Plantation Forest Concessionaires (HPHTC) of 129.334 Ha. The progress of plantations are : 1.492.744 Ha of HTI-Pulp; 903.545 Ha of HTI-Non Pulp and 9.351 Ha of HPHTC.  Some of HTI’s areas have been harvested since 1999. The average amount of logs production per year for period of  year 1999-2001 are 4.109.700 m3 of HTI-Pulp and 147.419 m3 of HTI-Non Pulp. In year 2002, up to November 2002, logs production from HTI areas are 1.128.348 m3 of HTI-Pulp and 253.136 m3 of HTI-Non Pulp.

As implementation of the priority issue on Reforestation and Forest Industries Capacity, The MoF has designated three major programs in Plantation Forest Development :

  1. Restructuring Program of Industrial Plantation Forest (HTI) Concessions that formerly using Reforestation Fund (DR ~ Dana Reboisasi) for establishing the plantation. 

  2. Acceleration Program on Plantation Forest Development in order to enhance plantation establishment of Industrial Plantation Forest (HTI) using private investment as well as to enhance reforestation program on degraded production forest areas. 

  3. Implementation of Sustainable Forest Management Plantation Principles in Plantation Forest Management and Development.

The progress of the programs implementation are as follows :

  1. To meet the objective of HTI Restructuring Program, The MoF has issued Criteria and Indicator for HTI valuation and established a Task Force to carry out the program. Up to December 2002, 65 Industrial Plantation Forest (HTI) Concessionaires have been evaluated. The evaluation resulted that 30  HTI Concessionaries are recommended to continue their plantation activity, whereas other 35 HTI Concessionaires are to be cancelled.

  2. To support the Acceleration Program of Plantation Forest Development, international technical cooperation are developed in order to enhance international awareness to support the programs. A pre-project activity funded by ITTO has been approved to be implemented in year 2003 in two pilot locations in Jambi and South Kalimantan. 

In line with the Acceleration Program on Plantation Forest Development,  The MoF has established and carried out Plantation Forest Development Projects namely “Pembangunan Hutan Tanaman Unggulan (Plantation Forest Development using Premium Indigenous Species)”. The project is funded by Reforestation Fund and established in 16 Provinces, and aims to support Provincial as well as District (Kabupaten) Government efforts in implementing local reforestation program.  This program has been started since early 1990 in Province of Sulawesi Tenggara (South-East Sulawesi) using “Teak” as local primary tree.  The unit management was set up for 60.000 Ha and up to December 2002 about 38.619 Ha areas have been planted. The program are then extended to other 15 Provinces and about 500 – 1.000 Ha per year of degraded forest areas will be designated as project areas and planted using appropriate local primary tree species in each province.   

In 2000,  MoF launched Plantation Forest Development Project called as  Meranti (Shorea Spp.) Plantation Forest Development Project (PHTM). The Project has been set up  for 5 management unit in 5 provinces, namely East-Kalimantan, South-Kalimantan, South-Sumatera, West-Sumatera and Jambi.  The Project Designs for 5 Provinces have been finalized.  The Project implementation are still in progress.

  1. As implementation of Sustainable Forest Management Principles in Plantation Forest Management and Development, three Ministerial Decree drafts are being discussed concerning : 1) Criteria and indicator of Sustainable Forest Management for Plantation Forest; 2) Criteria for selection process on Independent Auditor Institution for SFM on Plantation Forest; and 3) Cost standard for SFM Auditing activity.       

As an umbrella for the implementation Plantation Forest Development programs, some Ministerial Decrees are being drafted and discussed. The Ministerial Decrees are formulated as the implementation guidance and regulation of the Government Regulation (PP) No.34/2000 concerning Forest Land Use and Planning, and Forest Management and Utilization, and  No.35/2002 concerning Reforestation Fund.  

Besides those programs, MoF has other programs called “Reboisasi dan Penghijauan” (Reforestation and Re-greening) under supervision of DG Land Rehabilitation and Social Forestry (RLPS).  The program had successfully rehabilitated the land of 85.900 hectare for reforestation and 455.832 hectare of “Hutan Rakyat” (private forest) during 1977 to 2001 for the whole country. It was about 82.27 % of the target (Source : DG RLPS, 2002).

Problems :

  1. Some Industrial Plantation Concessionaires, which its concession licenses had been cancelled would bring the problems to court. The MoF fully realizes of these consequences, hence the MoF will prepare necessary anticipation.

