5 Source: Statistik Kehutanan 2004
Figure 2. Development of Indonesia’s protection zones by size left axis and number right axis
ti
2 4
6 8
10 12
14 16
18
94 95
96 97
98 99
00 01
02 03
04
Years Mi
ll io
n h
e c
ta re
s
20 40
60 80
100 120
140
uni ts
The cumulative extent of national parks The cumulative extent of nature recreational parks
designations, natural disasters, and forest fires. Forest fires in 19971998 involved a total land area of 5.2 million ha and is recorded as the most extensive tropical forest fires of the
20
th
century. In 2004, degraded Forest Area amounted to 59.17 million ha, while critical land outside Forest Area amounted to 41.47 million ha. Some of this land is scattered along
the 282 river watersheds that have been prioritized for rehabilitation. In order to maintain Indonesia’s ecosystem and biodiversity, by 2004 the
government had declared land and sea conservation areas in the following amount : 50 units of National Parks Taman Nasional, TN, 116 units of Natural Parks Taman Wisata Alam,
TWA, 18 units of Forest Parks Taman Hutan Raya, TAHURA, 14 units of Game Parks Taman Buru, TB, 228 units of Preservation Areas Cagar Alam, CA, and 76 units of
Wildlife Sanctuaries Suaka Margasatwa, SM Figure 2 .
Aside from this, preventative and suppressive forest security operations are
conducted to protect the ecosystem and the biodiversity by combatting illegal logging
activities, forest clearing activities and activities that lead to forest fires. Within
the last 5 years 2000-2004, the government has conducted land and forest
rehabilitation efforts in the form of reforestation activities on 469,256 ha
located within the Forest Areas, and reforestation or regreening on 1,785,149
ha of land located outside of the Forest Area, including community forests. These
efforts still fall short of expectations, hence in the next five years the
government aims to rehabilitate Forest Areas and ecosystems in the amount of 5
million ha through the National Forest Rehabilitation Movement Gerakan
Rehabilitasi Hutan, GERHAN, to establish 5 million ha of plantation forest, and to create 2 million ha of private forests hutan rakyat.
b. Demographic and cultural considerations
Indonesia’s population in 2003 was 219.9 million people BPS, 2005. Around 48.8 million Indonesians live in and around the Forest Area and among these, around 10.2
million people are classified as poor CIFOR, 2000 and BPS, 2000. Around 6 million Indonesians make their living directly from forests, and of these
around 3.4 million people are employed in the private forestry sector. Traditionally, communities around forests derive their livelihoods from utilizing wood and non-wood
forest produce, such as rattan, dammar resin, gaharu, and honey Figure 3.
6 Source: Pusat Informasi Kehutanan
Figure 3. Community honey bee production.
Generally communities in and around the Forest Area have less access to quality infrastructure, education, health services, and housing than urban communities. Housing and
environmental sanitation as well as public facilities are also inadequate. Forest resources are important for communities in and around forests. This is
manifested in the culture of communities which places traditional values local wisdom derived from the interaction of people with forest resources. However, changes in forest
conditions and opening of access to forest resources lead to friction within the cultural value system with regard to the forest and its ecosystem.
The Government has made extensive efforts to maintain the cultural conditions of communities in and around forests, including efforts to accommodate community rights in
forest management through forestry regulations and laws.
c. Economic considerations
Commercial exploitation of natural forests began in 1967 and was one of the main drivers of the Indonesian economy from 1980 to 1990. During this period, Indonesia secured
substantial global market share in tropical timber products through its exports of logs, sawn timber, plywood and other timber products.
Foreign exchange earnings from forest product exports in 1985 are estimated at USD 1.2 billion. As the composition of exported forest products shifted from logs to processed
products, such as sawn timber, plywood, panels, molding and furniture, foreign exchange contributions from forest products continued to rise. In 2003, the reported level of
Indonesian forestry commodity exports was USD 6.6 billion, or 13.7 of total non-oil and gas exports. This export consisted of plywood, sawn timber, and processed timber in the
amount of USD 2.8 billion, pulp and paper in the amount of USD 2.4 billion, furniture in the amount of USD 1.1 billion and other processed timber products in the amount of USD 0.3
billion BPS, 2004. But the portion of GDP accounted for by the forestry sector declined between 1997 and 2003 Figure 4.
7
This decline was accompanied by a decline in the number of natural forest concessions HPH from 575 in 1993 to 287 in 2004 Figure 5.
Nominal government forestry revenue from the reforestation fund Dana ReboisasiDR, IHPHPSDH and IHPH fees fluctuated between IDR 3.33 trillion 1999 and
IDR 4.01 trillion 2004 Figure 6.
Source: SMCP-GTZ 2004 and BPS 2005 Figure 4. Forest products exports left axis and contribution
to GDP right axis up to 2003
Source: Statistik Kehutanan 2004 Figure 5. Natural forest concessions HPH until 2004
- 1.0
2.0 3.0
4.0 5.0
6.0 7.0
85 89
90 97
98 99
00 01
02 03
Years Bi
ll io
n US
D
- 0.5
1.0 1.5
2.0 2.5
3.0 3.5
4.0 4.5
G ros
s D
om e
s ti
c P
rod uc
t G
D P
Export Value Billion USD GDP
10 20
30 40
50 60
70
93 94
95 96
97 98
99 00
01 02
03 04
Years
M ill
io n
H e
c ta
re s
100 200
300 400
500 600
700
Un its
M illion Hect ares Number of Units
8
According to Simangunsong 2004, the level of employment in the forestry sector reached a peak in 1997, when it accounted for 338,000 workers, or around 1.23 of the
Indonesian labor force. During the period following the economic crisis 1997- 2002 this amount fell to 1 Figure 7.
The actual amount of labor absorbed by the forestry sector is much larger if small scale industries, such as small scale sawn timber, furniture, agroforestry and non timber
forest production are included.
Source: Statistik Kehutanan 2004 Figure 6. Forestry revenues, 1999 to 2004 trillion Rp.
Source: Simangunsong, GTZ 2004 Figure 7. Employment in the forestry sector until 2002
20 40
60 80
100 120
140
80 85
89 90
97 98
99 00
01 02
Years
Un it
s
Planting Forest Forest Concessionaries
Sawn Timber Industry Plywood Industry
Pulp and Paper Industry
3. 330
3. 020
3. 305
2. 929
2. 723
4. 010
0.0 0.5
1.0 1.5
2.0 2.5
3.0 3.5
4.0 4.5
99 00
01 02
03 04
Years
T ril
lio n
Revenue Trillion
9
Different from Simangunsong 2004, national statistics report that the amount of labor absorbed in forestry industries and forest businesses in 2000 was 3.1 million people,
with an average annual income of IDR 7.3 million per person for those working in Forest Concession HPH and IDR 3.3 million per person for those working in processing
industries BPS, 2000.
In general forestry has played a major role in regional development through logging roads which provide access to remote areas for local communities, through the provision of
work opportunities, and through an increase in regional government and community income.
II.2. Strategic environmental conditions
