WONGSAMIN BLOG: PRO-POOR, PRO-JOB, PRO-GROWTH AND PRO-ENVIRONMENT INDUSTRIAL PLANTATION FOREST DEVELOPMENT IN INDONESIA

A. Is industrial plantation forest (HTI) development in South Sumatra resulting in natural forests and peatland conversion and local communities displacement?

1. HTI in South Sumatra was developed on Logged Over Area (LOA) that was burnt due to El Nino in 1997-1998. Between 1998-2002, these areas became waste lands or open access areas, and in 2002 this area was proposed to be developed into HTI based on Government Regulation no 32 year 2012 by the companies PT SBA Wood Industries, PT Bumi Mekar Hijau, PT Bumi Andalas Permai. The area covers 588.835 ha.

2. The carbon sequestration ability in the burnt area in 1998 amounted to 1,885,373 tonnes C/ha/year and in 2002, before the plantation was developed, amounted to 1,800,000 tonnes C/ha/year. After HTI was developed in the areas of these three companies, its carbon sequestration ability in 2009 amounted to 2,645,602 tonnes C/ha/year, as found in the research by Dr. Mahmud Raimadoya (see attached), in partnership with JAXA (Japan Aerospace Exploration Agency) using Advance Land Observing Satellite (ALOS), ESA (European Space Agency), Ministry of Forestry, Ministry of Research and Technology, Bogor Agricultural Institute (IPB) and BAKOSURTANAL(Coordination Unit for National Survey and Mapping). The study conducted in 2011 entitled “Radar Technology for MRV/REDD+: HTI Establishment in Degraded Peatland: Case Study of South Sumatra HTI”.

	1995	2000	2004	2009
Total C-Gain	2.207.237	1.670.797	1.929.202	2.645.602
Peat C-Loss	657.864	406.067	466.363	729.643
Net C-Gain	1.549.373	1.264.730	1.462.839	1.915.959

Figure.1 Impact of Industrial Forest Plantation (HTI) to Carbon Sequestration Capability

3. Additionally, based on the research by Dr. Najib Asmani, the establishment of HTI can reduce and prevent peat fires, as well as reducing carbon emission and increasing community income byup to 47.65%. The local communities who are used to be illegal loggers, fishermen, laborers working in logging companies, and those who migrated outside the province, turned their professions to become HTI harvesting contractors and company employees. Local house wives formed a handicraft industry through the HTI company’s community empowerment program, and now market their products locally as well as regionally. Local farmers are also trained to build citrus groves.

4. After the massive forest fires (in 1997-1998), there were no tiger, orangutan or other endangered species found in the area. However, now with the increase of forest cover after HTI development, various species of birds and also fishes can be found in peat canals that are managed using the hydrology management system.

B. Is industrial plantation forest development in Jambi displacing local communities and connected to human right abuse?

1. Through the Minister of Forestry Decree on HTI license, PT. Wira Karya Sakti (WKS) obtained a license to develop Industrial Plantation Forest in Jambi. All HTI license holders are required to respect third party rights, including the rights of indigenous peoples within their concession area.

2. The licenses for WKS in Jambi was issued in several phases to develop production forest areas from 1997 to 2007. The total concession area is approximately 300,000 Ha. After Macro Delineation was performed on the maps, and Micro Delineation was conducted in the field, an area totaling 41,000 Ha was set aside by WKS as they were identified already occupied by community, used for either settlements or farming. This set aside areas spread across five Regencies: Tanjung Jabung Barat Regency, Tanjung Jabung Timur Regency, Muaro Jambi Regency, Batang Hari Regencyand Tebo Regency.

3. In 2007, PPJ (Jambi Farmers Association) used the information from the delineation analysis to request to the Jambi provincial government that the 41,000 Ha, which was already identified and set aside by WKS for community use, be managed by PPJ. In 2011, following PPJ request, Jambi provincial government and PPJ conducted High Resolution Satellite Mapping on the area in question. This resulted in PPJ requesting that they be allowed to manage an area of 65,000 Ha instead of 41,000 Ha. Therefore, there was additional claim of 24,000 Ha beyond what has been legally set aside by the company.

4. In addition to the 65,000 Ha area, PPJ also claimed an additional area of 37,000 Ha in the five regencies, although the 37,000 Ha area was already developed into pulpwood plantation in their second and third planting cycles.

5. In addition to the claimed area of 65,000 Ha and 37,000 Ha above, PPJ organized the local community in Senyerang village to occupy and take over a production forest area of 7,200 Ha (8Km x 9Km).

6. Figure 2 below illustrates the initial condition of WKS HTI area in Senyerang covering 16,000 Ha (dark green color), of which 7,200 Ha was claimed by Senyerang community who were organized by PPJ. The figure shows that there was no village or agriculture activity (pink or light green color) that existed in WKS concession area when PPJ claimed the area as theirs.

