Challenging Indonesia s 2020 Emission Reduction Targets in the Forestry Sector and Peatlands

Transcription

1 POLICY PAPER Challenging Indonesia s 2020 Emission Reduction Targets in the Forestry Sector and Peatlands December 21, 2009

2 TABLE OF CONTENTS Foreword... 1 Case 1: Conversion of natural forest outside forest areas... 2 Case 2: Conversion of natural forest in forest areas allocated for conversion... 3 Case 3: Deforestation caused by HPH concessionaires... 5 Case 4: Deforestation caused by HTI concessionaires... 6 Recommendations... 7

3 Foreword President Susilo Bambang Yudhoyono announced an emissions reduction target of 26 percent by 2020 at the climate-change conference in Copenhagen on 17 December in fact, emissions reduction could reach up to 41 percent if international assistance were to be forthcoming. The achievement of this target will need to have regard to provincial, district and municipal spatial plans, and maps of Indonesia s forest areas designation that have been approved by the Minister of Forestry. With regard to this target, it needs to be underlined that the Indonesian government has committed itself to reducing emissions from the forestry sector by 51.2 percent. This is because of the target of 26 percent, 13.3 percent is expected to come from the forestry sector. In addition, the forestry sector has also been included in the emissions-reduction target from the peatland utilization as the extent of the peatland included within the forest areas is quite large. The reduction in emissions from the peatland is targeted at 9.5 percent or 36.5 percent of the total emissions-reduction target of 26 percent. This means that if emissions-reduction target in the forestry sector is combined with the target for the peatland utilization, these two components account for 87.7 percent of the overall emissions-reduction target of 26 percent. The fundamental question that arises as regards these targets in the forestry sector and peatland utilization is to what extent the government is actually committed to actually reducing emissions by 26 percent by This report is intended to highlight a number of important cases that need to be focused on so that the said emissions-reduction target can be achieved in the forestry sector and peatland utilization having regard to the maps of Indonesia s forest areas designation, which provided the principal data on forest and non-forest areas. In addition, this report is also intended to explore the extent of the commitment and targets of the Indonesian government as regards emissions-reduction, both in the context of political commitments and efforts to access financial compensation in connection with endeavors to reduce deforestation and degradation so as to benefit biodiversity, ecosystem services, and local communities through the involvement of the stakeholders. 1

4 Case 1: Conversion of natural forest outside forest areas The data contained in the Indonesian Land Cover Recalculation (Ministry of Forestry, 2008) includes data on non-forest areas that have Other Use status (APL) that is, areas that have been excluded from forest areas for the purpose of development by other sectors, outside the forestry sector. What needs to be had regard to here is that such areas contain forest stands covering 7.08 million hectares, including 1.05 million hectares of primary forest, and 6.03 million hectares of secondary forest. The inclusion of primary forest in APL zones is primarily found in two major areas, namely, Indonesian Borneo (33.64 percent) and Papua (32.92 percent). Meanwhile, the inclusion of secondary forest in APL zones is mainly found in Indonesian Borneo (40.76 percent) and Sumatra (22.94 percent). Table 1: Distribution of Forest Stands in Other Utilization Area (APL) Region Land cover Primary forest % Secondary forest % Total Sumatra 52, ,384, ,437, Java 39, , , Borneo 353, ,459, ,813, Celebes 146, , , Bali & NT 96, , , Maluku 16, , , Papua 345, , , Total 1,050, ,034, ,084, Source: Processed from Indonesian Land Cover Recalculation Data (Ministry of Forestry, 2008) % Bearing in mind that a reduction in emissions is not related to whether deforested land is located inside or outside of a forest area as emissions were still produced when the land was deforested, even though APL zones do not constitute forestland, emissions will still be produced and included as emissions from deforestation when the 7.02 million hectares of trees that they contain are felled. In fact, the APL zones have been legally allocated for conversion to other developmental sectors, both based on the provincial, district and municipal spatial plans, and forest areas designation maps produced by the Ministry of Forestry. The commitment of the Indonesian government to reducing emissions by 26 percent, the majority of which reductions will come from the forestry sector, needs to respond to the question of these stands of forests in the APL that are outside of forest areas. In this regard, the Indonesian government will need to respond to at least four questions: 2

