Good governance Tenure CLOSING

11 To reduce forestry bureaucracy, and to promote national economic development, the government issued an Investment Climate Enhancement Policy Package Presidential Instruction No. 32006. It was hoped that this package would lead regions and sectors to initiate legal reforms that would be in favor of investors, the public at large, and especially poor communities. In the forestry sector, the government has identified several cross-sectoral regulations, including Government Regulations and Ministerial DecreesRegulation issued by the Minister of Forestry, that are overly bureaucratic. However, the legal reform process will be time consuming and will depend on the central and regional governments’ ability to implement good governance and coordination of legal reforms. This in turn will depend on successful law enforcement and control from the stakeholders in the forestry sector.

d. Global commitments

Global attention will continue to be focused on the development of Indonesia’s forestry sector. Globally, forest management principles were agreed upon during the Earth Summit in 1992. These principles were elaborated in various conventions and agreements including the Convention on Biodiversity UNCBD, 1992, the Convention to Combat Desertification UNCCD, 1994, the Convention on Climate Change UNFCCC, 1994, the Kyoto Protocol 1997, the United Nation Forum on ForestsInternational Arrangement on Forests UNFFIAF, 2006 and the International Tropical Timber Agreement ITTA, 2006. Forestry development will be indirectly affected by other conventions such as the Convention on International Trade of Endangered Species CITES, 1978, the Convention on Wetlands RAMSAR, 1971 and global trade agreements. Global commitments and agreements have a direct bearing on Indonesian forestry development and stakeholders need a clear understanding of these, so that Indonesia can benefit from membership in these conventions.

II. 3. Strategic issues for forestry development

a. Good governance

Forestry sector development requires good government that is free from corruption, efficient, transparent and participative in program and policy making, and also consistent in implementing those policies. Furthermore, public policies and programs must be accountable to the public. This can only be achieved if forestry stakeholders are actively involve in monitoring government effort in the forestry sector. 12 - 50 100 150 200 250 300 350 84 86 88 90 92 94 96 98 00 02 Years 10 00 hec tar e s Succeed Implemented Planned Source: Statistik Kehutanan 1984-2003 Figure 8. Planned versus achieved reforestation 1984-2003. 40 3-year survival rate is assumed for planted trees This could be through supervision as well as assistance in assuring that an agreed level of government performance can be achieved. Furthermore, there is a need for regulations that provide incentives for government officials to perform well, and disincentives for poor performance. These regulations must be accompanied by consistent law enforcement so that poor performance can be detected and corrected early on. Weak governance has, among other things, led the government to achieve a low level of success in carrying out the rehabilitation of land and Forest Areas during the last 20 years Figure 8. Therefore, good governance is an important issue in future forestry development.

b. Tenure

According to Act No. 411999 concerning Forestry, forest lands that have been designated by the government as Forest Area are under the authority and management of the Ministry of Forestry. This regulation is in line with Article 33 of the 1945 national constitution, which mandates that “the land, the waters and the natural riches [of Indonesia] shall be controlled by the State and exploited to the greatest benefit of the people. Article 67 of Act No. 411999 mandates the government to issue government regulations to manage and guarantee the rights of customary communities living in the Forest Area and whose existence has been acknowledged. Also, the Basic Agrarian Law Act No. 51960 guarantees the claims of customary communities living in the Forest Area. A lack of clear regulations on the settlement of conflicts over forest land management between communities and state-appointed parties has led to controversy over recognition of ownership rights. More issues in this respect surfaced as the government attempted to promote communication between parties with an interest in resolving these tenure issues. Tenure issues are often difficult to resolve as some customary adat communities have limited capacity to delineate the extent of their control and ownership rights. Errors in determining these borders may trigger new conflicts. Thus there is a need for communication between government and other forestry stakeholders to resolve the tenure issue Figure 9. 13

c. Spatial management