Forest Certification in Developing and Transitioning ... - UTas ePrints

forest certification in indonesia
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for palm oil establishment (Forestry Statistics of Indonesia 2002). About 420 forest
concessionaires were recorded as being in business in 1998, occupying a total area of
51.58 million hectares. Today, however, the number has fallen to 270 HPHs with a
working area of 28.08 million hectares (Forestry Statistics of Indonesia 2002).
Figure 1
The pyramid of good forest governance
5. Verification of SFM. Audit, certification
or participatory review undertaken
4. Extension. Promotion of SFM to consumers
and stakeholders undertaken
3. Instruments. Coherent set of ‘carrots and sticks’ for
implementation in place
2. Policies. Forest policies, standards for SFM and legislation
in place
1. Roles. Stakeholder roles and institutions in forestry and land use
negotiated and developed
foundations
Property/tenure rights and constitutional guarantees
Market and investment conditions
Mechanisms for engagement with extra-sector influences
Recognition of lead forest institutions
(in government, civil society & private sector)
Note: the lower tiers in this pyramid are more difficult to build and are more important than the higher ones.
The Foundational Tier is crucial, but is largely hidden from view and incorporates a large number of actors outside
the forest sector.
Source: J. Mayers, S. Bass and D. Macqueen, The Pyramid: A Diagnostic and Planning Tool for Good Forest
Governance (London: IIED 2002).
Another example of a forest governance failure in Indonesia is illegal logging. It
has been estimated that 70 percent of forest products coming from timber processing
mills is from illegal sources, an amount valued at approximately US$3 billion in 2002
(Musthofid and Witjaksana 2002). 3 Wood-based industries use illegal logs because it
is economically rational to do so since these are much cheaper than legal logs by
about US$50 per cubic meter (Mir and Fraser 2003). The widespread existence of illegal
logs undermines the incentive to produce legally.
3 Obidzinski (2003) has pointed
out that patron-client dependency
in natural resource
utilization systems – including
forestry in Indonesia – is a
major reason why illegal
logging is so difficult to
suppress.
yale school of forestry & environmental studies