5 1) Whether the envisaged conversion of 7.08 million hectares of primary and secondary forest for development uses outside of the forestry sector can be continued as provided for in local spatial plans and forest areas designation maps prepared by the Ministry of Forestry. In other words, is it to be a case of business as usual? 2) Whether the Indonesian government will cancel the said envisaged conversion of 7.08 million hectares through the revision of local-government spatial plans and the restoration of the areas status as permanent forest based on the Ministry of Forestry s forest areas designation maps? 3) What percentage of forested APL zones will continue to be converted to other uses based on local-government spatial plans and the Ministry of Forestry s forest areas designation maps? 4) Or, what percentage of the 7.08 million hectares of forested APL zones to be converted will be excluded from the conversion plan based on the REDD-PLUS compensation mechanism? With regard to the above four questions, the Indonesian Government needs to transparently explain its political decision on how this area of 7.08 million hectares will be treated. This is in line with President Yudhoyono s speech in Copenhagen, when he referred to the importance of transparency in the effort to reduce emissions. Case 2: Conversion of natural forest in forest areas allocated for conversion A no less serious challenge as regards the achievement of emissions-reduction targets in the forestry sector concerns the still-large areas of forest stands in Convertible Production Forests (HPK). HPK zones are not officially categorized as permanent forest areas and have been zoned in spatial plans for development of transmigration and other settlements, agriculture and plantations. Table 2: Extent of Forest Stands in Convertible Production Forest (HPK) Region Land cover Primary forest % Secondary forest % Total Sumatra 48, , , Java Borneo 32, ,761, ,794, Celebes 43, , , Bali & NT 3, , , Maluku 234, , ,146, Papua 4,729, ,962, ,691, Total 5,091, ,738, ,829, Source: Processed from Indonesian Land Cover Recalculation Data (Ministry of Forestry, 2008) % 3

6 Based on the data set out in the Indonesian Land Cover Recalculation (Ministry of Forestry, 2008), HPK zones consisting of primary and secondary forests cover an area amounting to million hectares, with 5.09 million hectares being primary forest and 5.74 million being secondary forest. Of the 5.09 million hectares of primary forest in HPK zones, percent is in Papua, while of the secondary forest, percent is in Papua and percent in Indonesian Borneo. A HPK zone is a priority area that can be allocated for development purposes outside of the forestry sector. Although the government of Indonesia prioritizes the release of non-forested HPK zones, not all districts/municipalities possess such non-forested HPK zones. This means that there will be pressures to release forested HPK zones for non-forestry development uses. At the present time, the proposals for the release of land by provinces and districts/municipalities are not confined to HPK zones alone, but also extend to permanent forest areas, such as protected areas and production forests. This is because not all provinces and districts/municipalities possess HPK and APL zones, while the demand for land is constantly increasing. This situation presents a major challenge in itself, which needs to also be responded to in the emissionsreduction context. In order to reduce emissions from the forestry sector, the Indonesian Government needs to formulate clear and concrete policies as regards the carving out of development zones from forested HPK zones. The principal questions that arise here are as follows: 1) Will the Indonesian Government continue to allocate the forested HPK area of million hectares that has already been allocated based on spatial plans for development uses outside of the forestry sector? In other words, will it continue to be business as usual? 2) Will the Indonesian Government revoke the allocation of the said million hectares of forested HPK and subsequently designate it as permanent forest? 3) What percentage will continue to be allocated for conversion to uses outside of the forestry sector? 4) Or what percentage of the million-hectare allocation will be cancelled under the REDD-PLUS compensation mechanism? With regard to the above four questions, it needs to be stressed once again that the Indonesian Government needs to adopt clear and concrete policies bearing in mind that the achievement of the 2020 emissions target is highly dependent on, among other things, the planned allocation of forested HPK zones for conversion to other uses outside of the forestry sector. 4

7 Case 3: Deforestation caused by HPH concessionaires A study by Greenomics Indonesia (December 2009) revealed that, based on the business plans of HPH concessionaires operating in Indonesia, there are at least 110 concessionaires operating that hold concessions extending to 8.14 million hectares. The total area to be felled up to 2018 extends to at least 1.54 million hectares, with the volume of timber to be felled amounting to million cubic meters worth Rp trillion. Table 3: Distribution of Forest Exploitation by HPH Concessionaires based on Business Plans of 110 Concessionaires Region HPH (unit) Primary forest Harvesting plan Concession area Logged over area Area Volume (m3) Sumatra 6 335,574 68, ,462 80,098 6,109,992 Borneo 73 5,073,901 1,264,677 2,870, ,179 37,702,748 Papua 12 1,726,460 1,247, , ,901 8,120,897 Maluku , , , ,672 5,477,824 Celebes 5 275, , ,881 97,657 2,039,114 Total 110 8,137,574 2,931,470 3,886,024 1,544,507 59,450,574 Source: Greenomics Indonesia Study (December 2009) based on HPH concessionaire business plans ( ) Thus it is clear that by 2018, 1.54 million hectares will be deforested, which will of course significantly increase emissions into the atmosphere. The questions that arise in this regard are as follows: 1) Will the Indonesian Government continue to permit the activities of HPH concessionaires based on the business plans that have been approved by the Ministry of Forestry (business as usual), which will result in at least 1.54 million hectares of land to be deforested up to 2018? 2) Does the Indonesian Government plan to cancel the business plans of the said HPH concessionaires, then offer compensation under the REDD-PLUS mechanism, so that a moratorium of HPH concessions is introduced? 3) If it is decided to introduce a moratorium based on compensation under the REDD- PLUS mechanism, what steps will the Indonesian government take to fulfill the demand for wood from the timber industry and the community, and anticipate undesirable consequences, such as an increase in illegal logging, unemployment and multiplier effect issues? 4) Or, what percentage of the area of 1.54 million hectares to be felled will be saved based on the provision of compensation under the REDD-PLUS mechanism? 5

