THINKING beyond the canopy
The Political Economy of Fire and Haze:
Root Causes
Herry Purnomo and Bayuni Shantiko
Discussion Forum: Long-Term Solutions to Fires in Indonesia: Multi-
Stakeholder Efforts and The Role of the Private Sector
Global Landscapes Forum, Paris, 5-6 December, 2015

THINKING beyond the canopy
Indonesia’s Fire and Haze
 2.6 million ha of land burnt and more than $30 billions of economic losses
 43 million people exposed to haze
 ½ million victims of acute respiratory infections
 19 people reported dead

THINKING beyond the canopy
The first victim
 Hanum (12 years)
 A student in 6th grade in Pekanbaru, Riau
 Died on 19 September 2015
http://regional.kompas.com/read/2015/09/11/22320341/Sulit.Bernapas.akibat.Kabut.Asap.Bocah.SD.di.Riau.Meninggal.Dunia

THINKING beyond the canopy
Root Causes
 Tenure and illegal land market
• Unclear land tenure and in-secure concession areas
• Illegal land transactions
• Conflicts: Community vs. state vs. corporate
 Bad practices of agricultural and plantation
development
• Corporate/contractors/workers
• Communities
 Land politics
• Patronage network between business and
government
• Land politics for local elections

THINKING beyond the canopy
Facts
LAPAN,
November
2nd 2015
Area Peat (ha) Non-peat (ha) Total %
Sumatra 267,974
565,02
5
832,999 40%
Kalimantan 319,386
487,43
1
806,817 39%
Papua 31,214
321,97
7
353,191 17%
Sulawesi
30,912
30,912 1%
Bali and Nusra
30,162
30,162 1%
Jawa
18,768
18,768 1%
Maluku
17,063
17,063 1%
618,574 1,471,338 2,089,912 100%
30% 70%

THINKING beyond the canopy
Land uses Vs. Hotspots
Land uses
Extent Hotspots
Ha % Number %
Corporation
managed land (34%
of land uses; 45%
hotspots)
Logging concession 12,501,285 12 545 4
Wood plantation 8,443,633 8 3,297 23
Oil palm
plantation
Other land
uses (APL)
8,951,386 9 1,589 11
Forest area 2,791,974 3 750 5
Overlapped 2,374,943 2 260 2
Private, community
and government
managed land (66%
land uses and 55%
hotspots)
APL (community,
private and state lands)
29,876,742 29 4,963 21
Forest area (Protected
and conservation areas)
36,851,699 36 3,057 34
Total 101,791,661 100
14,459
100
Data sources: NASA, WRI, Ministry of Environment and Forestry Indonesia

THINKING beyond the canopy
Who gets what?
Village head & officers
$88 (13%)
Land claimant
$29 (4%)
Group members, tree cutting
$77(12%)
Group members,
slashing $96 (14%)
Marketing team
$38 (6%)
Total Benefit
Slash & cut
$665/ha
The group organizer $338 (51%)
Unsecured tenure: Illegal land market in
various land uses

THINKING beyond the canopy
Fire provides benefits
to some people
Village head & officers $88
(10%)
Land claimant,
$38 (4%)
Group members, tree
cutting $77 (9%)
Group members, slashing
$96 (11%)
Marketing team,
$54 (6%)
Total Benefit
$856/ha
The group organizer $486 (57%)
Farmer group member,
burning $15 (2%)
Farmer group member, cheap/free
land $2 (0.2%)

THINKING beyond the canopy
Village head &
officers $88 (3%)
Land claimant,
$38 (1%)
Group members, tree cutting
$77 (3%)
Group members, slashing
$96 (3%)
Marketing team,
$54 (2%)
Total Benefit
$3,077/ha
The group organizer
$1567 (51%)
Group members, burning
$15 (1%)
Group members,
cheap/free land $2
(0.1%)
Oil Palm
development
$992 (32%)
Group members, oil palm
growing wage
$147 (5%)
Three-year oil palm

