Table of Contents 

Table of Contents........................................................................................................................ i 

List of Figures & Tables..............................................................................................................iii 

Executive Summary ...................................................................................................................iii 

List of Acronyms and Abbreviations ......................................................................................... xiii 

1.  Enabling Policies for Sustainable Resources Management ................................................... 1 

1.1  Overview .......................................................................................................................... 1 

1.2 Sustainable Development Policy Issues ............................................................................ 1 

1.2.1 The Role of Policy....................................................................................................... 2 

1.2.2 Human and Natural Resources ................................................................................... 4 

1.2.3  Industrialization .......................................................................................................... 5 

1.2.4 Multi stakeholder Participation .................................................................................... 7 

1.2.5 Community based Management ............................................................................... 10 

1.2.6  Changing Behaviors................................................................................................. 11 

1.3  Lessons Learned:  Policies for Sustainable Development .............................................. 13 

1.3.1  National Economic Development ............................................................................. 13 

1.3.2  Sustainable Natural Resources Management .......................................................... 14 

1.3.3 Trade Policy and Deregulation .................................................................................. 16 

1.3.4 Foreign Direct Investment and Marketing Associations ............................................. 18 

1.3.5 Economic and Environmental Interactions ................................................................ 20 

1.4 Lessons Learned: Policy Players and Their Roles........................................................... 24 

1.4.1 Policy Processes and Players ................................................................................... 24 

1.4.2 Client Communication ............................................................................................... 26 

1.4.3 Multi stakeholder Policies.......................................................................................... 27 

1.5 Summary of Lessons Learned from Enabling Policy Development.................................. 28 

2.  Sustainable Forest Management......................................................................................... 31 

2.1 Overview ......................................................................................................................... 31 

2.2 Economic Role of Indonesia's Natural Forests ................................................................ 32 

2.3 Institutional and Ecosystem Management Issues ............................................................ 34 

2.4 Lessons Learned: Simplifying Institutional Requirements................................................ 37 

2.4.1 Planning Processes .................................................................................................. 37 

2.4.2 Management Challenges .......................................................................................... 40 

2.4.3  Compliance and Enforcement of Forestry Regulations............................................. 41 

2.4.4  Negotiation and Production Costs ............................................................................ 42 

2.5 Lessons Learned: Reducing Natural Forest Undervaluation............................................ 45 

2.6 Lessons Learned: Reducing Uncertainties of Resource Allocation Rights ....................... 46 

2.6.1 Concession Licensing ............................................................................................... 47 

2.6.2 Industrial Plantations and Contested Production Forest Boundaries ......................... 48 

2.6.3 Absence of Full Forest Management Rights for Local Communities.......................... 50 

2.7 Summary of Lessons Learned from Sustainable Natural Forest Management ................ 51 

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