THINKING beyond the canopy

Overview of forest and land

governance in Indonesia

Daju Pradnja Resosudarmo

The Forest Dialogue

Palangkaraya, Central Kalimantan

March 16-19, 2014

THINKING beyond the canopy

Outline

Land and forest administration

Drivers of deforestation and forest degradation

Political economy and governance of forests

Opportunities and challenges

THINKING beyond the canopy

The forest area

Under the purview of the MOF

Local govt and National Land Agency

188 MHa land area

134 MHa Forest

Estate(71%) 43MHa

Not Forested

91 MHa Forested

54 MHa Non-Forest

Estate (29%)

45.6 MHa

Not Forested

8.6 MHa Forested

1.87

3.51

1.08 1.17

0.83

0.45

1.37

2.83

0.78 0.76 0.61

0.50

0.68

0.30 0.41

0.22 0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

1990-1996 1997-2000 2001-2003 2003-2006 2006-2009 2009-2011

Mill

ion

s H

a

Deforestation rate

Indonesia Forest Estate Outside of Forest Estate

Sumber: Statistik Kehutanan Indonesia 2011 - Hasil Penafsiran citra Landsat 7 ETM+ liputan tahun 2009/2010, Direktorat Inventarisasi dan Pemantauan Sumber Daya Hutan (Data Hasil Pencermatan per Desember 2011) - Data digital kawasan hutan dan perairan berdasarkan SK Penunjukan Kawasan Hutan dan Perairan, TGHK serta mutasi kawasan hutan per Desember 2010, Direktorat Pengukuhan dan Penatagunaan Kawasan Hutan

THINKING beyond the canopy

Direct drivers of deforestation and degradation (DD)

Forest conversion and land use change

• Development and other sectors

• Community needs

• Planned and unplanned

Logging (legal & illegal)

Forest and land fires

THINKING beyond the canopy

Underlying causes of DD

Reliance on NR for economy and people’s livelihoods in

their various forms

Demographic dynamics

Gap of timber supply and demand

Market demand of timber and commodity >>>

Local politics and governance

• NR = political capital

• At the expense of NR governance

Tenure uncertainty and complications in spatial planning

THINKING beyond the canopy

Political economy of forests

Forest industry

• 1960 – 1982 --- logging

• 1982 – 1990s --- plywood

• 1990 – 1998 --- pulp and paper

• > 1998 --- small-scale logging, timber

plantation for pulp and paper

Sectoral contribution to national budget

Mining in forest areas

Food and energy security

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Master Plan for the Acceleration and Extension of Indonesia’s economy

THINKING beyond the canopy

The green gold: trend of oil palm activities

0

10

20

30

40

50

60

70

80

-

5

10

15

20

25

2004 2005 2006 2007 2008 2009 2010

Billion Rp

x 1

00

0

x 1

06

Area (ha)

Production (tonnes)

Export (tonnes)

Bank Credit for agriculture, forestry,fishery and livestock

Resosudarmo et al., forthcoming

THINKING beyond the canopy

The black rock: Mining (e.g. coal)

Indonesia fifth largest coal producer

National production doubled in the last 6 years

Investment increased exponentially

Small in terms of area but significant implications on forests

0

20

40

60

80

100

120

140

160

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011*

Bill

ion

Rp

x

10

00

ton

ne

s

x 1

,00

0,0

00

Year

Trend of Coal Mining Activities

Production

Exports

Production Kalteng

Production Kaltim

Consumption

Bank Credit for mineral mining

Resosudarmo et al., 2013

THINKING beyond the canopy

Challenges

•‘Competition’ for land use •Authority for land allocation with MOF (forestry) and local governments (agriculture, mining) - - lack of coordination among and within levels of government •Forest area definition: a small portion gazzetted to date •Multiple maps used as reference by different agencies/stakeholders •Spatial planning/land use plan slow process •Simultaneously, land allocation for various uses continue •De facto vs de jure tenure

• Uncertainty and contestation in land use and

allocation • Unclear and

ineffective accountability relations and mechanisms

•Conflict •High transaction costs •Business uncertainty •Sub-optimum and ineffective management of forest lands and resources

Challenges Resulting in Leading to

THINKING beyond the canopy

Use of various maps: E.g., Oil palm and mining in forests - East Kalimantan

Purple circles: oil palm in forests; Black circles: mining in forests Resosudarmo et al., 2013;

THINKING beyond the canopy

Logging of natural forests: East Kalimantan

THINKING beyond the canopy

Acacia plantation: East Kalimantan

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Oil palm: the green gold – Central Kalimantan

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The green gold – West Kalimantan

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Illegal logging and smallholder encroachment: Southeast Sulawesi

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Early smallholder encroachment: Southeast Sulawesi

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Progressive encroachment: Southeast Sulawesi

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Changing landscapes: Coal mining East Kalimantan

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Changing landscapes: Gold mining Central Kalimantan

THINKING beyond the canopy

Opportunities

Legal framework: Constitutional Court rulings

• The designation of forest area and

• The relinquishment of customary lands

Technical aspect: E.g., One map initiative

Governance:

• Recognition of the problem among stakeholders

• Commission Eradication Commission tackling corruption cases, including in the forestry and land-based sectors

THINKING beyond the canopy

Opportunities

• National: Towards improved recording and transparency of forestry and land use data and licenses

• Regional and local levels: Forest management units

• On the ground: provision of community management rights

• Principles of good governance mandated in several cross-cutting laws (Law on Disclosure of Public Information, Law on Spatial Planning)

• Environment included as an element in development planning and activities

THINKING beyond the canopy

(Big) homework

• Demands and incentives to convert forests for economic

development and improve livelihoods will continue

How to accommodate needs vs maintaining ecological

integrity.

• Lack of interconnected and integration of land-related

policies within and among levels of governments

• Ineffective management of forest lands at the ground

level.

• De facto dual system of tenure and implementation of the

Constitutional Court Decisions

• Governance in general continues to be a challenge

THINKING beyond the canopy

Thank you