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Pathway to sustainable forest industry in Indonesia Limantono, Arnold 2011-04-30

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   Pathway	
  to	
  Sustainable	
  Forest	
  Industry	
  in	
   Indonesia	
   by	
   	
   ARNOLD	
  LEVANNOA	
  LIMANTONO	
   	
   A	
  THESIS	
  SUBMITTED	
  IN	
  FULFILLMENT	
  OF	
  THE	
  REQUIREMENTS	
  FOR	
  THE	
  DEGREE	
  OF	
   	
   BACHELOR	
  OF	
  SCIENCE	
   in	
   Wood	
  Products	
  Processing	
   	
   Faculty	
  of	
  Forestry	
   	
   THE	
  UNIVERSITY	
  OF	
  BRITISH	
  COLUMBIA	
   Vancouver	
   	
   April	
  2011	
   	
   ©	
  Arnold	
  Levannoa	
  Limantono,	
  2011	
    	
   	
   	
   	
   	
   	
    	
    ABSTRACT	
   	
   Indonesia	
  is	
  a	
  country	
  with	
  abundance	
  of	
  forest	
  cover.	
  The	
  forests	
  are	
  high	
  in	
  biodiversity	
  and	
   rich	
  in	
  resources.	
  In	
  addition,	
  the	
  country	
  has	
  been	
  dependent	
  on	
  its	
  forests	
  resources	
  and	
  been	
   exploiting	
  the	
  forests	
  for	
  more	
  than	
  30	
  years.	
  The	
  wood	
  industry	
  has	
  experienced	
  a	
  rapid	
   growth	
  in	
  production	
  and	
  capacity	
  in	
  the	
  last	
  30	
  year	
  period.	
  Unfortunately,	
  a	
  sustainable	
  forest	
   management	
  has	
  not	
  yet	
  been	
  well	
  developed	
  in	
  the	
  country.	
  As	
  a	
  result,	
  the	
  country	
  is	
   currently	
  experiencing	
  a	
  massive	
  deforestation	
  and	
  forest	
  degradation.	
  Moreover,	
  scarcity	
  of	
   wood	
  supply	
  is	
  now	
  becoming	
  a	
  problem	
  for	
  the	
  industry.	
   	
   Deforestation	
  and	
  forest	
  degradation	
  has	
  a	
  negative	
  impact	
  to	
  the	
  environment	
  and	
  also	
  to	
  the	
   socioeconomic	
  aspects	
  of	
  human’s	
  life.	
  The	
  main	
  concern	
  is	
  that	
  deforestation	
  and	
  forest	
   degradation	
  accelerates	
  the	
  rate	
  of	
  climate	
  change	
  due	
  to	
  its	
  carbon	
  emissions.	
  This	
  issue	
  has	
   brought	
  the	
  international	
  world	
  to	
  agree	
  on	
  taking	
  actions	
  to	
  fight	
  deforestation	
  and	
  forest	
   degradation.	
  Thus,	
  the	
  Reducing	
  Deforestation	
  and	
  Forest	
  Degradation	
  (REDD)	
  programme	
  was	
   proposed	
  and	
  is	
  now	
  being	
  developed.	
  Currently,	
  Indonesia	
  is	
  one	
  of	
  many	
  countries	
  that	
  are	
  in	
   the	
  REDD	
  priority	
  list	
  due	
  to	
  its	
  large	
  forest	
  area	
  and	
  high	
  rate	
  of	
  deforestation.	
   	
   REDD	
  is	
  a	
  potential	
  solution	
  to	
  the	
  Indonesia’s	
  unsustainable	
  forest	
  practices.	
  By	
  having	
   international	
  commitment	
  and	
  aid,	
  it	
  is	
  expected	
  that	
  Indonesia’s	
  forest	
  loss	
  will	
  be	
  reduced	
   and	
  its	
  carbon	
  stock	
  will	
  be	
  enhanced.	
  The	
  REDD	
  programme,	
  however,	
  also	
  need	
  full	
   cooperation	
  and	
  supports	
  from	
  the	
  local	
  inhabitants.	
  Unfortunately,	
  there	
  are	
  still	
  many	
   challenges	
  and	
  issues	
  in	
  Indonesia	
  that	
  need	
  to	
  be	
  solved	
  for	
  REDD	
  to	
  be	
  successful.	
   	
   Multiple	
  stakeholders	
  in	
  Indonesia	
  have	
  to	
  respond	
  positively	
  to	
  ensure	
  the	
  effectiveness	
  of	
   REDD.	
  Human	
  resource	
  is	
  the	
  key	
  to	
  the	
  success	
  of	
  implementation	
  of	
  REDD	
  in	
  Indonesia.	
  From	
   government	
  to	
  business	
  owners,	
  from	
  university	
  students	
  to	
  local	
  indigenous	
  population,	
  every	
   Indonesians	
  has	
  to	
  able	
  to	
  understand,	
  promote,	
  and	
  practice	
  sustainability.	
  Only	
  this	
  way,	
  a	
   better	
  and	
  sustainable	
  Indonesia	
  can	
  be	
  achieved.	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
    	
    i	
    	
    TABLE	
  OF	
  CONTENT	
   Abstract	
  ...........................................................................................................................................	
  i	
   Table	
  of	
  Contents	
  ...........................................................................................................................	
  ii	
   List	
  of	
  Figures	
  .................................................................................................................................	
  iv	
   Overview	
  of	
  Indonesia	
  Forest	
  .........................................................................................................	
  1	
   •  Forest	
  Area	
  .........................................................................................................................	
  1	
    •  Forest	
  Types	
  and	
  Management	
  ..........................................................................................	
  1	
    Indonesia	
  Forest	
  Industry	
  ...............................................................................................................	
  2	
   •  Wood	
  Products	
  Industry	
  .....................................................................................................	
  2	
   o Pulp	
  and	
  Paper	
  ........................................................................................................	
  2	
   o Round	
  Wood	
  ...........................................................................................................	
  4	
   o Sawn	
  Wood	
  .............................................................................................................	
  5	
   o Plywood	
  ..................................................................................................................	
  6	
   o Secondary	
  Processed	
  Wood	
  Products	
  ....................................................................	
  6	
    •  Non-­‐Timber	
  Forest	
  Products	
  Industry	
  ................................................................................	
  7	
    Deforestation	
  and	
  Forest	
  Degradation	
  in	
  Indonesia	
  ......................................................................	
  7	
   •  Carbon	
  Emission	
  and	
  Deforestation	
  ...................................................................................	
  7	
   o Illegal	
  Logging	
  .........................................................................................................	
  8	
   o Rise	
  of	
  Palm	
  Oil	
  Plantations	
  ....................................................................................	
  9	
    •  Impacts	
  .............................................................................................................................	
  10	
   o Environment	
  .........................................................................................................	
  10	
   o Social	
  and	
  Economy	
  ..............................................................................................	
  11	
    Reducing	
  Deforestation	
  and	
  Forest	
  Degradation	
  (REDD)	
  .............................................................	
  12	
   •  Defining	
  REDD	
  and	
  REDD+	
  ................................................................................................	
  12	
   o REDD	
  Mechanism	
  .................................................................................................	
  13	
   o REDD	
  Readiness	
  ....................................................................................................	
  13	
   o REDD	
  Supports	
  ......................................................................................................	
  14	
    	
    ii	
    •  REDD	
  in	
  Indonesia	
  ............................................................................................................	
  14	
   o Norway-­‐Indonesia	
  Agreement	
  ..............................................................................	
  14	
   o REDD+	
  National	
  Strategy	
  ......................................................................................	
  15	
    Discussions:	
  REDD	
  Development,	
  Issues,	
  and	
  Challenges	
  in	
  Indonesia	
  .................................................	
  16	
    •  Politics	
  ..............................................................................................................................	
  16	
    •  Corruption	
  ........................................................................................................................	
  17	
    •  Human	
  Resources	
  Capacity	
  ..............................................................................................	
  19	
    •  Socioeconomic	
  Debate	
  .....................................................................................................	
  19	
    Recommendations:	
  Pathway	
  to	
  a	
  Sustainable	
  Future	
  ..................................................................	
  20	
   •  Education,	
  Capacity	
  Building,	
  and	
  Mentality	
  Shift	
  ............................................................	
  20	
    •  Use	
  of	
  Media	
  and	
  Internet	
  ...............................................................................................	
  21	
    •  Government	
  Initiatives	
  .....................................................................................................	
  22	
    •  Sustainable	
  Forest	
  Management	
  ......................................................................................	
  22	
    •  Role	
  of	
  Wood	
  Products	
  Industry	
  .......................................................................................	
  23	
    Conclusion	
  ....................................................................................................................................	
  24	
   References	
  ....................................................................................................................................	
  25	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
    	
    iii	
    LIST	
  OF	
  FIGURES	
   Figure	
  1	
  –	
  Indonesia’s	
  pulp	
  and	
  paper	
  productions	
  .......................................................................	
  3	
   Figure	
  2	
  –	
  Indonesia’s	
  round	
  wood	
  productions	
  ............................................................................	
  4	
   Figure	
  3	
  –	
  Indonesia’s	
  sawn	
  wood	
  productions	
  .............................................................................	
  5	
   Figure	
  4	
  –	
  Indonesia’s	
  plywood	
  productions	
  ..................................................................................	
  6	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
    	
    iv	
    OVERVIEW	
  OF	
  INDONESIA	
  FOREST	
   Forest Area Indonesia	
  has	
  the	
  8th	
  largest	
  forest	
  area	
  in	
  the	
  world.	
  According	
  to	
  the	
  data	
  retrieved	
  from	
  the	
   United	
   Nations	
   Statistics	
   Division,	
   Indonesia’s	
   forests	
   cover	
   up	
   to	
   944,320	
   km2	
   or	
   52%	
   of	
   the	
   total	
  land	
  area	
  of	
  the	
  country.	
  This	
  number	
  is	
  relatively	
  small	
  compared	
  to	
  Russia’s	
  or	
  Brazil’s	
   forest	
  areas,	
  which	
  are	
  the	
  largest	
  in	
  the	
  world,	
  with	
  the	
  size	
  of	
  8,090,900	
  km2	
  and	
  5,195,220	
   km2	
   respectively1.	
   Indonesia’s	
   forests	
   are	
   mostly	
   tropical	
   rainforests	
   which	
   are	
   richer	
   in	
   biodiversity	
   than	
   the	
   Russia’s	
   boreal	
   and	
   temperate	
   forests.	
   Indonesia	
   has	
   the	
   second	
   largest	
   tropical	
  forest	
  area	
  in	
  the	
  world;	
  Brazil	
  has	
  the	
  largest	
  tropical	
  forest	
  area2.	
   	
   Forest Types and Management Indonesia’s	
  forest	
  areas	
  are	
  classified	
  by	
  the	
  Indonesia	
  Ministry	
  of	
  Forestry	
  based	
  on	
  the	
  result	
   of	
   the	
   provincial	
   spatial	
   planning	
   and	
   the	
   consensus	
   of	
   forest	
   area	
   usage.	
   Indonesia’s	
   forest	
   area	
  is	
  divided	
  into	
  three	
  categories	
  according	
  to	
  their	
  usage	
  as	
  stated	
  in	
  the	
  Act	
  on	
  Forestry	
   41/1999.	
   The	
   three	
   categories	
   are	
   conservation	
   forest	
   area,	
   production	
   forest	
   area,	
   and	
   protection	
  forest	
  area3.	
   	
   Conservation	
   forests	
   are	
   forest	
   areas	
   whose	
   main	
   function	
   is	
   to	
   protect	
   and	
   to	
   sustain	
   the	
   lives	
   of	
   plant	
   and	
   animal	
   species	
   and	
   their	
   ecosystem.	
   Conservation	
   forests	
   are	
   categorized	
   into	
   sanctuary	
  reserves,	
  nature	
  conservation	
  area,	
  and	
  game	
  hunting	
  park.	
   	
   Production	
   forests	
   are	
   forest	
   areas	
   whose	
   main	
   function	
   is	
   to	
   produce	
   forest	
   products.	
   Production	
  forests	
  are	
  categorized	
  into	
  permanent	
  production	
  forest,	
  limited	
  production	
  forest,	
   and	
  convertible	
  production	
  forest.	
   	
   Protection	
  forests	
  are	
  forest	
  areas	
  whose	
  main	
  function	
  is	
  to	
  protect	
  life’s	
  support	
  system	
  and	
   hydrological	
   system.	
   It	
   serves	
   as	
   natural	
   water	
   filtration	
   and	
   erosion	
   control	
   system.	
   It	
   also	
   inhibits	
  seawater	
  intrusion,	
  prevents	
  flooding,	
  and	
  maintains	
  soil	
  fertility3.	
   	
