technology and markets.  The need for behavior change to achieve sustainable development 

goals has been stressed, including the concept of industrialization and the need for decisions 

without consideration of market prices.  

Having considered conclusions from policy studies on interactions of the economy and 

environment, the need to develop structured planning targets for natural resources management 

was identified.  These targets need to apply both at the national level to enable economic 

planning and at the local level where resource use and impacts occur. Policy success 

determinants differentiate the participant s roles within the policy process.  Both government and 

donors have not clearly understood these determinants, resulting in a series of very low impact 

initiatives.  To get the right policy outcome requires the right process, which will need to be more 

open and accessible, with greater involvement from the full range of stakeholders.  Involvement 

at the appropriate level of participation is the common ingredient that both government and 

donors have been unable to deliver to date. 

From the NRMP experience, lessons learned for the development of enabling policies for 

sustainable natural resources management in Indonesia are: 

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 resources allocation, but will fail to achieve many 

resources 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.  

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