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National forest products statistics, Indonesia



Over the last four years, Indonesia has suffered a multidimensional crisis affecting all aspects of government management. The crisis has been followed by many policy reforms including recent changes in decentralisation and autonomy laws. These changes have implications for the use and management of forestry sector information systems and have also presented new problems in the field. As a result of lack of concern and limited government funds and resources, serious efforts have not yet been made by MOF but related institutions to overcome these problems.

This paper details national statistics on forest products in Indonesia and was conducted by consultants in cooperation with the Ministry of Forestry of Indonesia and the Food and Agriculture Organisation of the UN. The report evaluates existing national statistics on forest products and presents comparisons of current national forest products data sets with those of FAO. The work included library based research on forest products monitoring and information systems, interviews with relevant people in the Ministry of Forestry, the Central Board of Statistics and other involved institutions.

Forest area

Indonesia is located on the equator between 110° North and 140° East. It consists of 17,508 islands with total area of approximately 1.9 million km2 (190 million ha). Based on harmonisation of the consensus forest use plan and regional level spatial planning in 1999, the total registered forest area is 120.35 million ha (MOF 2000). Indonesian forest areas comprise 112.27 million ha of permanent forest and 8.08 million ha of forest area designated for conversion to other land uses. Permanent forest is that which has been designated by Government as ‘forest’ whether trees are present or not and thus includes areas destined for planting or natural regeneration as well as existing forest. Permanent forest includes the following sub-categories:

The importance of timber in Indonesia

Indonesia’s forest resources have been the principle engine of national economic development over the last three decades and forest resources have contributed significantly to foreign exchange revenues, employment, regional development and economic growth. The roles of forestry in stimulating the economic development have increased rapidly since the concession system was introduced in 1970. Based on investment and forestry laws, private concessionaires, both domestic and foreign, were permitted to invest in the forestry sector. The laws stated that forest utilisation rights may be granted to state, provincial, or private companies and cover activities such as harvesting, reforestation, and processing and marketing of forest products. Concessions are granted for a limited period, normally of 20 years.

Forest products commodities were ranked second after oil and gas with respect to foreign exchange earnings in 1990 (FAO and MOF 1990). The ‘Monthly Statistical Bulletin 1998’ reported that, as a percentage of total export revenue, that from wood products (including sawnwood, plywood, and paper) came second (18 percent) to textiles (19 percent) with ‘others’, including processed food, chemicals and cattle fodder, contributing 47 percent of export revenue (Figure 1). According to MOFEC (1999) export revenues from wood products at US$6 million per year are second in magnitude to textiles outside the oil and gas sector.

Figure 1. Proportion of Indonesia’s total export revenues for industrial products in 1997

In addition to export earnings, forestry revenues are also obtained from (i) forest concession licence fees (IHPH); (ii) land and improvement tax (PBB); (iii) forest products royalty (IHH/PSDH); (iv) reforestation fee (DR); (v) scaling and grading fee and (vi) sawn timber export tax and minimum export price.


Recent changes in forest management

The importance of forest resources to the economic growth of Indonesia and the increasing public awareness and international attention towards Indonesia’s forests require that the existing forest resources be managed sustainably. At present Indonesia still has large areas of tropical forest, however, the area is decreasing rapidly and recent estimates show that the rate of deforestation is between 600 000 and 1.8 million ha per year. The major causes of deforestation are forest harvesting and legal and illegal land clearance for plantation establishment. As a result of these factors the area of Indonesia’s natural forests has diminished much more rapidly than expected as has the quality of resources in large areas of remaining forest. These effects are having major economic, social and environmental effects.

It may be argued that between 1970 and 2000, Indonesia’s forests were centrally managed by the government in Jakarta. As befitted the political and power systems of the time, management was carried out in an exclusive way. Major influences included policy and regulatory frameworks that hindered forest control and law enforcement. Furthermore, the capacity of Government and the Ministry of Forestry to control concessions was constrained by a lack of qualified personnel and supporting facilities and poor staff motivation.

Since the district autonomy measures implemented early in 2001, forest management has been changing. Today, it is not only Central Government or ‘people in Jakarta’ who have significant roles in forest decision making, but many other stakeholders including concession holders, local populations, urban people, environmentalists, eco-tourists and scientists. Thus, Government’s role in forest management is now more collaborative and the process is, in general, more decentralised and participatory in nature.

