PORTRAIT OF INDONESIAN FOREST

Rully Syumanda

It was always interesting to discuss about Indonesian natural forest. Noted as a country with the third most extensive forest in the world (after Brazil and Congo), Indonesia at the moment also as one country with the highest deforestation level in the world. Illegal logging, legal and illegal conversion associated with corruption are the inducement.

Up to 2005, the government claimed that Indonesia possess forest areas in extension of 126.8 million hectares with function as conservation (23,2 million ha), protected forest (32,4 million ha), limited production forest (21,6 million ha), production forest (35,6 million ha), and production forest conversion (14,0 million ha) .

Regardless the fact that it only possess 1.3% from the entire world’s shore, the natural wealth within has covered 38,000 kinds of plants (10% of the world’s plants are in Indonesia), added with 515 kinds of mammals (12% of the world’s mammals), 511 kinds of reptiles (7,3% of the world’s reptiles), 1.531 kinds of birds (17% kinds of the world’s birds), 270 kinds of amphibians, 2.827 kinds of avertebrata (IBSAP, 2003). There are also a number of rare species within, orangutan, tiger, rhineceros and Asian elephant, that made Indonesia as the second country that’s rich for its wildlife.

Along with that, the damage of Indonesia’s natural forest each year has increased. From 1950 to 1985, the number of the damage has achieved 32,9 million of hectares or equal to 942 thousand of hectares each year. The monopoly of 70 percent of plywood’s global market in the 80’s has also triggered the loss of forest in the amount of 45,6 million of hectares or with average number of deforestation 5,7 million of hectares per year (1985 – 1993). This was the highest number of deforestation took place in Indonesia. The existing number could be higher, as in the snow ball phenomenon. Up to 2004, degradated land in the forest has achieved 59,17 million of hectares and degradated land outside the forest area has achieved 41,47 million of hectares. Most of the damaged areas are spread in 282 River Basin .

Table 1. Indonesia Deforestation Speed 1950 – 2006

Degradation of natural forest in Indonesia has been recorded since 1788. Dirk Van Hogendorp, a number one resident in Patna (Benggala), was back in Batavia and became an administrator, has written his diary once he was appointed as the resident of Jepara ,

”This new postion of mine is very amusing. I have my concern on the existing forest in this district. The forest was damaged and abandoned and left by the pople who were forced to conduct the logging and to sell them for a very low price so that they had no interest in preserving the forest.”

Furthermore, by the time he returned to Netherland:

”The forest was belong to the state, or at least it belong to the pople. Let’s just pay the Javanese people to fell down the trees and to deliver the woods. The wages in such small amount would satisfied the Javanese people, and if we apoointed an honest person, he will then pay attention to the forest to be fell down regularly, to burn the plants underneath the trees, and to clean it right on time, and to plant the unoccupied areas, and then the Java Island would be providing all the need of woods for our Republic, in term of our navy and merchant fleet.”


DEFINITION OF FOREST
There are a number of definitions of forest in our daily life. The various educational backgrounds or the origin of a person shall give different point of view regarding to the definition of the forest. The experience and knowledge of each person or society regarding to this issue shall also triggered the birth of this complex concept.

To be seen from the view of science that stressed its observation on the physical biology feature, forest is one of the ecologycal factors in the supporting system of the living creatures, including human. Basicaly, forest has its role in the water cycle that is for the rain, absorbtion and the flow of the river (Soemarwoto, 1983).

Beside having the hidrological function, forest also fuctioned as a storage for the genetic resources and maintain the balance of photosynthesis process that created oxygen for perpetuity of human (Soemarwoto, 1983).

Meanwhile, from the point of view of the government, according to Forestry Principal Regulation Act No. 5 Year 1967, forest is one field with trees as plants that entirely formed as bio natural-living unity along with the environment determined by the government as forest. Further mentioned that forest is a living unity capable of giving production advantages, protection and other advantages eternaly.


FOREST AND COMMUNITY
Interaction between forest and the community in Indonesia could not only be seen in the folktales or in the existing myths. In the reality, and also took place in this nation, in their early civilization human has a very spesific relationship with forest, whether in their role as hunters or as collectors of ingredients collected from the natural forest.

