Forest Governance in Aceh - Eye On Aceh Report

Challenges of Forest Governance in Aceh
EYE ON ACEH
March 2009 (second edition)
www.aceh-eye.org
Cover: Map of forest cover in Aceh (courtesy ADB - ETESP 24 2008)
We are grateful for the financial support of

THE CHALLENGES OF FOREST GOVERNANCE IN ACEH
Acknowledgements
:
The production of this report has been made possible by the active co-operation of many staff in the
Provincial and District government departments in Aceh who gave their time for interviews and assisted in
gathering information. A special thanks to several provincial government agencies in Aceh, such as BPKEL,
Department of Forestry and Plantations, Aceh Geospatial Data Centre (AGDC), members of the Governor’s
advisor team as well as TIPERESKA. Thanks to those in the international donor community who spent time
discussing our ideas, and who encouraged the research for this report.
As is usual with Eye on Aceh reports, our research is only possible with the contributions made by the
villagers of Aceh, and our friends in the districts who always provide invaluable contacts and information, but
who prefer to remain unnamed in our acknowledgments.
Again, our thanks to Wynne Russell who provided comments on an earlier draft and advice on this final
version.
Eye on Aceh research team for this report: Al-Fachri, Fahmi, Juliansyah, Marzuki, Mustawalad, Muntazar,
and Samsul.
: of Contents
Table
Map: Environmental sensitivity analysis................................................................................ 2

Abbreviations and glossary.................................................................................................... 3
Map: Protected and conservation forest area and development zone in Aceh...................... 4
I. Introduction......................................................................................................................... 5
- Methodology.......................................................................................................... 5
II. Aceh's forests................................................................................................................... 6

The impact of the conflict and the post-conflict period.................................................. 6
Impact of the tsunami.................................................................................................... 6
Expansion of roads....................................................................................................... 7
Expansion of settlements.............................................................................................. 7
Land grabbing............................................................................................................... 7
Burning.......................................................................................................................... 7
Results for the forests................................................................................................... 8
- Flooding................................................................................................................. 8
- Pollution................................................................................................................. 8
- Human - animal conflict......................................................................................... 8
- Poaching................................................................................................................ 8
Link to poverty............................................................................................................... 9
Concept: What is good forest governance (GFG)?................................................................ 11

Pre-requisites for GFG.................................................................................................. 11
III. Governance of forests in Aceh today................................................................................ 12

Governance at the formal level: decentralisation and its discontents............................ 12
Devolution from the center to the province.................................................................... 12
Decentralisation within Aceh.......................................................................................... 13
The structure(s) of forest governance............................................................................ 13
- Bureaucratic overlap and competition between levels of government..................... 14
Governance at the informal level: corruption rules........................................................ 15
V. Reform and its challenges................................................................................................ 18