Although, in theory, a new forest management system, taking stakeholder’s demands into account, would by now have been developed, unstable conditions have led to rapid and fundamental changes in the systems involved. The conditions have also affected the information systems needed to support the decision making process. For example, several local authorities have ceased to report forest activities and illegal logging has exploded since the 1997/98 economic crisis. The latter was assisted by the general turmoil and a vacuum in the forest sector, and still persists through fear of imprisonment of those acting against it (SCKPFP, 2002). These circumstances have caused difficulties in predicting production and distribution of forest products. Changes in production forest policy in Indonesia are detailed in Table 1.

In summary, although more time is needed for the measures to be smoothly implemented, forest management in Indonesia is now, as the new regulations make clear, more transparent, participatory and fair. It is perhaps necessary to add that it is not only the regulations themselves that induce change but the motivation they give to individual forest stakeholder to change their approach to include the demands of all stakeholders. Indeed, it is obvious that there are preconditions necessary to support the implementation of the new forest management practices, one of these being to formulate a well functioning information system.

Table 1. Indonesia’s recent production forest management related policies

Policy explanation


Basic regulations on the auctioning of new or expired concessions (HPHs).

Ministerial Decree No. 731/1998 and No. 732/1998

Guidance on sustainable forest management in Indonesia

Forestry Acts No.41/1999

Decentralisation to increase the role of district/provincial authorities in natural resource management.

Law No.22/1999

Limits the size of any new or extended timber concession (HPH) to 50 000 ha and the overall concession holding of any timber group to 100 000 ha within a province or 400 000 ha nationally.

Government Regulation No.6/1999

Export taxes on logs reduced gradually from 30% in April 1998 to 10% by the end of 2001

Ministerial Decree

Log export ban since 8th October 2001

Collective decree by the Ministry of Forestry and the Ministry of Industry and Trade, Nos. 1132/KPTS-II/2001 and 292/MPP/Kep/10/ 2001

Source: Pribadi (2002)

Forest products statistical systems in Indonesia

The forest products statistical system between 1997 and 2001

Early in 2001, GOI began moves towards decentralisation by giving Local Government greater opportunity to manage their region and natural resources. At present, The Ministry of Forestry continues to manage forests in line with Forestry Act No. 41/1999, in which provision is made for (i) carrying out forest inventories and developing forest management plans, (ii) utilisation of forest land (iii) forest rehabilitation (iv) forest protection and nature conservation. Plans have been made to revise the Forestry Acts in order to harmonise them with the Local Autonomy Act and thereby support further implementation of sustainable forest management.

Before the decentralisation policies were implemented, institutions involved in forestry, such as logging companies, wood industries and local forestry offices, would send activity reports to Jakarta. Since decentralisation, however, the flow of the data has been hindered, as new technical guidelines on forest products information systems have not been issued. This has led to a paucity of data and information at the national level.

In summary, forest products data for the last five years has been very limited and incomplete due to the unstable political, social and economic situation as well as the moves towards local autonomy.

Developing a national forestry information system in the Ministry of Forestry

Awareness of the need for accurate, accessible and complete information for forest management motivated the Ministry of Forestry (1990) to formulate a forestry information systems development plan. The ‘Info Plan’ has three phases: (i) Preparation (1990-1994), which focuses on solving internal problems, (ii) Transition (1994-1999), in which activities will centre on improving the flow of required data from outside the Ministry of Forestry, and (iii) Independence (1999-2019).

Each phase includes three major aspects: organisation, information systems, and resources as described:

The implementation process faces several hurdles related to the current national financial turmoil and the urgent calls from provinces and district for greater autonomy. For this reason, management of forestry information should be in collaboration with local authorities although some Local Governments are not yet ready to participate.

Since the issue of the autonomy regulation there have been no clear laws or rules regulating exchange of information between central, provincial and local Government offices. At present, Ministerial Decree No. 577/KptsI/1993, regarding the guidance of report management in the Ministry of Forestry, is used. However, the decree has not yet been brought into line with the decentralisation process. Furthermore, lower ranking regulations, such as technical guidelines, are also required to support the Ministerial Decree.

Until now there has been no specific institution charged with collecting internationally standardised forest products data, even though timber contributes significantly to national income. It is therefore necessary to evaluate the forest products data system in Indonesia and to improve the reliability and accuracy of data.

Forest products data collected and methodologies used

The Ministry of Forestry collects statistics in order to support policy and planning activities. Statistics are mainly used descriptively, although in certain cases inferential statistics are used to assist policy formulation.

Prior to implementation of the decentralisation process in January 2001, the types of data and information collected were as detailed below. Since implementation, technical guidelines supporting and explaining the new forest management systems (including information flow) have not been available and, as a result, the flow of data has suffered. Some district and Provincial Forestry Offices under local authority have voluntarily continued to submit data whilst others have stopped.