Up to the fourth century, in the period of Mulawarman Kingdom, the indigeneous tribe of Kalimantan were still live and maintain the equilibirium relationship with natural forest around them. The large amount of medicine and food nowadays were taken from the forest (their raw materials) and basicaly is the indication of the correlation existed through the centuries.

Today, the population has reached 219,9 millions of people , around 48,8 million of Indonesian people live in the forest and its surroundings (CIFOR, 2000). For them, the natural resources of forest were able to support their needs of clothes, food and housing materials, and in several places, forest also functioned as a medium in conducting their spiritual activities.

Most of the original farmers lived in the islands outside the Java, Bali and Madura islands-with high population, holding a practice of merger farm enterprise of subsistence and comercial between gogo rice and yearly plants. Various forest products were gathered to be sold and consumed as housing materials, including rattan, honey, resin of certain trees, leafs and fruits that could be consumed, including wild animals and fish.

Approximately 7 million people in Sumatera and Kalimantan depend on natural rubber plantation that spreads in the area of approximately 2,5 million of hectares. Only in Sumatera, approximately 4 million of hectares of areas managed by the local community in the form of various natural fruit plantation (definition: a plantation of various species of fruits merged with natural forest plantation) without any supports from outside.

Regardless the fact of not having written land certificate, the local community understand the traditional form of management as a legacy of customary right, specificaly recognized in article 18 Indonesian Constitution. However in the reformation era, since the period of guided non-parliamentary democracy with Act No. 5 Tahun 1967 regarding Forestry Principal Regulation, the legitimacy of Act No. 41 regarding Forestry was not at all caused any correction regarding the observation process. Claim from the government has been strictly mentioned in the relevant regulation regarding the issue that traditional forest is state’s forest that happened to be located in the territory of customary legal community. Meaning, if there’s a condition of one people has dominated and managed the forest long before the birth of this country and then wish to continue managing and taking advantages from it, he/she should apply for authorization to its new “owner” – state – government.

The argue regarding the rights of land has basicaly emerged long before the independence. In that era, it was understood that right of land in the Archipelago were similar, it was older than the rights of king. The King only occupied areas which were not occupied/managed by the community. However, the King also entitled to occupy land/forest that were previously occupied by community with adequate compensation. .

The similar case emerged and recorded in Dagregister (daily book) dated September, 21st, 1659: ”Close to Mandalika (a small island in northern Muria), located an extensive and very beautiful forest. The people were prohibited to collect woods for the fact that they were made as stocks for the collection of keel woods and Susuhunan ship mast .” Similar examples could also be found in private forest in French and England, specificaly managed for the fleet of war .

FOREST AS PRODUCTION TOOL
The occupation of Netherland brought different meaning to forest as natural resources. Unadorned, Netherland considered all forest resources (including unoccupied areas granted by treaty) were their own domain. Regarding the fact that the need to expand housing areas for the population and cultivation to support trading process, little by little the opening of areas and nomaden life were eliminated, for the reason of the government and duty, including the conservation of forest.

The prohobition of logging emerged for the first time in Batavia and for the permitted logging shall be charged to deliver duty in the amount of ten one (10%) . This relevant regulation,then continualy applied by the local government at the time. As we all know, right after East Indian Company (EIC) took over the regions that were previously handed over by Sunan, the system of the government was left untouched. EIC appointed Regent who was then assigned to control and manage the forest and apply the restriction of logging. However, the Regents did not received any salary from EIC, so that after conducting several obligations to EIC, each Regent obtained profit from its position and from the natural resources of forest in their regions. The amount of the previous duty ”ten one” was self-consumed and was not been delivered to EIC as a replacing authority of Sunan or to the existing owner of the forest. The ownership of forest in Java at the time, was sufficiently proven by the existence of”pole or mark”. Meanwhile, in other regions, the community considered forest as public property so that anyone could take anything in term of fulfilling their needs (housing materials, managment of rice fields or fish boat).

