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Decentralization of Forest Administration in Indonesia, Implications ...

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Barr, C. et al. 93<br />

<strong>of</strong>ficial expiration dates. The decree emphasized that Governors, Bupatis and Mayors<br />

should use the criteria and standards del<strong>in</strong>eated as guidel<strong>in</strong>es when formulat<strong>in</strong>g any<br />

regional regulations. It further stated that any violations would be subject to crim<strong>in</strong>al<br />

prosecution, adm<strong>in</strong>istrative sanctions, and f<strong>in</strong>ancial penalties.<br />

Some district governments responded to Decree 05.1/Kpts-II/2000 by issu<strong>in</strong>g<br />

IUPHHK licenses cover<strong>in</strong>g much larger areas than district timber permits they had<br />

issued previously (Yasmi et al. 2006). In 2002, the district <strong>of</strong> Kapuas Hulu <strong>in</strong> West<br />

Kalimantan issued n<strong>in</strong>e IUPHHK, cover<strong>in</strong>g an area <strong>of</strong> 142,800 ha (Anshari 2005).<br />

S<strong>in</strong>tang district <strong>of</strong> West Kalimantan issued eight IUPHHK cover<strong>in</strong>g 220,000 ha<br />

(Anshari et al. 2004).<br />

Table 5.2. Allocation <strong>of</strong> IUPHHK Licenses by S<strong>in</strong>tang District Government<br />

No Company Area (Ha) Location Period<br />

1 PT. Borneo Karunia Mandiri 12,000 Kayan Hulu 2003-2028<br />

2 PT. S<strong>in</strong>ergi Bumi Lestari 16,900 Sokan 2001-2026<br />

3 PT. Safir Kencana Raharja 36,400 Ng.Serawai 2001-2026<br />

4 PT. L<strong>in</strong>tas Ketungau Jaya 50,000 Ketungau Hulu 2003-2028<br />

5 Koperasi Apang Semangai 16,500 Kayan Hulu 2002-2027<br />

6 PT. Rimba Kapuas Lestari 41,090 Sepauk 2002-2027<br />

7 PT. Insan Kapuas 34,000 Ng.Ambalau 2002-2027<br />

8 PT. Hutan Persada Lestari 13,500 Ng.Ambalau 2002-2027<br />

Total 220,390<br />

Source: <strong>Forest</strong>ry and Agriculture Office <strong>of</strong> S<strong>in</strong>tang District Goverment, 2004<br />

While a handful <strong>of</strong> district governments issued IUPHHK licenses, most Bupatis<br />

became much more cautious about issu<strong>in</strong>g small-scale logg<strong>in</strong>g and conversion permits<br />

<strong>in</strong> areas classified as <strong>Forest</strong> Estate, and the allocation <strong>of</strong> HPHH and IPPK permits <strong>in</strong><br />

many regions decl<strong>in</strong>ed sharply <strong>in</strong> 2001. Indeed, many district governments refra<strong>in</strong>ed<br />

from issu<strong>in</strong>g permits for new areas, but cont<strong>in</strong>ued to renew licenses for areas already<br />

allocated.<br />

In Bulungan district <strong>in</strong> East Kalimantan, for example, the Bupati did not issue<br />

any new IPPK permits <strong>in</strong> 2001, although some 618 permits cover<strong>in</strong>g nearly 63,000<br />

ha were still operational dur<strong>in</strong>g that year (Samsu et al. 2005) (see Table 5.3). By<br />

2002, the number <strong>of</strong> IPPK permits <strong>in</strong> operation <strong>in</strong> Bulungan had dropped to 188,<br />

cover<strong>in</strong>g less than 19,000 ha. This trend was reflected among timber-rich districts<br />

across <strong>Indonesia</strong>.<br />

Table 5.3. Allocation <strong>of</strong> IPPK Permits and District Income Generated by Bulungan<br />

District, East Kalimantan Dur<strong>in</strong>g 1999-2003<br />

No<br />

Year<br />

Number<br />

<strong>of</strong> Permits<br />

Operational<br />

(cumulative)<br />

Area<br />

(ha)<br />

Production<br />

(m 3 )<br />

Revenues Received (Rp 000)<br />

Timber<br />

Concession Log Tax<br />

Contribution<br />

Total<br />

amount<br />

(Rp 000)<br />

1. 1999 39 3,740 - - -<br />

2. 2000 585 58,444 171,939.09 2,034,955 266.426 2,301,381<br />

3. 2001 618 62,940 809,785.15 5,791,645 2,953,539 8,745,184<br />

4. 2002 188 18,689 226,612.39 1,267,500 237,868 1,505,368<br />

5. 2003 189 18,234 404,214.22 302,000 187,806 489,806<br />

Source: Samsu et al. 2005, cit<strong>in</strong>g Regional Income Service Office <strong>of</strong> Bulungan District

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