Awareness of the importance of forests, and exclusion at the community level.......... 18
Awareness of the importance of forests and of community concerns at the official
level.............................................................................................................................. 20
Independent, confidential, anonymous avenues for reporting illegal activities............. 20
Human resources.......................................................................................................... 20
Certainty about land boundaries and tenure.................................................................. 20
VI. Conclusion....................................................................................................................... 22
Recommendations.......................................................................................................... 23
Appendix 1: Checklist............................................................................................................ 24
Appendix 2: Conservation forest, protected forest and production forest............................. 25
Appendix 3: The structure of forest governance in Aceh today............................................. 26
Notes.................................................................................................................................... 27
Map: Environmental Sensitivity Analysis in Aceh
/Low risk
/High risk
/Must be protected
Acronyms
:
ADB Asian Development Bank
AFEP Aceh Forest and Environment Project
BAPEDALNAD Environmental Impact Control Agency of Aceh (Badan Pengendalian Dampak
Lingkungan Aceh)
BAPPEDA Regional Development Planning Agency (Badan Perencanaan Pembangunan Daerah)
BKSDA Nature Conservation Agency (Balai Konservasi Sumber Daya Alam)
BKPMD Coordinating Agency on Regional Investment (Badan Koordinasi Penanaman Modal
Daerah)
BPDAS Water Basins Management Agency (Balai Pengelola Daerah Aliran Sungai)
BPKEL Leuser Ecosystem Management Agency (Badan Pengelola Kawasan Ekosistem Leuser)
BPS Central Statistic Agency (Badan Pusat Statistik)
BP2HP Production Forest Product Utility and Monitoring Agency (Balai Pemantauan Peredaran
Hasil Hutan Produksi)
BRR Rehabilitation and Reconstruction Agency (Badan Rehabilitasi dan Rekonstruksi)
Bupati District head
Camat Sub-district head
Desa Village
Dinas a district- or provincial-level government department
DISHUTBUN Department of Forestry and Plantations (Dinas Kehutanan dan Perkebunan)
DISTAMBEN Department of Mining and Energy (Dinas Pertambangan dan Energi)
FAO Food and Agriculture Organization
FFI Flora and Fauna International
GAM Free Aceh Movement (Gerakan Aceh Merdeka)
GFG Good Forest Governance
Ha Hectare(s)
INPRES Presidential Instruction (Instruksi Presiden)
Kabupaten Government administration at district level
Kecamatan Government administration at sub-district level
KEPPRES Presidential Decree (Keputusan Presiden)
LIF Leuser International Foundation
LOGA Law on Governing Aceh (Law No.11/2006)
MDTF Multi Donor Trust Fund
NAD Nanggroe Aceh Darussalam (official name of Aceh province)
NFTR Non-timber Forest Resources
NGO Non governmental organisation
OCSP Orangutan Conservation Services Programme
Panglong Wood shop
POLHUT Forest Police (Polisi Hutan)
Provinsi Government administration at provincial level
Qanun Legislation produced by district and/or provincial parliament in consultation with
provincial and/or district government
SFM Sustainable forest management
SKPA Implementing Unit of Aceh Government (Satuan Kerja Pemerintah Aceh)
SPEM Spatial Planning and Environmental Management
TIPERESKA Drafting Team for Strategic Planning of Forest Management in Aceh (Tim Penyusunan
Rencana Stretegis Pengelolaan Hutan Aceh)
TNGL Gunung Leuser National Park (Balai Taman Nasional Gunung Leuser)
UPT Technical Implementing Unit (Unit Pelaksana Teknis)
UPTD Regional Technical Implementing Unit (Unit Pelaksana Teknis Daerah)
UU Law (Undang-Undang)
UN United Nations
UNDP United Nations Development Programme
UNESCO United Nations Education, Social, and Cultural Organization
UNSYIAH Syiah Kuala University (Universitas Syiah Kuala)
WWF World Wildlife Fund
3
Map: Protected and conservation forest and development area in Aceh
I.Introduction __________________________________
The forests of Aceh, and the communities that live Development in Aceh. Provincial and district level
in them, are at an important crossroads. Sitting in networks of power and interest have coalesced
the northwestern corner of the giant Indonesian around forest use, creating serious obstacles to
archipelago, the province of Aceh comprises effective forest management and bio-diversity
approximately 5.6 million hectares (ha), of which conservation. Such vested interests seek to turn
about 3.3 million ha are designated as forests into cash through logging or to unlock their
1
forest. While the total number of hectares of land for farming or exploitation of mineral wealth.
forest remaining in Aceh is in itself impressive, Meanwhile, existing mechanisms to manage the
systems of management are weak, and so these forests are severely limited. Reform of forest
forests face increasing threats. Now in a period of management in the province is therefore a matter
reconstruction, rehabilitation and development of some urgency.
after thirty years of civil war and the devastating
December 2004 tsunami, Aceh is facing sweeping However, Aceh faces many governance-related
changes in land use. In this context, deforestation constraints in its efforts to improve environmental
levels have skyrocketed, rising from an average of policy, regulations, and their application. These
around 20,000 ha per year pre-tsunami to over include a fragmented institutional structure; limited
130,000 ha per year in 2005-2006.
2 coordination among provincial level dinas
(departments) and national line ministries in
Both loggers and many policymakers largely Jakarta; and bureaucratic procedural constraints
and inefficiencies. Recent moves to decentralise
explain this accelerating damage by citing high
policymaking, and the resulting confusion over
levels of poverty in Aceh's forest regions.
areas of responsibility between provincial- and
However, it is not at all clear that existing patterns
national-level agencies, have created additional
of forest use - and misuse - are benefiting Aceh's challenges for environment and natural resource
poorest. It is wholly possible that forests can management. In addition, local communities and
provide sustainable livelihoods. But without good some local government stakeholders remain largely
forest governance in place - the right leadership, uninformed about many governance issues, as well
institutions, policy decisions and practical systems as about the need to maintain and enhance the
- the exploitation of Aceh's forests will result only environmental health of forests.
in unsustainable practices that not only will
destroy ecosystems and push endangered For Aceh's forests to deliver maximum benefit to
species to the brink of extinction, but also will local communities over the long term while
result in environmental damage that will bring maintaining their environmental values, sustainable
risks to local populations for decades to come all forest management practices must be in place, with
to little effect for Aceh's poor. practical tools, tactics and approaches identified,
implemented, and monitored. These, however, will
To its credit, the provincial government has taken be difficult to achieve in an environment of
several bold steps in an attempt to move toward corruption which lacks transparency and
better forest governance in Aceh. For example, in accountability. Thus, the final solution to Aceh's
recognition of the environmental disasters - forest sector lies with governance reform more
flooding and landslides - in particular that have broadly.
resulted from increased deforestation rates, in
June 2007 the recently appointed Governor of the Methodology
province, Irwandi Yusuf, declared a moratorium on Research for this report was conducted by the Eye
logging. A committed conservationist, Irwandi on Aceh local research team. Due to the centralised
Yusuf is simultaneously struggling to help offer nature of policy discussion on forest management,
viable livelihoods to the estimated 23.5 percent of much of the research was conducted at the
Aceh's population currently living in poverty, many provincial level. Some field trips were however
3
of whom live in or close to forested areas. In this undertaken to several key forest areas in Aceh,
context, good forest governance (GFG) is, where local interviews and surveys were
according to Irwandi Yusuf, a crucial part of Aceh's conducted.
poverty reduction strategies.
The report draws not only on interviews and
This initiative and others do, however, face surveys, but also on ongoing discussions between
serious challenges. After almost thirty years of Eye on Aceh and the provincial Department of
conflict in Aceh, the peace delivered some Forestry and Plantations, as well as with several
multi-stakeholder forums in Aceh.
semblance of normality for local people, but it also
provided space for opportunism, including the
The research employed as its framework a checklist
politisation of vested interests, especially those
model of analysis that encompasses some of the
relating to the exploitation of Aceh's forests and basic prerequisites for good forest governance and
other natural resources. Illegal logging and the sustainable forest management (see Appendix 1).
corruption that underpins it undermine the Many of these issues, as will be made clear in this
possibility of the forests contributing to sustainable report, remain a challenge in Aceh today.
5
II. Aceh Forest_____________________________________________________

Aceh’s forests cover an area of about 3.3 million trucks carrying this illegal cargo being seized;
hectares (ha), mostly in non-coastal areas.4 The security forces saw only a business opportunity and
province’s forests are covered by various commonly charged an illegal 'toll' to pass each
designations that offer varying levels of protection security post - thus increasing the cost of logs,
(see Figure 1), from little protection (full production profiting the security forces, and ultimately
forests) through full protection (conservation undermining any effort at forest governance. A
forests). Conservation and other protected forest complete supply chain was in place: the security
areas cover a total of around 2.7 million ha, an area forces were not only involved in logging, but also in
that includes major parts of the expansive Leuser processing the timber. Many illegal sawmills
Ecosystem, the Gunung Leuser National Park, and operated in forest areas, with military and police
the high conservation value Ulu Masen protected trucks often seen transporting cut timber.
forest area. While this figure may seem impressive Furthermore, competition for the valuable logs even
at first glance, it says nothing about fragmented exacerbated the conflict in some areas, with conflict
nature of the forest cover, nor of the weak level of over control of timber access routes leading to
protection afforded to some of these designations armed clashes between military and police.6
(see Appendix 2). Meanwhile, many local people were involved in the
trade themselves. Those not involved were afraid to
give information about abuses; many activists and
Figure 1: Forest Designated Area in Aceh local people who informed the relevant authorities
Forest Functions Area (ha) were killed or beaten, or disappeared, with their
Nature reserve forest families often also targeted.
- Nature reserve (Cagar Alam) 16,940
- Wildlife reserve (Suaka With the signing of the peace agreement, a
Margasatwa) 102,370 demobilisation and reintegration programme was
Nature conservation forest initiated in the province. However, many of the
- National park (Taman Nasional) 623,987 former GAM combatants who came down from the
- Nature recreational park (Taman forests had no skills and no money. Reintegration
Wisata Alam) 16,412 funds were slow to arrive and distribution was
- Grand forest park (Taman Hutan problematic; many former combatants say they
Raya) 6,220 have yet to receive their full allowance. Promised
- Hunting park (Taman Buru) 86,704 skills training was slow to be delivered, and
Protected Forest Area 1,844,500 frequently did not meet the needs of individuals,
Production Forest Area families or communities. A larger-than-anticipated
- Limited production forest 37,300 number of ex-combatants compounded these
- Fix production forest 601,280 difficulties. As a result, some ex-combatants have
- Convertible production forest 0 turned to illegal logging. Moreover, the ending of the
TOTAL 3,335,713 conflict means that previously dangerous areas are
now safer and have become more accessible to the
5
Ministry of Forestry Decree No.170/Kpts-II/2000. loggers. Unfortunately, the result has been an
increase in illegal logging in some of Aceh's most
Several recent factors in Aceh form a crucial part of biodiversity-sensitive areas, including the Leuser
our understanding of the obstacles facing Ecosystem, Gunung Leuser National Park, and Ulu
proponents of good forest governance in the Masen forest.
province. To some degree, forest governance in
Aceh is a victim of circumstance: the recent Impact of the tsunami
historical context of the conflict, the current At the same time as the December 2004 earthquake
reintegration process, and the 2004 earthquake and and tsunami increased the number of impoverished
tsunami. Acehnese needing work, the demand for timber
soared. The response to the disaster saw the
The impact of the conflict and the post-conflict period world's largest ever aid effort, including
Until the signing of a peace agreement on 15 August reconstruction of houses, hospital, schools,
2005, a low-intensity but violent and bloody conflict government offices, shops, and other public
was fought for almost thirty years between the pro- infrastructure - all of which require timber at some
independence Free Aceh Movement (Gerakan Aceh stage of construction. The post-reconstruction
Merdeka GAM) and the Indonesian security forces. process is estimated to have pushed Aceh's
Illegal logging was rampant during the war, with both demand for wood to almost 700,000 cubic metres
parties boosting their war chests through localised (m³) of logs annually - five times its previous annual
logging. The heavy militarisation brought on by the level.7 Indeed, initial estimates suggested that the
conflict facilitated these business ventures by minimum requirement for the reconstruction,
instilling fear into anyone who threatened to protest; anticipated to take five years, would be 446,041
military transport also was readily available to move cubic metres of sawn timber - equivalent to
the logs. The number of military and police check 1,115,102 cubic metres of logs.8 This proved to be
points along the road did not in fact result in an under estimate.
6
The Indonesian government has tried to mitigate the Expansion of settlements