However, speaking of the right of ulayat, the relevant right had ”given in” to the right of King (authority). There was an opinion that people’s right of forest could only be addressed to certain group of people. Not valid for everyone. EIC furthermore used this opinion to determine its own domain.

In the era of guided non-parliamentary democracy, Soeharto as President turned otu to have the same plan. These very extensive and beneficial forest were considered lack of prove of official private ownership, that left them ”unoccupied” by anyone. Mechanical logging through the system of concession then being introduced by refering to the Government’s Regulation No. 21 Year 1970, regarding Forest Concession Right and Logging Concession Right. On the same time, the cultural system being ”improved” through the publishing of Guidance of Indonesian Fell Choose, which was then once again improved and becoming Indonesian Fell Choose Plant.

The main focus of the forest concession outside Java policy on the early level of national development (Five Year Development Plan) was the collecting of the biggest impossible amount of devisa through the export of log wood. Soon, forest being extracted and made as ”Development Agent” of New Ordo for three decades conducted unsustainably and based on the confiscation of 75 percent of total areas in Indonesia, and 90 percent of total areas outside Java island which was then named “state’s forest. ”

This status was determined by State, similar with the condition in the era of Dutch’s colonialization, without any eligible process (due process) or without any meaningful compensation given. Luxuriant tropical forest were fell down in term of collecting woods and then replaced with extensive plantation planted with exotic monoculture species that would easily grow in a straight line and cleaned from the second graded plants.

This Father of Development then also used billions of dollars from Reforestation Fund (collected from various wood companies, however was not returned to the government in term of reforestation) as fund that was used as a funding source of personal agenda of non-forestry development. The first Acts which were validated by Soeharto are Act of Forestry Principal Regulation , Foreign Capital Investment , and Domestic Capital Investment — an indication of the central role of investment in the sector of forestry. Creating high conversion process from forest to cash.

The capacity improvement of this wood eater machinery has given an amazing result. In the same year, pulp and paper industry has began to arise, using loan with no interest from reforestation fund, making it as the lowest production cost in the world . The Government then issued a policy that prohibited export of log woods in the early 80s. A policy that was not followed by a limitation of extraction added by various subsidies for wood companies to at first develop managment units in the end had ensured the domination of wood concession by small amount of giant wood companies focusing on the production of plywood.

Ekspansion and improvement of the production of forestry industry was finaly exceed the capacity of very large plantations in supplying raw materials and has urged the extension of plantation deeper into the natural forest. It was assumed that at least 72% of Indonesian natural forest has been damaged. Planology Body of Indonesian Department of Forestry had precisely estimated that in the year of 2004 there would be 101,73 million of hectares of damaged forest. However, in the year of 2005, Departement of Forestry has claimed that the damaged forest has only reached 59,17 million hectares.

In 2006 , the damage has reached 2,72 million of hectares per year. We have lost 5 football field in each minute. If illegal logging that took place every one minute was valued, the Government of Indonesia has lost its income from unpaid duty and tax in the amount of US$ 1300 (more than average income of three Indonesian family per year), and a limited family and elites business of conglomerate has earned 24.000 US dollars.

The impact of the loss of forest was very extensive and diversed. The scientist have long proved the consequence of extensive lost of forest toward the environment. This impact covered the loss of unique bio diversity, increasing frequency of flood and dryness, decreasing quantity and quality of water, and the increasing frequency of burning forest that leads to air polution with toxicated smoke, dust, ashes, and the emission of green house.

The great gap between supply and demand in the industry of Indonesian forest has instantly urged the loss of Indonesian forest, officialy or illegaly.

Ironicaly, even with the extension of the list of natural disasters , the impact caused by sector of forestry towards human rights was still seldomly discussed. Similar with other sector that was profitable and illegal, groups in the forestry sector were improved and acted as exploiter and protector from disturbing parties with violence. In Indonesia, ilegallity and violence took place in this sector often obviously linked to the aithorities in the government.