  2. In general, realizations of plantation in many plantation forest concession areas are relatively low and unfit with plantation schedule or plantation cycle planning.

  3. Logs harvested from plantation forest are sometimes difficult or impossible to be sold or marketed, due to most plantation areas located in remote and scattered areas.

  4. Land occupations by local society often occur in designated plantation forest areas in both cultivated and uncultivated areas.

  5. Land security for investment is relatively low due to difficulty in finding areas which has clear and clean status.   

  6. Forest and land fire.

Suggestions :

  1. The MoF should support the Plantation Forest Concessionaires that have proved serious efforts in establishing the plantation especially to those using private investment. Incentive scheme in term of financial support, technical and policy aspects need to be developed in order to enhance private as well as community involvement in developing plantation forest and reforestation and forest rehabilitation program.

  2. The regulation of Reforestation Fund (DR) utilization as soft-loan investment for Plantation Forest establishment should be designated in clear and transparent mechanism.

  3. The MoF needs to develop appropriate and integrated mechanism to handle or manage plantation areas of cancelled HTI concessions to save existing valuable assets in the field from any disturbance such as illegal occupation and illegal logging. The MoF should develop social forestry approach to solve any problems appear in Plantation Forest Development.

  4. To meet wood demand of industries and capacity of wood supply harvested from Plantation Forest, data and information should be updated and proper analysis should be conducted through provincial-based approach. 

  5. The donor countries should give more support and contribution to Indonesia’s efforts in improving performance plantation forest development as well as the restructuring utilization of Reforestation Fund in line with national reforestation and forest rehabilitation strategy and programs.  

  1. Decentralization of Forestry Sector

Efforts :

As follow up of Forestry Law No. 41/1999, several concepts of Government Regulations are being formulated and discussed. The concepts are being synchronized with Law No. 22/1999, among others:

  1. Forest Protection and Nature Conservation.

  2. Local “adat” community

  3. Forest Rehabilitation and Forest Reclamation.

  4. Education and Training in Forest Extension

  5. Performance Fee Guarantee and Investment on Forest Conservation.

Ministry of Forestry revoked Ministry of Forestry Decree No. 05.1/Kpts-II/2000 concerning small scale forest concession because improper implementation in the field.

In order to synchronized perception/understanding on forestry decentralization in the frame of sustainable forest management, MoF will immediately executed  the followings:

  1. Developing a net working on forest management among Central, Provincial and District Government.

  2. Communicating PP No. 34/2002 and PP No. 35/2002 and other regulations as implementing of Forestry Law No. 41/1999 to all related stakeholders.

  3. Giving authority to Governors for forest management evaluation as implemented of Forestry Law No. 41/1999 and PP No. 20/2001 and Presidential Decree (Kepres) No. 74/2001.

  4. Improving communications among Central, Province and District Governments to exchange information and data related to Sustainable forest management.

Social Forestry become a high priority in forestry development, since it is believed that social aspect has to be a developmental spirit in carrying out five-priority programs toward sustainable forest development. The idea of social forestry is increasing people participation in forest management; the society must involve directly in forest management to increase their welfares.  Revoked forest concession areas have been decided to set aside as location for social forestry development. The main principle of social forestry are : Managing forest based on its functions, establishing networking institutions among societies, government and businessman, and planning the investment responsibility. Some examples of existing social forestry programs are well recognized such as community forest (HKm), Community Based Forest Management (PHBM), Forest Management by Community (PHOM), community forest (Hutan Rakyat), etc.  

Problems :

  1. Different interpretation between central and local governments on responsibility of forest management.

  2. Limited of personnel (forester) and infrastructures, especially in rural area.

  3. Lack of guidance, criteria and standard of forestry management for field officials.

  4. Inconsistency of authority and regulations on forest  management according to UU 22/99, PP 25/2000 and UU 41/1999.

Suggestions :

  1. To verify Local Government Regulations (PERDA-PERDA)  in order to avoid contradictive regulation.

  2. To improve understanding on the regulations, especially on tasks and function,  related to forestry development between central and local governments.

