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CONSERVATION CONCESSION Reconciliatory Effort Between the Demand of Increasing Local Revenue and Ecosystem Protection in the Process of Power Devolution

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CONSERVATION CONCESSION Reconciliatory Effort Between the Demand of Increasing Local Revenue and Ecosystem Protection in the Process of Power Devolution FINAL REPORT Feasibility Study of CONSERVATION CONCESSION Reconciliatory effort between the demand of increasing local revenue and ecosystem protection in the process of power devolution A Case Study From Siberut Island, Sumatra Prepared by: Ary S. Suhandi, Dessy Anggraeni, Elfian Effendi, Erwin A. Perbatakusuma, Koen J.M. Meyers and Wiratno CONSERVATION INTERNATIONAL INDONESIA Jakarta, April 2002 CONTENTS A. GENERAL DESCRIPTION 1 B. THE PROFILE OF SIBERUT ISLAND B.1. Biogeography of the Island 4 B.2. Ecosystem Variety, Biodiversity and Charismatic Species 4 B.2.1. Ecosystem Type and Spatial Sensitivity 4 B.2.2. Biodiversity and Endemism 8 B.2.3. Flagship species and the threat of extinction 10 B.3. Physical Condition of the Island 12 B.4. Demography, Economy, Cultures, Social and Politics B.4.1. Primary School Graduate and Richness of Traditional Knowledge 13 B.4.2. Traditional Economic Practices 14 B.4.3. Customary System: The Accentuation to Traditional Community Rights 16 B.4.4. The Political Absence (Status-Quo) and the Discontinuation of Local Development 19 C. NATIONAL PARK MANAGEMENT 21 D. THREATS TO THE LOWLAND FOREST OF SIBERUT ISLAND 23 E. FINDINGS AND ANALYSIS FROM THE FEASIBILITY STUDY E.1. The Concept of Conservation Concession Approach: an Initial Exploration 26 E.2. Conservation Concession Support Policy Analysis E.2.1. Forest Area Management Policy 29 E.2.2. Acquisition of Conservation Concession Area Policy 35 E.2.3. Public Accountability and Community Involvement Policy 38 E.2.4. Fiscal Decentralization Policy 40 E.3. Justification for Conservation Concession in Siberut Island E.3.1. High Conservation Value but Ecologically Fragile 43 E.3.2. Conservation Concession Preserves Life Continuation and Culture Identity of Native Community 44 E.3.3. Conservation Concession and Tenurial Conflict Mitigation Options, Today and in The Future 45 E.3.4. Conservation Concession and Preserving Economic Assets in Siberut Island 46 E. 4. The Opportunity of Conservation Concession Implementation E.4.1. Prioritized Location 47 E.4.1.1.Reserved Area Location HPHA PT. Salaki Summa Sejahtera (PT. SSS) 48 E.4.1.2.Reserved Area Location of HPHA Koperasi Andalas Madani (KAM) 49 E.4.1.3.Proposed Production Forest Location of PT. Nirwana Hijau Lestari 51 F. FRAME OF CONSERVATION CONCESSION IMPLEMENTATION IN SIBERUT F.1. Business-to-Business approached Scenario: one of direct approach in preserving tropical rain forest 55 F.1.1. Compensation based on capital investment put by logging companies (based on Minister Decree/SK) 55 F.1.2. Compensation based on potential economic rent captured by government from logging operation 56 F.1.3. Compensation based on the actual district revenue generated from forestry sector 58 F.2. Environmentally Compatible Economic Development Options Scenario in effort to create long-term development funding alternatives 59 F.2.1 Environmentally Compatible Economic Development Options Implementation 63 G. CONCLUSION AND RECOMMENDATIONS 66 REFERENCE Appendix. Economic Valuation of Natural Resource in Siberut Island 69 List of Figures Figure 1. Map of Mentawai Islands in Indonesia 2 Figure 2. Map of Mentawai District 3 Figure 3. Simakobu (Simias concolor) 12 Figure 4. Joja (Presbytis potenziani) 12 Figure 5. Traditional religious ceremony in Siberut Island 17 Figure 6. Discussion among Co-Management Team in Siberut Island 22 Figure 7. Map of Siberut National Park, Koperasi Andalas Madani (KAM) and PT Salaki Summa Sejahtera (SSS) in Siberut Island 24 Figure 8. Production Sharing Comparison for Gross Domestic Product (PDRB) and District Revenue (PAD) of Mentawai District 2001 with NPV of KAM, PT. SSS and Siberut NP 47 Figure 9. Net Present Value of Each Natural Resources in Siberut Island 62 List of Tables Table 1. Vegetation Cover Type in Siberut Island based on Satellite Imagery Analysis 2002 5 Table 2. Prediction of increases of market demand of natural resource products from Siberut Island 15 Table 3. Revenue sharing for central, provincial and district government from fees/royalty/taxes from forestry sector based on Autonomy Law (UU No. 25/99) and Government Regulation no 104/2000 41 Table 4. Percentage of vegetation cover in Siberut National Park and Outside Siberut Island 53 Table 5. Percentage of vegetation cover in PT SSS and KAM concession area (2001) 54 Table 6. Economic rent potentially captured by government from logging operation 56 Table 7.Mentawai District Revenue from forestry sector 58 Table 8. Total Net Present Value (over 35 years at 10% discount rate) of Forest from Timber, Ecological Function and NTFP value 61 A. GENERAL DESCRIPTION Siberut with the area of 4,030 km2 is the biggest island in Mentawai Archipelago. Geographically this island lies on the latitude of 00 80’ to 20 00’ South and longitude of 980 60’ - 990 40’ East, with nearest distance of 128 km from west coast of Sumatra island. Since 1999 Siberut has been