THINKING beyond the canopy
Fire Density (hotspots/million ha)
Loggingcon
Woodplant
OilpalminA
Oilpalminf
Overlapped
Community
Protectiona
050100150200250300350400450500

THINKING beyond the canopy
Palm Oil – mostly in individual company areas
(12% of land and 16% of hotspots)
No Category Country 2010 2011 2012 2013 2014 2015 Avg. %
1
Individual
companies
- 283 1,435 1,413 1,094 3,330 3,023 1,763 68%
2 POG1 INA 27 35 56 316 132 61 105 4%
3 POG2 INA 15 42 104 113 297 29 100 4%
4 POG3 Sing 29 99 36 76 188 128 93 4%
5 POG4 Sing 9 34 41 36 144 195 77 3%
6 POG5 Sing 0 9 6 0 27 169 35 1%
7 POG6 INA 36 92 28 27 38 70 49 2%
8 POG7 INA 0 0 0 11 53 49 19 1%
9 POG8 Mal 2 15 47 10 18 46 23 1%
10
71 other
groups
- 68 210 279 339 484 564 324 13%
Total
469 1,971 2,010 2,022 4,711 4,334 2,586 100%

THINKING beyond the canopy
Wood and industrial plantations – mostly in large group areas (12 % of
land and 23% of hotspots)
No Category Country 2010 2011 2012 2013 2014 2015 Avg. %
1 WPG1 Sing 140 829 1,108 973 4,507 5,479 2,173 63%
2
Individual
companies
- 35 263 519 366 545 803 422 12%
3 WPG1 Sing 97 226 216 550 1,117 241 408 12%
4 WPG2 INA 3 41 103 113 79 101 73 2%
5
WPG3
INA
-
28 1 - 35 179 41 1%
6 WPG4 Sing 8 34 51 100 91 19 51 1%
7
WPG5
Sing
-
9 6 15 51 80 27 1%
8
WPG6
INA
-
7 25 15 33 58 23 1%
9 WPG7 INA 1 28 18 12 34 50 24 1%
10
46
other WPGs
- 80 154 215 116 244 413 204 6%
364 1,619 2,262 2,260 6,736 7,423 3,444 100%

THINKING beyond the canopy
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
010,00020,00030,00040,000
020406080100120
Fire spots District election National election
Hotspots and District Elections

THINKING beyond the canopy
Model
Log Yt = 0.937 log Yt-2 + 0.0219 Xt+1
 Hotspots in year-t (Yt) is a function of hotspots in
Yt-2 and local election next year (Xt+1) with
average error 9%
 Riau migrants: Land for Votes

THINKING beyond the canopy
Social network analysis: Local elites/cukong who organize
farmers are the most influential actors in land transaction.
Patronage Network – Illegal Institution
http://reportaseriau.com/read-3954--terdakwa-ashari-
mantan-kadestolak-dakwaan-jpu.html

THINKING beyond the canopy
Corporate actors connected to elites at various levels
BMH, RPP, RPS
(South Sumatra), LIH
(Riau) GAP, NBA, and
ASP (Central
Kalimantan)
http://news.liputan6.com/read/2321284/11-perusahaan-jadi-
tersangka-pembakaran-hutan-dan-lahan

THINKING beyond the canopy
Project action points
 Fire and Haze Expert Meeting
 Conducting National Policy
Dialogue
 Communicating to local, national and
international mass media
 Presenting/hearing with parliament,
NGOs and governments.
 Facilitating Dompas Village, Riau
 Establishing Riau-based Forum
Negeri Bebas Jerebu

THINKING beyond the canopy
Questions
1. How can land tenure and spatial planning be facilitated
and strengthened?
2. How can rent seeking behavior through ‘illegal institutions’
e.g. bribery and patronage be reduced? New regulations?
3. How can the poor (not the elites) have access to land to
grow oil palm sustainably?
4. How can corporate actors clear their supply chains from
fires and minimize internal ‘rent seekers’?
5. How can non-haze related local leaders be elected on
Dec 9th?