Pelangi Indonesia

Does Money Grow on Trees?

Opportunity and Challenges of Forestry CDM in Indonesia

Author : Author: - Agus P. Sari - Wisnu Rusmantoro - Erdi Abidin - Imran Rachman - Chandra Panjiwibowo

Publisher : Pelangi

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Currently, a National Strategy Study on Forestry CDM is being undertaken. Government’s position regarding forestry CDM is still mixed. This paper is an attempt to provide insights for decisions on this important matter. This booklet discusses the Forestry CDM in Indonesia. It covers Jambi, West Kalimantan, and Central Sulawesi where the area is dominated by forest. The past and current forest conditions in Indonesia have been a direct result of the assortment of external causes such as the El Niño, climate variability, and the longer term problem of climate change. But the problems lie on the underlying causes of long-standing destruction of the Indonesian forests: institutions, governance, and straight economics. Between 1984 and 1998, the average rate of forest destruction in Indonesia was about 1.6 million hectares per year. The figures in the recent years — during the economic crisis and beyond, the so-called ‘reform’ period — might have been closer to 2 – 2.4 ha per year, the highest destruction rate in the world. By 1997, Indonesia had lost 72 percent of its primary forest cover and 54 percent of the remaining ones were threatened.

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