   	
    1	
    FOREST	
  INDUSTRY	
   The	
  Indonesian	
  legislation	
  clearly	
  states	
  the	
  purpose	
  of	
  its	
  forest.	
  It	
  is	
  for	
  the	
  prosperity	
  of	
  its	
   people3.	
   To	
   reach	
   this	
   purpose,	
   forest	
   management	
   needs	
   to	
   be	
   performed	
   in	
   a	
   sustainable	
   manner	
   to	
   gain	
   maximum	
   benefits	
   from	
   the	
   forests.	
   Forest	
   industry	
   complements	
   the	
   forest	
   management	
   to	
   further	
   process	
   the	
   resources	
   harvested	
   from	
   the	
   forest,	
   increasing	
   their	
   economic	
  value.	
   The	
  forest	
  industry	
  in	
  Indonesia	
  has	
  been	
  dominated	
  by	
  the	
  wood	
  products	
  industry,	
  which	
  also	
   includes	
  pulp	
  and	
  paper	
  industry.	
  Meanwhile,	
  non-­‐timber	
  forest	
  products	
  play	
  only	
  a	
  small	
  part	
   in	
  the	
  Indonesia	
  forest	
  industry	
  when	
  compared	
  to	
  the	
  timber	
  industry4.	
   	
   Wood Products Industry Pulp	
   and	
   paper,	
   sawn	
   wood,	
   round	
   wood,	
   and	
   plywood	
   dominated	
   the	
   wood	
   products	
   industry	
   in	
  Indonesia.	
  Secondary	
  wood	
  products	
  industry,	
  such	
  as	
  furniture	
  manufacturing,	
  handicrafts	
   and	
  wood	
  carving,	
  contributes	
  to	
  	
  a	
  small	
  percentage	
  to	
  the	
  whole	
  Indonesia’s	
  wood	
  products	
   industry.	
   Nonetheless,	
   these	
   secondary	
   industries	
   are	
   expanding	
   rapidly.	
   In	
   contrast,	
   the	
   round	
   wood,	
  sawn	
  wood,	
  and	
  the	
  plywood	
  industries	
  are	
  shrinking.	
   	
   1.  Pulp	
  and	
  paper	
    Pulp	
  and	
  paper	
  is	
  the	
  largest	
  wood	
  products	
  industry	
  in	
  Indonesia	
  with	
  annual	
  production	
  of	
  7.1	
  	
   million	
  tonnes	
  of	
  Bleached	
  Hardwood	
  Kraft	
  Pulp	
  (BHKP)	
  in	
  2010;	
  growing	
  significantly	
  from	
  only	
   5.97	
   tonnes	
   in	
   the	
   previous	
   year.	
   In	
   addition,	
   Indonesia	
   also	
   produces	
   9.36	
   million	
   tonnes	
   of	
   paper	
  and	
  paperboard	
  in	
  2009.	
  There	
  is	
  about	
  one-­‐third	
  of	
  the	
  production	
  is	
  exported	
  in	
  both	
   sectors5.	
   The	
   industry	
   grew	
   rapidly	
   during	
   the	
   1990s	
   with	
   a	
   nine-­‐fold	
   increase	
   in	
   production	
   between	
   1988	
   and	
   19996.	
   Currently,	
   the	
   industry	
   is	
   still	
   growing	
   and	
   causing	
   a	
   rapid	
   increase	
   in	
   demand	
   for	
   fiber	
   supply.	
   Unfortunately,	
   the	
   industry	
   is	
   still	
   heavily	
   dependent	
   on	
   wood	
   fiber	
   derived	
   from	
   the	
   natural	
   forest.	
   Moreover,	
   there	
   are	
   still	
   questions	
   regarding	
   supplies	
   from	
   illegally	
   harvested	
   logs.	
   Shortage	
   of	
   timber	
   supply	
   is	
   currently	
   experienced	
   by	
   the	
   industry.	
   Ironically,	
  Indonesia’s	
  Ministry	
  of	
  Forestry	
  declared	
  a	
  capacity	
  expansion	
  target	
  for	
  2020	
  for	
  the	
   pulp	
  and	
  paper	
  industry5.	
  On	
  the	
  positive	
  side,	
  the	
  Indonesian	
  government	
  is	
  trying	
  to	
  avert	
  the	
    	
    2	
    issue	
   by	
   accelerating	
   and	
   expanding	
   the	
   industrial	
   plantation	
   development.	
   However,	
   there	
   are	
   concerns	
  because	
  these	
  plantations	
  might	
  come	
  from	
  natural	
  forests	
  and	
  peatland	
  conversion5.	
   	
    	
   Figure 1 – Indonesia’s Pulp and Paper Productions (Source: FAOSTAT | © Author 2011)  	
    3	
    2.  Round	
  Wood	
    Indonesia	
   was	
   the	
   largest	
   hardwood	
   exporter	
   within	
   the	
   period	
   of	
   1980	
   to	
   19907.	
   The	
   log	
   export	
   ban	
   in	
   1885	
   (replaced	
   with	
   huge	
   tariff	
   barrier	
   after	
   the	
   ban	
   is	
   lifted	
   in	
   1999)8	
   and	
   another	
   log	
   export	
   ban	
   in	
   2001	
   has	
   decreased	
   the	
   national	
   production	
   of	
   round	
   wood.	
   Indonesia	
   has	
   also	
   signed	
   different	
   agreements	
   to	
   limit	
   the	
   export	
   of	
   their	
   round	
   wood.	
   Nowadays,	
  round	
  wood	
  production	
  is	
  mainly	
  to	
  satisfy	
  national	
  demand9.	
   	
    	
   Figure 2 – Indonesia’s Industrial Round Wood Exports and Productions (Source: FAOSTAT | © Author 2011) 	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
    4	
    3.  Sawn	
  Wood	
    The	
   production	
   of	
   sawn	
   wood	
   decreased	
   from	
   a	
   high	
   of	
   7.62	
   million	
   m3	
   in	
   2003	
   to	
   4.33	
   million	
   m3	
  in	
  2004,	
  and	
  to	
  1.47	
  million	
  m3	
  in	
  200510.	
  This	
  decrease	
  is	
  a	
  result	
  of	
  sawn	
  wood	
  export	
  ban	
   in	
  2004.	
  The	
  trend	
  is	
  continually	
  decreasing	
  since	
  there	
  is	
  an	
  increase	
  scarcity	
  of	
  wood9.	
   	
    	
   Figure 3 – Indonesia’s Sawn Wood Exports and Productions (Source: FAOSTAT | © Author 2011) 	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
    	
    5	
    4.  Plywood	
    Indonesia	
   is	
   the	
   biggest	
   plywood	
   exporter	
   of	
   plywood	
   today.	
   However,	
   the	
   production	
   has	
   decreased	
  significantly	
  since	
  there	
  is	
  a	
  reduction	
  in	
  logging	
  quota	
  and	
  an	
  increase	
  scarcity	
  of	
  log	
   supply	
  as	
  mentioned	
  earlier9.	
  The	
  production	
  was	
  down	
  from	
  about	
  10	
  million	
  m3	
  in	
  2002	
  to	
   only	
  2.9	
  million	
  m3	
  in	
  200911.	
    Indonesia's Plywood Productions 12000000 10000000  CUM  8000000 6000000  Plywood `  4000000 2000000  19 72 19 75 19 78 19 81 19 84 19 87 19 90 19 93 19 96 19 99 20 02 20 05 20 08  0  Year  	
   Figure 4 – Indonesia’s Plywood Productions (Source: FAOSTAT | © Author 2011) 	
   5.  Secondary	
  Wood	
  Products	
    Indonesia’s	
   secondary	
   processed	
   wood	
   products	
   industry	
   is	
   growing	
   rapidly.	
   Furniture	
   is	
   the	
   main	
  secondary	
  wood	
  products	
  in	
  Indonesia.	
  Handicrafts	
  and	
  wood	
  carvings	
  hold	
  only	
  a	
  small	
   percentage	
   in	
   the	
   secondary	
   industry.	
   According	
   to	
   the	
   latest	
   ITTO	
   report	
   in	
   2009,	
   Indonesia	
   exported	
   75%	
   of	
   its	
   wooden	
   furniture	
   production	
   worth	
   $1.21	
   billion.	
   This	
   value	
   is	
   a	
   1%	
   increase	
   from	
   the	
   previous	
   year’s	
   export	
   and	
   has	
   been	
   in	
   an	
   upward	
   trend	
   since	
   late	
   1990s.	
   However,	
  the	
  report	
  also	
  stated	
  that	
  export	
  was	
  expected	
  to	
  slow	
  down	
  in	
  2009	
  because	
  of	
  the	
   global	
  recession	
  that	
  lowers	
  demand	
  from	
  major	
  importers,	
  such	
  as	
  Japan	
  and	
  United	
  States12.	
   	
   	
   	
    	
    6	
    Non-Timber Forest Products There	
  are	
  about	
  90	
  non-­‐timber	
  forest	
  products	
  that	
  have	
  been	
  commercialized	
  both	
  locally	
  and	
   internationally.	
   The	
   main	
   products	
   are	
   rattan,	
   bamboo,	
   damar,	
   patchouli	
   leaves,	
   illipine	
   nuts,	
   cajuput	
  oil,	
  shellac,	
  and	
  temulawak4.	
   	
    DEFORESTATION	
  IN	
  INDONESIA	
   Carbon Emission and Deforestation Rate Indonesia	
   has	
   been	
   scrutinized	
   by	
   the	
   world	
   because	
   of	
   the	
   rapid	
   destruction	
   of	
   its	
   forest.	
   Deforestation	
   in	
   Indonesia	
   has	
   long	
   been	
   a	
   problem	
   since	
   the	
   boom	
   of	
   log	
   export	
   in	
   the	
   beginning	
   of	
   1970.	
   The	
   rate	
   of	
   deforestation	
   is	
   accelerating	
   ever	
   since;	
   from	
   losing	
   about	
   1	
   million	
  ha/	
  year	
  in	
  1980s	
  to	
  a	
  devastating	
  average	
  rate	
  of	
  losing	
  2	
  million	
  ha/	
  year	
  by	
  199613.	
   	
   Indonesia	
   was	
   reportedly	
   having	
   the	
   highest	
   deforestation	
   rate	
   in	
   the	
   world	
   according	
   to	
   the	
   Guiness	
  Book	
  of	
  Record;	
  depleting	
  its	
  forest	
  cover	
  by	
  1.8	
  million	
  hectares	
  between	
  2000-­‐200514.	
   Indonesia	
  was	
  also	
  named	
  the	
  third	
  largest	
  greenhouse	
  gas	
  emitters,	
  behind	
  China	
  and	
  United	
   States,	
  in	
  a	
  report	
  released	
  by	
  World	
  Bank	
  in	
  2007.	
  The	
  emission	
  was	
  mostly	
  due	
  to	
  forest	
  loss	
   which	
   was	
   accountable	
   for	
   about	
   85%	
   of	
   the	
   total	
   emission15.	
   	
   The	
   latest	
   report	
   shows,	
   however,	
   a	
   decreasing	
   trend	
   in	
   deforestation	
   in	
   Indonesia16.	
   According	
   to	
   Indonesia	
   Ministry	
   of	
   Forestry,	
  the	
  current	
  rate	
  of	
  deforestation	
  is	
  predicted	
  to	
  be	
  around	
  1.125	
  million	
  hectares17.	
  	
   	
   There	
  are	
  several	
  causes	
  to	
  Indonesia’s	
  rapid	
  rate	
  of	
  deforestation.	
  The	
  most	
  apparent	
  ones	
  are	
   illegal	
  logging	
  and	
  the	
  increasing	
  number	
  of	
  palm	
  oil	
  plantations	
  in	
  Indonesia.	
  Trees	
  are	
  illegally	
   cut	
   and	
   traded	
   for	
   their	
   values.	
   Forest	
   covers	
   are	
   clear	
   cut	
   and	
   peat	
   lands	
   are	
   drained	
   to	
   be	
   converted	
  into	
  the	
  economically	
  profitable	
  palm	
  oil	
  plantation.	
  Moreover,	
  forest	
  fires	
  caused	
  by	
   these	
  land	
  clearing	
  actions	
  worsens	
  the	
  situation.	
   	
   	
   	
   	
    	
    7	
    •  Illegal	
  Logging	
    A	
  greenpeace	
  report	
  in	
  2003	
  stated	
  that	
  about	
  88%	
  of	
  all	
  the	
  logs	
  harvested	
  in	
  Indonesia	
  are	
   illegal18.	
   An	
   official	
   from	
   Indonesia’s	
   Ministry	
   of	
   Forestry	
   declared	
   that	
   illegal	
   logging	
   has	
   destroyed	
   around	
   10	
   million	
   ha	
   forest	
   area	
   in	
   Indonesia13.	
   Illegal	
   logging	
   in	
   Indonesia	
   was	
   a	
   result	
  of	
  corruption	
  and	
  the	
  over-­‐capacity	
  of	
  the	
  wood	
  industry	
  under	
  the	
  regime	
  of	
  President	
   Soeharto	
  (1968-­‐1988)19.	
   	