There are three main government institution, which, together with their local offices, are involved in collecting data and information in Indonesia: (i) the Ministry of Forestry (MOF, and its local offices BEHPHH), (ii) the Central Board of Statistics (BPS) and (iii) the Ministry of Industry and Trade (MIT). NGOs such as the Indonesian Association for Concession Holders (APHI) and the Indonesia Wood Panel Association (APKINDO) also collect data and information from their members although it is not an obligatory task.

Local level

Data is collected at the local level by forest concessions, wood industries, local forestry offices and local statistics offices.

Forest concessions

Forest concessions include (i) private concession, (ii) state owned concessions (Inhutani and Perhutani), (iii) capital sharing concession (private/state), and (iv) plantations. Every year, forest concession companies are obliged to submit annual workplans (AWP) to the local and central forestry offices for Government legal clearance and approval. The plans detail proposals for all activities related to forest management within the concession areas. Based on the approved AWP, companies implement activities in a sustainable manner following the Indonesian Selective Cutting System (TPTI).

To further assist regulation of company activities, concessions must also send monthly reports to regional or provincial forestry office (Figure 2). The reports based on primary field data, detail total roundwood removals and the quantities of roundwood sold to other parties or used by the company itself. Before 2001, proposals were submitted to the Regional Forestry Offices (Kanwil) under The Ministry of Forestry, however, since 2001, the Provincial Forestry Offices (Dinas Kehutanan Propinsi) under the Provincial Governors have dealt with the reports.

Wood industries

Private concessions commonly run their own wood industries. Their reports include data on processed wood production, distribution of roundwood among provinces and quantities of forest products imported and exported. The wood industries also provide information on their activities to the Ministry of Trade and Industry and the Central Board of Statistics (BPS). In the past, forest concessions and wood industries sent their reports to the local forestry offices that passed them to the Ministry of Forestry. Forest Concessions sometimes sent reports directly to central forestry office.

Forestry service offices

Forestry Service Offices include (i) District Forestry Service Offices (Dishut Kabupaten, under head of district), (ii) Provincial Forestry Service Offices (under province governor), and (iii) the Forest Exploitation Agency (BEHPHH under MOF). The offices collect data fr om forest concessions and wood industries in the form of monthly and annual reports (Figure 2). Data includes production, import and export of roundwood, plywood, sawnwood, mouldings, block board, particle board, veneer, wood chips and pulp. Records are also collected from cutting permits, transport licenses, sample surveys and volumes or values estimated at checkpoints.

Following data compilation, local forestry offices send their reports to the Directorate General of Forest Products Development (DGFPD) in Jakarta (Figure 2). Reports are also sent to the Forestry Planning Agency (BAPLAN) in MOF, which also has a responsibility to collect data and information on all forestry activities in Indonesia. At present, the data format used by local forestry offices to report to central office has not been aligned with the Harmonised System (HS) of the World Customs Organisation.

Information is disseminated in a number of ways, which include: (i) publication of monthly, annual and semester reports (ii) production of accountability reports, and (iii) replying to data enquiries from newspapers, radio, TV, libraries and NGOs.

Local statistics offices (district/provincial BPS offices)

Local Statistics Offices (BPS) collect forest products data through complete enumeration surveys of all forest concessions (HPH) and industrial tree plantations (HTI) including those owned by the state (Perhutani). The data, collected includes roundwood and industrial roundwood production at district and province level. The surveys are carried out annually between April and August by District Officers from the Central Board of Statistics and are supervised by the Head of Production Statistics in the District Statistics Office. BPS also works with customs staff to collect import and export data for which the Harmonised System (HS) of the World Customs Organisation is used.

Wood products data and information required from branch offices/base camps includes:

Data required from central offices includes:

Data required from plantation companies includes:

National level

There are three main institutions collecting data and information on wood products at the national level: (i) The Ministry of Forestry (MOF) (ii) The Central Board of Statistics (BPS) and (iii) The Ministry of Trade and Industry and some NGOs (Figure 2). These institutions collect secondary data from forest concession and/or wood industries, who themselves collect the primary field data during felling operations or processing of forest products.

Ministry of Forestry

The Directorate General of Forest Products Development (DGFPD) in the Ministry of Forestry is the institution responsible for collecting wood products data and information at the national level. Data are gathered from local forestry offices in the provinces and districts as well as from forest concessions.

