To increase the level of exports of forestry products and services. This mission is Main objectives

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

established to support the harmonization of social, environmental, and economic contributions of forest resources. This requires the establishment of forest management institutions that are efficient, cost-effective, properly managed, and that have appropriate scope. Management authority needs to be decentralized yet nationally integrated and must be based on principles of sustainability.

b. To increase the value and sustainable productivity of forest resources. This is meant

to guarantee the sustainability of forest resource contributions to national development. This sustainability will depend on, among other factors, the continued existence of the Forest Area, the maintained hydrological functions of watersheds, the conservation of biodiversity, and the realization of the potential value of forest resources to support sustainable national development. c. To develop forestry products and services that are environmentally friendly, competitive, and that have a high added value. This mission is meant to encourage the development of forestry products and services, while taking into account the availability and sustainability of forest based raw materials. The forestry processing sector is expected to become more efficient through advances in research and improvements in technology, leading to greater competitiveness, less waste, less environmental impacts, and a higher contribution to GDP.

d. To develop an enabling forestry investment climate. This mission aims to develop and

sustain forestry investment in the processing industry, in timber production, and in environmental services, while avoiding market distortions monopolies and oligopolies and illegal practices through the application of good governance and incentives. Incentives for small to medium sized enterprises SMEs in the forestry sector are expected to lead to increases in employment, social welfare, and efficiency, and to greater forestry contributions to the economy.

e. To increase the level of exports of forestry products and services. This mission is

meant to increase the added value of forestry exports to global and regional markets. Diplomatic negotiations in overcoming trade barriers will become increasingly important for Indonesia’s forestry exports to reach high values. Increasing the value of forestry exports will restore the sector’s prominent role as a contributor of national revenue. f. To improve social welfare and raise society’s active role in supporting responsible and equitable forest management. This mission is meant to guarantee the equitable and sustainable distribution of forest benefits, and to encourage society’s participation in managing forest resources proportionally according to their capacity and ownership of these resources. Forests will produce greater benefits which will be equitably distributed with special emphasis on forest dependent communities. 32 CH APTER I V . FORESTRY LON G TERM D EV ELOPM EN T D I RECTI ON , 2 0 0 6 - 2 0 2 5

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