The loss of forest, land and means of livelyhood of the local people took place under various state’s policies that were destined to support the development of economy for the entire Indonesian people. General vision of Soeharto regarding “development,” as in most new industrialized people, was the economic welfare urged by the speed extraction of natural resources. However, in the practice, this agenda has become shoved and became less important compared to, and in the end threatened by, Soeharto’s hidden aim in holding power consolidation through political protection (patronage), where he was also used profitable resources in a tricky way. Despite the fact that Soeharto resigned from his position in 1998, Indonesian people and its environment are still suffering from the consequences of badness the government and law enforcement regarding state’s forest and financial policy.

This tradition has finaly led to cultural part preserved by national and regional leaders. The practice of forest distribution continualy and smartly executed as a media to silence the political rivals and paid off the loyalty of the allies. To be looking at Indonesian forestry, was to be looking at the metamorphosis of bankruptcy, source of conflicts and the preservation of exploitation.


THE BIG BANG OF INDONESIAN FORESTRY INDUSTRY
At the beginning of the republic, forest has held important role. Its position as the supporting factor of national economy at the time was given it a second rank after oil. Forest has also functioned as political gift of the government, up until this very moment, to guarantee the loyalty of its supporters. One regency in Riau has precisely divided the forest as an area of wood extraction for the winner party of election.

At the era of colonization and up until now, forest was valued from the price of woods that grew upon it. The authority of a Regent could be withdrawn by the Netherland if the area administered under his authority consisted of forest (read: wood). Otherwise, the authority could also be returned if there were no longer woods existed in the forest. At that moment, forest gave double contribution, as wood provider for trading comodity, fuel (read: wood) and as raw material regarding the construction of ships, also as areas for other plants e.g castor oil plant , hemp, cotton plant, etc (Fernandes, 1946).

Boswezen, in his report in the year of 1940 – 1946 has stated that since 1942, the Government of Japan has put a lot of attention in the forest’s product as raw materials in term of fulfilling the necessity of war. This condition has incerased each year up to an exceeding number of limitations of maximum yearly fells, permitted by the regulation. And for the fact that the production considered more important, the reforesttation each year were postponed until the next upcoming years. .

Those woods were fell down and made as fuel for train, for the materials of ship’s construction and other military necessity (land and sea). For firewood, Japan even placed down specific Japanese employee to guarantee the supply of firewood. In 1944, Ringyoo Tyuoo Zimusyo provided teakwood for Nomura-Tohindo company in term of the construction of 500 motor boat in the size of 150 to 250 ton.

Between 1939 – 1945, approximately 4.761.906 meter cubic of woods produced from the felling down in all over Java and Madura. Meanwhile in Sumatera, more than 730.000 meter cubic of woods were produced at the same medio. This was not including the woods produced from the people’s fell down .

In the era of Liberal Democracy (1950 – 1959), management and forest concession were returned to the Government of Indonesia. That was not a simple job, remembering that the forest in Java and a small numbers of forests in Sumatera and the tools of management have suffered some damages. Most of them no longer have clear borders. Inventary process of forest was required in term of making the plan of production, however it was once again posponed remembering extraordinary activities in arranging the organizational setting of Bureau of Forestry.

Soon after the Bureau of Forestry reconsoled in 1951, the production of forest (read: wood) was directly pushed until it reached the number of 432.179 meter cubic. This number has equal the production in the era of colonialization in 1940 (551.854 meter cubic). It was assumed that approximately 400.000 ha of protected forest as an area of water system in Java Island has been damaged. As in the era of war, the level of production was not estimating the forest’s capability to produce.

In 1950 – 1956, with the help of Economic Cooperation Administration (ECA) and Export Import Bank (Exim Bank), the Government, Bureau of Forestry to be exact, established 6 sawmills in Brumbung, Bojonegoro, Saradan, Madiun and Benculuk. Furthermore, with the same funding sources, it added the establishment of sawmills in Samarinda and two more in Balikpapan . Soon, the production of forest recovered and even has approached the production in the year of 1938 (war times), even though the reforestation was only 11% completed (Bureau of Forestry, 1956).