impact of the reconstruction process on the The Indonesian Transmigration Programme, one of
province's forests. The Rehabilitation and the largest internal migration programmes in the
Reconstruction Agency (BRR), established in April world, was designed to move poor Indonesians from
2005, has the mandate for overseeing and overcrowded areas of the country to provinces with
coordinating the reconstruction process, including land still available for smallholdings. During the
9
activities funded directly by foreign donors. The 1970s through the late 1990s, Aceh received an
BRR has adopted principles on timber use in the estimated 41,906 transmigrant families, many of
reconstruction process that specify the use of timber whom were settled in forested areas, with an
from natural forest concessions from other parts of additional 2,503 families brought in between 1999-
13
Indonesia, but not from Aceh. The agency further 2004. When conflict escalated in 1999-2002,
encourages the use where possible of non-timber around 21,000 families or almost half of total
14
construction materials, such as coconut wood and transmigrants fled the province. Efforts are now
bamboo. It also has established mechanisms to ongoing to try to persuade transmigrants who fled
allow more easy entry into Indonesia of timber from from Aceh during the conflict to return. The program
overseas via Medan, a port city in North Sumatra has been much criticised for its negative impacts,
proximate to the border with Aceh. including extensive damage to the environment in
some places and conflicts with indigenous people.
These efforts to protect Aceh's forests from the In some parts of Aceh, forest clearings have been
impact of the reconstruction process, however, prepared for transmigrant communities that never
have enjoyed limited success. In the rush to actually moved there, and in other areas forests
complete construction projects on time, many have been cleared or degraded by transmigrant
donors - including the BRR itself - have been less communities themselves who were moved into
than careful about their own purchasing policies, environmentally sensitive areas and permitted by
10
and those of their contractors. Inevitably, illegal the authorities to open land for vegetable gardens
logging has increased in response to this increased and smallholder plantations.
demand for timber. The Medan facility, meanwhile,
was rarely utilised by donors. “It's a pity that this Land grabbing
initiative and others such as the Timber Working Land grabbing has been endemic in Aceh for
Group that was established to share information decades, made easier by the fact that many people
and coordinate supplies never really worked,” said have no proof of land ownership. During the conflict,
one BRR official. “If donors had taken our advice, the security apparatus was commonly accused of
then perhaps the rate of logging in Aceh's forests seizing people’s land, either on behalf of a third
might have been less. We can only highlight the party or for their own use. In today’s more peaceful
problems of donors sourcing timber locally, we can't environment, the greatest risk to security of land
11
tell a donor 'You can't buy timber in Aceh'.” tenure comes from unscrupulous companies and
developers who often pay local agents to ‘acquire’
Beyond these issues resulting from the end of the land from locals, the majority of whom have no land
conflict and tsunami, other factors have contributed certificates. Such activities not only result in
to the push into Aceh's forests, many of which relate disadvantageous deals for local people, but are a
to destruction of forest areas for other uses. way of extending operations outside permit or
concession areas; as a consequence of such deals,
Expansion of roads plantations, mines, roads and other projects often
There have been a direct correlation in Aceh end up encroaching on forest areas far outside their
between the expansion of roads and settlements original delimitations. This process of creeping
into and in forested areas and increased levels of encroachment has disturbed vital wildlife areas,
deforestation. During the conflict, roads were cut particularly in the lowlands, and has fragmented
through the forest ostensibly as part of a areas of high conservation value that were never
counterinsurgency strategy designed to root out intended to be disturbed.
GAM seperatists from their hiding places in
remote jungle areas. However, many of these new Burning
roads often did little more than facilitate increased Although not as common in Aceh as in some other
logging. Now, each new main road inevitably parts of Indonesia, burning is often used as a
leads to dozens of finger roads, each of which cheap and quick method of land clearing. Not only
eventually leads to deforestation through easier does it completely destroy biodiversity, but it often
access for logging vehicles and for the transport of causes health complaints for local communities.
related heavy equipment, for instance for illegal Burning is used by locals to clear small patches of
sawmills. An assessment by the International land for chili farming and other subsistence
Union for Conservation of Nature and Natural farming, and by companies who burn thousands
Resources in 2008 found that the threat of of hectares to make plantations. Fragmentation
resumption of a controversial road project caused by small scale farmers burning small plots
connecting the east and west coasts of Aceh and of land has similar, if less dramatic, consequences
which crosses the Leuser Ecosystem would to large scale burning; the environmental and life-
‘rapidly fragment’ the habitat of several sustaining value of the forest is depleted and flora
12
endangered species. and fauna are directly, or indirectly, extinguished.
7
Results for the forests was degradation of the Leuser Ecosystem in Aceh
caused by illegal logging. Communities around
As a consequence of these pressures, Aceh's Aceh also suffer from frequent floods.
forests are disappearing at an alarming and -
notably - a sharply accelerating rate. Prior to the Pollution
tsunami and peace settlement, Aceh lost under Many forest activities lead to air, water and soil
25,000 ha per annum. For example, a UNDP pollution. Perhaps the most visible form of pollution
report estimated an annual rate of forest loss of is the smoke that results from burning to clear land.
20,796 ha for the period 1985-1997; even by 2004 However, many other less instantly visible forms
the rate of deforestation was still around 21,000 exist as well; for example, when forest was cleared
ha.15 However, a recent study by Greenomics for palm oil production in Bayeun sub-district, East
reported that in the 2005-2006 period around Aceh, local people complained of pollution in the
130,000 ha per annum was los,t, this is a six-fold nearby river due to chemical runoff from the
increase.16 plantation. The extent of water and air pollution is
unknown in Aceh as the infrastrcuture does not yet
While exact figures are difficult to come by, it is exist to do regular checks.
certain that a substantial part of this loss is
attributable to illegal logging. The impact of illegal Human- animal conflict
activities has been particularly severe on high- Changing land use has led to an increase in human-
animal conflict as wildlife, including orangutan,
value hardwood species such as semaram,
elephants, tigers, monkeys, and pigs, move into
merbau, meranti, and kruing. Most of these high
farmland in search of food. For example, in Simpang
value logs are sold for maximum profit on the
Keramat sub-district and surrounding areas in North
international market via intermediary countries in
Aceh, elephants began to come down to the villages
the region such as Malaysia and Thailand, leaving in the 1980s when thousands of hectares of land
the country with documents 'purchased' from was cleared for palm oil and rubber plantations and
corrupt officials. Once in the receiver country, the new settlement areas. In addition, illegal logging
wood is often made into furniture, making its has increased; the result has been a persistent and
original source effectively impossible to trace. increasing problem of elephants entering the
villages even until the present. A recent decrease in
The loss of biodiversity that accompanies the number of elephants in the villages is not a sign
deforestation is far from the only negative result of of healthier forests, but rather of a dwindling
increased exploitation of Aceh's forests, however. elephant population, as many have been killed or
Other consequences that damage humans, other captured and removed from the area.
species and the environment as a whole include:
Poaching
Flooding As roads, settlements, and forestry activities
Deforestation of Aceh's steep slopes directly leads expand, so too does the illegal trade in wildlife,
to increased risk of dangerous river flooding, and of taken for the traditional medicine sector, for re-sale,
landslides that takes lives and destroys property. the food trade, or for pets or zoos. Commonly
For example, in November 2003 a flash flood of the targets for poachers include several highly
Bahorok river ripped through Bukit Lawang, an area endangered species, including the Sumatran tiger,
in northern Sumatra that borders the Leuser Sumatran rhinoceros, Sumatran orang-utan, and
Ecosystem. The flood caused more than 200 deaths Sumatran elephant. Many of the animals being
and extensive damage to property. It is generally poached and illegally trafficked in Aceh come from
accepted that one of the main causes of the flood the Leuser area, in particular the tigers.
Box 1: The plight of the tiger
The Sumatran tiger is critically endangered in Aceh: current data from the Ministry of Forestry estimates
that less than 300 Sumatran tigers remain in the wild, most are in Gunung Leuser National Park and its
surrounds. 17 Meanwhile, poachers are highly active. In May 2008, an army Sergeant Major was caught in
the district of Karo, North Sumatra, with three Sumatran tiger skins thought to have been poached from the
park.18 Only two weeks later, two people were also arrested trading two stuffed Sumatran tigers thought to
be from the same area.19 Tiger cubs are taken for pets; adults, meanwhile, are slaughtered for body parts,
with each skin worth around Rp 13 million (US$1,326).20 The long-term involvement of security officers
and even some members of the government conservation agency in the illegal trade is well-known, but
since they have powerful connections to the local government and the so-called local North Sumatra
'mafia', it is difficult to stop them. Habitat loss and loss of prey also are affecting tiger ranges, forcing the
remaining animals into smaller areas and increasing the likelihood of conflicts with people. If the poaching
and habitat loss continue, then there is a real danger that within the next few years the tiger will disappear
from Aceh forever.
8
The link to poverty said: “There are two sorts of illegal loggers, the first
motivated by greed and the second by necessity. I
“People try to make the excuse that communities do not have any problem dealing with the greed, I
living near Aceh's forests are short of food, and can be very harsh. But it's harder dealing with the
this is why they log, this is rubbish! Let's admit people who need to eat once a day, and for that they
the real problem, and deal with it, that many of have to cut the tree.”22 It is quite true that some of the
those whose job it is to protect the forests are districts with substantial forests, or that border
actually those involved in the logging.” 21 forests areas, are among the poorest in the
province. While poverty levels in Aceh in 2007
Some in Aceh - loggers and government officials hovered around a quarter of the population, the
alike - try to make the argument that the damage to levels of poverty in Simeulu, South West Aceh,
Aceh's forests is an unavoidable evil in today's Nagan Raya, Aceh Jaya, Gayo Lues, Bener Meriah,
Aceh, in that it represents the only way in which and Singkil - all locations of some of the most
communities living near the forests can lift important forest areas in the province - were higher
themselves from poverty. Aceh's Governor Irwandi than the provincial average, in some areas running
Yusuf, a committed conservationist as well as a to almost one third. See Figure 2.
strong advocate for Aceh's poorest, himself has
Figure 2: Percentage of Poverty in Aceh 2005-2007
2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36
Simuelue
Aceh Singkil
South Aceh Box
S.E. Aceh
East Aceh
Central Aceh
West Aceh
Aceh Besar
Pidie
Bireun
North Aceh
S.W. Aceh
Gay o Lues
Aceh Tamiang
Nagan Ray a
Aceh Jay a
Bener Meriah
Pidie Jay a
Banda Aceh
Sabang
Langsa
Lhokseumaw e
Subulussalam
2005 2006 2007
Source: BPS, July 2008 Note: Pidie Jaya and Subulussalam are new districts, established in 2007
9
The argument that logging as currently practiced  Loss of access to non-timber forest resources
can lift locals out of poverty, however, is for the most (NTFR). Many Acehnese living near forest
part disingenuous, for a number of reasons. areas depend on the forests for non-timber
forest products such as honey, nuts, and
Low pay fruits, as well as for medicinal herbs, rotan,
Most locals involved in logging are day labourers. leaves for roofing and other non-wood
These low-level jobs are paid a pittance. For building materials. Women are
example, local villagers who cut logs typically disproportionately affected by deforestation
receive around Rp 50,000 (US$5.10) per day, while as it is they who use the forest most in search
those who move the logs from the forest to a of these NTFR, making their daily tasks more
collection point receive a collective fee per log of difficult and adding to their already
only around Rp 100,000 - 200,000 (US$10.20 - overburdened life. After local forests are
20.40), depending on the size of the trunk.23 destroyed and these NTFR disappear, locals
Meanwhile the real profit, many hundreds of times are forced into the cash economy to purchase
more than the day labourers are paid, goes to the what they were once able to have free of
'logging mafia' who are almost always from outside charge. Moreover, changes in water runoff
the area.The low wages, which last only as long as patterns caused by deforestation can leave
logging operations are in force, are not sufficient to families and communities without adequate
lift individuals or communities out of poverty. water supplies.
Low sustainability  Loss of land tenure.

