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Decentralizing & Recentralizing Nrm In Indonesia: How Local Can You Go


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January 13, 2010
Presentation to GRS class at UBC
by Chris Bennett

Published in: Technology
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Decentralizing & Recentralizing Nrm In Indonesia: How Local Can You Go

  1. 1. Reconciling Decentralization and Re-centralization of Natural Resource Management in Today's Indonesia : M i s s i o n I m p o s s i b l e ? Presentation to GRS for Discussion University of British Columbia 13 January 2010
  2. 2. How Local Can You Go?
  3. 3. Content <ul><li>Why Indonesia Matters Internationally </li></ul><ul><li>The Konkurensi Challenge </li></ul><ul><li>Problems and Risks </li></ul><ul><li>On-going Initiatives </li></ul><ul><li>What Next? </li></ul>
  4. 4. <ul><li>Why Indonesia Matters Internationally </li></ul><ul><li>The Konkurensi Challenge </li></ul><ul><li>Problems and Risks </li></ul><ul><li>On-going Initiatives </li></ul><ul><li>What Next </li></ul>
  5. 5. map
  6. 7. <ul><li>4 th most populous nation </li></ul><ul><li>3 rd largest democracy, successfully emerged, </li></ul><ul><ul><li>from colonial and autocratic past, </li></ul></ul><ul><ul><li>to a democratizing present </li></ul></ul><ul><li>Major exporter of natural resources </li></ul><ul><li>Largest partner in the ASEAN community </li></ul><ul><li>Largest Muslim population: </li></ul><ul><ul><li>one of the most peaceful and tolerant, despite terrorist assaults </li></ul></ul><ul><li>3 rd largest emitter of greenhouse gases ( & haze) </li></ul><ul><li>Unique biological and cultural diversity under threat </li></ul>Indonesia at a Glance
  7. 8. <ul><li>A Nation no longer “in waiting” in the decades since independence, </li></ul><ul><li>A long way in a decade since 1998 </li></ul><ul><li>Yet to realize its full economic potential … expanding BRIC to BRICI, and beyond </li></ul><ul><li>International Role, from Myanmar to Haiti </li></ul>
  8. 9. <ul><li>Why Indonesia Matters Internationally </li></ul><ul><li>The Konkurensi Challenge </li></ul><ul><li>Problems and Risks </li></ul><ul><li>On-going Initiatives </li></ul><ul><li>What Next? </li></ul>
  9. 10. Decentralization <ul><li>Decentralization as a Strengthening or Weakening Force? </li></ul><ul><li>Governance of Decentralized Natural Resource Management central to understanding the issue, </li></ul><ul><li>Epitomized by Forestry Land Resource Management , de jure and de facto </li></ul>
  10. 11. <ul><li>“ What we are doing to the forests of the world is a mirror reflection of what we are doing to ourselves and to one another ” </li></ul><ul><li>Mahatma Ghandi (cit. WDR 2003) </li></ul>
  11. 12. The Administrative Spectrum <ul><li>National ~ Jakarta </li></ul><ul><li>33 Provinces ~ 3 special autonomy regions </li></ul><ul><li>circa 485 Districts ( Kabupatens ) with sub-district branches </li></ul><ul><li>circa 75,000 Villages ~ inter- and intra-village traditional/customary groups </li></ul><ul><li>Each of the above with executive, legislative and judiciary arms </li></ul>
  12. 13. Decentralization History <ul><li>Pre-1998 ~ 28 experimental Districts </li></ul><ul><li>1999 ~ Law 22’s “Big Bang” Decentralization to the District Nexus, resisted by two land agencies </li></ul><ul><li>2004 ~ Re-centralizing Law 34, to re-empower Provinces and National Oversight of regional rule-making </li></ul><ul><li>2005 – 2009 ~ Inter-jurisdictional Awkwardness, Latent Mistrust – Adjustment and Accommodation </li></ul>
  13. 14. R4 Challenge for Control over Natural Resources <ul><li>Rights </li></ul><ul><li>Responsibilities </li></ul><ul><li>Roles </li></ul><ul><li>Relationships </li></ul>
  14. 15. To achieve the 3 Development E’s of Sustainability <ul><li>Economic Efficiency </li></ul><ul><li>Environmental Management to Safeguard and Nurture Growth and Development </li></ul><ul><li>Equity for Social Justice and Stability </li></ul>
  15. 16. Through Management of Development Assets / Capital for Sustainable NRM <ul><li>Financial </li></ul><ul><li>Physical (human-made) </li></ul><ul><li>Natural (source & sink) </li></ul><ul><li>Knowledge (codified & informal) </li></ul><ul><li>Social (above all, mutual trust) </li></ul><ul><li>Human (for the poor and by the poor) </li></ul>
  16. 17. <ul><li>Why Indonesia Matters Internationally </li></ul><ul><li>The Konkurensi Challenge </li></ul><ul><li>Problems and Risks </li></ul><ul><li>On-going Initiatives </li></ul><ul><li>What Next? </li></ul>
  17. 18. Persistence of the 3 U ’s so that Forests are Valued as Forests, rather than capitalized <ul><li>U ncertainty of Tenure </li></ul><ul><ul><li>Formal </li></ul></ul><ul><ul><li>Informal / Customary or Adat </li></ul></ul><ul><li>U ndervaluation of Forestry Resources </li></ul><ul><ul><li>Commodity export bans </li></ul></ul><ul><ul><li>No PES </li></ul></ul><ul><ul><li>No carbon market </li></ul></ul><ul><li>U nder-regulated Externalities </li></ul><ul><ul><li>Unenforced regulations </li></ul></ul><ul><ul><li>Inappropriate policies </li></ul></ul>
  18. 19. Elusive Harmony Among Administrative Jurisdictions resulting in <ul><li>Forest Degradation and Loss with local and global impacts, despite myriad policy interventions </li></ul><ul><li>Inappropriate resource exploitation licensing driven by the 2 C’s, Conservatism & Corruption </li></ul><ul><li>Exclusion of a vital role for local communities, especially the poorest </li></ul><ul><li>High-Cost Economy for Forestry Management from plethora of trade, industry and shipping regulations </li></ul>
  19. 20. Figure 2. Ministerial and Director General Decrees for Forest Concession Regulation
  20. 21. From Market Failure to Policy Failure
  21. 22.
  22. 23.
  23. 24.
  24. 25.
  25. 26.
  26. 27. Decentralization creates strains between national and local government, but still leav es poor communities without insufficient voice
  27. 28. Institutional Failure ~ Disconnect between State Forest Area and Traditional Village Areas
  28. 29. Under-Appreciated Local Community Assets <ul><li>Reforestation through smallholder agroforestry systems more successful than plantation scale projects </li></ul><ul><li>Natural Forest Conservation </li></ul><ul><ul><li>Reserves </li></ul></ul><ul><ul><li>Water Resource Protection </li></ul></ul><ul><ul><li>Prevention of landslides </li></ul></ul><ul><li>Cheat-catchers </li></ul>
  29. 30. Official Forests and Real Forests
  30. 32. Grassland and scrub in Protection Forest land ( Hutan Lindung ), in West Lombok
  31. 33. 7 years later
  32. 34. Inhutani III Production Forest, West Kalimantan
  33. 36. Spatial Connectivity - Tree & Food Farms
  34. 37. Natural Forest Conservation by Village Community to Protect Water Resources
  35. 38. The Poor as Conservation Assets for Water & Biodiversity
  36. 39. <ul><li>Why Indonesia Matters Internationally </li></ul><ul><li>The Konkurensi Challenge </li></ul><ul><li>Problems and Risks </li></ul><ul><li>On-going Initiatives </li></ul><ul><li>What Next? </li></ul>
  37. 40. <ul><li>Largest Indonesian province, </li></ul><ul><li>Special autonomy </li></ul><ul><li>Rich in natural resources </li></ul><ul><ul><li>One of three most important continuous expanses of natural forests in the world; Indonesia’s largest </li></ul></ul><ul><ul><li>Arguably, the most biodiverse sub-national region on earth from equatorial snowline to beneath the seabed </li></ul></ul><ul><li>Rich in cultural resources </li></ul><ul><li>But, despite low population density and natural resource wealth, high levels of poverty and disease, </li></ul><ul><li>Its natural and cultural resources under threat </li></ul>The Case of Papua Province
  38. 41. Provinsi Papua + Provinsi Papua Barat = Pulau Papua / Tanah Papua Provinsi Papua Provinsi Papua Barat High tropical biodiversity from snowline cryophiles to seabed thermophiles
  39. 43.
  40. 44.
  41. 45.
  42. 46.
  43. 47.
  44. 48. thermophiles
  45. 49. <ul><li>Spatial planning for Papua Province ~ self-reliant and participative and accountable </li></ul><ul><li>Exploitation Licensing that involves Local Communities as co-stewards and co-managers ~ Transparency Foremost </li></ul><ul><li>Forest management units that realistically involve local communities & government </li></ul>
  46. 51. T U R K A M
  47. 52. continuous improvement
  48. 53. T U R K A M
  49. 55. Villagers and technicians also work together to make better river basin maps in Cianjur, West Java
  50. 56. Jumlah Kampung dalam Fungsi Lahan di Tanah Papua APL 88 Hutan Konservasi 164 Hutan Lindung 220 Hutan Produksi 391 Hutan Produksi untuk Konversi 478
  51. 57. <ul><li>Kampung dan Hutan </li></ul>Kampung dan Fungsi Lahan di Tanah Papua
  52. 58.
  53. 59.
  54. 60. Kearifan Lokal Melindungi Tanah dari Erosi dan Longsor: Teras dengan Pohon Pelindung
  55. 61. <ul><li>Melindungi Sumber Daya Air </li></ul>Air Jernih dibawah Tanah Pertanian yang Lereng dimana ada Teras dan Pohon Pelindung dibuat menurut Kearifan Lokal
  56. 62. <ul><li>Geolokasi Kampung Menjembatani Kebijakan dgn Kenyataan Komunitas </li></ul><ul><ul><li>UU No.21/2001 ttg Otonomi Khusus Tanah Papua </li></ul></ul><ul><ul><li>Pasal 64 ttg perhatian terhadap hak-hak masyarakat adat dan sebesar-besarnya untuk kepentingan kesejahteraan penduduk </li></ul></ul><ul><ul><li>Pasal 38 ttg peran serta masyarakat dalam proses perizinan pemanfaatan ruang </li></ul></ul><ul><ul><li>Masyarakat sebagai pengaman pembangunan ( development safeguards ) </li></ul></ul>Village Geo-location, a Missing Link Activates an Old Policy for Community Participation
  57. 63.
  58. 64. Papua Province Land Type Primary Forest Secon dary Non-Forest Total (m of Ha) Conservation Forest (SFA) 3.9 0.5 1.0 5.4 Production Forest (SFA) 6.9 1.7 1.6 10.2 Protection Forest (SFA) 6.4 0.8 1.1 8.3 Forest for Conversion (SFA) 3.7 1.1 1.7 6.5 Non-SFA 0.3 0.2 0.9 1.4
  59. 65. <ul><li>Why Indonesia Matters Internationally </li></ul><ul><li>The Konkurensi Challenge </li></ul><ul><li>Problems and Risks </li></ul><ul><li>On-going Initiatives </li></ul><ul><li>What Next? </li></ul>
  60. 66. <ul><li>Outcome-based regulation at </li></ul><ul><ul><li>FMU and </li></ul></ul><ul><ul><li>Adminsitrative Levels </li></ul></ul><ul><li>Deregulation and debureaucratization of trade, industry and shipping </li></ul>
  61. 67. 4. Deregulation and Debureaucratization to Institute Outcome-based Regulation <ul><li>FMU level </li></ul><ul><li>Environmental Performance Index for Districts and Provinces linked to Part of Budget Allocation, e.g., DAK </li></ul><ul><li>Not a technical problem but facing enormous institutional inertia </li></ul>
  62. 68. Outcome-based Regulation <ul><li>Few regulatory components, focusing on the transparent achievement of environmental goals (e.g., recovery of forest cover after harvest), encouraging site-specific innovation and efficiency, reducing costs, </li></ul><ul><li>in contrast to </li></ul><ul><li>Conventional multi-component, overly-prescriptive regulations that stipulate how business should be conducted, focusing on regulating inputs (e.g., licenses for harvesting equipment) rather than impacts, inviting corruption, raising costs </li></ul>
  63. 69. Roading damage in a concession for natural forest management (“HPH”)
  64. 70. High-impact logging in natural production forests
  65. 71. Clear cuts and spill-overs
  66. 72. Digitised images of legal roads outside and unauthorized roads inside Gunung Leuser National Park YLI
  67. 73. 5. Deregulation and debureaucratization of trade, industry and shipping <ul><li>Especially for Eastern Indonesia </li></ul><ul><li>For BRICI </li></ul><ul><li>For harmonious development, to avoid trade wars within Indonesia, e.g., </li></ul><ul><ul><li>Sulawesi producers of semi-finished rattan forced to sell to “infant industry” Javanese furniture manufacturers instead of to more lucrative international markets (higher prices, lower shipping costs) </li></ul></ul>
  68. 74. Reconciliation <ul><li>In sum, harmonious reconciliation between the decentralizing and recentralization forces in general, above all for good governance of natural resource management in Indonesia may require application of the 3 D’s, </li></ul><ul><ul><li>Decentralization </li></ul></ul><ul><ul><li>Deregulation </li></ul></ul><ul><ul><li>Debureaucratization </li></ul></ul><ul><li>Whichever way forward is chosen, success will depend a sense of trusting shared ownership in the process among administrative jurisdictions </li></ul>
  69. 75. Rumongso Melu Handarbeni