included on the administrative group of Mentawai District, West Sumatra Province, inline with the application of state autonomy policy and regulation -UU No.9 Year 1999- in regard of the development of Mentawai District. Before 1999, Siberut was included within administration area of Padang Pariaman District. This island consists of two sub districts (Kecamatan), namely South Siberut Sub District with the capital of Muara Siberut and North Siberut Sub District with the capital of Muara Sikabaluan. Geographic condition and base physics of the island have character of heavy field and relatively isolated, so giving influence to the deficiency of the community accessibility to development, transportation difficulties and communication. The island still has the biggest tropical forest area remaining and relatively undisturbed in Mentawai Archipelago. This area has high conservation value, due to its uniqueness and its endemism. It is also categorized as one of the hotspot area in Sunda Land because it is not only has important value from conservation aspect, education, scientific and main support for life continuation of native community, but also, this region has ecologic fragility and its tropical forest existence is being threatened due to influence of human activities. Due to its unique characteristic, Siberut Island has been formally designated as one of 6 Biosphere Reserves in Indonesia by UNESCO and the Indonesian Government under the MAB (Man and Biosphere) Program in 1981. In this concept, strong commitment of harmonization of natural conservation interests, the economic development and culture continuation of the local community are required. About 47% of Siberut island area was established as Siberut National Park (TNS) with area of 190,500 hectares, based on Forestry Minister Decree No. 407/Kpts/II/1993. Before that (in 1982), conservation area was only 132,900 hectares in. To support national park management, ____________________________________________ 1 Final Report Feasibility Study of Conservation Concession A Case Study From Siberut Island, Sumatra/CI Indonesia/April 2002 in 2001, Directorate General of Nature Conservation and Forest Protection issued the decree No.14/Kpts/DJ-V/2001 to establish zoning of Siberut National Park, which consists of core zones, jungle zones, intensive uses, and traditional uses. Figure 1. Map of Mentawai Islands in Indonesia ____________________________________________ 2 Final Report Feasibility Study of Conservation Concession A Case Study From Siberut Island, Sumatra/CI Indonesia/April 2002 Figure 2. Map of Mentawai District ____________________________________________ 3 Final Report Feasibility Study of Conservation Concession A Case Study From Siberut Island, Sumatra/CI Indonesia/April 2002 B. THE PROFILE OF SIBERUT ISLAND B.1. Biogeography of the Island In the during mid- Pleistocene or 500,000 years ago, Siberut Island was separated from the Sunda Shelf, leading to the specific ecological conditions of the Mentawai Archipelago, including Siberut Island. From a biogeographically point of view, fauna and flora in Siberut Island have been undergoing a separated evolution process from the evolution on the Sunda Shelf (Sumatra). The species on Siberut have a more primitive character, compared to species on Sumatra Although Siberut has a high level of endemism, its ecosystem supports fewer species compared with big islands. According to the theory of small islands, a reduction of island area or native habitat amounting 10 factors will subtract the amount of species by 2 factors. This explains why the Mentawai Islands do not support any large carnivorous mammal species, which need a wide range area with a low population. B.2. Ecosystem Variety, Biodiversity and Charismatic Species B.2.1. Ecosystem Type and Spatial Sensitivity Mentawai Archipelago is one of the 8 (eight) sub biogeography area exist in Sumatra, which consists of terrestrial ecosystem with highest peak of 384 meters above sea level and ocean ecosystem. In general, the forest type can be divided into 2 (two) main ecosystems i.e. Tropical Lowland Rain Forest and Mangrove Forest. Based on the result of satellite interpretation map in 1995, the remaining primary tropical forest was 314,418 hectares or 78 % of the island area; the rest were secondary forest ex-exploitation (6.5%), mangrove- swamp forest (6%) and lowland shrub forest (5.97%). However, result of satellite interpretation map in 2002 showed that the remaining primary tropical forest is 62.67% of the island or about 241,721 ha, mainly located in the center and western part of the island (in the National Park area). Following this, Swamp Forest and Secondary Dryland Forest cover 7.85% and 7.26% of the island respectively. If we use this satellite interpretation than it is ____________________________________________ 4 Final Report Feasibility Study of Conservation Concession A Case Study From Siberut Island, Sumatra/CI Indonesia/April 2002 noticed that the primary forest in Siberut Island has been degraded by about 15% during seven years. The completed vegetation cover type data based on Satellite Imagery Analysis in 2002 can be seen on the table 1 below. Table 1. Vegetation Cover Type in Siberut Island based on Satellite Imagery Analysis 2002 No.
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