integrated local ecological and geographical knowledge, social preferences and existing 

institutions (NRMP Report No. 39 and 63).  The design was based on a pilot study that aimed to 

establish clear resources rights for enclave villages, and was intended for implementation during 

the second phase NRM Program cycle.  The major impact of the TFA management concept will 

be determined by the ability of the pilot study to convince decision makers to recognize multiple 

claims to forest land and seriously address the underlying issues surrounding community 

resources rights. 

2.7  Summary of Lessons Learned from Sustainable Natural Forest 

Management  

NRMP has identified several policy issues that need to be addressed if natural forests are not to 

become islands in wider landscapes of intensive land use.  As Indonesia's policy broadens the 

objectives of development from that solely for narrowly circumscribed economic growth to a 

more balanced concept of equitable sustainable development, fundamental questions about the 

ability of existing forestry institutions to support the wider goals remain unanswered.  The 

prospects for policy reform in Indonesia's forestry sector are uncertain.   Bigger carrots and 

better sticks  is one means to describe policy reform needs; provide incentives for good 

management and appropriate, focused and well applied disincentives to ultimately accomplish 

behavioral changes.  The difficulty facing donors and the MoFr is to simultaneously address all 

three major themes discussed in this chapter; namely, i) simplifying institutional requirements, ii) 

increasing the valuation of natural forest, and iii) reducing uncertainties of resource allocation 

rights. 

Simply reforming forestry policies may not deliver the required outcomes.  Multiple stakeholders 

operate within policy frameworks that influence the forestry sector.  Policies of other agencies 

affect forest management and must also be addressed if improved outcomes are achieved.  

Therefore, policy revision requires implementing multi stakeholder processes to allow 

integration of these often divergent views and objectives.  NRMP investigated these issues to 

determine the priorities for applying innovative institutional programs and policies to enable 

Indonesia's improved sustainable use of natural forests. 

In general, the MoFr and donors must pursue an integrated approach to forest policy revision 

that accommodates the following issues or lessons learned:  

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 

resources 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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