Initian Condition

Landsat Data 1999

Figure.2 Initial condition of WKS HTI area in Senyerang, and area claimed by PPJ

7.        In 2010, the Ministry of Forestry requested the National Forestry Council (DKN) to facilitate and visit the field. DKN report states that community has started illegal tree-felling activities in the field. To resolve the situation, DKN then proposed a partnership where 2,002 families are provided 2 Ha area each (Note: Total area 4,004 Ha) with WKS in Senyerang.

8.        The Ministry of Forestry wrote to the Jambi Governor to facilitate the Senyerang community to partner with WKS on 4,004 Ha area. Since the claimed area is already established plantations (See Figure.3), the government instructed several conditions on the reallocation of the 4,004 Ha. The conditions were that the community should not cut WKS plantation that was already planted (until the plantation’s harvesting season), that the community do not occupy/ live in the plantation area, and that the Regent provides areas for the community’s long-term livelihood.

9.        In reality, community has entered and occupied WKS HTI area in Senyerang before negotiation process had been completed. The negotiation regarding the composition of species to be planted within the 4,004 Ha is between rubber trees requested by community and acacia (HTI species) needed by WKS. In addition, negotiation is also ongoing as to the cost to be subsidized by WKS for the community to establish rubber plantation.

Figure. 3 HTI area in Senyerang that has been disrupted by Senyerang famers organized by Jambi Farmers Association (PPJ)

10.     Contrary to the report by Aidil Fitri from Bumi Hijau Foundation, there is no human right abuse in this case.

C. Is industrial plantation forest(HTI) in Riau connected to illegal logging scandal?

1. In 2007, the Riau Police undertook anti-illegal logging operation against several consession holders, in particular they whose licences were issued by the Regent. License issuance by the Regent is in accordance with the political decision from centralization to decentralization through Law no. 22 of year 1999 on Regional Governance and Government Regulation no. 25 of year 2000 on Government Authority and Provincial Authority as an Autonomous Region.

2. In the investigation process, there was no proof of illegal logging activities in the area of the license holder. Subsequently the Riau police issueda Letter to Stop Investigation (SP3) in 2009. However, for the case of gratification in the issuance process of the concession license done by the Regents (not an illegal logging issue), the Corruption Eradication Comission (KPK) has carried out law enforcement on Regent / Head of District related with gratification.

3. In 2010, a public report was filed to The President’s Delivery Unit (UKP4) to be followed up by the Ministry of Environment. Currently, the Ministry of Environment is reviewing the report, but so far no official lawsuit has been filed.

D. Is there any Government policy which damages natural forest and peatland in the development of pulpwood plantation?

1. Plantation policies started in 1990 through the Government Regulation no. 7 year 1990 on unproductive and unlicenced production forest. In accordance with the 5-years development plan (REPELITA) and the 25-year long-term planning, Indonesia at that time planned on processing raw materials into intermediate goods, and gradually process intermediate goods into finished goods in every REPELITA. This includes carpentry wood (plywood, saw timber, wood working) as well as pulp and paper, in consideration to the needs of forest products that continued to increase following the growth of population in Indonesia and worldwide.

2. The rapid growth of plantation and investment, and studies on the wide impact on forest damage, the plantation policies are continuously revised, such as designing a mosaic system, mapping macro delineation on the map and undertaking micro delineation on the field to separate between high conservation value forest (HCVF) areas/wildlife coridors, areas that will be prepared for plantations, area for community use, and infrastructures. Picture 2 shows the implementation of Mosaic system / Macro Deliniation / Micro Deliniation in HTI.

Figure.4 Mosaic System / Macro Delineation / Micro Delineation

3. The government implements strict law enforcement against concession holders who violate the regulations and currently there are 17 units whose licenses have been revoked, with total area of 354,683 ha in Indonesia

4. In accordance with the Presidential Decree no.32 of 1990, peatland with depth less than 3 meters can be used for development of plantation on peat-land using hydrology management system that manage the water level to avoid flooding on rainy season and avoid drying or burning during the dry season.

5. As a part of the commitment to reduce green house gas emissions by 26% without foreign fundings or by 41% with foreign cooperations, in 2011 there was a moratorium on primary natural forests and peatland for new permits, including those for industrial plantation except for food and energy (Presidential Instruction no. 10th in 2011 on New Permit Delays and Improving Governance of Natural Primary Forest and Peatland). Picture.3 shows hydrology management and mosaic systems in plantation.

6. To accommodate the community business in the production forest area, Government Regulation no.7 year 1990 was revised with the Government Regulation no.6 year 2007 in conjunction with Government Regulation no.3 year 2008, to further develop Timber Utilization License in Community Forest (IUPHHK HTR). The community is also provided with rotational operating funds through the Public Service Board, so that forest plantation development, in this case production forest (HTI) and community forest (HTR) is a policy that is pro-poor, pro-job, pro-growth and pro-environment.