8 Should the Indonesian Government decide to allow the approved business plans to be implemented, the government will need to estimate the volume of emissions that will be produced as a result so that the volume of emissions from the forestry sector can be made known in a transparent manner to the public at large. This is in line with the President s commitment in Copenhagen that the Indonesian government would be transparent about its emissions-reduction plans. Case 4: Deforestation caused by HTI concessionaires The development of industrial timber concessions (HTI) requires the preparing of the land through the clearing of natural forest that has been delineated by the Ministry of Forestry, that is to say, the separation of natural production forest that is still productive and which functions as a buffer zone and non-productive natural production forest. Land clearance may be authorized by the Ministry of Forestry in respect of areas that in the opinion of the Ministry are non-productive natural production forests. A study by Greenomics Indonesia (December 2009) found that based on 77 business plans by HTI concessionaires covering an area of 3.53 million hectares of which 1.09 million hectares is already covered by timber plantations 299,002 hectares consists of natural production forest that is evaluated as being in a non-productive state by the Ministry of Forestry, and so may be converted (including that which is already undergoing the process of conversion) for the purpose of clearing land for HTI development up to This process of conversion is estimated by the business plans of the HTI concessionaires ( ) to produce million cubic meters of timber worth Rp 9.28 trillion. Table 4: Distribution of Forest Exploitation by HTI Concessionaires based on Business Plans of 77 Concessionaires Region HTI (unit) Concession area Forest plantation Logged over area Primary forest Natural forest conversion for HTI development Logged over area Volume of conversion (m3) Sumatra 50 2,127, , , ,943 15,629,254 Borneo 27 1,402, , ,382 13,270 93,059 4,605,570 Total 77 3,530,040 1,092, ,159 13, ,002 20,234,824 Source: Greenomics Indonesia Study (December 2009) based on HTI concessionaire business plans ( ) Having regard to the Indonesian Government s emissions-reduction target, it is reasonable to ask the following questions: 6

9 1) Will the process of natural production forest conversion in the holdings of HTI concessionaires covering 299,002 hectares up to 2018 be allowed to continue (business as usual) or will it be cancelled by the Ministry of Forestry? 2) If the Indonesian Government decides to impose a moratorium on the conversion of natural production forest for the purpose of preparing land for the development of industrial timber concessions (including a moratorium on the conversion of nonproductive natural production forest), what concrete policy steps will be taken? Should the Indonesian Government not interfere in the process of converting non-productive natural production forest for the development of industrial timber concessions, then it will be required to include the emissions that will be produced as a result of such conversion so as to ensure transparency as promised by President Yudhoyono in Copenhagen. Recommendations 1) The Indonesian Government needs to accurately recalculate its emissions-reduction targets in the forestry sector and peatland utilization, bearing in mind that these two components account for significant emissions-reductions of 22.8 percent of the overall target of 26 percent by The said recalculation should, at the least, including emissions projections from: a. The planned conversion of forest stands in forested APL zones covering an area of 7.08 million hectares that have been allocated under spatial plans for nonforestry sector development uses. b. The planned conversion of million hectares of non-permanent forest (HPK) that has been allocated for exclusion from forest areas for development uses outside of the forestry sector. c. The deforestation of at least 1.54 million hectares of production forest by 2018 resulting from the planned activities of HPH concessionaires. d. The deforestation of 299,002 hectares (including that which is already underway) that will result from the planned development of industrial timber concessions. 2) The Indonesian Government needs to issue a blueprint for the reduction of emissions from the forestry sector and peatland utilization on an MRV basis (measurable, reportable and verifiable). This would be in line with the commitments of President Yudhoyono at the climate meeting in Copenhagen. 7

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