From the point of view of income, between the year of 1950 – 1956, this sector has suffered some loss approximately Rp.58 million each year. As a comparison, the price of rice per litre was 50 cent at the time being, the price of gold per gram was Rp 4,-. Not until 1957 – 1959 this sector has contributed Rp. 75 million per year. It should be noted that the development estimation of forestry sector was always subsidize by Indonesian Estimation of Welfare Plan, approximately in the amount of Rp.45 million per year since 1950 up until 1959.

In 1956, the Bureau of Forestry further suggested to systematically change the order of natural forest by plant the forest with high economical price of woods. This idea further attached in Five Year Development Plan of 1056 – 1960 with 300 million rupiah in expense. By making the plan of ordering the industrial forest, hopefully someday this industry could grow and developed in term of fulfilling the people’s necessity.

The plan of forestry development was basically destinated to fulfill the necessity of woods in a large number of industries that were already existed in Indonesia in 1955 possessed:

1. Machinery Sawmill, 284 pieces with capacity of production 491.000 meter cubic of woods per year and employed 11.000 labours,
2. Hand Sawmill that processed 3 million meter cubic of woods per year with 50.000 labours,
3. Fiberboard in Banyuwangi with capacity 1500 ton per year,
4. Plywood and veeneer in North Sumatera and Lampung that produced 270.000 cases per year,
5. Nine factories of wood conservation with capacity of production 90.000 meter cubic of woods per year,
6. Factory of pencils in Jakarta with capacity of production 39.000 gross per year,
7. Six factories of matches with capacity of production 187 million of boxes per year,
8. Two factories of paper in Padalarang and Leces with capacity of production 7.000 ton per year .

Up until 1962, the reserve of woods gained from forestry sector has reached US$ 131.366. This number would even be higher number (possibly would reach US$ 850.000) if the better facility of shipping was provided. The reserve of woods has increased to US$ 250.507 in the next cemester.

Thus, the rich forest was exploited in term of pushing state’s income to the limit. As a newborn country, this was however acceptable. The lack of infrastructures to develop the downstream industry has urged Indonesia to extract forest resources and to engage trading in the form of raw material. The one thing that was left unsaid in the history was the taking over of people’s land in Java, East Kalimantan, Lampung and various other places in Indonesia without any significant compensation.

In the existing historical notes, the conflict provoked by the taking over of forest by the government took place in Padalarang in 1742, dominated by the Dutch at the moment. Angry citizens further chose to emigrate to Middle Java and part of them chose to run off to the forest to build new housing areas .

Forest as a tool of political consolidation was not a new issue. The Dutch has used this politic long way before. If in the era of Mataram Kingdom forest was made for the tool of political consolidation for its function as hunted areas, kelangenan King and Regent, then in the era of colonization, forest was made as a tool for the fact that woods not only considered profitable for trading also the fact that woods could be used for raw material in constructing war ships and merchant ships. The concept that the Creator was only bestowed the forest only to the chosen groups was accepted by the Javanese people . The Regent further gave units of forest to the chief of villages that were considered loyal to him, to be managed. The system of one stick for ten percent was continualy applied up to the moment of the birth of this state. Many of these chief of villages were practicing corruption by reporting smaller amount of the felling down woods.

In the era of Soeharto, the same issue had hapenned. Wood rich forest in five big island in Indonesia was made to political consolidation tool through economical patronage. The validation of Act of Forestry Principal Regulation, Foreign Capital Investment and Domestic Capital Investment were important indications of the forestry sector’s central role, not only for the sake of the state but also in term of assuring the loyalty of political and military groups. Approximately 4,230 million hectares of forest were dominated by family of Soeharto.

Tabel 2 Perkebunan dan HTI milik keluarga Soeharto

Table 3 Forest Concession owned by Soeharto Family

Began at the 60s through the permission from Forest Concession Right, this sector has continualy wriggled. In 1962, the capacity of wood processing industry has reached 4,294 million meter cubic per year plus 414.000 meter cubic of firewood , and covered the areas of concession in the amount of 1.3 million of hectares in Java, Sumatera and Kalimantan .