   During	
   Soeharto’s	
   leadership,	
   the	
   forest	
   industry	
   was	
   largely	
   run	
   by	
   his	
   family,	
   close	
   friends,	
   military	
   support,	
   and	
   those	
   who	
   were	
   related	
   to	
   him	
   politically.	
   Up	
   until	
   now,	
   some	
   of	
   these	
   people	
  still	
  hold	
  significant	
  power	
  in	
  the	
  forest	
  industry.	
  To	
  support	
  this,	
  a	
  recent	
  study	
  from	
   the	
   University	
   of	
   Indonesia	
   reported	
   that	
   there	
   are	
   military	
   officials	
   who	
   are	
   still	
   actively	
   engaged	
  in	
  illegal	
  logging	
  although	
  the	
  current	
  Indonesian	
  government	
  has	
  stated	
  that	
  military	
   unit	
  would	
  not	
  be	
  involved	
  in	
  any	
  affairs	
  other	
  than	
  security	
  anymore20.	
  	
   	
   Subsequently,	
   there	
   is	
   a	
   huge	
   gap	
   between	
   demand	
   and	
   supply	
   of	
   wood.	
   This	
   is	
   a	
   result	
   of	
   uncontrolled	
   expansion	
   of	
   the	
   industry	
   by	
   greedy	
   businessmen	
   during	
   the	
   Soeharto	
   era.	
   The	
   demand	
   of	
   wood	
   industry	
   is	
   approximately	
   60	
   million	
   m3/	
   year.	
   However,	
   the	
   current	
   sustainable	
  supply	
  from	
  natural	
  forest	
  is	
  estimated	
  about	
  8-­‐9	
  million	
  m3/	
  year	
  and	
  about	
  7-­‐8	
   million	
   m3/	
   year	
   from	
   plantations.	
   Moreover,	
   more	
   than	
   a	
   quarter	
   of	
   Indonesia	
   production	
   forest	
   has	
   been	
   severely	
   damaged	
   thus	
   it	
   cannot	
   be	
   productive	
   anymore,	
   as	
   stated	
   by	
   the	
   Ministry	
  of	
  Forest21.	
   	
   Nevertheless,	
   the	
   current	
   Indonesian	
   government,	
   under	
   the	
   presidency	
   of	
   Susilo	
   Bambang	
   Yudhoyono,	
   has	
   been	
   actively	
   combating	
   illegal	
   logging	
   in	
   Indonesia.	
   Many	
   cases	
   regarding	
   illegal	
   logging	
   were	
   filed	
   in	
   court	
   and	
   investigated.	
   In	
   2005,	
   an	
   illegal	
   logging	
   investigation	
   in	
   Papua	
  was	
  launched	
  with	
  a	
  budget	
  of	
  $1.3	
  million.	
  Thirteen	
  people	
  were	
  convicted	
  as	
  the	
  result	
   of	
  the	
  operation22.	
  Starting	
  2010,	
  Indonesia	
  bans	
  non-­‐certified	
  wood	
  export23.	
  As	
  a	
  result,	
  the	
   most	
  recent	
  reports	
  suggest	
  that	
  the	
  number	
  of	
  illegal	
  logging	
  has	
  been	
  	
  decreasing24.	
   	
    	
    8	
    •  The	
  Rise	
  of	
  Palm	
  Oil	
  Plantation	
    Palm	
   oil	
   plantation	
   is	
   an	
   emerging	
   industry	
   in	
   Indonesia.	
   The	
   high	
   production	
   yield	
   and	
   high	
   economic	
   return	
   are	
   two	
   major	
   factors	
   of	
   why	
   the	
   industry	
   is	
   growing	
   rapidly.	
   Unfortunately,	
   it	
   acts	
  like	
  a	
  double-­‐edged	
  sword.	
  Although	
  it	
  brings	
  economical	
  benefits	
  and	
  alleviates	
  poverty,	
   palm	
  oil	
  industry	
  has	
  a	
  bad	
  impact	
  to	
  the	
  environment.	
  Many	
  peat	
  lands	
  are	
  drained	
  and	
  forests	
   are	
  cut	
  to	
  open	
  space	
  for	
  these	
  palm	
  oil	
  plantations.	
  The	
  Indonesian	
  Palm	
  Oil	
  Commision	
  (IPOC)	
   reported	
  that	
  there	
  are	
  approximately	
  7.4	
  million	
  ha	
  of	
  total	
  palm	
  oil	
  plantation	
  area	
  in	
  all	
  over	
   Indonesia	
  as	
  of	
  2009	
  and	
  many	
  of	
  these	
  lands	
  were	
  either	
  a	
  forest	
  or	
  a	
  peat	
  swamp25.	
  	
   	
   The	
   most	
   deforested	
   area	
   in	
   Indonesia	
   because	
   of	
   conversion	
   to	
   palm	
   oil	
   plantations	
   is	
   the	
   Central	
  Kalimantan	
  province.	
  In	
  Central	
  Kalimantan	
  alone,	
  there	
  are	
  approximately	
  763,000	
  ha	
   forest	
   lands	
   which	
   are	
   already	
   assigned,	
   but	
   not	
   yet	
   clear-­‐cut,	
   to	
   be	
   converted	
   into	
   palm	
   oil	
   plantations.	
   These	
   lands	
   will	
   be	
   deforested	
   at	
   some	
   point	
   to	
   open	
   space	
   for	
   the	
   palm	
   oil	
   plantation26.	
   	
   Palm	
   oil	
   plantation	
   is	
   also	
   the	
   cause	
   of	
   massive	
   degradation	
   of	
   peatlands	
   in	
   Indonesia.	
   In	
   Central	
   Kalimantan,	
   there	
   are	
   more	
   than	
   3	
   million	
   ha	
   of	
   peat	
   swamp	
   and	
   14%	
   of	
   it	
   has	
   been	
   converted	
   into	
   palm	
   oil	
   plantation	
   according	
   to	
   Forest	
   Watch	
   Indonesia26.	
   In	
   Riau,	
   a	
   peat	
   swamp	
  rich	
  province	
  in	
  Indonesia,	
  there	
  are	
  about	
  1.4	
  million	
  ha	
  palm	
  oil	
  plantations	
  and	
  one	
   third	
  of	
  these	
  plantations	
  are	
  created	
  on	
  once	
  carbon-­‐rich	
  peat	
  land.	
  According	
  to	
  Greenpeace	
   report,	
  there	
  are	
  about	
  3	
  million	
  ha	
  of	
  peatland	
  which	
  has	
  been	
  approved	
  by	
  the	
  Indonesia’s	
   government	
  to	
  be	
  converted	
  into	
  palm	
  oil	
  plantation.	
   	
   Furthermore,	
   palm	
   oil	
   plantation	
   also	
   escalates	
   the	
   danger	
   of	
   forest	
   fires	
   because	
   of	
   the	
   fire	
   used	
   in	
   land	
   preparation	
   for	
   cultivation.	
   Land	
   clearing	
   and	
   peat	
   drainage	
   are	
   also	
   done	
   by	
   burning	
   because	
   it	
   is	
   inexpensive	
   and	
   fast27.	
   According	
   to	
   many	
   reports,	
   satellite	
   images	
   of	
   forest	
  fire	
  hotspots	
  are	
  normally	
  observed	
  to	
  happen	
  near	
  palm	
  oil	
  plantation	
  concessions,	
  thus	
   it	
  supports	
  the	
  argument.	
  	
   	
    	
    9	
    Impacts Severe	
  deforestation	
  in	
  Indonesia	
  over	
  the	
  last	
  30	
  years	
  draws	
  serious	
  environmental	
  concern.	
   In	
  addition,	
  there	
  are	
  also	
  several	
  indirect	
  social	
  and	
  economical	
  drawbacks	
  associated	
  with	
  it.	
   	
   •  Environmental	
    Forest	
   is	
   often	
   dubbed	
   as	
   the	
   lung	
   of	
   the	
   earth	
   because	
   of	
   the	
   abundance	
   of	
   trees	
   that	
   convert	
   carbon	
   dioxide	
   into	
   oxygen,	
   thus	
   all	
   the	
   living	
   beings	
   on	
   earth	
   can	
   breathe	
   and	
   live.	
   In	
   fact,	
   forest	
  function	
  is	
  more	
  than	
  just	
  being	
  an	
  oxygen	
  provider.	
  Forest	
  also	
  functions	
  as	
  hydrological	
   system	
  control,	
  emission	
  filter,	
  climate	
  control	
  and	
  it	
  is	
  a	
  habitat	
  for	
  different	
  animal	
  and	
  plant	
   species.	
  Losing	
  forest	
  cover	
  means	
  that	
  we	
  are	
  losing	
  all	
  these	
  important	
  functions	
  that	
  support	
   human	
  existence.	
  Moreover,	
  deforestation	
  plays	
  a	
  pivotal	
  role	
  in	
  the	
  global	
  climate	
  change.	
   	
   The	
   major	
   direct	
   impact	
   of	
   deforestation	
   is	
   that	
   millions	
   of	
   species	
   lost	
   their	
   home.	
   Seventy	
   percent	
   of	
   land	
   animals	
   and	
   plants	
   live	
   in	
   the	
   forest28.	
   Many	
   of	
   these	
   species	
   are	
   forced	
   to	
   find	
   a	
   new	
   habitat	
   due	
   to	
   the	
   deforestation.	
   Unfortunately,	
   many	
   could	
   not	
   adapt	
   with	
   the	
   new	
   habitat.	
  One	
  of	
  the	
  popular	
  examples	
  of	
  this	
  observable	
  fact	
  is	
  the	
  orangutan	
  in	
  Kalimantan	
  and	
   Sumatra.	
   Because	
   many	
   of	
   their	
   homes	
   were	
   converted	
   into	
   palm	
   oil	
   plantations,	
   orangutan	
   population	
  went	
  down	
  significantly.	
  In	
  Kalimantan,	
  the	
  population	
  went	
  down	
  by	
  39%	
  between	
   1992	
  and	
  2002,	
  while	
  In	
  Sumatra,	
  the	
  population	
  declined	
  more	
  than	
  50%	
  between	
  1992	
  and	
   200029.	
  	
   	
   Subsequently,	
   forest	
   acts	
   as	
   hydrological	
   system.	
   With	
   deforestation,	
   there	
   is	
   no	
   more	
   hydrological	
   system	
   in	
   control.	
   In	
   tropical	
   area	
   with	
   heavy	
   rainfall	
   like	
   Indonesia,	
   it	
   can	
   cause	
   flooding	
   to	
   the	
   nearby	
   area30.	
   With	
   no	
   trees	
   absorbing	
   the	
   water,	
   the	
   rain	
   water	
   will	
   flow	
   directly	
   into	
   streams	
   and	
   increase	
   the	
   water	
   level	
   that	
   causes	
   flooding.	
   Furthermore,	
   forest	
   functions	
  as	
  water	
  filter.	
  Trees	
  filter	
  rainfall	
  to	
  provide	
  clean	
  water	
  in	
  the	
  rivers	
  and	
  aquifers.	
  In	
   East	
  Kalimantan,	
  the	
  Indonesian	
  village	
  of	
  Lamcin	
  was	
  heavily	
  dependent	
  on	
  the	
  nearby	
  Kelay	
   river	
   for	
   their	
   daily	
   needs.	
   Due	
   to	
   the	
   heavy	
   logging	
   and	
   deforestation,	
   the	
   water	
   quality	
   in	
   the	
    	
    10	
    river	
   declined	
   and	
   the	
   villagers	
   had	
   trouble	
   finding	
   a	
   clean	
   water	
   source.	
   Fortunately,	
   USAID	
   helped	
  them	
  with	
  a	
  clean	
  water	
  project	
  which	
  pipe	
  in	
  fresh	
  clean	
  water	
  from	
  a	
  forest	
  spring31.	
  	
   	
   Moreover,	
   forests	
   loss	
   also	
   drives	
   climate	
   change.	
   Deforested	
   area	
   tends	
   to	
   get	
   hotter	
   and	
   dryer.	
   Trees	
   precipitate	
   moistures	
   during	
   the	
   day	
   and	
   contribute	
   to	
   the	
   humidity	
   and	
   soil	
   moisture.	
  As	
  there	
  are	
  fewer	
  trees	
  due	
  to	
  deforestation,	
  the	
  number	
  of	
  rainfalls	
  is	
  observed	
  to	
   decline	
   and	
   the	
   temperature	
   in	
   the	
   deforested	
   area	
   is	
   expected	
   to	
   increase.	
   Furthermore,	
   desertification	
  may	
  happen	
  in	
  the	
  deforested	
  area	
  because	
  there	
  is	
  no	
  more	
  tree	
  canopy	
  that	
   protects	
   the	
   soil	
   from	
   direct	
   sun	
   heat	
   and	
   also	
   due	
   to	
   lack	
   of	
   precipitation.	
   Fewer	
   trees	
   also	
   means	
   that	
   there	
   are	
   more	
   greenhouse	
   gases	
   and	
   pollution	
   in	
   the	
   air	
   since	
   there	
   are	
   not	
   as	
   many	
   trees	
   that	
   absorb	
   and	
   filter	
   them	
   as	
   before.	
   All	
   these	
   will	
   increase	
   the	
   rate	
   of	
   global	
  	
   climate	
  change28	
   	
   •  Social	
  and	
  Economical	
    Deforestation	
  also	
  affects	
  the	
  social	
  and	
  economical	
  aspects	
  of	
  human	
  life	
  indirectly.	
  Some	
  of	
   the	
  indirect	
  effects	
  are	
  derived	
  from	
  the	
  environmental	
  impact	
  mentioned	
  earlier.	
  Flooding	
  can	
   cause	
  crop	
  failures,	
  disruption	
  of	
  economic	
  activities,	
  and	
  also	
  increases	
  the	
  likelihood	
  of	
  water-­‐ borne	
  and	
  vector-­‐borne	
  diseases32.	
  The	
  case	
  of	
  unavailable	
  clean	
  fresh	
  water	
  in	
  Lamcin	
  village,	
   East	
  Kalimantan,	
  is	
  also	
  a	
  good	
  example	
  that	
  deforestation	
  can	
  decrease	
  the	
  quality	
  of	
  people’s	
   lives31.	
   	
