World Bank Document
Total Page：16
File Type：pdf, Size：1020Kb
uNN-48 0NE WEEKC Public Disclosure Authorized AGRICULTURAL SECTOR SURVEY INDONESIA (in four volumes) Public Disclosure Authorized VOLU¶E III ANNEXES 6 THROUGH 10 Public Disclosure Authorized April 10, 1974 This report was prepared at the request of the Government-of Indonesia. The views and recommendations contained in the rÉport are those of the authors rather thzn those ofithe World Bank Group. The Government of Indonesia and Public Disclosure Authorized the authors are responsible for the release and distribution of the report. CURRENCY EQiVALENTS Us$ 1.00 Rp. 425 1 Rupiah $0.002 1,OO Rupiah $2.410 44 NOTE The Agricultural Sector Survey report is based on data collected by a Bank mission to Indonesia in March 1972. Some of its major findings and conclusions have been overtaken by eveits. Therefore, this report is not intended to represent the Bank's curent assee-sment of Indonesia's agricultural sector. Nevertheless, much of the technical data presented in the Annexes remains valid and it should be useful to the Government of Indonesia, IGGI members and to other countries, agencies and institutions interested in the development of Indonesia. April 10, 1974 ANNEX 6 Page 1 INDONESIA AGRICULTURAL SECTOR SURVEY Forestry 1. The forestry and forest industries sector can play a very signifi- cpAt role in Indonesia's economic development for three main reasons. First, the forestry resource is the largest in Asia. Second, the long term demand prospects for exports and domestic consumption offer a sound basis for development--exports could reach nearly US$600 million by 1980, an increase of almost sixfold over 1970. Third, the Government's policy to attract foreign capital has led to the granting of 55 forestry concession agreements that are expected to result in a large volume of investment. Development of the forestry sector, however, is seriously constrained by a series of problems which may be roughly categorized as related to the insti- tutional framework, the exploitation in the Outer Islands, and the situation in Java. 2. Administration of the forest resources is the responsibility of the Directorate General of Forestry of the Ministry of Agriculture. A weak institutional structure, an inadequate supply of properly trained personnel at all levels, and a dichotomy between regional forest control and central technical backstopping are some of the problems affecting the Forest Service and seriously jeopardizing orderly development of the forest sector. 3. The Outer Islands contain vast areas of dipterocarpus forest with high export potential, although the productive forests are probably less extensive and lower in quality than originally thought. Comprehensive inventories do not exist, and only small areas have been surveyed and demarcated. Since 1967, the Government has granted concessions on about 50% of the productive forests and substantial areas of protective forests without preparing an overall master plan. This has led to a spectacular increase in log exports and in revenues to the provincial and central governments, but has,not yet been accompanied by the establishment of wood processing facili- ties. Wasteful logging methods and poor silvicultural practices are common.. And with only 30% of the Directorate General of Forestry assigned to look after the entire Outer Islands forest resources--over 97% of the country's total--supervision is almost non-existent. 4. The forests in Java have been surveyed and demarcated and are, in general, reasonably well managed. There are areas, however, where popula- tion pressure has led to acute overexploitation, causing grave watershed problems and a severe shortage of forest products and fuelwood. Forest industries are obsolete and operate at low levels of efficiency. Valuable ANNEX 6 Page 2 teak and conifer plantations exist that can form the basis of new industries. Presently very little teak is exported, as it-is largely locally consumed for construction, fuelwood, and sleepers. 5. This annex surveys the potential, prospects and constraints of the forest sector of Indonesia, expounds a development strategy and formu- lates detailed recommendations to carry it out. A. The Forest Resource The Importance of Forest Products 6. Indonesia has more forest land than any other country in Asia and is thought to rank seventh in the world after the U.S.S.R., Canada, Brazil, U.S.A., Australia, and Zaire. About 63% of Indonesia's land area, or an estimated 120 million ha, is classified as forest land. 7. In recent years, forest products have emerged as one of Indonesia's most important export commodities. According to Government sources, timber exports amounted to US$6.3 million in 1967 (less than 1% of total exports) and subsequently increased very rapidly to some US$100 million in 1970, and US$174 million in 1971. Other miscellaneous forest products, such as rattan, tengkawang and resin, have never amounted to more than a few million dollars. All told, timber is now the country's third most important export commodity, after petroleum and rubber. 