Locals can not count on long-term employment from Land owners often sell land or agree to a
logging operations, for several reasons. First, the compensation deal based on highly
logging practiced in Aceh involves clear felling and inadequate information about what future
then moving on; if land is unsuitable for conversion development may occur on the land or the
to long-term use, for instance as palm oil plantation, possible longer-term social and
future employment is unavailable. Second, most of environmental impact on the area. The
the logging in Aceh is illegal; therefore, local day problem is exacerbated by a lack of
laborers are constantly vulnerable to operations understanding on the part of land holders of
being exposed and stopped. the NTFR that the land provides.
Adverse consequences Taking these factors together, it is not surprising

The consequences of unregulated forestry, whether that there is little statistical support for the
legal or illegal, have the potential to actually further argument that logging operations decrease local
impoverish locals, in at least two ways: poverty levels. In fact, as the chart above shows,
forest areas such as Aceh Singkil and South West
 Environmental and property damage. Aceh grew poorer between 2006 and 2007
As noted above, floods and landslides resulting despite the explosion of logging in these areas.
from deforestation take lives, destroy homes That forest exploitation appears to take place
and livelihoods, and leave individuals injured. unabated, to the detriment - not benefit - of local
Animals forced into populated areas by habitat communities, is proof of the urgent need for
loss can destroy gardens and damage reform of the forest governance sector in the
plantations. Pollution can leave families and province.
communities without safe water supplies.
Deforestation can lead to erosion of farm land,
loss of soil nutrients, and increased salinity.
10
Concept What is good forest governance?
Forest governance is how decisions related to forests and forest dependent people are made, who are
responsible for the forests, how they use their power, and how they are held accountable. It includes
decision-making processes and institutions involving multiple actors at the local, national, regional and
global levels. At the international level, states sign treaties and accords such as the UN Convention on
Biological Diversity, and the International Timber Agreement of which Indonesia is a signatory. At the
national level, forest management is usually the job of central and local governments, although in
Indonesia as in many countries there is increasingly greater participation of NGOs, local communities
and the private sector.
In the context of an increasingly globalised forest sector yet also increasingly decentralised systems of
management, policy makers, forest managers and other stakeholders face competing pressures from
both local and global processes. This, and the growing number and type of stakeholders with diverse
interests and uneven power, have made forest governance increasingly complex and prone to conflict.
Good forest governance (GFG) is increasingly recognised as being an essential ingredient for achieving
long-term forest conservation and sustainable forest management. It is an extension of the concept of
good governance, which is simply about governing in a transparent, accountable and democratic way
within the norms and values of the local society, which includes the concept of social and environmental
justice. The concept of GFG was born from the need to address problems relating to managing forests
such as corruption, logging, and increasingly common processes of decentralisation. All of these drivers
are present in Aceh today.
Pre-requisites for GFG

GFG is as as much about protecting and sustaining people as it is about protecting the natural
environment. It requires:
 A general commitment to good governance principles