   Deforestation	
  does	
  not	
  only	
  affect	
  socioeconomic	
  aspects	
  locally,	
  but	
  also	
  nationally.	
  According	
   to	
   a	
   Human	
   Rights	
   Watch	
   (HRW)	
   report,	
   illegal	
   logging	
   and	
   forest	
   corruption	
   has	
   caused	
   Indonesia	
  an	
  estimate	
  of	
  $2	
  billion	
  revenue	
  loss	
  in	
  2006.	
  This	
  total	
  loss	
  estimate	
  is	
  a	
  result	
  from	
   uncollected	
   forest	
   royalties	
   and	
   taxes,	
   massive	
   unacknowledged	
   forest	
   subsidies,	
   and	
   tax	
   evasion	
  scam	
  by	
  exporters33.	
   	
   Subsequently,	
   deforestation	
   also	
   has	
   negative	
   social	
   impact	
   to	
   the	
   local	
   forest	
   dependent	
   people.	
   These	
   indigenous	
   people	
   suffice	
   their	
   daily	
   needs	
   by	
   harvesting	
   resources	
   from	
   the	
    	
    11	
    local	
   forest	
   sustainably.	
   With	
   deforestation,	
   these	
   people	
   are	
   being	
   pushed	
   away	
   from	
   their	
   home.	
   In	
   Indonesia,	
   logging	
   companies	
   and	
   palm	
   oil	
   businesses	
   often	
   deceive	
   the	
   locals	
   to	
   gain	
   their	
  land	
  in	
  the	
  cheapest	
  way	
  possible.	
  Sawit	
  Watch	
  recorded	
  several	
  cases	
  of	
  this	
  incident,	
  in	
   which	
  several	
  communities	
  are	
  trapped	
  by	
  debt	
  to	
  private	
  companies34.	
   	
    REDUCING	
   DEFORESTATION	
   AND	
   FOREST	
   DEGRADATION	
   (REDD)	
   Defining REDD and REDD+ REDD	
  is	
  the	
  abbreviation	
  for	
  Reducing	
  Emission	
  from	
  Deforestation	
  and	
  Forest	
  Degradation.	
  It	
   is	
   a	
   programme	
   which	
   helps	
   developing	
   countries	
   in	
   reducing	
   their	
   rate	
   of	
   deforestation	
   and	
   forest	
   degradation.	
   The	
   idea	
   was	
   originated	
   back	
   in	
   2005,	
   during	
   the	
   COP-­‐11	
   meeting	
   when	
   Coalition	
   of	
   Rainforest	
   Nations	
   requested	
   to	
   consider	
   “reducing	
   emission	
   from	
   deforestation”	
   because	
  it	
  was	
  not	
  included	
  in	
  the	
  1999	
  Kyoto	
  Protocol.	
  Finally,	
  in	
  the	
  COP-­‐13,	
  an	
  agreement	
  on	
   the	
  urgent	
  need	
  to	
  take	
  action	
  to	
  reduce	
  emission	
  from	
  deforestation	
  and	
  forest	
  degradation	
  is	
   reached.	
  This	
  is	
  the	
  start	
  of	
  the	
  development	
  of	
  the	
  current	
  REDD	
  mechanism35.	
  	
   	
   REDD+	
   is	
   the	
   evolvement	
   of	
   REDD.	
   REDD+	
   objective	
   is	
   not	
   only	
   to	
   reduce	
   emission	
   from	
   deforestation	
   and	
   degradation,	
   but	
   also	
   to	
   enhance	
   the	
   carbon	
   stock	
   and	
   to	
   manage	
   forest	
   sustainably.	
  According	
  to	
  the	
  last	
  UNFCC	
  CoP	
  definition,	
  as	
  described	
  in	
  the	
  REDD	
  text	
  from	
  the	
   Cancun	
  agreement,	
  REDD	
  activities	
  are	
  the	
  followings:	
   •  Reducing	
  emission	
  from	
  deforestation	
    •  Reducing	
  emission	
  from	
  forest	
  degradation	
    •  Conservation	
  of	
  forest	
  carbon	
  stocks	
    •  Sustainable	
  management	
  of	
  forest	
    •  Enhancement	
  of	
  forest	
  carbon	
  stocks36.	
    	
   	
   	
    	
    12	
    Ø  REDD	
  mechanism	
    REDD	
  mechanism	
  is	
  divided	
  into	
  three	
  phases:	
   •  Phase	
  1.	
  REDD	
  Readiness	
    Initial	
   supports	
   which	
   are	
   financed	
   by	
   voluntary	
   fund	
   from	
   different	
   nations	
   and	
   other	
   institutions.	
   	
   •  Phase	
  2.	
  Reforms	
  and	
  Investment	
    Continued	
  financing	
  based	
  on	
  performance	
  of	
  the	
  implementation	
  of	
  REDD	
  strategy	
   	
   •  Phase	
  3.	
  Global	
  REDD	
  Fund/	
  Market	
    Market	
   based	
   mechanism	
   on	
   rewarding	
   quantifiable	
   emission	
   reduction	
   and	
   carbon	
   sequestration37.	
   	
   Ø  REDD	
  Readiness	
    REDD	
  readiness	
  is	
  generally	
  referred	
  to	
  the	
  readiness	
  of	
  a	
  country	
  to	
  receive	
  and	
  to	
  positively	
   channel	
   the	
   fund	
   from	
   the	
   post-­‐2012	
   REDD+	
   payment.	
   REDD	
   readiness	
   also	
   prepares	
   the	
   integration	
   of	
   REDD	
   with	
   the	
   private	
   carbon	
   markets	
   in	
   the	
   future.	
   This	
   readiness	
   is	
   very	
   important	
   to	
   REDD’s	
   success	
   because	
   most	
   countries,	
   who	
   are	
   eligible	
   for	
   REDD,	
   need	
   a	
   significant	
  capacity	
  improvement	
  in	
  their	
  current	
  forest	
  management	
  and	
  forest	
  governance37.	
   The	
  activities	
  to	
  prepare	
  this	
  REDD	
  readiness	
  involve	
  the	
  following:	
   -­‐  Developing	
   effective	
   and	
   equitable	
   strategy	
   to	
   reduce	
   emissions	
   through	
   local	
    stakeholder	
  consultation	
   -­‐  Capacity	
  building	
  for	
  institutions,	
  techniques,	
  and	
  human	
  resources	
    -­‐  Designing	
   and	
   implementing	
   Monitoring,	
   Reporting,	
   and	
   Verification	
   (MRV)	
    system	
  and	
  the	
  forest	
  carbon	
  accounting	
  system	
    	
    -­‐  Developing	
  reference	
  and	
  baseline	
  measurement	
  for	
  emission	
  reduction	
    -­‐  Developing	
  mechanism	
  to	
  protect	
  the	
  interest	
  of	
  the	
  poor	
    -­‐  Developing	
  transparent,	
  equitable,	
  and	
  accountable	
  benefit	
  sharing	
  mechanism	
    -­‐  Clarifying	
  land,	
  forest,	
  and	
  carbon	
  tenures37	
   13	
    Ø  REDD	
  supports	
    The	
   REDD	
   programme	
   is	
   carried	
   on	
   and	
   led	
   by	
   different	
   nations,	
   international	
   NGOs,	
   private	
   sectors,	
  or	
  any	
  combination	
  of	
  these	
  organizations.	
  World	
  Bank	
  and	
  the	
  United	
  Nations,	
  with	
  its	
   UN-­‐REDD	
   programme,	
   are	
   the	
   two	
   biggest	
   international	
   contributors	
   who	
   are	
   actively	
   in	
   support	
  of	
  REDD.	
   	
   •  World	
  Bank	
    World	
  Bank	
  supports	
  the	
  REDD	
  project	
  with	
  its	
  Forest	
  Carbon	
  Partnership	
  Facility	
  which	
  helps	
  in	
   the	
   funding	
   for	
   REDD	
   eligible	
   countries	
   based	
   on	
   their	
   performance	
   in	
   developing	
   REDD	
   strategy	
   and	
   readiness.	
   World	
   Bank	
   also	
   helps	
   REDD	
   with	
   its	
   Forest	
   Investment	
   Programme	
   which	
  also	
  collects	
  fund	
  to	
  finance	
  projects	
  that	
  are	
  related	
  to	
  REDD.	
   	
   •  UN-­‐REDD	
  programme	
    UN-­‐REDD	
   programme	
   is	
   a	
   United	
   Nation’s	
   collaborative	
   programme.	
   It	
   was	
   launched	
   in	
   2008	
   and	
   work	
   with	
   supports	
   of	
   expertise	
   from	
   Food	
   and	
   Agriculture	
   Organization	
   of	
   United	
   Nations	
   (FAO),	
   United	
   Nations	
   Development	
   Programme	
   (UNDP),	
   and	
   United	
   Nations	
   Environment	
   Programme	
   (UNEP).	
   	
   The	
   UN-­‐REDD	
   programme	
   supports	
   REDD+	
   projects	
   which	
   are	
   led	
   by	
   different	
  nations	
  and	
  currently	
  focuses	
  to	
  help	
  for	
  REDD	
  readiness	
  in	
  different	
  countries38.	
   	
   REDD in Indonesia There	
   are	
   many	
   different	
   ongoing	
   REDD	
   activities	
   in	
   Indonesia	
   which	
   are	
   led	
   by	
   different	
   organizations	
   or	
   nations.	
   The	
   most	
   significant	
   one	
   is	
   the	
   $1	
   billion	
   agreement	
   with	
   Norway.	
   There	
   are	
   also	
   REDD	
   readiness	
   programmes	
   with	
   the	
   help	
   of	
   the	
   Australian	
   government,	
   The	
   Nature	
  Conservancy	
  (TNC),	
  the	
  World	
  Agroforestry	
  Center	
  (ICRAF),	
  and	
  other	
  organizations	
   	
   Ø  Norway-­‐Indonesia	
  agreement	
    On	
  24th	
  of	
  May	
  2010,	
  Indonesia	
  signed	
  a	
  letter	
  of	
  intent	
  with	
  Norway	
  to	
  reduce	
  deforestation	
   by	
   having	
   2	
   years	
   moratorium	
   on	
   new	
   logging	
   concession.	
   In	
   return,	
   Norway	
   pledged	
   to	
   pay	
   $1bilion	
  to	
  Indonesia	
  over	
  the	
  next	
  7-­‐8	
  years.	
  The	
  agreement	
  is	
  a	
  follow	
  up	
  of	
  the	
  commitment	
    	
    14	
    made	
  by	
  the	
  current	
  Indonesian	
  president,	
  Susilo	
  Bambang	
  Yudhoyono,	
  to	
  reduce	
  Indonesia’s	
   CO2	
  emission	
  by	
  26%	
  in	
  2020.	
  	
