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Decentralization of Forest Administration in Indonesia, Implications ...

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iv<br />

4.5 <strong>Forest</strong> Revenue Shar<strong>in</strong>g 69<br />

4.6 Redistribution and Use <strong>of</strong> the Reforestation Fund 72<br />

4.7 <strong>Forest</strong>s as a Source <strong>of</strong> Regionally-Generated Revenues 79<br />

Chapter 5<br />

<strong>Decentralization</strong>’s Effects on <strong>Forest</strong> Concessions<br />

and Timber Production 87<br />

5.1 Introduction 87<br />

5.2 Proliferation <strong>of</strong> District Logg<strong>in</strong>g Permits 88<br />

5.3 Timber Pr<strong>of</strong>its for New Actors 94<br />

5.4 ‘Legalization’ <strong>of</strong> Illegal Logg<strong>in</strong>g 97<br />

5.5 Challenges for HPH Timber Concession-Holders 99<br />

5.6 A Pendulum Sw<strong>in</strong>g Toward Recentralization 103<br />

Chapter 6<br />

The Impacts <strong>of</strong> <strong>Decentralization</strong> on Tenure and Livelihoods 108<br />

6.1 Introduction 108<br />

6.2 De Facto <strong>Decentralization</strong> 108<br />

6.3 Adat as a Vehicle to Claim Rights 111<br />

6.4 Chang<strong>in</strong>g Local Understand<strong>in</strong>gs <strong>of</strong> Territory and Boundaries 113<br />

6.5 Communities Redef<strong>in</strong>ed 114<br />

6.6 <strong>Decentralization</strong> and Community Livelihoods 116<br />

6.7 Trends? 118<br />

Chapter 7<br />

<strong>Decentralization</strong> and Recentralization <strong>in</strong> <strong>Indonesia</strong>’s <strong>Forest</strong>ry Sector:<br />

Summary and Recommendations 121<br />

7.1 Introduction 121<br />

7.2 Legal-Regulatory Contradictions and Lack <strong>of</strong> Coord<strong>in</strong>ation 122<br />

7.3 Fiscal Balanc<strong>in</strong>g and the Redistribution <strong>of</strong> <strong>Forest</strong> Revenues 124<br />

7.4 The Struggle over Timber Rents 126<br />

7.5 Impacts on Land and <strong>Forest</strong> Tenure 128<br />

7.6 <strong>Implications</strong> for <strong>Forest</strong> Community Livelihoods 131<br />

7.7 Recommendations for Policymakers 132<br />

References 134<br />

Annexes 145<br />

Annex 1<br />

Timel<strong>in</strong>e <strong>of</strong> Events that are Related<br />

to <strong>Decentralization</strong> <strong>in</strong> the <strong>Forest</strong>ry Sector 145<br />

Annex 2<br />

<strong>Indonesia</strong>n Laws and Regulations Relevant to <strong>Decentralization</strong> 150<br />

Annex 3<br />

Distribution <strong>of</strong> Shared Revenues to Regional Governments<br />

(not <strong>in</strong>clud<strong>in</strong>g DR), 2004 (million Rp) 155

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