GFG requires a government that is free from corruption, efficient, transparent and participatory in
policymaking and program implementation; that is consistent in implementing its policies; and
that is fully transparent and accountable to all stakeholders. There must be incentives for
government officials to perform well as well as disincentives for poor performance. Legal
institutions must be capable of ensuring the implementation of regulations.
 Sustainable forest practices

This concept encompasses not only the environmental aspects of forest practice, but also
considers the economic and social impact of the forest on surrounding communities. It is the
promotion of conservation through policy and practice, emphasising a minimal impact of human
activity on the forest.
 Land tenure
GFG requires that the utilisation of forests, including the allocation of 'concessions' and logging
rights, should not conflict with customary and traditional tenure regimes, nor with national or
provincial law.
 A commitment to poverty alleviation

GFG works to find approaches to forest use and management that will lift communities out of
poverty for the long term, not merely create short-term gain for industrial players.
 Adequate human resources

GFG requires a large number of skilled individuals with a vision for the future, dedicated to the
principles of good forest governance and sustainable forest management, creative and
innovative in their strategies to achieve this, and are good team builders in order to broaden
stakeholder involvement, and good mentors in order to build enthusiasm to pursue GFG.
11
III. The Gover nance of Forest in Aceh Today______________________

To its credit, the provincial government in Aceh is district-level local governments.
increasingly aware of the challenges posed by
runaway forestry in Aceh, and has already taken The result of recent decentralisation drives has
moves that bode well for the development of GFG in been an overlapping of authority, with resulting
the province. For example, in recognition of the loss confusion and competition between all levels of
of environmental services that have resulted from government. The ensuing struggles for power and
increased deforestation rates, in June 2007 then- influence, overlapping responsibilities and
recently appointed Governor Irwandi declared a authority in managing Aceh's forest between
moratorium on logging. The moratorium, which has central government and provincial government
no time limit, declared the government's intention to have created greater confusion for the people of
curtail and in some cases extinguish existing Aceh.
logging concessions and to implement reforestation
programmes. Equally importantly, it announced the Devolution from the center to the province
government's commitment to undertake a review Over the last ten years, the Indonesian
and restructuring of the institutions that currently government has been steadily devolving
manage Aceh's forests and national parks as well as responsibility across a wide range of areas to the
the Leuser Ecosystem. provincial level nationwide. Indonesian Central
Government Law Number 22/1999 on Regional
These good intentions notwithstanding, however,
Autonomy largely shifted authority for the
Aceh still faces significant obstacles in the quest for
coordination of regional level government
GFG. These include problems flowing on from the
decentralisation of forest policy, including programs from central to regional governments,
bureaucratic overlap, competition and confusion with serious implications for the forestry and
between central, provincial and district authorities; natural resource sector. Law No.18/2001 on
conceptual and technical problems with regulations Special Autonomy for Aceh, enacted in 2001,
and legislation at all levels; and a lack of human provided for further sharing of revenue from
resources. Aceh's natural resources between the provincial
and central government including the forestry
Governance at the formal level: decentralisation sector, but did not stipulate the division of power
and its discontents between central and provincial government for
forest management.24 Most recently, the Law on
One of the central problems of forest governance in Governing Aceh (LOGA, Law No.11/2006)
Aceh today is the structure of authority, which transferred even more power to the Acehnese
involves three levels: the central government in government, superseding limitations imposed by
Jakarta, Aceh's provincial-level government, and previous legislation.
Box 2: The New Law on Governing Aceh of 2006
The new LOGA resulted from the peace process and gives substantial political, economic, and
social/religious autonomy to the province. In relation to forest issues, Law 11 gives the provincial and district
governments of Aceh much greater control over management and revenues.
 Article 156, which covers the management of natural resources, stipulates that the provincial
government has authority to manage planning, implementation, utilisation and supervision in relation
to the exploration, exploitation and cultivation of natural resources - including forests.
 Article 165 stipulates that the provincial, district and city governments in Aceh can, in accordance with
national norms, standards, procedures and criteria, issue licences for forest zone conversion, and for
the exploitation and management of the forest
 Article 150 relates to the management and protection of the Leuser Ecosystem, and stipulates that
the provincial government has the authority to protect and preserve the area, and also to manage its
utilisation. This does not however, include the granting of permits for forest exploitation; moreover, the
provincial government is responsible for securing funds for the management.
 Article 148 states that the community has a right to be involved in environmental management, while
article 149 stipulates that the provincial and district/city government is now obliged to protect and
conserve biological natural resources and their ecosystems. It also says that the Aceh government
and district/city government is obliged to protect, safeguard, maintain and preserve National Parks
and conservation zones.
 Article 181 reaffirms that the province will benefit from the exploitation of its natural resources under a
profit-sharing agreement with central government. For example, Aceh will keep as much as 80
percent of profits derived from forest resources.
12
11
Figure 3: The responsibilities of central and provincial government agencies in managing

Aceh's forests.25
Central Ministry of Forestry Aceh Government
Nature Conservation Agency (BKSDA) Department of Forestry and Plantations
- Managing nature conservation forest areas . - Assigning and securing the border of protected and
- Ensuring the protection of conservation forest areas. production forest area.
- Conserving and securing plants and wildlife within or - Designing macro forestry guidelines for cross districts
outside conservation forest areas. purposes.
- Environment education programmes. - Overseeing the issuing of logging permits and forest
concessions.
- Rehabilitating degraded forest areas.
- Coordinating management for protection of forest that
serves as river basins and water catchments area.
River Basin Agency (BPDAS) Department of Irrigation
- Designing river basin management plans. - Installing and maintaining irrigation networks and drainage.
- Establishing information centers in river basins. - Designing irrigation management standards.
- Developing models for river basin management. Note: The Department of Irrigation has no specific role in
- Institutional and partnership development in managing forests along river basins, but the sustainability of
managing river basin areas. the irrigation network relies heaving on sustainable forest
- Monitoring and evaluation of river basin management, especially in river basins.
management.
Leuser National Park Management Agency (TNGL) Leuser Ecosystem Management Agency (BPKEL)
- Managing and preserving the ecosystem of the - Coordinating the management of the Leuser Ecosystem
national park to conserve bio-diversity. (including the national park) in order to protect and restore
- Designing plans, programmes, and evaluations for the natural environment and ensure sustainable use.
the management of national parks. - Coordinating and collaborating with district governments
- Ensuring sustainable use of the national parks. and other stakeholders in managing the Leuser Ecosystem.
- Sourcing funds for management of the Leuser Ecosystem.
- Coordinating wildlife mitigation in Aceh (within and outside
the Leuser Ecosystem).
Production Forest Product Utility and Monitoring Regional Development Planning Agency (BAPPEDA)
Agency (BP2HP) - Coordination of provincial development and spatial
- Developing systems of information, monitoring and planning, including budgets.
evaluation in relation to sustainable use of production
forest. Environment Impact Assessment Agency (BAPEDAL
- Authorising and revoking forest concession permits. NAD)
- Coordination, monitoring, and evaluation of environmental
impact assessments in relation to research, exploration,
exploitation, permits, and standardisations in order to
ensure sustainable development.
Decentralisation within Aceh