   	
   Unfortunately,	
   the	
   moratorium	
   is	
   now	
   (March	
   2011)	
   stalled	
   since	
   president	
   Susilo	
   Bambang	
   Yudhoyono	
  has	
  yet	
  to	
  sign	
  a	
  decree	
  for	
  the	
  moratorium	
  to	
  be	
  binding.	
  The	
  president	
  is	
  yet	
  to	
   sign	
   the	
   decree	
   because	
   there	
   are	
   three	
   proposed	
   decrees	
   and	
   he	
   hasn’t	
   decided	
   on	
   which	
   decree	
   to	
   sign.	
   The	
   first	
   proposed	
   decree	
   was	
   written	
   by	
   the	
   Indonesia	
   Ministry	
   of	
   Forestry,	
   dated	
   21	
   December	
   2010.	
   The	
   second	
   decree	
   was	
   created	
   by	
   the	
   REDD	
   task	
   force,	
   created	
   part	
   of	
  the	
  Indonesia	
  –	
  Norway	
  deal;	
  which	
  was	
  proposed	
  to	
  the	
  president	
  two	
  days	
  after	
  the	
  first	
   decree	
   was	
   out.	
   The	
   last	
   decree	
   was	
   proposed	
   by	
   the	
   Coordinating	
   Minister	
   of	
   Economy	
   in	
   January	
   2011.	
   There	
   is	
   an	
   important	
   difference	
   between	
   the	
   decrees	
   proposed	
   by	
   the	
   Indonesia’s	
  officials	
  and	
  by	
  the	
  REDD	
  task	
  force.	
  The	
  decrees	
  proposed	
  by	
  the	
  Ministry	
  of	
  Forest	
   and	
  the	
  Coordinating	
  Minister	
  of	
  Economy	
  stated	
  that	
  the	
  logging	
  concession	
  moratorium	
  will	
   only	
   apply	
   to	
   primary	
   forest,	
   while	
   the	
   decree	
   written	
   by	
   the	
   REDD	
   task	
   force	
   apply	
   to	
   any	
   forests.	
   If	
   President	
   Susilo	
   Bambang	
   Yudhoyono	
   decide	
   to	
   sign	
   the	
   decree	
   presented	
   by	
   his	
   officials,	
   then	
  the	
  agreement	
  with	
  Norway	
  will	
  be	
  meaningless.	
  The	
  primary	
  forest	
  was	
  not	
  supposed	
  to	
   be	
  harvested	
  in	
  the	
  first	
  place,	
  even	
  if	
  there	
  were	
  no	
  moratorium,	
  because	
  the	
  primary	
  forest	
   falls	
  under	
  the	
  category	
  of	
  protection	
  forest39.	
  	
   	
   Ø  Indonesia	
  National	
  REDD+	
  Strategy	
    To	
   help	
   REDD	
   programme	
   in	
   Indonesia,	
   BAPPENAS	
   (National	
   Development	
   Planning	
   Agency)	
   and	
   UN-­‐REDD	
   has	
   collaboratively	
   been	
   working	
   on	
   a	
   National	
   REDD+	
   Strategy.	
   The	
   first	
   draft	
   has	
   been	
   reviewed	
   and	
   revised	
   in	
   September	
   2010	
   and	
   will	
   be	
   the	
   roadmap	
   for	
   REDD	
   development	
  in	
  Indonesia.	
   	
   The	
   draft	
   discusses	
   underlying	
   causes	
   of	
   deforestation	
   and	
   forest	
   degradation	
   in	
   Indonesia,	
   activities	
   which	
   have	
   been	
   done	
   in	
   REDD	
   readiness,	
   the	
   formulation	
   of	
   REDD+	
   National	
   Strategy,	
   MRV	
   (Measurable	
   Reportable	
   and	
   Verifiable)	
   System	
   development,	
   future	
    	
    15	
    reformation	
  strategy	
  development	
  in	
  related	
  sectors,	
  and	
  the	
  implementation	
  and	
  integration	
   of	
  REDD	
  with	
  the	
  RPJMN	
  (National	
  Medium	
  Term	
  Development	
  Plan)	
  in	
  the	
  future.	
  The	
  strategy	
   also	
   highlights	
   the	
   importance	
   of	
   involving	
   and	
   educating	
   multiple	
   stakeholders	
   in	
   national,	
   provincial,	
   and	
   regional	
   levels.	
   It	
   also	
   stated	
   the	
   importance	
   of	
   integrating	
   the	
   strategy	
   into	
   the	
   national	
  (RPJMN)	
  and	
  regional	
  planning	
  system17	
   	
    DISCUSSIONS:	
    REDD	
    DEVELOPMENT,	
    ISSUES,	
    AND	
    CHALLENGES	
  IN	
  INDONESIA	
   There	
   are	
   many	
   threats,	
   issues,	
   and	
   challenges	
   to	
   the	
   development	
   of	
   REDD	
   and	
   to	
   a	
   sustainable	
  forest	
  industry	
  as	
  a	
  whole	
  in	
  Indonesia.	
  Politics	
  and	
  corruption	
  are	
  the	
  two	
  biggest	
   issues	
   in	
   Indonesia.	
   Moreover,	
   there	
   are	
   social	
   and	
   economic	
   debates	
   in	
   the	
   attempt	
   of	
   reducing	
  deforestation	
  and	
  forest	
  degradation	
  in	
  Indonesia.	
  	
   	
   The	
  latest	
  REDD+	
  National	
  Strategy	
  also	
  mentioned	
  the	
  main	
  underlying	
  causes	
  of	
  deforestation	
   and	
  degradation	
  In	
  Indonesia.	
  These	
  underlying	
  causes	
  evolve	
  from	
  the	
  issues	
  and	
  challenges	
   that	
  Indonesia	
  is	
  currently	
  facing.	
  All	
  the	
  issues	
  are	
  once	
  again	
  related	
  to	
  either	
  politic,	
  human	
   resource	
  capacity,	
  or	
  social	
  economic	
  values.	
  Below	
  are	
  the	
  causes	
  listed	
  in	
  the	
  REDD+	
  National	
   Strategy:	
   •  Weak	
  Spatial	
  Planning	
    •  Land	
  Tenure	
  Problem	
    •  Weak	
  Forest	
  Management	
    •  Weak	
  Governance	
    •  Weak	
  Law	
  Enforcement	
  and	
  Legal	
  Basis17	
    	
   Politics Indonesia’s	
  politics	
  always	
  play	
  a	
  part	
  in	
  the	
  Indonesia’s	
  Forestry	
  sector.	
  Indonesia’s	
  politics	
  are	
   heavily	
  influenced	
  by	
  many	
  conglomerates	
  in	
  Indonesia	
  since	
  many	
  Indonesian	
  politicians	
  often	
   receive	
   their	
   supports	
   from	
   the	
   business	
   community	
   and	
   many	
   of	
   the	
   politicians	
   are	
    	
    16	
    businessmen	
   themselves.	
   Two	
   out	
   of	
   the	
   tenth	
   richest	
   businessmen	
   in	
   Indonesia	
   have	
   their	
   main	
  business	
  in	
  forestry	
  sector	
  and	
  seven	
  others	
  have	
  related	
  business	
  in	
  the	
  forestry	
  sector.	
   These	
   conglomerates	
   often	
   use	
   their	
   power	
   through	
   politics	
   to	
   gain	
   land	
   rights	
   or	
   to	
   convert	
   forest	
  land	
  designation	
  for	
  the	
  benefit	
  of	
  their	
  businesses.	
   	
   There	
   are	
   several	
   news	
   reports	
   regarding	
   these	
   practices.	
   However,	
   these	
   businessmen	
   could	
   somehow	
  still	
  get	
  what	
  they	
  want	
  and	
  escaped	
  with	
  no	
  punishment	
  or	
  very	
  little	
  consequences.	
   For	
  example,	
  the	
  recent	
  usage	
  conversion	
  for	
  14	
  hectare	
  conservation	
  forest	
  in	
  Gorontalo	
  into	
   production	
   forest	
   is	
   linked	
   with	
   the	
   expansion	
   of	
   one	
   of	
   the	
   sub-­‐companies	
   of	
   Bakrie	
   Group.	
   Bakrie	
  Group	
  is	
  owned	
  by	
  the	
  current	
  Minister	
  of	
  Arts	
  and	
  Culture,	
  also	
  the	
  richest	
  businessman	
   in	
  Indonesia	
  in	
  2010,	
  Aburizal	
  Bakrie.	
  The	
  Gorontalo	
  forest	
  is	
  suspected	
  to	
  be	
  converted	
  into	
  a	
   gold	
  mine	
  as	
  the	
  area	
  is	
  known	
  to	
  be	
  rich	
  with	
  gold40.	
   	
   Corruption Corruption	
   is	
   a	
   really	
   big	
   issue	
   in	
   Indonesia.	
   Although	
   there	
   are	
   some	
   improvements	
   in	
   transparency	
  which	
  was	
  shown	
  by	
  the	
  increase	
  of	
  the	
  Indonesia’s	
  corruption	
  perception	
  index	
   (CPI).	
   Despite	
   the	
   CPI	
   increase,	
   Indonesia	
   is	
   still	
   one	
   of	
   the	
   most	
   corrupt	
   countries	
   in	
   the	
   world.	
   According	
  to	
  transparency	
  international,	
  Indonesia	
  is	
  ranked	
  110th	
  with	
  other	
  six	
  countries	
  with	
   CPI	
  of	
  2.8.	
  This	
  CPI	
  has	
  increased	
  dramatically	
  from	
  1.9	
  in	
  2002	
  which	
  may	
  has	
  been	
  the	
  result	
   of	
  the	
  establishment	
  of	
  Corruption	
  Eradication	
  Commission	
  (KPK)	
  in	
  200241.	
   According	
   to	
   transparency	
   international,	
   corruption	
   activities	
   can	
   come	
   in	
   many	
   different	
   forms,	
   such	
   as	
   nepotism,	
   bribery,	
   fraud,	
   and	
   extortion42.	
   Human	
   Resource	
   Watch	
   released	
   a	
   report	
  which	
  predicted	
  that	
  Indonesia	
  is	
  losing	
  around	
  $2	
  billion	
  from	
  corruption	
  in	
  the	
  forestry	
   sector	
   annually33.	
   Corruption	
   related	
   to	
   the	
   forestry	
   sector	
   happens	
   in	
   different	
   levels.	
   The	
   levels	
  can	
  be	
  categorized	
  as	
  follows:	
   1.  The	
  Forest	
  Management	
  Agencies	
    These	
   agencies	
   are	
   those	
   who	
   are	
   responsible	
   for	
   forest	
   management	
   and	
   administration	
   activities,	
   such	
   as	
   monitoring	
   and	
   recording	
   harvest,	
   issuing	
   logging	
   documents,	
   collecting	
   fees,	
   and	
   log	
   logistics.	
   At	
   the	
   district	
   level,	
   common	
   corrupt	
    	
    17	
    activities	
   include	
   allowing	
   excess	
   harvesting	
   without	
   penalty	
   or	
   report,	
   falsely	
   documenting	
  species	
  harvested	
  to	
  avoid	
  higher	
  fees	
  for	
  “expensive”	
  species,	
  and	
  wood	
   laundering.	
  Wood	
  laundering	
  is	
  the	
  activity	
  of	
  allowing	
  other	
  wood	
  from	
  other	
  area	
  to	
   be	
   brought	
   in	
   and	
   mixed	
   with	
   the	
   timber	
   harvested	
   from	
   a	
   legal	
   concession.	
   At	
   national	
   level,	
   the	
   common	
   corrupt	
   activities	
   are	
   to	
   alter	
   forest	
   zoning	
   or	
   designation	
   and	
   to	
   increase	
   the	
   logging	
   allowance	
   capacity.	
   There	
   are	
   reports	
   from	
   the	
   business	
   people	
   that	
   officials	
   demand	
   the	
   bribes	
   openly	
   by	
   dubbing	
   it	
   as	
   “operation	
   fees”,	
   “entertainment	
   fees”,	
   or	
   “other	
   intangible	
   fees”.	
   There	
   are	
   reports	
   that	
   mention	
   the	
   amount	
  of	
  bribe	
  can	
  determine	
  the	
  speed	
  for	
  the	
  paper	
  works	
  to	
  be	
  completed	
  by	
  the	
   officials.	
   	
   2.  The	
  Law	
  Enforcement	
  Agencies	
    Illegal	
   logging	
   suspects	
   can	
   easily	
   bribe	
   the	
   law	
   enforcement	
   officials	
   to	
   suspend	
   investigation	
   or	
   to	
   manipulate	
   evidence	
   and	
   to	
   present	
   false	
   witnesses.	
   Alternatively,	
   the	
  suspect	
  can	
  arrange	
  the	
  time	
  of	
  sweeping	
  of	
  illegal	
  logging	
  with	
  one	
  of	
  the	
  official	
  so	
   that	
   there	
   will	
   be	
   no	
   illegal	
   activities	
   found	
   at	
   the	
   time	
   of	
   sweeping,	
   but	
   the	
   logged	
   wood.	
  At	
  a	
  later	
  time,	
  the	
  illegal	
  loggers	
  will	
  buy	
  back	
  the	
  wood	
  at	
  an	
  auction	
  to	
  sell	
  the	
   wood	
   at	
   a	
   lower	
   price	
   than	
   the	
   legal	
   price.	
   Some	
   reports	
   even	
   declared	
   investigators	
   have	
   seen	
   many	
   cases	
   where	
   the	
   wood	
   was	
   being	
   loaded	
   directly	
   for	
   shipping	
   by	
   the	
   officials	
  before	
  the	
  auction	
  even	
  began.	
   	
   3.  The	
  Judiciary	
    In	
  judiciary	
  level,	
  often	
  times	
  the	
  prosecutor	
  demand	
  bribes	
  to	
  the	
  suspect	
  before	
  the	
   court	
  begin.	
  In	
  exchange,	
  the	
  prosecutor	
  will	
  drop	
  his	
  charges.	
  If	
  the	
  case	
  is	
  still	
  open,	
   the	
   prosecutor	
   can	
   withhold	
   the	
   evidence	
   or	
   draw	
   a	
   false	
   witness.	
   Suspect	
   can	
   also	
   bribe	
  the	
  judge	
  to	
  favour	
  the	
  suspect	
  or	
  bribe	
  the	
  clerk	
  to	
  destroy	
  the	
  evidence33.	
   	
   	
   	
    	
    18	
    Human Resource Capacity Bad	
   politics,	
   corruption,	
   unsustainable	
   practices	
   and	
   all	
   unlawful	
   actions	
   root	
   back	
   to	
   the	
   capacity	
   of	
   the	
   human	
   resources	
   in	
   Indonesia.	
   Capacity	
   here	
   refers	
   to	
   knowledge,	
   mentality,	
   ethics	
   and	
   character.	
   Education	
   and	
   culture	
   play	
   a	
   big	
   role	
   in	
   developing	
   people’s	
   capacity.	
   Unfortunately,	
   Indonesia	
   human	
   resource	
   capacity	
   is	
   far	
   from	
   ideal.	
   Many	
   people	
   never	
   received	
   a	
   proper	
   education	
   and	
   many	
   children	
   can’t	
   afford	
   to	
   go	
   to	
   school.	
   In	
   addition,	
   the	
   people	
  who	
  are	
  less	
  educated	
  are	
  those	
  who	
  are	
  generally	
  live	
  close	
  to	
  a	
  forest	
  area,	
  in	
  which	
   the	
   area	
   is	
   less	
   or	
   not	
   yet	
   been	
   developed.	
   Moreover,	
   most	
   Indonesian	
   will	
   not	
   be	
   able	
   to	
   answer	
   what	
   the	
   Bahasa	
   Indonesia	
   of	
   “sustainability”	
   is,	
   since	
   there	
   is	
   no	
   word	
   for	
   it	
   in	
   Indonesia	
   yet.	
   The	
   closest	
   translation	
   is	
   “berkelanjutan”	
   which	
   can	
   be	
   translated	
   directly	
   as	
   “continuous”.	
   	
   In	
  addition,	
  many	
  Indonesian	
  citizens	
  have	
  a	
  weak	
  mentality	
  and	
  a	
  poor	
  character.	
  This	
  might	
   have	
   been	
   the	
   after-­‐effect	
   of	
   being	
   colonized	
   more	
   than	
   350	
   years	
   by	
   the	
   Dutch	
   and	
   being	
   pressed	
  under	
  the	
  Soeharto	
  dictatorship.	
  Certainly	
  there	
  are	
  some	
  people	
  with	
  good	
  character	
   and	
   strong	
   mentality.	
   However,	
   their	
   number	
   is	
   relatively	
   small	
   compared	
   to	
   the	
   whole	
   population.	
   Although	
   there	
   is	
   no	
   scientific	
   report,	
   one	
   of	
   observable	
   examples	
   of	
   the	
   weak	
   mentality	
  is	
  that	
  Indonesia	
  people	
  tend	
  to	
  act	
  like	
  a	
  “servant”	
  or	
  a	
  “follower”,	
  rather	
  than	
  as	
  a	
   “leader”.	
  They	
  rarely	
  take	
  any	
  proactive	
  actions.	
  Moreover,	
  Indonesian	
  people	
  tend	
  to	
  look	
  for	
   the	
  easiest	
  way,	
  but	
  not	
  the	
  best	
  way,	
  to	
  solve	
  a	
  problem;	
  or	
  in	
  other	
  word	
  it	
  will	
  only	
  postpone	
   the	
   problem.	
   Ethically,	
   Indonesia	
   people	
   always	
   look	
   for	
   opportunities	
   to	
   fulfill	
   their	
   personal	
   interest	
  even	
  it	
  means	
  that	
  they	
  have	
  to	
  harm	
  their	
  surroundings.	
  This	
  explains	
  why	
  Indonesia	
   has	
  a	
  high	
  rate	
  of	
  corruption	
  and	
  home	
  to	
  one	
  of	
  the	
  largest	
  illegal	
  logging	
  in	
  the	
  world.	
  There	
   are	
   still	
   many	
   others	
   poor	
   characters	
   that	
   have	
   been	
   cultured	
   to	
   the	
   lifestyle	
   of	
   Indonesia	
   people	
  and	
  in	
  need	
  to	
  be	
  changed.	
   	
   Social and Economic Social	
   and	
   economic	
   versus	
   the	
   environment	
   is	
   always	
   the	
   debate	
   in	
   sustainability	
   issues,	
   Indonesia	
   is	
   not	
   an	
   exception	
   from	
   this	
   reality.	
   In	
   fact,	
   the	
   politic	
   practices	
   and	
   corruption	
   in	
    	
    19	
    Indonesia	
  are	
  heavily	
  related	
  to	
  the	
  economy.	
  Palm	
  oil	
  plantation	
  owners	
  would	
  always	
  argue	
   that	
   their	
   industry	
   actually	
   created	
   jobs	
   for	
   the	
   community,	
   thus	
   benefiting	
   the	
   people;	
   although	
  it	
  also	
  means	
  an	
  environmental	
  degradation.	
  	
   	
   The	
   REDD	
   National	
   Strategy	
   also	
   mentioned	
   about	
   this	
   issue	
   in	
   the	
   discussion	
   of	
   the	
   scarcity	
   of	
   alternative	
  livelihood	
  and	
  income	
  sources.	
  Before,	
  the	
  indigenous	
  people	
  used	
  to	
  be	
  able	
  to	
  live	
   in	
  the	
  forest	
  areas	
  sustainably.	
  	
  However,	
  due	
  to	
  massive	
  population	
  increase,	
  modernization	
   and	
   globalization,	
   the	
   practices	
   become	
   unsustainable.	
   The	
   land	
   is	
   burdened	
   with	
   the	
   increasing	
  population,	
  while	
  the	
  productivity	
  of	
  the	
  forest	
  and	
  the	
  people	
  remains	
  the	
  same.	
  On	
   the	
  other	
  hand,	
  modernization	
  and	
  globalization	
  has	
  triggered	
  an	
  increase	
  in	
  consumption	
  and	
   lifestyle	
   needs.	
   In	
   example,	
   some	
   of	
   these	
   indigenous	
   people	
   now	
   own	
   satellite	
   TVs	
   in	
   their	
   homes.	
  This	
  created	
  an	
  unbalance	
  income	
  and	
  expenses	
  which	
  leads	
  to	
  unsustainable	
  practices,	
   such	
  as	
  the	
  illegal	
  logging	
  or	
  excessive	
  harvesting,	
  to	
  offset	
  the	
  unbalance17.	
   	
    RECCOMENDATIONS:	
  PATHWAY	
  TO	
  A	
  SUSTAINABLE	
  FUTURE	
   Undoubtedly,	
  forest	
  industry	
  has	
  been	
  and	
  is	
  a	
  significant	
  contributor	
  to	
  the	
  strong	
  economy	
  of	
   Indonesia,	
   thus	
   it	
   plays	
   an	
   immense	
   role	
   to	
   the	
   well-­‐being	
   of	
   the	
   people	
   of	
   Indonesia.	
   Unfortunately,	
   Indonesia	
   forest	
   industry	
   has	
   been	
   practiced	
   in	
   an	
   unsustainable	
   manner	
   for	
   decades.	
   The	
   REDD	
   movement,	
   which	
   were	
   initiated	
   in	
   the	
   UNFCC	
   CoP	
   13	
   meeting,	
   offers	
   a	
   great	
   opportunity	
   to	
   change	
   the	
   forest	
   industry	
   in	
   Indonesia	
   towards	
   a	
   sustainable	
   industry.	
   However,	
   there	
   are	
   still	
   plenty	
   of	
   challenges	
   and	
   issues	
   that	
   need	
   solutions	
   for	
   the	
   REDD	
   movement	
   to	
   be	
   efficiently	
   carried	
   out	
   in	
   Indonesia,	
   as	
   discussed	
   previously.	
   This	
   section	
   discusses	
  potential	
  solutions	
  and	
  offers	
  recommendations	
  for	
  those	
  issues	
  and	
  challenges.	
   	
   Education, Capacity Building, and Mentality Shift Having	
   a	
   good	
   human	
   resource	
   capacity	
   will	
   ensure	
   the	
   success	
   of	
   the	
   delivery	
   of	
   REDD	
   in	
   Indonesia.	
   Without	
   enough	
   knowledge,	
   people	
   would	
   not	
   understand	
   and	
   care	
   about	
   what	
   REDD	
   is.	
   The	
   people	
   who	
   live	
   near	
   forest	
   areas	
   are	
   the	
   most	
   critical	
   target	
   audience	
   that	
   needs	
   to	
  be	
  addressed	
  because	
  of	
  the	
  following	
  two	
  reasons.	
  First,	
  they	
  are	
  generally	
  less	
  educated	
    	
    20	
    since	
  they	
  live	
  in	
  rural	
  areas	
  where	
  there	
  are	
  no	
  schools	
  around.	
  Second,	
  their	
  life	
  is	
  normally	
   dependant	
   on	
   the	
   forest.	
   The	
   old	
   ways	
   used	
   to	
   be	
   that	
   they	
   harvested	
   from	
   the	
   forest	
   sustainably.	
   However,	
   with	
   the	
   increasing	
   population	
   and	
   lifestyle,	
   they	
   now	
   also	
   involve	
   in	
   illegal	
   loggings	
   and	
   other	
   unsustainable	
   practices.	
   Through	
   educating	
   the	
   people	
   of	
   Indonesia	
   about	
   the	
   importance	
   of	
   sustainability	
   and	
   the	
   threat	
   of	
   climate	
   change,	
   the	
   people	
   will	
   care	
   more	
  about	
  the	
  forest	
  and	
  the	
  environment.	
  Moreover,	
  it	
  is	
  important	
  to	
  introduce	
  REDD	
  to	
  the	
   people	
  and	
  inform	
  how	
  REDD	
  will	
  benefit	
  them.	
   	
   Subsequently,	
  Indonesia	
  has	
  to	
  have	
  a	
  mentality	
  shift	
  of	
  its	
  people.	
  Indonesian	
  people	
  have	
  to	
   be	
  encouraged	
  to	
  have	
  a	
  mentality	
  of	
  a	
  leader;	
  to	
  take	
  proactive	
  actions	
  that	
  can	
  benefit	
  the	
   nation.	
   Moreover,	
   good	
   ethics	
   have	
   to	
   be	
   developed	
   in	
   all	
   areas.	
   The	
   people	
   need	
   to	
   be	
   taught	
   that	
  the	
  easiest	
  solution	
  might	
  not	
  always	
  be	
  the	
  best	
  solution.	
  In	
  addition,	
  sustainability	
  must	
   be	
  planted	
  as	
  one	
  of	
  the	
  core	
  values	
  of	
  the	
  people’s	
  life.	
  All	
  these	
  can	
  be	
  done	
  through	
  series	
  of	
   capacity	
  building	
  and	
  character	
  equipping.	
  It	
  is	
  also	
  important	
  to	
  start	
  to	
  plant	
  this	
  sustainability	
   value	
   from	
   a	
   very	
   young	
   age.	
   It	
   may	
   be	
   a	
   little	
   bit	
   late	
   and	
   difficult	
   to	
   change	
   the	
   current	
   generation,	
  but	
  it	
  never	
  is	
  too	
  late	
  to	
  change	
  the	
  next	
  potential	
  leaders	
  of	
  these	
  countries.	
  Local	
   schools	
  and	
  universities	
  must	
  promote	
  sustainability	
  in	
  their	
  systems.	
   	
   Use of Media and the Internet Media	
  is	
  a	
  very	
  powerful	
  tool	
  to	
  pass	
  on	
  information.	
  Media	
  in	
  Indonesia	
  has	
  played	
  an	
  integral	
   role	
  in	
  shaping	
  the	
  country	
  over	
  the	
  years.	
  In	
  addition,	
  Indonesia	
  people	
  are	
  one	
  of	
  the	
  most	
   active	
  users	
  in	
  social	
  networking	
  websites.	
  Indonesia	
  is	
  home	
  to	
  the	
  third	
  largest	
  facebook	
  users	
   in	
  the	
  world43	
  and	
  visited	
  the	
  Twitter	
  more	
  often	
  than	
  any	
  other	
  countries	
  in	
  201044.	
  The	
  media	
   and	
   the	
   internet	
   will	
   be	
   a	
   very	
   effective	
   and	
   powerful	
   way	
   to	
   promote	
   sustainability	
   in	
   Indonesia.	
   	
   	
   	
   	
    	
    21	
    Government, Politics and Law Indonesia	
   government	
   needs	
   to	
   be	
   open	
   and	
   enhance	
   transparency	
   in	
   all	
   their	
   institutions.	
   The	
   ongoing	
  fight	
  against	
  corruption	
  has	
  already	
  been	
  a	
  very	
  good	
  progress	
  to	
  reach	
  transparency	
   and	
  must	
  be	
  continued	
  in	
  the	
  years	
  ahead.	
   	