  3. To establish international cooperation on decentralization of forestry development.

  4. To improve dialogue between Provincial and District Government in establishing trust

  5. To provide standard and criteria on forest management.

  6. To formulate authority of central, province, and district on forest management.

  7. To arrange an institution, personnel, infrastructure and financial support.

  8. Socialization of Government Regulations (PP’s) and Ministry of Forestry Decrees.

Beside the five priority issues, the followings are the progress of the remaining important forestry issues:

  1. Forest Resource Assessment

The maps of provincial forest land use plan are available (digital and hard copy) at a scale of 1:250,000 for 23 provinces. More hard copy maps have been printed and distributed to provincial offices (Dishut, BPKH, Bappeda).

In line with interpretation of landsat images (204 scenes), the forest cover maps have been updated based upon results of new image interpretation.  The images are classified into detailed classes such as primary forest, secondary forest, mangrove forest, plantation forest, shrub/bush, savannah, estate crops, agriculture, rice field, open area, settlement, and water bodies.

The standing stocks map provides an overview of forest’s standing stocks  in Indonesia. The map was developed from data of permanent sample plots/ temporary sample plots (PSP/TSP). The existing PSP/TSP for the whole Indonesia  (except Java) are 2,735 cluster plots which has established in 1990 – 1996. Then have  distributed in every 20 km x 20 km across the country. Re-enumeration  of PSP plots have been done every 4 –  5 years and it was carried out by the Office of Forest Inventory and Mapping (BIPHUT). The first re-enumeration of PSP have been conducted in 1996 – 2001 with the amount of 1,192 plot. Furthermore, the second re-enumeration of PSP have been conducted in 2000 – 2001 and re-enumeration result for 57 plots have reported to  Center of Forest Inventory and Statistics. In the year of 2002 re-enumeration of PSP have been conducted on  200 plots.

Map of indicative rehabilitation and reforestation area indicates all location for rehabilitation and reforestation which spread out within and outside forest lands. One of the criteria that use to determine rehabilitation and reforestation areas is the forest cover condition by using Landsat 7 ETM+ interpretation acquired 1999/2000.

The users of MoF’s maps are government agencies (e.g; Department of Energy and Mineral Resources, Bakosurtanal, Department of Public Works), Universities (e.g; UGM, IPB, UI, Unmul, Patimura), Non Governmental Organization (e.g; Forest Watch Indonesia), and others (e.g; forest concession holders, consulting firms). Data and information including maps can be accessed through Ministry of Forestry homepage (

  1. Moratorium on Forest Conversion

Moratorium in forest conversion initiated in 2000 by Ministry of Forestry letter No. 603/Menhutbun-VIII/2000 of May 22, 2000. Based on evaluation conducted until March 2002 on permit granted for forest conversion, the progress are as follows:

  1. Based on field evaluation of 34 location, there are 23 units of which is still not responding to the second warning and will be sent the third/last warning immediately.

  2. From 178 conversion decrees of  forest conversion for estates crops holder that has been given a first warning, and followed by 82 second warning issued, there are 39 units have no office address and will be send the third/last warning by newspaper immediately.

  3. There are 33 first warning letters will be issued for the Estate Crops companies with Forest Conversion License (SK Pelepasan) which have been issued a year ago that need to be evaluated for the HGU.

There are two companies charged with illegal conversion of forest which are PT Torganda and PT Torusganda in Riau Province. PT Torganda has been executed to pay IDR,-

To implement a moratorium on forest conversion facing a number of obstacles.  It is therefore, coordination among relevant agencies will be promoted at all levels of government (national, provincial and district).  In the future, the policy will include measures to halt forest degradation by land clearing for forest industrial plantation,  illegal mining, for transmigration purposes.

Procedures in converting forest can be separated into 3 stages: Application, Initial permit and conversion decree.  The application and the initial permits accepted or processed before June 7, 2000 based on The Joint Decree No. 364/Kpts-II/90 No. 519/Kpts/HK. 050/7/90. No. 23-VIII-90 dated 25 July 1990 concerning Forest Land Conversion for estate crops need to be evaluated further.  The application which passed criteria of the joint decree may get the license.  The license of the companies which are not followed criteria of the joint degree and after 3rd warning letter will be revoked.

  1. National Forest Program

    National Forest Program (NFP) will be an umbrella of forest policy reform towards achieving SFM in Indonesia.  Center of Forestry Planning  (PUSREN) is organizing (with support by GTZ SMCP) multi-stakeholders discussion and socializing the concept at all levels.  The proposals for action of the international forest related follow-up process on UNCED (IPF/IFF and UNFF) are being assessed as regards their relevance to Indonesia’s forest sector, especially to the five policies priorities.

