Indonesia: Forestry Failures Jeopardize ‘Green Growth’

Region’s Smog Shows Need for Better Oversight; More Than US$7 Billion Lost
July 16, 2013  Human Rights Watch
(Jakarta) – Government corruption and mismanagement plague Indonesia’s forestry sector, with serious consequences for human rights and the environment, Human Rights Watch said in a report released today. The smog roiling Indonesia and its neighbors is partly a result of Indonesia’s ‘green growth’ strategy, which involves clearing forests for the rapid expansion of oil palm and pulp plantations.

The 61-page report, “The Dark Side of Green Growth: Human Rights Impacts of Weak Governance in Indonesia’s Forestry Sector,” finds that illegal logging and forest-sector mismanagement resulted in losses to the Indonesian government of more than US$7 billion between 2007 and 2011. Indonesia recently introduced reforms to address some of these concerns and has been touting its forestry policies as a model of sustainable ‘green growth.’ But much logging in Indonesia remains off-the-books, fees are set artificially low, and existing laws and regulations are often flaunted. A “zero burning” policy and a moratorium on forest clearing are manifestly inadequate.

“The return of the smog is only the most tangible evidence of the damage from Indonesia’s continuing failure to effectively manage its forests,” said Joe Saunders, deputy program director at Human Rights Watch. “Weak law enforcement, mismanagement, and corruption are to blame not only for the smog but also for the loss of billions of dollars a year in desperately needed public funds.”

The persistent failures have global implications. The smog causing so much suffering for Indonesia’s neighbors is produced by clearing forests for agriculture, a practice so widespread that it makes Indonesia’s carbon emissions among the largest in the world. The Obama administration announced on June 26, 2013, that it would invest more in sustainable forestry overseas as a way to combat climate change. However, without improvements in governance in Indonesia, greater investments by the international community may not bring significant change in the status quo.

The Indonesian government recently introduced reforms in part aimed at addressing forest mismanagement and corruption, including a timber legality certification system and a freedom of information law, but such efforts have fallen far short of their aims. The new report, an update to the 2009 Human Rights Watch report “Wild Money,” analyzes industry and government data, concluding that the pace of revenue loss has actually increased in recent years. In 2011 alone, the losses totaled more than $2 billion – more than the country’s entire health budget for that year, undermining the government’s ability to provide basic services to its population, Human Rights Watch said.

It is not only during the dry season that Indonesians suffer the negative consequences of forest mismanagement. The significant loss of revenues contributes to the government’s disappointing progress on a number of human rights concerns, notably those related to rural health care.

Indonesia’s forest communities, among the country’s poorest groups, have been harmed the most under the current system. Many of these communities have constitutionally recognized rights to use the land and forests or be adequately compensated for their loss. But the new legality certification system does not address whether timber is harvested in violation of community rights to forest lands.

Increasing demand for land to expand plantations appears to be leading to more violent land conflicts, Human Rights Watch said. The problem is especially acute on the island of Sumatra, where the majority of pulp and oil palm plantations – and most of this year’s fire hotspots – are located, often on land claimed by local communities. The government’s failure to comply with its own regulations for issuing concessions on forest land claimed by communities and its failure to hold companies accountable for violating legally required compensation agreements have led to an escalation in disputes. For example, in 2011, the escalation of long standing land disputes associated with an oil palm plantation in the Mesuji sub-district of South Sumatra led to violent clashes between local villagers and company security, leaving two local farmers and seven company staff dead.

In May the Constitutional Court ruled that the government’s practice of allocating concessions on customary land is unconstitutional, offering some hope to those communities. However, in the current climate of opaque, unaccountable forest governance, without adequate participation and oversight, identifying and registering rights to these lucrative forestlands could easily result in more, rather than fewer conflicts, Human Rights Watch said.

 

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About endoftheicons

The Leuser Ecosystem on the island of Sumatra in Indonesia is in grave danger. Local politicians want to allow logging, mining and palm oil plantations in this vulnerable area. Sumatran orangutans, rhinos, elephants and tigers are already hanging on by a thread. They will not survive the destruction of the Leuser Ecosystem.

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