8. Reliable information on removals of industrial wood does not exist. According to the IBRD industrial sector survey production of industrial wood stagnated at a level of about 2 million m for a number of years, then began to rise rapidly in 1967. In four years from 1966 to 1970, production almost sextupled. This was mainly due to the rapid expansion of log exports from Kalimantan where, currently, more than 60% of industrial wood is produced. Among the hardwoods, the most important in terms of quantities produced and exported is "meranti". 2/ Teak is also important because of its high value and its unique status in the world market. For example, the average reported value (FOB) of teak sawnwood in the U.S. imports was US$298 per cubic meter in 1964-1969, while that of lauan group sawnwood was US$68 per cubic meter in the same period. The important export species and volumes are set forth in Table 1. 1/ West Irian is not covered in this Annex because the mission did not have sufficient time to visit the area. 2/ A collective name for at least half a dozen similar but distinct species of the Shorea family. ANNEX 6 Page 3 Table 1: EXPORTS OF TIMBER FROM INDONESIA, BY SPECIES, 1970 (thousand m3 actual) Species Volume % Share 1. Meranti (Shorea spp.) 5,018 67.8 2. Ramin (Gonystyllus spp.) 681 9.2 3. Agathis (Agathis spp., softwood) 425 5.7 4. Pulai (Alstonia spp.) 118 1.6 5. Djati or Teak (Tectona grandis) 118 1.6 6. Kapur and Keruing 85 1.2 7. Djelutung (Dyera spp.) 27 0.4 8. Others 940 12.6 Total 7j412 100.0 Source: Directorate General of Forests. 9. Although a very large volume of wood is believed to be used as fuelwood, there are no reliable statistics. The FAO estimates production of fuelwood in 1969 and 1970 at 92.8 and 95.4 million m3(r) 1/, with virtually no exports or imports. Paper is the big deficit item for forestry in the economy. Consumption in 1970 amounted to about 140,000 m tons, of which about 15% was supplied domestically. Requirements are increasing very rapidly. Indigenous Forests 10. The basic-statistics on forestry were probably compiled 25 to 30 years ago, and have been updated only In specific, limited areas. However, based on official documents and reports, an attempt has been made in Appendix 1 at classifying forest land according to geographical location and ecological types. The regional distribution is summarized in Table 2. 1/ (r) means roundwood equivalent. ANNEX 6 Page 4 Table 2- DISTRIBUTION OF FOREST LAfD BY REGION Total Total Percett of :and Forest Total LAhd Area Land Area --- million ha--- Kalimantan 54 41 76 Sumatra -47 28 60 Sulawesi 19 10 53 Java and Madura 13 3 23 Maluku 8 6 75 Nusa Tenggara 7 2 29 West Irian 42 30 7 Total 190 120 63 Source: Directorate General tof Forests. According to more ,recent estimates of- the Directorate of Topography, the land areas of Kalimantan, Sumatra hand Sulawesi are somewhat larger than the above figures, giving a total land area for- Indonesia of 201 .9 million ha. Over 7.5%, or nearly 95, million ,ha of 'the -forest land, is reported to carry primary indigenous forest. A description of the major fotest types, indi- cating the most important commercial species, is Oontained in Appendix 2. 11. Pressure to process concession applications ahd a desire to avoid over-allocation of the productive tropical rain forests encouraged the Directorate General of Forests '(DGF) to develop estimates of optimum land use categories that could be used,as a basis for planning in the absence of a national forest inventory. This resulted in the -classification shown in Table 3. ANNEX 6 Page 5 Table 3:' FORESTS CLASSIFICATION Category Description Area (million ha) Protection Forest Forested land over 500 meters in (reserved for the Outer Islands and over 700 watershed protection) meters in Java 48 Production Forest Forest land generally below the elevations above 45 a. Suitable for permanent forest production 24 b. Suitable for conversion to agriculture 18 c. Managed forests on Java not currently considered eligible for conversion to agriculture 3 Degraded Forest Secondary forest land or forest land currently deforested by fires and shifting cultivation 27 Total 120 Source: DGF. The location of these categories has not been determined on the ground and it is not clear what criteria were used to distinguish between forested land suitable for agriculture and that suitable for permanent managed forest. Estimates of degraded forest range between 25 and 37 million ha. 12. The present status of allocation of forest resources by the Central Government 1/ is shown in Appendix 3 and summarized in Table 4.