  1. Land Tenure

A Working Group on Land Tenure has been set up in November 2001.  The Working Group identifies forest land conflicts, develop a draft on Land Tenure and Special Task Force, etc.  The task force team has been established and the team is being working to identify of those matter.

Indonesian General Assembly issued a Decree No. IX/MPR/2001 concerning Land Reform and Natural Resource management.  The Act mandates to government to re-arrange land distribution and natural resource management by considering such as local “adat”, and cultural diversity.  Some NGO’s i.e. KPSHK ( Konsorsium Pendukung Sistem Hutan Kemasyarakatan) and AMAN (Aliansi Masyarakat Adat Nusantara) had identified some local forest managed by local peoples in some districts in Indonesia.  The land tenure task force will link to those NGO’s to know the outputs.

The Government has also issued Government Regulation No. 34/2002, which will also encourage the involvement of community in forest management.  There are 22 province has developed Community Forestry programs which will give authority to the community to manage the forest area.  The program was financed by national budget, reforestation fund,  international assistance and loan.


  1. Timber Revaluation

Timber revaluation became one of the ITTO’s five recommendations submitted to the GoI for consideration and further actions. A work held on 18 – 19 April 2002, organized by the Bureau of Foreign Cooperation, MoF came up with 5 timber revaluation related proposals to be discussed in the second workshop with other relevant stakeholders. It is most likely that INDEF (an Indonesian Leading Economic Consultant), with support of ITTO will lead and take necessary action to realize this issue.

CESERF is now proposing a draft concept on this issue and submitted to DFID for further action.  The status is now waiting for a prompt response from donor’s side.  Other donor’s such as NRM and EU demonstrate their willingness to solve issue.

  1. Forest Management System

Forest management system is a broad and general issue encompassing nearly all aspects associated with managing forest resources from national-level decision making to operational-level activities at the management units.  Many efforts have been undertaken by the MoF in order to improve forest management system.  Due to wide scope of the issue those efforts seem sporadically but are significant and merit reporting

Among the most important achievements is the issuance of a number of Government Regulations (PP) and Minister of Forestry Decrees.  Government Regulation No. 34/2002 deals with forest management planning, including forest and land utilization.  This particular is intended to put forest utilization at the district level (due to decentralization) in a better order avoiding further forest destructions.  Another Government Regulation is PP No. 35/2002 which regulates the use of Reforestation Fund (DR).  In general, PP No. 35 is intended to lead the appropriate use of available DR, namely for forest rehabilitation in a scheme that put local people among the main actors.

There are also a number of Ministerial Decree that have been issued, some are the follow up of the issued Government Regulations.  Minister Decree No. 4795 is about the Criteria and Indicators of Sustainable Forest Management at the management unit level. Minister Decree No. 4796 is about the method of evaluating HPHs. These decrees are the main basis for the implementation mandatory certification policy to be imposed to HPHs.  This mandatory certification would screen HPHs that are not feasible to continue hence must be closed.  Included in the criteria and indicators are the benchmark of forest potency that can be exploited or otherwise must be rehabilitated.

Other Minister Decrees deals with Joint Industrial Forest Plantation (HTI Patungan), i.e. Industrial Forest Plantation in which the Government (Ministry of Forestry) invested government fund (DR).  Most of those HTI Patungan are currently in troubled condition.  Decree No. 4895 and 4896, are respectively, about the Criteria and Indicators for the evaluation of HTI Patungan and about the handling of such troubled this. 

A number of Ministerial Decree associated with Forest Management System policy will be issued very soon.  In more technical terms, Forestry Research and Development Agency (FORDA) is now in the process of reorienting its program.  Among the focuses of the program will be to provide information and technologies necessary for the improvement of forest management system.

An important progress in the issuance of a particular decree on the criteria and indicators of sustainable forest management (SFM) which is to be used for evaluating the existing forest management practices by HPHs.  In line with the MoF has also worked on the guidance for evaluating HPHTIs.  These two legal products will be used for screening HPHs and HPHTIs according to their performance.  HPHTIs with bad performance will be used discontinued and the forest land will be managed in social forestry fashion.  Another importance decree has also been issued, namely the decree on the benchmark of forest potency for  timber production which regulates that any forest with timber potency lower than stated in the benchmark will be allotted for rehabilitation.

Another move is to implement the concept of watershed-based forest management.  For that purpose, MoF is in the process of developing criteria and indicators of watershed management.

 Jakarta,   January,  2003.


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