   Subsequently,	
   it	
   is	
   very	
   important	
   that	
   the	
   government	
   carefully	
   develops	
   the	
   law	
   that	
   governs	
   the	
   forest	
   management	
   in	
   Indonesia.	
   Besides	
   that,	
   law	
   enforcement	
   must	
   be	
   strengthened	
   and	
   any	
  misconduct	
  must	
  be	
  disciplined	
  accordingly.	
   	
   Another	
   thing	
   that	
   the	
   government	
   can	
   do	
   is	
   to	
   incentivize	
   businesses	
   that	
   promote	
   sustainability	
  by	
  giving	
  no-­‐interest	
  loan,	
  subsidy,	
  or	
  tax	
  reduction.	
  These	
  businesses	
  can	
  include	
   eco-­‐tourism,	
  non-­‐timber	
  forest	
  products,	
  and	
  reforestation	
  management.	
   	
   Sustainable Forest Management The	
   forest	
   governance	
   must	
   promote	
   and	
   develop	
   a	
   sustainable	
   forest	
   management.	
   Programmes	
   such	
   as	
   Reduced	
   Impact	
   Logging	
   (RIL)	
   or	
   Production	
   Forest	
   Plantation	
   should	
   be	
   implemented.	
   Partnership	
   with	
   various	
   NGOs	
   and	
   other	
   international	
   parties	
   will	
   be	
   very	
   helpful	
  to	
  the	
  improvement	
  of	
  forest	
  management	
  in	
  Indonesia.	
  It	
  is	
  also	
  important	
  to	
  have	
  a	
   capacity	
   building	
   for	
   the	
   institution	
   and	
   the	
   forest	
   officials,	
   thus	
   they	
   have	
   the	
   capacity	
   to	
   practice	
  a	
  sustainable	
  forest	
  management.	
   	
   Subsequently,	
   the	
   Forestry	
   Ministry	
   needs	
   to	
   develop	
   the	
   forestry	
   accounting	
   system	
   in	
   Indonesia.	
   Having	
   an	
   accounting	
   system	
   of	
   the	
   forests	
   will	
   help	
   to	
   solve	
   the	
   land	
   tenure	
   problems,	
   improve	
   the	
   land	
   usage	
   zoning	
   and	
   development	
   planning,	
   and	
   develop	
   the	
   MRV	
   system	
  of	
  carbon	
  in	
  Indonesia.	
  Furthermore,	
  palm	
  oil	
  plantations	
  must	
  be	
  limited	
  and	
  placed	
  in	
   the	
   designated	
   area	
   without	
   harming	
   the	
   forests.	
   Ongoing	
   project	
   on	
   land	
   mapping	
   can	
   help	
   solving	
   this	
   issue	
   by	
   allowing	
   the	
   industry	
   to	
   grow	
   palm	
   oil	
   plantations	
   only	
   in	
   the	
   degraded	
   lands	
   which	
   are	
   low	
   in	
   carbon	
   stock45.	
   Lastly,	
   the	
   development	
   of	
   MRV	
   system	
   is	
   very	
   crucial	
   to	
   the	
  implementation	
  of	
  REDD	
  as	
  a	
  whole	
  in	
  Indonesia.	
    	
    22	
    	
   Role of Wood Products Industry Wood	
   products	
   industry	
   has	
   to	
   be	
   more	
   innovative.	
   With	
   the	
   lack	
   of	
   supply	
   the	
   industry	
   is	
   currently	
  facing,	
  the	
  industry	
  has	
  to	
  adapt	
  in	
  a	
  sustainable	
  way.	
  The	
  industry	
  should	
  not	
  rely	
  on	
   the	
  supply	
  from	
  the	
  local	
  forest	
  only	
  and	
  exploit	
  the	
  forest	
  illegally	
  and	
  unsustainably.	
  There	
  are	
   few	
  things	
  that	
  the	
  industry	
  can	
  do	
  to	
  ensure	
  REDD	
  success	
  and	
  promote	
  sustainability:	
   •  Buy	
   supply	
   only	
   from	
   a	
   sustainable	
   management	
   harvest	
   and	
   promote	
   their	
    business	
  as	
  environmentally	
  responsible	
  business.	
   •  Recycle	
  and	
  reuse	
  the	
  products	
  they	
  made	
  as	
  much	
  as	
  possible.	
    •  Engineer	
  the	
  product	
  so	
  that	
  it	
  uses	
  less	
  wood	
  or	
  uses	
  other	
  wood	
  species	
  with	
    greater	
  availability	
  for	
  the	
  same	
  purposes.	
   •  Use	
  an	
  alternative	
  wood	
  species	
  which	
  can	
  be	
  grown	
  quickly	
  in	
  a	
  plantation.	
    •  Use	
   alternative	
   fiber	
   source	
   for	
   the	
   material	
   of	
   their	
   products,	
   i.e.	
   agricultural	
    waste.	
   •  Own	
  their	
  own	
  sustainable	
  plantation	
  to	
  supply	
  their	
  needs.	
    •  Increase	
  productivity	
  and	
  efficiency	
  so	
  there	
  is	
  less	
  waste	
    •  Promote	
  value-­‐added	
  products	
  and	
  diversify	
  the	
  products	
    	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
   	
    	
    23	
    CONCLUSION	
   Indonesia	
   forest	
   industry	
   is	
   big	
   and	
   still	
   expanding,	
   especially	
   the	
   pulp	
   and	
   paper	
   industry.	
   However,	
   the	
   industry	
   is	
   currently	
   experiencing	
   scarcity	
   of	
   wood	
   supply	
   due	
   to	
   overcapacity	
   and	
   over	
   exploitation.	
   These	
   problems	
   are	
   caused	
   by	
   uncontrolled	
   expansions	
   and	
   unsustainable	
  logging	
  practices	
  during	
  the	
  corrupt	
  Soeharto’s	
  governance.	
  Thus,	
  deforestation	
   and	
  forest	
  degradation	
  rate	
  in	
  Indonesia	
  was	
  one	
  of	
  the	
  highest	
  in	
  the	
  world.	
   	
   Today,	
   deforestation	
   and	
   forest	
   degradation	
   are	
   still	
   the	
   main	
   problem	
   of	
   Indonesia	
   forest	
   industry.	
  Illegal	
  logging	
  is	
  still	
  one	
  of	
  the	
  major	
  causes,	
  but	
  the	
  practices	
  have	
  been	
  constantly	
   decreasing	
  since	
  the	
  reformed	
  Indonesia	
  government	
  has	
  declared	
  a	
  fight	
  against	
  it.	
  However,	
   the	
  rise	
  of	
  palm	
  oil	
  industry	
  has	
  brought	
  in	
  a	
  new	
  challenge.	
  Many	
  forest	
  areas	
  are	
  clear-­‐cut	
  and	
   converted	
  into	
  palm	
  oil	
  plantations.	
   	
   Reducing	
   Deforestation	
   and	
   Forest	
   Degradation	
   (REDD)	
   is	
   an	
   international	
   movement	
   to	
   end	
   deforestation	
   and	
   forest	
   degradation.	
   With	
   REDD,	
   Indonesia	
   can	
   achieve	
   a	
   sustainable	
   forest	
   industry.	
   However,	
   it	
   still	
   needs	
   the	
   cooperation	
   and	
   supports	
   from	
   the	
   people	
   of	
   Indonesia.	
   The	
   Indonesia	
   readiness	
   for	
   REDD	
   is	
   very	
   crucial	
   to	
   the	
   success	
   of	
   REDD	
   implementation.	
   There	
   are	
   still	
   issues	
   and	
   challenges	
   such	
   as	
   corruption,	
   poor	
   ethics,	
   weak	
   mentality,	
   politics	
   and	
   socioeconomic	
   debates.	
   Government	
   needs	
   to	
   strengthen	
   law	
   enforcement	
   and	
   enhance	
   transparency,	
   while	
   the	
   industry	
   is	
   demanded	
   to	
   be	
   innovative	
   and	
   supportive.	
   In	
   addition,	
   promoting	
  the	
  value	
  of	
  sustainability	
  is	
  essential,	
  especially	
  to	
  the	
  young	
  generation;	
  media	
  and	
   the	
  internet	
  can	
  be	
  used	
  as	
  a	
  powerful	
  tool	
  for	
  this	
  purpose.	
  Above	
  all,	
  all	
  Indonesian	
  citizens	
   need	
  to	
  have	
  a	
  “sustainability"	
  mindset.	
  In	
  conclusion,	
  if	
  multiple	
  stakeholders	
  work	
  together	
  to	
   improve	
  and	
  assess	
  those	
  areas	
  of	
  need,	
  Indonesia	
  will	
  soon	
  have	
  a	
  sustainable	
  forest	
  industry.	
    	
    24	
    REFERENCES	
   1. United	
  Nations	
  Statistics	
  Division.	
  "Forest	
  Statistics."	
  United	
  Nations	
  Statistics	
  Division.	
   Web.	
  8	
  Mar.	
  2011.	
  <http://unstats.un.org/unsd/environment/forestarea.htm>.	
   2. FAO.	
  "State	
  of	
  the	
  World's	
  Forests."	
  FAO:	
  FAO	
  Home.	
  Web.	
  8	
  Mar.	
  2011.	
   <http://www.fao.org/docrep/003/x6953e/X6953E02.htm>.	
   3. The	
  Ministry	
  of	
  Forestry	
  Republic	
  of	
  Indonesia.	
  "Planologi	
  Kehutanan	
  [PDF	
  File]"	
  Web.	
  8	
   Mar.	
  2011.	
  <http://www.dephut.go.id/files/Statistik_Kehutanan_2008_Planologi.pdf>	
   4. FAO.	
  "Countries:	
  Indonesia"	
  FAO:	
  FAO	
  Home.	
  Web.	
  8	
  Mar.	
  2011.	
   <http://www.fao.org/forestry/country/57478/en/idn/>.	
   5. Barr,	
  C.	
  “Indonesia’s	
  Pulp	
  &	
  Paper	
  Industry:	
  Trends,	
  Risks,	
  Opportunities	
  [PPT	
  File]”	
   Web,	
  9	
  Mar.	
  2011.	
  <www.bookcouncil.org/documents/CBarr.ppt>.	
   6. 	
  Barr,	
  C.	
  “	
  Indonesia's	
  Pulp	
  &	
  Paper	
  Industry:	
  Overview	
  of	
  Risks	
  and	
  Opportunities	
  [PDF	
   File]”	
  Web,	
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  Mar.	
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   <http://www.environmentalpaper.org/documents/Chris%20Barr%20-­‐%20CIFOR.pdf>.	
   7. Utama,	
  Stefanus	
  William.	
  "The	
  Potential	
  of	
  Wood	
  Product	
  Industry	
  in	
  Indonesia."	
   (2010).	
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   8. FAO.	
  "Forest	
  Product	
  Market	
  Developments:	
  the	
  Outlook	
  for	
  Forest	
  Product	
  Markets	
  to	
   2010	
  and	
  the	
  Implications	
  for	
  Improving	
  Management	
  of	
  the	
  Global	
  Forest	
  Estate."	
  FAO:	
   FAO	
  Home.	
  Web.	
  10	
  Mar.	
  2011.	
   <http://www.fao.org/docrep/003/x4108e/X4108E09.htm>. 9. FAO.	
  "Trade	
  and	
  Sustainable	
  Forest	
  Management."	
  FAO:	
  FAO	
  Home.	
  Web.	
  10	
  Mar.	
  2011.	
   <http://www.fao.org/docrep/008/y5918e/y5918e05.htm>. 10. WRI.	
  "Forest	
  (Wood)	
  Production:	
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  EarthTrends	
  |	
  Environmental	
   Information.	
  Web.	
  12	
  Mar.	
  2011.	
   <http://earthtrends.wri.org/searchable_db/results.php?years=2002-­‐2002,2003-­‐ 2003,2004-­‐2004,2005-­‐2005,2006-­‐2006&variable_ID=329&theme=9&cID=86&ccID=>. 11. FAO.	
  FAOSTAT.	
  Web.	
  12	
  Mar.	
  2011.	
   <http://faostat.fao.org/site/626/DesktopDefault.aspx?PageID=626#ancor>. 12. ITTO.	
  “Annual	
  Review	
  and	
  Assessment	
  of	
  the	
  World	
  Timber	
  Situation	
  2009	
  [PDF	
  File]”	
   Web,	
  9	
  Mar.	
  2011.	
  <http://www.itto.int/annual_review/(PDF-­‐2009) 13. "Global	
  Forest	
  Watch:	
  Indonesia."	
  Welcome	
  to	
  Global	
  Forest	
  Watch.	
  Web.	
  13	
  Mar.	
  2011.	
   <http://www.globalforestwatch.org/english/indonesia/forests.htm>. 14. Pathoni,	
  Ahmad.	
  "Indonesia	
  Deforestation	
  Fastest	
  in	
  World:	
  Greenpeace	
  |	
   Reuters."	
  Business	
  &	
  Financial	
  News,	
  Breaking	
  US	
  &	
  International	
  News	
  |	
  Reuters.com.	
   03	
  May	
  2007.	
  Web.	
  14	
  Mar.	
  2011.	
  <http://www.reuters.com/article/2007/05/03/us-­‐ indonesia-­‐forest-­‐idUSJAK21510620070503>. 15. "Indonesia	
  Is	
  3rd	
  Largest	
  Greenhouse	
  Gas	
  Producer	
  Due	
  to	
  Deforestation."	
  Conservation	
   and	
  Environmental	
  Science	
  News.	
  Web.	
  14	
  Mar.	
  2011.	
   <http://news.mongabay.com/2007/0326-­‐indonesia.html>. 16. FAO.	
  “Annual	
  GLOBAL	
  FOREST	
  RESOURCES	
  ASSESSMENT	
  2010,	
  COUNTRY	
  REPORT,	
   INDONESIA	
  [PDF	
  File]”	
  Web,	
  14	
  Mar.	
  2011.	
   <http://www.fao.org/docrep/013/al531E/al531E.pdf>	
    	