The categories of data collected by DGFPD amongst others, include (MOF 2000):

DGFPD disseminates forest products data along with information on other forest activities, such as logging and NTFP production through monthly and annual reports validated by the Director General of Forest Products Development. Summaries are presented by province, source, year and month but are not classified botanically (coniferous/non-coniferous) as in the WCO Harmonised System or ITTO data. Moreover, measurements are often in kilograms and further study is needed to develop factors to convert to other units such as cubic metres. The reports are sent to all echelon I sections in the Ministry of Forestry, the Central Board of Statistics (BPS) and the Forestry Library. MOF also disseminates information through response to data enquiries from the media.

The Forestry Planning Agency (BAPLAN) in MOF also collects secondary data from DGFPD, the Central Board of Statistics and the Ministry of Industry and Trade (Figure 2). BAPLAN disseminates information by the following means:

The annual forestry statistics book, validated by the Secretary General of MOF, presents data on the following:

Central Board of Statistics

Based on Government Regulation No. 51 concerning management of statistics, the Central Board of Statistics (BPS) collects data and information by census, survey and other methodologies that have arisen with the development of information technology. Information concerned with forestry industries has been collected annually since the agriculture census in 1993, whereas household forestry statistics are only collected every ten years during the agriculture census. Data collected by the Central Board of Statistics via local BPS offices comprises roundwood and industrial roundwood production from plantations and natural forests at district and province level.

BPS also consign staff to work with customs in collecting data and information on export and import of forest products and BPS data are botanically classified in accordance with the WCO Harmonised System (HS) and ITTO data, although further work is needed to develop conversion factors where kilograms are not appropriate.

Figure 2. Data and information flows related to forest products before implementation of district autonomy system

Through these efforts BPS is able to assist MOF in completing data and information required for the annual statistics report (Sutarno, 2000) and, likewise, BPS compiles data and information from the annual forestry statistics books issued by The Ministry of Forestry. All data collected by BPS are presented in a forestry company statistics book issued annually at the national level.

The existing data collection system in BPS has several weaknesses. Currently, BPS lacks qualified staff and has limited funds to improve forestry statistical systems. There is also some lack of concern amongst respondents and as a result the response rate is low and submissions are often late. These difficulties account for the common late publication of the statistics books.

Ministry of Industries and Trade

The Ministry of Industries and Trade (MTI) collect data related to processed wood through its local offices and directly from wood industries (Figure 2). In common with MOF, MTI issues monthly, semester, and annually reports and responds to data enquiries from the media national and international NGOs and private companies.

The information collected by MTI includes:

Non-Government Organisation

NGOs such as APHI, and APKINDO collect forest products related information from their members. Neither has special relationships concerning wood products data collection with any Government organisation.

Potential users of forest products statistics

Ministry of Forestry

The main potential user of data and information on forest products in Indonesia is the Ministry of Forestry whose responsibilities include the following:

The information flow hierarchy is detailed in Figure 3. The potential users of data and information on forest products include echelon I, II, III, IV management levels in local and central Ministry of Forestry offices. Data processing is required for each management level. For example, descriptive statistics are commonly used to guide operational of transactional activities, whereas inferential statistics are more important for decision-making processes at the management and strategic levels.

Figure 3. Hierarchy of information system in Ministry of Forestry, Indonesia


Other potential users of forest products statistics in Indonesia include:

National forest products statistics and FAO

Difficulties encountered in responding to FAO statistical enquiries

To unearth difficulties in responding to FAO statistical enquiries, interviews were held with the current and previous JQ focal points as listed in Appendix 1. The following points were made:

Comparison of FAO and national forest products data sets

To assess the degree of concurrence between FAO and national data sets, records from the 1999 Indonesia Statistics Book were compared with FAO data for 1999. The following points warrant consideration:

Weaknesses and constraints in the forest products statistical system

At present, the standard of forest products data and information in Indonesia is relatively poor and the situation is worsening as a result of changes in forest management and misunderstandings of decentralisation. The main problems are detailed in the following sections.


Data and information systems capacity

Human resources

Law enforcement

Only 40-60 percent of companies required to return the national forestry statistics form actually do so (Sutarno, 2000). This might be caused by:

Since the Asian economic crisis, illegal logging has increased dramatically and this may have resulted in underestimation of roundwood production. This is suggested by the fact that recorded roundwood production is lower than demand. According to MOF (2002) annual roundwood demand is around 63.48 million m3, whilst production is only 23.98 million m3. It is assumed that illegal logging plays a significant role in filling the 39.50 million m3 gap. In addition, illegally harvested roundwood also finds it way to neighbouring countries such Malaysia and China.

As a result of non-payment of royalties, reforestation fees and export tax illegal logging results in annual losses equivalent to US$3.5 billion (EIA, 2001; World Bank, 2001 in Freezailah et al. 2001). Estimates of timber volumes removed through illegal logging are shown in Table 2.

