2.  Sustainable Forest Management 

2.1 Overview 

Chapter Two reviews the forestry sector experience and the lessons learned from a wide range 

of often diverse NRMP interventions.  The economic importance of Indonesia s natural forests 

and institutional and ecosystem management issues are reviewed. Lessons learned are 

considered, primarily through field experience from West Kalimantan, by reviewing three 

fundamental and inter linked recommended policy reform themes: i) simplifying institutional 

requirements, ii) reducing natural forest undervaluation, and iii) reducing uncertainties of 

resources allocation rights. 

Promoting sustainable natural forest production and management in Indonesia must consider 

the ecological, economic and socio political constraints to effective forestry policy 

implementation.  NRMP experiences with forestry sector policy and field research activities 

document the extent of non sustainable forest use in Indonesia.  Given the tremendous socio 

economic and ecological value of Indonesia s forestry sector, this non sustainable use of forest 

resources has major implications.  Therefore, future gains in natural resources management will 

require major changes to address the misuse of forest resources in terms of revised forest 

production objectives and forest management policies.  Objectives should aim to maximize the 

value of all forest goods and services, reduce uncertainties of resources rights and contested 

land claims and incorporate a diversity of stakeholders.  Especially important for improved 

forestry management are local and regional control of production and management, or 

decentralization of forestry activities.  The impact of additional economic, ecological and social 

costs arising from inappropriate regulations is emphasized.  Major recommendations include a 

pronounced shift from a  command and control  prescriptive approach to the design of an 

ecological and economic  outcome based  management regime. The impact of NRMP field 

studies and surveys, policy reviews and extensive dialogue with various agencies contributed 

much toward this process.    

Future gains in sustainable forestry will require changes to the underlying causes of 

inappropriate forest management policies.  For the MoFr and donors, this requires addressing 

all the causes in an integrated manner, including policies that address: 

Simplification of institutional requirements: planning constraints, management 

constraints, compliance and enforcement of forestry regulations, and negotiation and 

production costs 

Reduction of natural forest undervaluation: increasing the value of natural forest 

ecosystems beyond utilization to include environmental services and biodiversity values 

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