    25	
    17. BAPPENAS.	
  “Nastra	
  REDD	
  Plus	
  -­‐	
  Revised	
  [PDF	
  File]”	
  Web,	
  14	
  Mar.	
  2011.	
   <http://www.un.or.id/sites/default/files/COMPLETEStranas1RevisedEng%20final%20ver sion.pdf>	
   18. Greenpeace.	
  "Partners	
  in	
  Crime:	
  A	
  Greenpeace	
  Investigation	
  of	
  the	
  Links	
  between	
  the	
   UK	
  and	
  Indonesia's	
  Timber	
  Barons	
  |	
  Greenpeace	
  International."	
  Inspiring	
  Action	
  for	
  a	
   Green	
  and	
  Peaceful	
  Future	
  |	
  Greenpeace	
  USA.	
  Web.	
  15	
  Mar.	
  2011.	
   <http://www.greenpeace.org/international/en/publications/reports/partners-­‐in-­‐crime-­‐ a-­‐greenpeac/>.	
   19. Hidayat,	
  H.	
  “Dynamics	
  of	
  Illegal	
  Logging	
  [DOC	
  File]”	
  Web,	
  14	
  Mar.	
  2011.	
   <www.ppk.lipi.go.id/file/buletin/Artikel%205%20Herman%20Hidayat.doc> 20. "Indonesian	
  Soldiers	
  Are	
  Active	
  in	
  Illegal	
  Logging,	
  Report	
  Says	
  -­‐	
  Bloomberg."	
  Bloomberg	
  -­‐	
   Business	
  &	
  Financial	
  News,	
  Breaking	
  News	
  Headlines.	
  Web.	
  16	
  Mar.	
  2011.	
   <http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a81zsQKitveA>.	
   21. World	
  Bank.	
  “Sustaining	
  Indonesia	
  Forest	
  [PDF	
  File]”	
  Web,	
  16	
  Mar.	
  2011.	
   <http://siteresources.worldbank.org/INTINDONESIA/Resources/Publication/280016-­‐ 1152870963030/IDForestStrategy.pdf?resourceurlname=IDForestStrategy.pdf>	
   22. "Forest	
  of	
  Problems	
  Hinders	
  Illegal	
  Logging	
  Fight	
  |	
  The	
  Jakarta	
  Globe."	
  Home	
  |	
  The	
   Jakarta	
  Globe.	
  Web.	
  16	
  Mar.	
  2011.	
  <http://www.thejakartaglobe.com/news/forest-­‐of-­‐ problems-­‐hinders-­‐illegal-­‐logging-­‐fight/372046>.	
   23. "Indonesia	
  Implements	
  Export	
  Ban	
  on	
  Non-­‐certified	
  Timber."	
  Conservation	
  and	
   Environmental	
  Science	
  News.	
  Web.	
  16	
  Mar.	
  2011.	
   <http://news.mongabay.com/2010/0915-­‐indonesia_export_ban.html>.	
   24. Lawson,	
  S.	
  “Illegal	
  Logging	
  and	
  Related	
  Trade:	
  Indicators	
  of	
  the	
  Global	
  Response	
  [PDF	
   File]”	
  Web,	
  17	
  Mar.	
  2011.	
   <http://www.chathamhouse.org.uk/files/16979_0710bp_illegallogging.pdf>	
   25. USDA.	
  "Indonesia_mar09."	
  Global	
  Crop	
  Production	
  Analysis.	
  Web.	
  8	
  Feb.	
  2011.	
   <http://www.pecad.fas.usda.gov/highlights/2009/03/Indonesia/>	
    26. "Forest	
  Watch	
  Indonesia	
  »	
  Palm	
  Oil	
  Threats:	
  Deforestation	
  and	
  Peat	
  Land	
  Degradation	
  in	
   Central	
  Kalimantan."	
  Forest	
  Watch	
  Indonesia.	
  Web.	
  20	
  Mar.	
  2011.	
   <http://fwi.or.id/english/?p=140>.	
   27. Herawaty,	
  et	
  al.	
  “Illegal	
  Forest	
  Fires	
  and	
  climate	
  change	
  in	
  Indonesia	
  [PDF	
  File]”	
  Web,	
  21	
   Mar.	
  2011.	
   <http://www.cifor.cgiar.org/trofcca/asia/docs/Forest%20Fire%20&%20CC.pdf>	
   28. "Deforestation	
  Facts,	
  Deforestation	
  Information,	
  Effects	
  of	
  Deforestation	
  -­‐	
  National	
   Geographic."Environment	
  Facts,	
  Environment	
  Science,	
  Global	
  Warming,	
  Natural	
   Disasters,	
  Ecosystems,	
  Green	
  Living	
  -­‐	
  National	
  Geographic.	
  Web.	
  21	
  Mar.	
  2011.	
   <http://environment.nationalgeographic.com/environment/global-­‐ warming/deforestation-­‐overview.html>.	
   29. "WWF	
  -­‐	
  Orangutans."	
  WWF	
  -­‐	
  WWF.	
  Web.	
  22	
  Mar.	
  2011.	
   <http://wwf.panda.org/what_we_do/endangered_species/great_apes/orangutans/>.	
   30. "Impact	
  of	
  Deforestation	
  -­‐	
  Local	
  and	
  National	
  Effects."	
  Rainforests.	
  Web.	
  22	
  Mar.	
  2011.	
   <http://rainforests.mongabay.com/0902.htm>.	
    	
    26	
    31. "USAID	
  Telling	
  Our	
  Story:	
  Indonesia	
  -­‐	
  Clean	
  Water	
  for	
  an	
  Indonesian	
  Village."	
  U.S.	
   Agency	
  for	
  International	
  Development.	
  Web.	
  22	
  Mar.	
  2011.	
   <http://www.usaid.gov/stories/indonesia/cs_idn_water.html>.	
   32. "WHO	
  |	
  Flooding	
  and	
  Communicable	
  Diseases	
  Fact	
  Sheet."	
  Web.	
  23	
  Mar.	
  2011.	
   <http://www.who.int/hac/techguidance/ems/flood_cds/en/>.	
   33. Human	
  Resource	
  Watch.	
  “Wild	
  Money	
  [PDF	
  File]”	
  Web,	
  24	
  Mar.	
  2011.	
   <http://www.hrw.org/en/reports/2009/12/01/wild-­‐money>	
   34. WWF.	
  "The	
  Palm	
  Oil	
  Financing	
  Handbook	
  [PDF	
  File]."	
  Web.	
  28	
  Mar.	
  2011.	
   <http://assets.panda.org/downloads/the_palmoil_financing_handbook.pdf>	
   35. Richards,	
  M.	
  "	
  REDD,	
  the	
  last	
  chance	
  for	
  tropical	
  forests?	
  [PDF	
  File]."	
  Web.	
  25	
  Mar.	
  2011.	
   <http://www.theidlgroup.com/documents/PolicyBrief-­‐ REDDLastChanceforTropicalForestsAugust2008FINAL.pdf>	
   36. Lang,	
  Chris.	
  "The	
  Cancun	
  Agreement	
  on	
  REDD:	
  Four	
  Questions	
  and	
  Four	
  Answers	
  |	
   Redd-­‐monitor.org."	
  REDD-­‐Monitor.	
  Web.	
  28	
  Mar.	
  2011.	
  <http://www.redd-­‐ monitor.org/2010/12/18/the-­‐cancun-­‐agreement-­‐on-­‐redd-­‐four-­‐questions-­‐and-­‐four-­‐ answers/>.	
   37. Paul,	
  V.	
  “An	
  Overview	
  of	
  REDD,	
  REDD	
  plus	
  and	
  REDD	
  readiness	
  [PDF	
  File].	
  Web	
  24	
  Mar	
   2011.	
  <http://www.rightsandresources.org/documents/files/doc_1220.pdf>	
   38. “UN-­‐REDD	
  Programme	
  Strategy	
  2011-­‐2015	
  [PDF	
  File].	
  Web	
  24	
  Mar	
  2011.	
   <http://www.unredd.net/index.php?option=com_docman&task=doc_download&gid=4 598&Itemid=53>.	
   39. Lang,	
  Chris.	
  "The	
  World	
  Is	
  Watching	
  as	
  the	
  Indonesia-­‐Norway	
  REDD	
  Deal	
   Stalls."	
  Chrislang.org.	
  Web.	
  28	
  Mar.	
  2011.	
  <http://chrislang.org/2011/03/03/the-­‐world-­‐ is-­‐watching-­‐as-­‐the-­‐indonesia-­‐norway-­‐redd-­‐deal-­‐stalls/>.	
   40. "ANTARA	
  News	
  ::	
  Alih	
  Fungsi	
  Hutan	
  Gorontalo	
  Muluskan	
  Ekspansi	
  Bakrie."	
  Antara	
  News	
   :	
  Portal	
  Berita	
  Indonesia.	
  Web.	
  28	
  Mar.	
  2011.	
   <http://www1.antaranews.com/print/211857/alih-­‐fungsi-­‐hutan-­‐gorontalo-­‐muluskan-­‐ ekspansi-­‐bakrie>.	
   41. "Indonesia	
  No	
  Longer	
  The	
  Most	
  Corrupt	
  Country	
  In	
  The	
  World."	
  Indonesia	
  Today	
  |	
  All	
   the	
  Latest	
  on	
  Indonesia	
  News	
  Today.	
  Web.	
  27	
  Mar.	
  2011.	
   <http://www.jakartaupdates.com/491-­‐11/indonesia-­‐no-­‐longer-­‐the-­‐most-­‐corrupt-­‐ country-­‐in-­‐the-­‐world>.	
   42. "Corruption	
  and	
  Forestry/Forest	
  Governance	
  Integrity/asia_pacific/regional	
   Pages."	
  Transparency	
  International.	
  Web.	
  27	
  Mar.	
  2011.	
   <http://www.transparency.org/regional_pages/asia_pacific/forest_governance_integrit y/corruption_and_forestry>.	
   43. Morrison,	
  Chris.	
  "Inside	
  English	
  Use	
  in	
  Indonesia,	
  Facebook’s	
  Third-­‐Largest	
   Country."	
  Inside	
  Social	
  Games	
  -­‐	
  Tracking	
  Innovation	
  at	
  the	
  Convergence	
  of	
  Games	
  and	
   Social	
  Platforms.	
  Web.	
  28	
  Mar.	
  2011.	
   <http://www.insidesocialgames.com/2010/06/25/inside-­‐english-­‐use-­‐in-­‐indonesia-­‐ facebooks-­‐third-­‐largest-­‐country/>.	
   44. "Indonesia,	
  Brazil	
  and	
  Venezuela	
  Lead	
  Global	
  Surge	
  in	
  Twitter	
  Usage	
  -­‐	
  ComScore,	
   Inc."ComScore,	
  Inc.	
  -­‐	
  Measuring	
  the	
  Digital	
  World.	
  Web.	
  28	
  Mar.	
  2011.	
    	
    27	
    <http://www.comscore.com/Press_Events/Press_Releases/2010/8/Indonesia_Brazil_an d_Venezuela_Lead_Global_Surge_in_Twitter_Usage?utm_source=feedburner&utm_me dium=feed&utm_campaign=Feed:	
  comscore	
  (comScore	
  Networks)>.	
   45. Hance,	
  Jeremy,	
  and	
  Rhett	
  A.	
  Butler.	
  "Converting	
  Palm	
  Oil	
  Companies	
  from	
  Forest	
   Destroyers	
  into	
  Forest	
  Protectors."	
  Conservation	
  and	
  Environmental	
  Science	
  News.	
   Mongabay.	
  Web.	
  11	
  Feb.	
  2011.	
  <http://news.mongabay.com/2011/0103-­‐ wri_interview_hance_butler.html>.	
    	
    28	
    

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