Closer to People and Trees: Will Decentralization Work for the People and the Forests of Indonesia?

This research paper examines the early implementation of decentralization laws in Indonesia, specifically Law No. 22/1999 and Law 25/1999, and their impact on the forestry sector. It analyzes how the shift of power from the central government to districts has led to the emergence of 'district timber regimes' focused on revenue generation, often at the expense of forest conservation and sustainable management.

• The Indonesian government implemented a decentralization process through Law No. 22/1999 on Regional Governance and Law 25/1999 on the Balance of Fund, which became effective on January 1, 2001. This process transferred decision-making authority primarily to districts and municipalities rather than provinces to prevent separatist aspirations and bring government closer to the people.
• Decentralization has created a 'tug of war' over authority between the central government and regional leaders, characterized by mistrust and continuous negotiations. Ambiguities in the law, particularly regarding natural resource management, have led to conflicting interpretations between the center and the regions.
• District governments have prioritized the generation of locally generated revenues (Pendapatan Asli Daerah or PAD) to fund their new autonomous functions. This has led to the creation of 'district timber regimes' where districts issue small-scale logging permits (HPHH or IPPK) and levy taxes on timber transport to increase immediate cash flow.
• The issuance of small-scale logging permits by districts has increased pressure on forest resources and often involves forest conversion. These permits are frequently issued without effective monitoring capacity, leading to 'spill over' where logging occurs outside designated areas.
• Some district governments have effectively legalized illegal logging by imposing charges on confiscated timber or taxing timber transported through their jurisdictions regardless of its legal source, prioritizing revenue over legality.
• Conservation areas are often viewed as a burden or a 'lost opportunity' for revenue by district governments. This has led to attempts to reclassify protected forests for other uses, such as limited production forests or community forests, to allow for economic exploitation.
• The management of national parks and conservation areas is threatened by illegal logging, reclassification, and encroachment by smallholders for agriculture (e.g., rubber, cassava, coffee, and cocoa). Enforcement has declined as forest police fear being accused of authoritarianism.
• While decentralization intended to involve local communities in the timber sector, most profits still accrue to 'capital providers' (foreign investors or local entrepreneurs). Local people often act as nominal permit holders or laborers and remain relatively poor.
• Revenue sharing arrangements for natural resources, such as the Reforestation Funds (Dana Reboisasi or DR), have been contentious due to a lack of transparency and delays in redistribution from the central government to the regions.

APA

Resosudarmo, I. A. P. (2002). Closer to People and Trees: Will Decentralization Work for the People and the Forests of Indonesia? World Resources Institute. http://wriorg.s3.amazonaws.com/s3fs-public/pdf/eaa_decent_daju.pdf

Chicago

Resosudarmo, Ida Aju Pradnja. Closer to People and Trees: Will Decentralization Work for the People and the Forests of Indonesia? World Resources Institute, 2002. http://wriorg.s3.amazonaws.com/s3fs-public/pdf/eaa_decent_daju.pdf.

Wikipedia

{{cite report |last1=Resosudarmo |first1=Ida Aju Pradnja |title=Closer to People and Trees: Will Decentralization Work for the People and the Forests of Indonesia? |publisher=World Resources Institute |date=February 2002 |url=http://wriorg.s3.amazonaws.com/s3fs-public/pdf/eaa_decent_daju.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{resosudarmo2002closer, author = {Resosudarmo, Ida Aju Pradnja}, title = {{Closer to People and Trees: Will Decentralization Work for the People and the Forests of Indonesia?}}, institution = {World Resources Institute}, year = {2002}, month = feb, url = {http://wriorg.s3.amazonaws.com/s3fs-public/pdf/eaa_decent_daju.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }