Indonesia, particularly aimed at improved forestry management and in situ biodiversity 

conservation; namely: 

Enabling Policies for Sustainable Resources Management 

Sustainable Natural Forest Management 

Conservation Area Management 

Institutional Strengthening and Innovation. 

Enabling Policies for Sustainable Resources Management   

Current policy settings in Indonesia favor economic growth at the cost of sustainable 

natural resources management and ecological functions.  Economic policy settings need 

to provide less incentive for exporting raw material or semi finished goods.  The removal 

of cascading levels of nominal and effective protection would alleviate these distortions.  

Deregulation enables internationally competitive prices to provide incentives for 

innovation and value adding, which are important components of sustainable 

development. To improve competitiveness, sectoral and economy wide policies need to 

be integrated with planning objectives. 

Markets can provide efficient resource allocation, but will fail to achieve many resource 

management objectives.  Provisioning for the less fortunate and future generations will 

require decentralized decision making, often without consideration of market prices. 

Policy interventions by both the GOI and donors fail to recognize the determinants of 

success sought by each of the players in a policy process.  NRMP s emphasis on 

adopting the role of analyst in the policy process, with the Project Coordinating 

Committee (PCC) as client, could not provide the success determinants required by the 

donor.  

Multi stakeholder policy processes provide an opportunity for linking the various players 

within the policy making process.  Within this process, NRMP s movement away from 

the role of analyst to that of educator or facilitator was considered to be more closely 

linked to donor objectives.  

Sustainable Natural Forest Management  

Unless the real long term values of forests are quantified and revealed, there will 

continue to be over exploitation of forest products. Current policies in Indonesia 

undervalue forests and their products and provide no incentive for efficient or 

sustainable use. 

The current excessive uncertainty over access to benefit streams from resource 

allocation rights has resulted in right holders adopting a short term perspective over 

resource exploitation to maximize the value of their right.  Moreover, right holders face 

even less incentive to invest in reforestation and replanting.  As a direct result, historic 

management of forest products and services has been disrupted through a combination 

of market forces, conversion of lands, and opening new access to resources.   

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