Issues and concerns

Indonesian forests are currently affected by a number of significant threats. Deforestation between 1985 and 1997 was around 1.8 million hectares /annum and the current rate is believed to be significantly higher than this. Between 1985 and 1998, the ratio of forest area to total land area fell from 62.7% to 50.6%. Most of the forest cover loss has been in dry lowlands, the areas considered most valuable for commercial logging and biodiversity conservation. The remaining forests are degrading in terms of commercial timber value, biodiversity and other forest products. All types of forests are affected - production, protection and even conservation areas. In most cases, deforestation and forest degradation are caused by illegal activities. These include over-cutting of forests, cutting in unauthorized areas and outright theft. Illegal logs are smuggled to neighbouring countries without paying fees, contributions or tax, and then re-exported back to Indonesia. Extensive illegal logging networks operate at the district level and illegal logging has been estimated to account for 40-60 percent of the total industrial round wood supply.

The situation is strongly related to the fact that wood-processing capacity far exceeds the sustainable harvest from natural forests which threatens not only the forests but also the forest industry. Encouraged by the government, Indonesian pulp and paper producers have spent US$ 12 billion to expand processing capacity 7-fold since the late 1980s. Development of pulpwood plantations has not kept pace and much of the wood has come from clear-cutting natural forests.

Compounding this situation is the speed of recent reforms and deregulation which, while sorely needed for sustainable forest management, has created problems due to provinces and communities assuming responsibility for interpreting and administering forest management policy in a variety of ways prior to the implementation of decentralization regulations. Changes are required to the national development policy, the judicial system and the forest management system in the framework of decentralization. Rapid action is required, although there is an increasing commitment to solving the problems of the past and developing a more sustainable and equitable forest management paradigm for Indonesia. A Forest for the People policy is expected to assist in addressing this through the establishment of community or cooperative forests, but issues such as administration expertise, financial capacity and a 7-8 year wait to maturation of the resource will need careful management.

Forest fires also remain a concern with forest concessionaires, and those seeking to establish tree crop plantations, considered to be major contributors to ignition of fires.

last updated: Friday, May 13, 2005