In 1963, the capacity of production was constantly pushed until it reached 6.823 million meter cubic per year. One of the reason of this escalation was the existence of cooperation regarding the Forestry Development in East Kalimantan with the Government of Japan a year before. The foreign exchange obtained from the export in this sector has constantly increased. From US$ 347 thousand in 1962, increased to US$ 640 thousand in the next year. In 1963, the foreign exchange stock of the export from forestry sector has reached US$ 775 thousand .

Act regarding Forestry Principal Regulation was issued in 1967. It gave permanent legal basis of woods. Two years after the issuance of the relevant regulation, many large concession were given the right to manage the forest in the periode of 20 years. The export of log wood then increased dramaticaly in the 1970s that further produced foreign exchange to be made as the capital of development of many business kingdoms emerged in Indonesia and provide fields of work.

STRIVING FOR MASS SUICIDE OF INDONESIAN FORESTRY

The forestry industry was the golden boy of Indonesian economy. Nobody could ever deny that. From the forcing of production without any previous inventory in the beginning of independence, reforestation loan with zero percent interest, construction of new factory of pulp without any previous forest of crops and to the latest policy: the abolishment of auction system that was believed by various parties as one of the tools to grant the forest concession only to parties who were considered capable and competent. Surely there were many justifications could be given to justify all of that conditions. However, it would turn the logics up side down and it would be naive if the Indonesian people were forced to accept those various justifications.

It was very regretted before that various justifications and billions of foreign exchange obtained from this sector has further made the Government closed their eyes on various anomalies that took places. Soon the forestry sector has become one sector that has important role in the crushing of economy, ecology and social-culture.

In the aspect of economy, this sector has contributed a large amount of debt that was supposed to be paid by the government. It was a very high amount; it has reached Rp. 21.9 billion from approximately 120 forestry companies. More than half of them were processing industries that do not possesed concession. This debt was the debt of private forestry sector burden to the government.

Through banking rehabilitation process supported with fund from IMF, World Bank, and Consultative Group on Indonesia (CGI), debt of private sector including debt of forestry industry were burden to the government.

Before the financial crisis in Indonesia in 1997, local banks in Indonesia has provided more than 4 billion of US dollar in the form of loan for wood industry in Indonesia. Wood industry also accepted more than 7 billions of US dollars in the form of short term and long term loan from international monetary institute. Ten top local banks in Indonesia financing the wood industry. Those banks, including several Government banks that nowadays mergered as Mandiri Bank, Danamon Bank, National Public Bank (closed by the Government) and Indonesian International Bank. International Institutions, Credit Suissee First Boston, ING Bank N.V. and Credit Lyonnais from Singapore has also financing the expansion of wood industry in Indonesia (Setiono, 2005). Other than those institutions, up until 1999, four banks; Netherland-ABN AMRO Bank, ING Bank, Rabobank and Mees Pierson; have invested in developing crude palm plantation in the areas of 740.000 ha in Indonesia (Wakker dkk. 2000).

Since the beginning of 1990s, international private monetary institution has also hold an important role in facilitating the very fast expansion from the industry of pulp and paper in Indonesia. These institutions were responsible in distributing more than 12 billion US dollar to those industries up until 1999 (Barr 2001). Also with support from these monetary institutions, the forestry industry including the pulp and paper industry have obtained foreign exchange in the amount of 6 billion US dollar to 9 billion US dollar per year .

We could feel the impact at the moment. The capacity of production has flew over the top and could not be accomodated by the existing natural forest and HTI. The choice of SBY-JK’s policy as a response to this matter with revitalization approach has also added the chaos in the list of policy in forestry sector.

Revitalization policy – supplying of raw material could be seen in the plan of Forestry Department in the year of 2005 when the target was to expand the 5 million of hectares of HTI. The strange thing was that the Government felt nothing was wrong with the construction of 2 new industries of pulp in South Kalimantan by United Fibre System (UFS) and in South Kalimantan by Korindo Group. Do not forget to mention the plan of investors from Malaysia and India that would build factories in West Kalimantan, and all of those plan were adding the number of demand in the forestry sector and created the industry as the first step without developing the previously plantation.

