Degradation and conservation of biodiversity

18 which weakened global competitiveness, and inadequate infrastructural support for the industry.

f. Degradation and conservation of biodiversity

More than 30 years of inadequate forest management practices, as mentioned above, resulted in a decline of biodiversity and degradation of the forest ecosystem. By the end of 2004, 59 million ha of the Forest Area had reportedly been degraded and the rate of forest degradation between 2000 until 2004 is estimated to be at 2.8 million ha per year Baplan, 2004 Figure 14. At the same time, the number of watersheds in a critical condition increased from 36 to 282 between 1983 and 2004 Table 3. Most watershed degradation outside Java can be attributed to mismanagement of commercial forest operations. Table 3. Distribution of critical land in and outside the Forest Area Million ha Island Critical Area Outside the Forest Area Percent Critical Area in the Forest Area Critical Area Within the Forest Area Percent Critical Area within the Forest Area Sumatera 4,35 17 1,99 9 Java 1,70 18 0,37 12 Bali - NTT 1,31 32 0,36 11 Kalimantan 4,57 22 2,61 7 Sulawesi 0,95 14 0,97 8 Source: WCMC 1988 and Badan Planologi Kehutanan 2000 Figure 14. Change in forest cover in Sumatra, 1988-2000 19 Island Critical Area Outside the Forest Area Percent Critical Area in the Forest Area Critical Area Within the Forest Area Percent Critical Area within the Forest Area Maluku 0,51 65 0,18 3 Papua 1,72 100 1,65 5 Total 15,11 22 8,14 7 The decline in watershed and forest ecosystem quality led to a decline in forest ecosystem functions. These include environmental services such as the provision of clean water for housing, industry and irrigation, and the capacity to reduce sedimentation and erosion. Habitats of some native and rare wildlife and plant species have also been lost. Habitat loss has resulted in the extinction of several wildlife and plant species and has also given rise to conflicts between large mammals, such as elephants and tigers, with communities around forests. Between 1996 and 2004 there were more than 152 cases of tiger conflicts with communities leading to the deaths of 25 people, dozens of injuries, and the loss of hundreds of livestock Sinaga, 2005, Figure 15 and 16. The impacts of forest loss and degradation have forced the government to make costly investments to rehabilitate Forest Areas. In addition to foreign aid flowing into the sector, the government allocated IDR 10.51 trillion to the forestry sector over the last 15 years.

g. Poverty