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Research Report

Forest and land-use governance in a decentralized Indonesia: A legal and policy review

Fitrian Ardiansyah
Andri Akbar Marthen
Nur Amalia
Copyright Date: Jan. 1, 2015
Pages: 128
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Table of Contents

  1. (pp. 1-3)

    Since the beginning of the “big bang”¹ of decentralization in 2001, Indonesia has undergone a far-reaching process to create a politically, administratively and fiscally decentralized government system. Significant powers now rest with the local-government level² (410 districts and 98 cities),³ and to a lesser extent with the country’s 34 provinces,⁴ including for natural resource management. Furthermore, the passing of Law No. 6 of 2014 on Villages expands powers to the village level, strengthening the authority of village heads to administer their own villages, including managing their assets (including natural resources), revenue and administration.⁵ Another recently-published law (Law No. 23 of...

  2. (pp. 4-43)

    Many feel it was inevitable that decentralization or regional autonomy⁹ would eventually take off in Indonesia. A massive archipelagic nation stretching between the Indian and Pacific oceans, Indonesia consists of approximately 17,500 islands, 250 million people, 300 ethnic groups, 700 languages, and many areas rich in natural resources (CIA 2014, 1; Embassy of the Republic of Indonesia, Washington DC 2014, 1). Based on this, a decentralized government system can be considered as having strong roots in Indonesia’s geographic, economic and ethnic diversity. It is therefore reasonable to assume that such diversity and vastness would accelerate the country to adopting wider...

  3. (pp. 44-56)

    Understanding the current financial resource distribution mechanisms applied in the forest sector is an important step, particularly prior to exploring different options that can be developed under the REDD+ framework. By understanding these mechanisms, gaps can be identified, improvements can be suggested and new options may be explored. The following two sub-sections examine the current mechanisms, consisting of the elaboration of forest fees and royalties and the existing status of payment for ecosystem services as regulated by laws or regulations. The final sub-section deals with the financial benefit distribution schemes proposed under the country’s REDD framework.

    Several laws, regulations and...

  4. (pp. 57-87)

    A national REDD+ strategy and financial mechanism can only be successfully implemented at the national, provincial and local levels if such a program actively involves key-land use sectors and actors that are influential in causing land-use change. The development sectors in forestry (e.g. logging concessions, industrial timber plantations); agriculture (e.g. oil palm plantations); oil, gas and mining; and infrastructure are key development sectors in land use and land-use change in Indonesia, and their incorporation into decision-making processes is therefore key to the success of REDD+. As a result, governments at different levels have tasks and roles in these sectors and...

  5. (pp. 88-91)

    Concerns over injustice felt by indigenous communities have dramatically increased since the last decade – prior to and during the reform process. In Indonesia, such issues have been predominantly driven by NGOs, as seen in the adoption of the words “indigenous people” at a “Workshop on Legal Development for Indigenous People Regarding Natural Resource Management in Forest” that took place in May 1993 in Toraja, South Sulawesi (Siradjudin 2014, 1). The movement gradually earned an important place among civil society movements through the declaration of the establishment of the Alliance of Indigenous Peoples of the Archipelago (AMAN) in 1999 in...