Table 2. Estimates of timber harvested illegally in Indonesia per year


Volume (millions m3)

Speech of The Minister of Forestry and Estate Crops in The Workshop on Illegal Logging (Jakarta, August 2000)


Purnama and Basuki (2000)


Indonesia-UK Tropical Forest Management in Ruwindriyarto (2000)


Manurung (2000)


Recommendations to improve the forest products statistical system

With the recent political and structural changes in Indonesia, the roles of government offices and the flow of forest products information have changed significantly. However, there are now efforts to develop a new information system in line with the changes in national, provincial and district government. Several recommendations have been formulated as detailed in the following sections.

Regulation and technical guidance

Human resources

The proposed actions to reduce problems related to forest products information in Indonesia are described in Table 3.

Table 3 Proposals for improving data on national forest products in Indonesia

Time frame


General objectives


Long term

Establishing a new national forest products information system with adequate technical and human resources.

To establish intensive and extensive information coordination and to provide efficient response to data inquiries under the new decentralised system.

The new information system will be implemented when an appropriate institution is found.

Medium term

Continue working on ‘infoplan’ with involved institution (local government offices, MTI and BPS).

To build an information system in MOF in coordination with other institutions.

The concept should be revised to bring it in line with current national conditions.


Establishing a working institutional system through government regulation.

To build coordination amongst involved institutions and local and central authorities.

Acts, government regulations and decrees not in line with decentralisation should be revised.


Improving staffing capacity and levels of expertise.

To achieve staffing and training levels adequate to support the information system.

Capacity building is expensive and should therefore be well planned and organised.

Short term

-Revising regulations in all involved institutions.

-Revising ‘infoplan’ in MOF

-Organising workshops and training in information systems.

-Developing a capacity building plan (in line with ‘infoplan’ in the MOF).

-Improving coordination amongst involved agencies.

To build a new management system in line with decentralisation and to introduce the system to involved parties.

Order and control mechanisms are no longer appropriate and therefore new approaches are needed to accommodate the needs of each institution.

Establishing a new national forest products information system

To establish a new national forest products information system through institutional adjustments is urgent, especially under present conditions. Three phases should be considered:

Definition phase/Feasibility analysis:

Construction phase:

Implementation phase:

The problem is that the reformation and decentralisation occurred are still in process. The fast changes of policy occur very often. Therefore, several of the government institutions (such as the Ministry of Forestry) could only wait until the situation is more stable.


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Central Board of Statistics, 2000. Indonesian Foreign Trade Statistics. Import. 1999. Volumes 1 and 2. Jakarta, Indonesia: BPS.

Central Board of Statistics, 2001. Indonesian Foreign Trade Statistics. Export. 2000. Volumes 1 and 2. Jakarta, Indonesia: BPS.

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Central Board of Statistics, 2001. Foreign Trade Statistics Bulletin. Export until July 2001. Jakarta, Indonesia: BPS.

Central Board of Statistics, 2001. Foreign Trade Statistics Bulletin. Import until July 2001. Jakarta, Indonesia: BPS.

Frezailah, B., Che Yeom, and Cherukat Chandrasekharan, 2001. Achieving Sustainable Forest Management in Indonesia. ITTO News Letter http// (4 April 2002).

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Magdalena, 1999. A review of the Indonesian Selective Cutting and planting (TPTI) Silvicultural System, and Assessment of Its Cost and Benefits. Unpublished MSc Dissertation. University of Edinburgh.

Manurung, E.G. Toga, 2000. Mengenai Pencurian Kayu di Indonesia Fakta Praktek KKN dan Ketiadaan Penegakan Supremasi Hukum, in The Proceeding of Workshop on Illegal Logging, Jakarta 30-31 August 2000. MOFEC, World Bank, and WWF.

MOF, 1990. Infoplan (Rencana Pengembangan Sistem Informasi dan Pemanfaatan Teknologi Informasi) Departemen Kehutanan.

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Appendix 1. Contact persons


Current Position

Usman Yusuf and staff:

Director of Centre for Data Information and Forest Inventory, Forestry Planning Agency (BAPLAN), MOF

Dedi Supriadi

Head of Division, Forestry Planning Agency (BAPLAN), MOF

Agus Widiarto

Section Head, Forestry Planning Agency (BAPLAN), MOF


Staff of Forestry Planning Agency (BAPLAN), MOF


Staff of evaluation and reporting, DGFPD


Staff of evaluation and reporting, DGFPD

Nurcahyo Adi

Forestry Planning Agency (BAPLAN), MOF


Staff of Central Board of Statistics (BPS)


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