A provincial-level process of decentralisation has Forestry and Plantations (Dinas Kehutanan dan
also taken place since 1999. The number of districts Perkebunan - DISHUTBUN), although some
in the province has more than doubled in less than aspects of forest governance also fall under the
ten years - from ten to 23, in what has seemed to purview of the Regional Development Planning
many to be an “irrational and ill-motivated Agency (Badan Perencanaan Pembangunan
process…that has taken place before local district Daerah - Bappeda), and the Environmental Impact
level capacity was in place to govern.”26 Moreover, Control Agency of NAD (Badan Pengendali Dampak
a clear impact on the natural environment is visible; Lingkungan NAD - BAPEDAL NAD). These three
there has been no regulated spatial planning, as institutions report directly to the Governor; but have
new districts all seek to have prominent no formal mechanisms for coordination between the
government structures, land use is changing that is institutions. To add to the confusion, a new entity
also impinging in forest areas. Meanwhile, many has recently been established for coordinating
District governments are confused about their role management of the Leuser Ecosystem, the Leuser
in resource management and forest governance. Ecosystem Management Agency (Badan Pengelola
Kawasan Ekosistem Leuser - BPKEL) which reports
The structure(s) of forest governance directly to the governor's office, but does not yet
have any place in the formal government structure.27
Figure 3 and, in greater detail, appendix 3 provide From 5 January 2009, the mandate of BPKEL has
overviews of central and provincial-level forest been expanded to also coordinate wildlife
governance mechanisms in Aceh. The central pillar management in Aceh within and outside the Leuser
of the provincial structure is the Department of Ecosystem area.28
13
Meanwhile, the central Ministry of Forestry at the provincial department of Forestry and
continues to pursue its forest management role Plantations: ”Decentralisation has led to significant
through its technical implementing agencies such changes in the power dynamics between different
as the Nature Conservation Agency (Balai authorities whose task it is to manage forests here
Konservasi Sumber Daya Alam - BKSDA), the [in Aceh]. For example, the provincial
Watershed Management Agency (Balai Pengelola DISHUTBUN is no longer an implementing
Daerah Aliran Sungai - BPDAS), and the agency institution of the Ministry of Forestry in Jakarta –
managing the Gunung Leuser National Park (Balai our relationship is one of coordination, no longer
Taman Nasional Gunung Leuser - TNGL).29 of subordination.”30 This devolution of responsibility
is not timely in Aceh, where confusion created by
Bureaucratic overlap and competition between unclear or overlapping authoritative boundaries is
levels of government used by unscrupulous loggers and others who
The sector is plagued with confusion about the
seek to turn Aceh’s forests into cash.
overlapping and conflicting authority of several
different government agencies. On the one hand, At the same time, many sectors, including forestry,
in the context of its newly acquired power given by still lack specific post-LOGA local legislation.
the LOGA, the provincial government is Several provincial-level pre-LOGA qanuns exist
strengthening existing departments, as well as for conserving and protecting Aceh’s natural
establishing its own forest management resources, but many of these simply mirror
implementing agencies, such as BPKEL, that are national legislation and are not compatable with
accountable solely to the provincial government. the provincial government’s new authority under
According to Saminuddin B.Tou, a senior officer the LOGA; for example, local provincial level
Box 3: The Permit labyrinth

