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Research Report

The Impact of Sectoral Development on Natural Forest Conversion and Degradation:: The Case of Timber and Tree Crop Plantations in Indonesia

Hariadi Kartodihardjo
Agus Supriono
Copyright Date: Jan. 1, 2000
Pages: 17
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Table of Contents

  1. (pp. 1-2)

    The development of large-scale timber and tree crop plantations have different backgrounds. The increasing area of unproductive production forest and various attractive incentives from government to the private sector encouraged the former. The latter, oil palm in particular, was driven more by the high demand of the export market. Government policies on forest conversion and land designation plus various investment incentives are responsible for boosting the development of this sector.

    Since the end of the 1970s, Indonesia has been relying on its natural forests to support national economic development, and forest concession rights (Hak Pengusahaan Hutan - HPH) have been...

  2. (pp. 2-4)

    Timber plantations are developed either independently of, or in association with, existing HPHs. Independently-managed timber plantations may be either for HTI Pulp and HTI non-pulp (wood construction) purposes. The management of timber plantations associated with HPHs involves a transmigrant labor force. This kind of management is called HTI-Transmigrasi and generally produces trees for non-pulp purposes.

    The land area allocated for HTI is 4.7 million ha (MOF 1997), and up to October 1998 the government had approved the use of 4.6 million ha of this area. The distribution of HTIs by type, number of units, and land area is shown in...

  3. (pp. 4-8)

    The area of state-owned forest11 has changed significantly since the integration of the TGHK and RTRWP. Comparison of state-owned forest area between 1984 and 1997 indicates that, at the national level, the protection forest area has increased from 29.3 million ha to 34.6 million ha. The area of conservation forest remains the same, but the production forest area has been reduced from 64 million ha to 58.6 million ha. Meanwhile the area of conversion forest, used for such purposes as tree crop plantations, transmigration, etc., has experienced a reduction from 30 million ha in 1984 to 8.4 million ha in...

  4. (pp. 8-10)

    Government policies on land allocation and natural forest conversion have induced the private sector to invest their capital in timber and tree crop plantations. One holding company may operate and own several HPHs, HTIs and tree crop plantations at the same time. Based on various reports, some holding companies such as the Raja Garuda Mas, Astra, Kalimanis, Salim, Sinar Mas, Uniseraya, Texmaco, and Barito Pacific Groups, are involved in HPHs, HTIs and tree crop plantations.20

    This diversification of investment has also been accompanied by deviations. For example, after acquiring land allocated for plantations and clearing the timber on it, some...

  5. (pp. 11-11)

    1. The failure of HPHs to manage areas allocated to them has led the government to revoke concession rights. Degraded forests were then reclassified as reserve forests, as forests without definite functions, or to non-forest uses. The total forest area in this category is 8.3 million ha. If one adds to this the area of logged-over forest that will be rehabilitated, then as of June 1998 the area of degraded forest reached 16.57 million ha. If the average HPH term of operation is 20 years, then the increase of degraded forest averages 828,500 ha per year. Thus in an effort to...