Environmental services and non-timber forest products

27 from oil palms is a potential alternative source of raw material for forestry industries in the future. Other research results involve genetic engineering, bio-diesel production, mycorrhizae, and a registered computer program for a timber atlas registration number 026347. These research results can contribute to future forestry development Figure 26.

g. Environmental services and non-timber forest products

In addition to providing forest products, Indonesia’s forests are an important source of environmental services and services without a tangible market value. However, resource exploitation has been largely focused on timber production, while non-timber forest products and environmental services have not been managed to the fullest extent possible. Even so, from 2000 to 2004, foreign exchange revenue from plant and wildlife exports reached USD 4.17 million and USD 20.32 million respectively. Birds and nests of swallows account for 62 of foreign exchange generated by wildlife exports. Orchids account for 83 of foreign exchange generated by plant exports Figure 27. Source: Badan LITBANG 2006 Figure 26. Use of oil palm timber for panel Source: Statistik PHKA 2004 Figure 27. Plant and wildlife exports, 2000-2004 83 Orchid Gaharu Pakis Daun Lidah Buaya Sikas Ramin 62 Mammal Reptil Amphibi Aves Arthropoda Arwana Fish Molusca Coral 28 Eco-tourism is another source of foreign exchange related to the forestry sector. From 1994 to 2004, over 16 million people visited national park conservation areas Figure 28. Source: Statistik PHKA 2004 Figure 28. Visitors to conservation areas - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 94 96 98 00 02 04 Years V is it o r 1 Cumulative of Visitors Domestic Visitors Foreign Visitors 29 CH APTER I I I . V I SI ON AN D M I SSI ON FOR FORESTRY D EV ELOPM EN T 2 0 0 6 - 2 0 2 5 III.1 Vision There are three scenarios for long term forestry development in Indonesia: a. Forestry development continues unchanged; b. National and forestry development will progress in response to market demand and social requirements; c. Forest sector development will be supported by all sides and forestry’s contribution to sustainable development and public prosperity will increase and Indonesia’s position in the global forestry sector will rise. Underlying the second and third scenarios is the assumption that, over the next 20 years, market demand and social needs for forest resources will increase in line with population growth in Indonesia. Also, as social awareness of forestry issues grows, there will be an increase in forestry oversight and greater civil society involvement in sustaining forest resources. Principles of sustainability in the forest sector will continue to gain importance in public perception. For these reasons, the third development scenario has been chosen as a goal Table 6, in the hope that forest resources, including forest ecosystems and various forest functions, will provide a basis for forestry development that: a. Provides employment opportunities, in particular for domestic workers; b. Produces non-timber and timber forest products; c. Fulfills the demand for non-timber and timber raw materials; d. Provides water services for the development of the non-forestry sector; e. Provides protection from floods and droughts; f. Maintains the quantity and quality of the forest as a life support system; g. Contributes toward increased welfare and poverty alleviation, particularly for those living within and near forest areas. 30 Table 6. Three scenarios for forest sector development, 2006-2025 Status Quo Scenario Forestry Development based on high market and society demands Forestry Development with the support of various parties Governance ƒ Complicated bureaucracy and public service ƒ Escalating conflict on forest resources ƒ Declining support from other sectors ƒ Reformation on bureaucracy and public service ƒ Support from other sectors and involvement from various parties are not dominant factors. ƒ Reformation on bureaucracy and public service. ƒ Development involving various parties ƒ Forestry development that is integrated with other sectors Economic Con tr ibution ƒ Inefficient usage of forest resources ƒ Declining economic contribution ƒ Development is only concentrated on the large-scale level. ƒ The usage depends on market and demand. ƒ Increasing contribution towards Gross Domestic Product. ƒ Development still concentrated on the large-scale level. ƒ A more efficient and comprehensive forest resources usage. ƒ Increasing contribution towards Gross Domestic Product. ƒ Development will be integrated among small-, medium-, and large-scales. S o ciety We lfar e ƒ Low contribution towards the increase of society welfare ƒ Low involvement in the development from societies surroundingwithin forests. ƒ Macro-economic indicators- oriented forestry development. ƒ Commitment towards society involvement in forestry development has not yet been institutionalized. ƒ Society-welfare-oriented forestry development ƒ Give preference to the involvement of societies surroundingwithin forests in forestry development. Forest Resource s Sustainabi lity ƒ The production of forest resources that is not sustained. ƒ Increasing degradation of ecosystem and forest resources. ƒ Decreasing value of ecosystem and forest resources. ƒ Declining bargaining power in global level. ƒ Commitment towards the fulfillment of society and market needs becomes a more important consideration ƒ Sustained usage and forest resources’ production restoration become necessities. ƒ Give preference to forest resources’ quality and quantity restoration efforts. ƒ Increasing appraisal towards ecosystem and forest resources. ƒ Improving bargaining power in global level. Thus, if properly managed and supported by various relevant sectors, Indonesian forest resources have the capacity to become a pillar of sustained development. Based on this, the development vision for the forestry sector can be summarized as follows: “Forestry as a pillar for sustainable development by 2025” This vision for long-term development is in line with forestry development goals laid out in Act No. 411999 concerning Forestry. These goals include the contribution of forestry to the greater welfare of the people in an equitable and sustainable manner. Also, this vision is in accord with the national development vision for 2006 to 2025 which aims at an “Advanced, Independent, and Just Indonesia”. 31 III.2. Mission To achieve the above long-term vision, six forestry development missions have been established as follows:

a. To create a strong institutional framework for forestry development. This mission is