The establishing of Restructuring Body to handle the chaos in forestry industry was not as good as the name sounded. Other than the fact that there was no obligation in the regional level to submit the company name and concession issued by the region, this body, that was under the authority of Forestry Department, was intended to be passive and waiting for the ball. Whereas, from the beginning, the establishing of Restructuring Body basicaly was an effort in responsing the deforestation process happening in many regions as an impact of delegating the authority to the Governor and Regent to issue IPK.

Back in the days, since the year of 2000, almost the entire function of government was transfered to regency, exceeding the authority of province as one way to eliminate the fear on the emerge of separatism. The central government was only responsible on the matter of defence and security plus national planning and making use of natural resources. Meanwhile, the responsibility of agriculture, industry and trade, labours have been delegated to 360 Regencies (the amount of Regencies in the year of 2000). This action has positively influenced the political climate in Indonesia.

However, the regional government did not possesed sufficient estimation to manage its government. Central government further issued regulation that permitted regency to issue logging permit upon an area of 100 hectares that was previously pointed to help the poor living in the surrounding of forest to develop the subsustence agriculture with capital from the logging.

It was a pity that this type of clear logging did not obligate the concession holder to hold reforestation and only valid for one year (CGI 2003). However, the ambition of regional government plus the chaotic and inconsistency of autonomy regulation, plus the regional euphoria and the necessity of fulfillment of regional estimation has urged the regional government to issue chaotic large scale logging permission with large scale concession issued by central government. In 2002, more than 500 regulations in forestry sector were in chaos.

Up until this moment, decentralization in fact has contributed the unbalanced power between national and local level. In the political behaviour in the regional level was only a reincarnation and colution previously held by Soeharto. All of a sudden, decentralization has created a number of small Soeharto, other than the high increase of corruption practices. In 2002, the government issued Government’s Regulation No. 34/2002 pointed to decrease the number of deforestation and block the issuance of permission of concession by regional government. This regulation has all at once stated that concession issued by the regency since 2002 has become illegal and have to be withdrawn. It could be seen that central government has ran out of strategies to enforce the law while police and military officers received bribes from the actor of the logging or actively became a part of the illegal logging itself .

The issue was getting more complicated when both of the government level felt entitled to issue the permission. The lack of definite regulation regarding this matter, that would probably solve the problem, has made the cases were handled in the field. The number of deforestation further increased drasticaly without any further efforts to find the root of the problem. One forestry industry by one has beginning to tumble down for the lack of legal raw materials.

FAO claimed that the forest cover has decreased from 74% to 56% in a period of 30-40 years . In 1950 to 1985 the damage has reached 900 thousand of hectares per year. This number has highly increased in 1985 – 1993, where the number of damage has reached 5,7 million of hectares per year. In the period of 1997/1998, the number of damage has decreased to 1,7 million of hectares. Although the reason of the decreasing number of damage was still a mistery, however a number of person who cares about the forest have assumed that the political chaos and the drastic increase of foreign exchange were the reasons of the decrease of forestry activities. At the time being, the number of deforestation was not come from the conversion, but from the practice of illegal logging and a number of landclearing in the forestry concession in the previous year.

In 2000 - 2004, the damage number has increased. Planology Body of Forestry Department assumed that 3,4 million hectares of forest were damaged each year. In 2005 and 2006 , the number of damage has once again decreased to 2,7 – 2,8 million of hectares per year. The causing factor was not only the legal or illegal logging in term of responsing the industry, but also the emerged of crude palm plantation .

Table 4 Indonesia Deforestation Speed 1950 - 2006

In 2003, forestry industry has experienced deficit down to 63 percent. In 2006, the natural forest and HTI added with logging from the expansion of plantation could only fulfilled 48,62 percent of the necessity. The remainder in the amount of 51 percent was fulfilled from illegal logging.

Table 5 Supply and needs of Industrial and Indonesia People

if the issue of this large gap could not be repaired from here and now, it was predicted that in 2020, Indonesian natural forest would be annihilated except for protected forest and conservation areas. This issue would be a great influence to several industries existed in Indonesia. Ten years from now, approximately 2/3 of forestry industry would colaps and around 1.982 million of head of families working as labours shall lose their jobs. Indonesian natural forest are marching to the mass suicide.