East Kalimantan Environmentally Sustainable Development Strategy

89
350,000 ha of Kutai Timur is categorized to be in critical or very
critical status
Abatement opportunities: Degraded land
Category, size, and allocation of critical
land in Kutai Timur
thousand ha,
1,280.0
Not
critical
359.0
1,197.0
Potential Slightly
critical critical
1 Maximum current forest cover of 40%
2 Maximum current forest cover of 20%
232.0
117.0
SOURCE: WWF Indonesia, Ministry of Forestry Indonesia, team analysis
3,185.0
Critical 1 Very Total
critical 2 land
area
PRELIMINARY
With a diverse economy, Bulungan can benefit from some GDP productivity levers.
Bulungan has only one HTI forestry concession of 5,000 ha, but it is inactive; the district should
focus on finding an active operator and one willing to invest to reach best-practice HTI yields
in Indonesia. East Kalimantan’s yields on food and estate crops are 20 percent of Indonesia’s
average; with agriculture still almost a fifth of Bulungan’s GDP, it can boost its economy by raising
farm productivity. This will require an increase in the number of extension workers, nucleus
farmers, and support from private agricultural companies. As palm oil expands, Bulungan will
need to ensure that concession holders fully implement the required plasma schemes. The
plasma scheme is an important economic opportunity for rural households and smallholders, as
participants tend to have much greater palm oil yields than independent smallholders.
KUTAI BARAT
DRAFT
Kutai Barat’s 3.1 million ha provide the forests and minerals that drive its economy. Coal
and mineral mining contribute 40 percent of GDP. The district was home to the gold miner PT
Kelian Equatorial Mine, which until its closure in 2005 was a substantial contributor to district
GDP. Forestry contributes another 12 percent of GDP from the 1.5 million ha of HPH concessions
and 156,000 ha of HTI concessions. Palm oil is set for a rapid expansion from the current 90,000
ha with existing operating licenses to the 450,000 ha based on the currently issued location
permits. The district remains sparsely populated with just 5 people per square kilometer. Its small
population combined with the high GDP from its natural resources means that Kutai Barat’s GDP
per capita is approximately IDR 16 million, the same as in urban Samarinda.
Exhibit 62
Kutai Barat accounts for 14 percent of East Kalimantan’s emissions (44.5 MtCO2e) with
just 5 percent of the population and 2 percent of total GDP. Forestry, mining, palm oil, and
agriculture are resulted in significant land use changes in Kutai Barat. Every year, 25,000 ha are
deforested, a rate of forest loss of 1.1 percent p.a. for the district. Kutai Barat also has over 100,000