Increased value and sustainable productivity of forest resources. This will be

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IV.1. Main objectives

The long term goal of the forestry sector is to increase the people’s prosperity in a sustainable and equitable manner. In accordance with this goal and the forestry development vision for 2006 to 2025, the following main objectives have been established: a . The creation of a strong institutional framework for forestry development. This will be demonstrated by: 1. The establishment of efficient, cost-effective and accountable forest management institutions. This covers government, private, and community institutions at the central, province and regionvillage levels. Also the establishment of a forest management unit which is in line with the distribution of forest resources for the sustainable benefit of national forest resource functions and potential. 2. The development of sufficient competent and professional human resources in the forestry sector. These human resources will be located in the most appropriate areas. 3. The proportional increase of society’s role in the forestry sector. 4. The synergistic institutionalization of roles, rights, responsibilities, and connections between communities and forest management institutions. This would be supported by laws and regulations that provide for the interests of all forestry stakeholders.

b. Increased value and sustainable productivity of forest resources. This will be

demonstrated by: 1. Guaranteeing the existence of the Forest Area at an optimal size. This will be achieved by increased legal provisions and legitimization of the Forest Area at a sufficient area that is proportionally distributed, a decrease in forest degradation, and an increase in forested areas and expansion of planted forest. 2. Optimization of the hydrological services of watersheds to ensure: a. Increased forest ecosystem quality; b. Maintenance of ground water supplies, stable river flows, and continued clean water supplies to meet the needs of society and downstream economic activities; c. Prevention of land slides, flooding, and drought. 3. Conservation of biodiversity in conservation areas and Forest Area with other functions. Reaching a stable conservation area which is comprised of National Parks TN, Nature Parks TWA, Forest Parks TAHURA, Game Parks TB, and Preservation Areas CA. Conservation of forest resources will be supported by appropriate policies and regulations as well as through the use of biological resources for research and commercial purposes. 4. Optimal utilization of forest resources for forest products timber and non-timber, recreational activities, and environmental services to enhance the forestry sector’s 33 contributions to the national economy, employment, and to contribute to reducing poverty by at least 50 near the Forest Area and nationally, by 2025. c. Forestry products and services that are environmentally friendly and competitive, and that have a high added value. This will be demonstrated by: 1. A forestry contribution to GDP three times as large as the contribution in 2005 which was 1.3 of GDP. The increased contribution to GDP will be achieved through an increase in the market value of forestry products and services in line with: increased timber production from plantation forests; increased rattan, resin, honey and silk production; growth in the seed and seedling industry; and greater utilization of forests for recreation and environmental services. This will lead to a more diverse source of national non-tax forest revenue. 2. A structure and performance of Indonesia’s forest industry that is more competitive and environmentally friendly. The priority of Indonesia’s forestry industry structure will be on sawn timber, panels, moulding, furniture, plywood, and pulp and paper, with the use of advanced technology and adjustment of raw material supply derived from forest plantation and community forest, at an international standard. 3. Development of innovative forestry products as a result of research and development conducted by public and private forestry research institutions with a more efficient, effective and environmentally friendly management system.

d. An enabling forestry investment climate. This will be demonstrated by: