decentralizing & recentralizing nrm in indonesia: how local can you go

Reconciling Decentralization and Reconciling Decentralization and Re-centralization of Natural Re-centralization of Natural

Resource Management in Today's Resource Management in Today's IndonesiaIndonesia: :

M i s s i o n I m p o s s i b l e ?M i s s i o n I m p o s s i b l e ?

Presentation to GRS for DiscussionPresentation to GRS for Discussion

University of British ColumbiaUniversity of British Columbia

13 January 201013 January 2010

How Local Can You Go?How Local Can You Go?

ContentContent

1.1. Why Indonesia Matters Why Indonesia Matters InternationallyInternationally

2.2. The The KonkurensiKonkurensi Challenge Challenge

3.3. Problems and RisksProblems and Risks

4.4. On-going InitiativesOn-going Initiatives

5.5. What Next?What Next?





5.5. What NextWhat Next

mapmap

o 44thth most populous nation most populous nationo 33rdrd largest democracy, successfully emerged, largest democracy, successfully emerged,

o from colonial and autocratic past, from colonial and autocratic past, o to a democratizing presentto a democratizing present

o Major exporter of natural resourcesMajor exporter of natural resourceso Largest partner in the ASEAN communityLargest partner in the ASEAN communityo Largest Muslim population:Largest Muslim population:

o one of the most peaceful and tolerant, despite one of the most peaceful and tolerant, despite terrorist assaultsterrorist assaults

• 33rdrd largest emitter of greenhouse gases ( & largest emitter of greenhouse gases ( & haze)haze)

• Unique biological and cultural diversity under Unique biological and cultural diversity under threatthreat

Indonesia at a GlanceIndonesia at a Glance

A Nation no longer “in waiting” in the A Nation no longer “in waiting” in the decades since independence, decades since independence,

A long way in a decade since 1998A long way in a decade since 1998 Yet to realize its full economic potential Yet to realize its full economic potential

… expanding BRIC to BRICI, and beyond… expanding BRIC to BRICI, and beyond International Role, from Myanmar to HaitiInternational Role, from Myanmar to Haiti


2.2. The Konkurensi The Konkurensi ChallengeChallenge




DecentralizationDecentralization

Decentralization as a Strengthening Decentralization as a Strengthening or Weakening Force?or Weakening Force?

Governance of Decentralized Natural Governance of Decentralized Natural Resource Management central to Resource Management central to understanding the issue,understanding the issue,

Epitomized by Forestry Land Epitomized by Forestry Land Resource Management , Resource Management , de jurede jure and and de factode facto

““What we are doing to the forests of What we are doing to the forests of the world is a mirror reflection of the world is a mirror reflection of what we are doing to ourselves what we are doing to ourselves

and to one anotherand to one another””

Mahatma Ghandi Mahatma Ghandi (cit. WDR 2003)(cit. WDR 2003)

The Administrative The Administrative SpectrumSpectrum

National ~ JakartaNational ~ Jakarta 33 Provinces ~ 3 special autonomy 33 Provinces ~ 3 special autonomy

regionsregions circacirca 485 Districts ( 485 Districts (KabupatensKabupatens) with ) with

sub-district branchessub-district branches circacirca 75,000 Villages ~ inter- and intra- 75,000 Villages ~ inter- and intra-

village traditional/customary groupsvillage traditional/customary groups

Each of the above with executive, Each of the above with executive, legislative and judiciary armslegislative and judiciary arms

Decentralization HistoryDecentralization History

Pre-1998 ~ 28 experimental DistrictsPre-1998 ~ 28 experimental Districts 1999 ~ Law 22’s “Big Bang” 1999 ~ Law 22’s “Big Bang”

Decentralization to the District Nexus, Decentralization to the District Nexus, resisted by two land agenciesresisted by two land agencies

2004 ~ Re-centralizing Law 34, to re-2004 ~ Re-centralizing Law 34, to re-empower Provinces and National empower Provinces and National Oversight of regional rule-makingOversight of regional rule-making

2005 – 2009 ~ Inter-jurisdictional 2005 – 2009 ~ Inter-jurisdictional Awkwardness, Latent Mistrust – Awkwardness, Latent Mistrust – Adjustment and AccommodationAdjustment and Accommodation

R4 Challenge for Control over R4 Challenge for Control over Natural ResourcesNatural Resources

RightsRights ResponsibilitiesResponsibilities RolesRoles RelationshipsRelationships

To achieve the 3 Development E’s To achieve the 3 Development E’s of Sustainabilityof Sustainability

Economic EfficiencyEconomic Efficiency Environmental Management to Environmental Management to

Safeguard and Nurture Growth and Safeguard and Nurture Growth and DevelopmentDevelopment

Equity for Social Justice and StabilityEquity for Social Justice and Stability

Through Management of Through Management of Development Assets / Capital Development Assets / Capital

for Sustainable NRMfor Sustainable NRM FinancialFinancial PhysicalPhysical (human-made)(human-made) NaturalNatural (source & sink)(source & sink) KnowledgeKnowledge (codified & informal)(codified & informal) SocialSocial (above all, mutual trust)(above all, mutual trust) HumanHuman (for the poor and by the poor)(for the poor and by the poor)



3.3. Problems and RisksProblems and Risks4.4. On-going InitiativesOn-going Initiatives


Persistence of the 3Persistence of the 3UU’s’sso that Forests are Valued as Forests, so that Forests are Valued as Forests,

rather than capitalized rather than capitalized UUncertainty of Tenurencertainty of Tenure

FormalFormal Informal / Customary or Informal / Customary or AdatAdat

UUndervaluation of Forestry Resourcesndervaluation of Forestry Resources Commodity export bansCommodity export bans No PESNo PES No carbon marketNo carbon market

UUnder-regulated Externalitiesnder-regulated Externalities Unenforced regulationsUnenforced regulations Inappropriate policiesInappropriate policies

Elusive Harmony Among Elusive Harmony Among Administrative Jurisdictions resulting inAdministrative Jurisdictions resulting in

Forest Degradation and Loss with local Forest Degradation and Loss with local and global impacts, despite myriad and global impacts, despite myriad policy interventionspolicy interventions

Inappropriate resource exploitation Inappropriate resource exploitation licensing driven by the 2 C’s, licensing driven by the 2 C’s, Conservatism & CorruptionConservatism & Corruption

Exclusion of a vital role for local Exclusion of a vital role for local communities, especially the poorestcommunities, especially the poorest

High-Cost Economy for Forestry High-Cost Economy for Forestry Management from plethora of trade, Management from plethora of trade, industry and shipping regulationsindustry and shipping regulations

Figure 2. Ministerial and Director General Decrees for Forest Concession Regulation

0

20

40

60

80

100

No. o

f Dec

rees Minister

Director General

Figure 2. Ministerial and Director General Decrees for Forest Concession Figure 2. Ministerial and Director General Decrees for Forest Concession RegulationRegulation

Figure 1. Rising Numbers of Forestry Policies and Declining Area of Forest Cover

0

10

20

30

40

50

60

70

80

90

100

1985 1997

Year

Fore

st C

over

(m h

a)

0

100

200

300

400

500

600

Num

ber

of F

ores

try

Pol

icie

s Is

sued

Forest Cover Forest Concession Policies Total Forestry Policies

From Market Failure to Policy Failure

Decentralization creates strains between national and local government, but still leaves poor communities without insufficient voice

Institutional Failure ~ Disconnect between State Forest Area and Traditional Village Areas

Under-Appreciated Local Under-Appreciated Local Community AssetsCommunity Assets

Reforestation through smallholder Reforestation through smallholder agroforestry systems more successful agroforestry systems more successful than plantation scale projectsthan plantation scale projects

Natural Forest ConservationNatural Forest Conservation ReservesReserves Water Resource ProtectionWater Resource Protection Prevention of landslidesPrevention of landslides

Cheat-catchers Cheat-catchers

Official Forests and Real Forests

Grassland and scrub in Protection Forest Grassland and scrub in Protection Forest landland ( (Hutan LindungHutan Lindung), in West Lombok), in West Lombok

7 years later7 years later

Inhutani III Production Forest,Inhutani III Production Forest,West KalimantanWest Kalimantan

Spatial Connectivity - Tree & Food Farms

Natural Forest Conservation by Village Natural Forest Conservation by Village Community toCommunity to

Protect Water ResourcesProtect Water Resources

The Poor as Conservation Assets for Water & BiodiversityThe Poor as Conservation Assets for Water & Biodiversity




4.4. On-going InitiativesOn-going Initiatives5.5. What Next?What Next?

Largest Indonesian province, Largest Indonesian province, Special autonomySpecial autonomy Rich in natural resourcesRich in natural resources

One of three most important continuous expanses One of three most important continuous expanses of natural forests in the world; Indonesia’s largestof natural forests in the world; Indonesia’s largest

Arguably, the most biodiverse sub-national region on Arguably, the most biodiverse sub-national region on earth from equatorial snowline to beneath the earth from equatorial snowline to beneath the seabedseabed

Rich in cultural resourcesRich in cultural resources But, despite low population density and natural But, despite low population density and natural

resource wealth, high levels of poverty and resource wealth, high levels of poverty and disease,disease,

Its natural and cultural resources under threatIts natural and cultural resources under threat

The Case of Papua Province The Case of Papua Province

Provinsi Papua + Provinsi Papua Barat = Pulau Papua / Tanah Papua

Provinsi Papua

Provinsi Papua Barat

4141

High tropical biodiversity from snowline cryophiles to seabed thermophiles

thermophilesthermophiles

4848

1.1. Spatial planning for Papua Province Spatial planning for Papua Province ~ ~ self-reliant and participative and accountableself-reliant and participative and accountable

2.2. Exploitation Licensing that involves Exploitation Licensing that involves Local Communities as co-stewards Local Communities as co-stewards and co-managers ~ and co-managers ~ Transparency Transparency ForemostForemost

3.3. Forest management units that Forest management units that realistically involve local realistically involve local communities & governmentcommunities & government

5151

T U R K A M

5252

continuous improvement

5353

T U R K A M

Villagers and technicians also work together to make better river basin maps in Cianjur, West Java

Jumlah Kampung dalam Fungsi Lahan di Tanah Papua

APL 88

Hutan Konservasi 164

Hutan Lindung 220

Hutan Produksi 391

Hutan Produksi untuk Konversi 478

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Kampung dan HutanKampung dan Hutan

Kampung dan Fungsi Lahan di Tanah Papua

5757

Kearifan Lokal

Melindungi Tanah dari Erosi dan Longsor:

Teras dengan Pohon

Pelindung

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Melindungi Sumber Daya AirMelindungi Sumber Daya Air

Air Jernih dibawah Tanah Pertanian yang Lereng dimana ada Teras dan Pohon Pelindung dibuat menurut Kearifan Lokal

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Geolokasi Kampung Menjembatani Kebijakan Geolokasi Kampung Menjembatani Kebijakan dgn Kenyataan Komunitas dgn Kenyataan Komunitas

UU No.21/2001 ttg Otonomi Khusus Tanah PapuaUU No.21/2001 ttg Otonomi Khusus Tanah Papua

Pasal 64Pasal 64 ttg perhatian terhadap hak-hak ttg perhatian terhadap hak-hak masyarakat adat dan sebesar-besarnya untuk masyarakat adat dan sebesar-besarnya untuk kepentingan kesejahteraan pendudukkepentingan kesejahteraan penduduk

Pasal 38Pasal 38 ttg peran serta masyarakat dalam ttg peran serta masyarakat dalam proses perizinan pemanfaatan ruangproses perizinan pemanfaatan ruang

Masyarakat sebagai Masyarakat sebagai pengaman pembangunan pengaman pembangunan ((development safeguardsdevelopment safeguards))

6262

Village Geo-location, a Missing Link Activates an Old

Policy for Community Participation

Papua Province Land Type

Primary

Forest

Secondary

Non-Fores

t

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 1.46464

4.4. Outcome-based regulation atOutcome-based regulation at1.1. FMU and FMU and

2.2. Adminsitrative LevelsAdminsitrative Levels

5.5. Deregulation and Deregulation and debureaucratization of trade, debureaucratization of trade, industry and shippingindustry and shipping

4. Deregulation and 4. Deregulation and Debureaucratization to Institute Debureaucratization to Institute Outcome-based RegulationOutcome-based Regulation

FMU levelFMU level Environmental Performance Index for Environmental Performance Index for

Districts and Provinces linked to Part Districts and Provinces linked to Part of Budget Allocation, e.g., DAKof Budget Allocation, e.g., DAK

Not a technical problem but facing Not a technical problem but facing enormous institutional inertiaenormous institutional inertia

Outcome-based RegulationOutcome-based Regulation Few regulatory components, focusing on Few regulatory components, focusing on

the transparent achievement of the transparent achievement of environmental goals environmental goals (e.g., recovery of forest (e.g., recovery of forest

cover after harvest), cover after harvest), encouraging site-specific encouraging site-specific innovation and efficiency, reducing innovation and efficiency, reducing costs,costs,

in contrast toin contrast to Conventional multi-component, overly-Conventional multi-component, overly-

prescriptive regulations that stipulate prescriptive regulations that stipulate how business should be conducted, how business should be conducted, focusing on regulating inputs focusing on regulating inputs (e.g., licenses (e.g., licenses

for harvesting equipment)for harvesting equipment) rather than impacts, rather than impacts, inviting corruption, raising costsinviting corruption, raising costs

Roading damage in a Roading damage in a concession for natural concession for natural forest management forest management (“HPH”)(“HPH”)

High-impact logging in High-impact logging in natural production forestsnatural production forests

Clear cuts and spill-oversClear cuts and spill-overs

Digitised images of Digitised images of legal roads outside legal roads outside and unauthorized and unauthorized roads inside Gunung roads inside Gunung Leuser National ParkLeuser National ParkYLIYLI

5. Deregulation and 5. Deregulation and debureaucratization of trade, debureaucratization of trade, industry and shippingindustry and shipping

Especially for Eastern IndonesiaEspecially for Eastern Indonesia For BRICIFor BRICI For harmonious development, to avoid For harmonious development, to avoid

trade wars trade wars withinwithin Indonesia, e.g., Indonesia, e.g., Sulawesi producers of semi-finished rattan Sulawesi producers of semi-finished rattan

forced to sell to “infant industry” Javanese forced to sell to “infant industry” Javanese furniture manufacturers instead of to more furniture manufacturers instead of to more lucrative international markets (higher lucrative international markets (higher prices, lower shipping costs)prices, lower shipping costs)

ReconciliationReconciliation In sum, harmonious reconciliation between the In sum, harmonious reconciliation between the

decentralizing and recentralization forces in general, decentralizing and recentralization forces in general, above all for good governance of natural resource above all for good governance of natural resource management in Indonesia may require application of management in Indonesia may require application of the 3 D’s,the 3 D’s, DecentralizationDecentralization DeregulationDeregulation DebureaucratizationDebureaucratization

Whichever way forward is chosen, success will depend a Whichever way forward is chosen, success will depend a sense of trusting shared ownership in the process sense of trusting shared ownership in the process among administrative jurisdictionsamong administrative jurisdictions

7575

Rumongso Melu Handarbeni

decentralizing & recentralizing nrm in indonesia: how local can you go

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