The Tripa swamp forest lies within two of Aceh’s western districts: Nagan Raya and Southwest Aceh. It is
an area of 61, 803 ha; about 90% is situated in the Leuser Ecosystem.31 It is one of only three peat swamp
areas left in the province; others have been destroyed by draining for plantations, logging, mining, or other
development. Peat swamps not only are valuable stores of biodiversity, but also serve as carbon sinks; by
the same token, when dried peat areas (which are highly combustible) catch fire, they can smoulder for
several years, releasing carbon and raising local levels of respiratory and skin diseases.
During the 1990s, several palm oil companies began to establish plantations in the Tripa swamp area,
resulting in 40% of the swamp being cleared and drained between 1994 and 1999. With the escalation of
the conflict the palm oil companies stopped operating and the swamp was left to regenerate. But in the
more peaceful post-tsunami Aceh, several companies have resumed logging and land clearing operations.
While several palm oil companies, PT. Gelora Sawita Makmur, PT Agra Para Citra (later bought by PT Astra
Agro Lestari), PT Kallista Alam, PT Cemerang Abadi, and PT Patriot Guna Sakti Abadi, now hold
concessions in the Kuala Tripa swamp area, it is the concession held by PT Astra Agro Lestari - the largest
concession in the swamp area - that is a prime example of the confusion surrounding the permit issue in
Aceh.32 The original permit was issued to PT Agra Para Citra, which then sold it on to PT Astra Agro Lestari;
however, there seems to be no proof of transfer of ownership of the permit, posing a serious obstacle to the
stakeholders who are trying to address the issue. In August 2007 the current Bupati asked the issuing
Ministry in Jakarta for clarification of the status of PT Astra Agro Lestari’s permit, but 18 months later has
yet to receive a reply. Field studies in late 2007 showed that as a consequence of PT Astra Agro Lestari’s
clearing activities (which included burning), around half of the swamp forest has already disappeared.
There are efforts afoot to try to stop the further destruction of the peat areas and the old growth forests.
Civil society groups, NGOs, local communities, BPKEL, and the district government are trying to get
clarification of the status of both the permit and the land. In particular, they note that much of the
swamp area within PT Astra Agro Lestari’s concession consists of peat more than three metres deep,
which is afforded legally protected status (kawasan lindung) by Presidential Decree No.32 /1990
concerning the Management of Protected Areas. However, the provincial government’s capacity to
address the issue is limited due to the yet-to-be clarified issue of transfer of permit ownership and the
fact the initial permit was issued by the central government; it is not yet clear to provincial authorities
whether the LOGA gives provincial authorities the power to overturn permits that they did not issue. To
date, BPKEL has also been unsuccessful in obtaining answers from any of the relevant authorities.
Meanwhile, destruction of the area continues. Local communities are as frustrated as lawmakers: “We
know the dangers to our communities if these forests disappear. I remember this area as a child, it was
thick forest and full of birds, and now look at it...it’s very sad to see. My grandfather also told me to take
care of the forests: ‘ you must look after the forests just as generations of our community have done
before you – they are our blood, our water, our food’.”33 As this report goes to print, the problem
remains unresolved and blocked by bureaucratic confusion.
14
legislation, Qanun No.14/2002 on forestry in Aceh is DISHUTBUN, the Central Ministry of Forestry’s
almost a mirror image of Indonesian forestry law implementing unit in Aceh such as Nature
No.41/1999, which gives only limited authority to the Conservation Agency (BKSDA) and the TNGL, the
provincial government for forest management.34 Leuser International Foundation (LIF) who have a
“Meanwhile, the LOGA itself provides few concrete contract with the central government in Jakarta to
prescriptions for forest management. The result of participate in the management of the Leuser
this lack of specific local legislation is that many Ecosystem for 30 years since 1998, have not
people continue to refer to outdated national rushed to subordinate themselves to the new
legislation. For example, in the face of a lack of organisation. According to Fauzan Azima, the
many when discussing forest policy still refer to Law coordinator of BPKEL: “Our agency [BPKEL] is
No.41/1999, which stipulates that the release or use legitimated by the new LOGA, and should therefore
of any forested area requires approval from the be respected as the agency whose responsibility it
Ministry of Forestry in Jakarta - even though this law is to coordinate management of the Leuser
technically has been superseded by the LOGA. Ecosystem. In fact, we are waiting for the other
And as Saminuddin of DISHUTBUN points out, old agencies to make a public statement that regarding
habits die hard at the centre: “At the same time that Leuser, they are under BPKEL’s coordination. This
we have more autonomy, we are constantly called to would make management of the ecosystem clear,
Jakarta by the Ministry to be accountable for our and stop any further confusion which is creating
actions here in Aceh, And if the Ministry doesn’t obstacles to improvements in the situation there.”38
approve, then we are in trouble. In this sense, we
are not really autonomous.”35 Competition indeed can be found within
bureaucratic entities at the provincial level,
In principle, however, a new qanun on forestry particularly in the new DISHUTBUN, a product of a
currently being drafted will determine the merger in October 2007 of the provincial level
parameters of forest governance in Aceh based Departments of Plantations and of Forestry. In 21 of
on the LOGA; when it is passed, the new qanun Aceh’s 23 districts (the exceptions being Simeulue
will give more power to the provincial government and Aceh Besar), the Departments of Forestry and
to manage local forests. Saminuddin comments: Plantations have been merged since even earlier
“This new qanun will be a very important step in than at the provincial level.39 The merger appears to
improving forest governance in Aceh. Until now, have been a genuine attempt to make Aceh’s
the provincial Department of Forestry and other administration more efficient, although some
bodies have been unable to implement the powers suspect political motives to protect vested interests
the LOGA gives us to manage forests due to the in Jakarta. The merger, however, has the makings of
lack of local legislation to facilitate this – we are an unhappy marriage between the two
waiting for this legislation.”36 departments, whose former mandates—one to
manage and protect Aceh’s forest areas, one to
Meanwhile, the decentralisation of power from the open them to economic development—frequently
provincial level to the level of Aceh’s districts is put them at odds. Many staff are in fact unhappy with
bringing its own problems. Districts do not want to the alliance. Says a senior staff member in
compromise their own perceived standing by DISHUTBUN: “It was a very bad idea to merge
sharing resources, but at the same time most lack these two departments, as the forestry division has
the capacity for financial management and a different philosophy from the plantations division.
accountability, spatial planning, policy planning, and Not only that, we were the two largest government
other necessary skills.37 There is an increasing departments, so by merging us the government has
pressure on land to establish district level created a monster with two heads - each head with
government infrastructure, local communities are its own different priorities and philosophies. I really
pushing to convert lowland forests to agricultural can’t predict the outcome, it’s a big mistake.”40
land, and an influx of investment in plantations,
The net result of these bureaucratic and
mining and other land use based industries has
administrative complexities is confusion—for
taken place – all of these become more difficult to
policymakers, administrators, public servants and
control with the increasing autonomy for Aceh’s
citizens alike. At the most basic level, communities
districts. The result is a lethal cocktail for the
often do not know where to go to report a problem of
provinces’ forests.
land ownership or misuse of forest area.
The BPKEL, established by Governor Decree
Governance at the informal level: corruption
No.52/2006 on 28 November 2006 to coordinate
rules
the management of Leuser Ecosystem, although a
government agency, is not yet included in the
Bureaucratic complexity and confusion have
provincial government structure; it works with the
enabled, even facilitated, the development of a
direct authority of the Governor’s office, and
parallel system of forest governance in Aceh today:
functions alongside the BAPEDAL NAD (Regional
an informal or shadow system, often more powerful
Environmental Impact Control Agency) and the
than the formal system, built around illegal logging
Economic Bureau in the governor’s office. In
and other dubious business deals, and sustained by
fact,the BPKEL’s creation has thrown the
wide-spread, systemic corruption. According to a
management of the Leuser Ecosystem into further
confusion, as several others, including the
15
Box 4: The example of Bener Meriah

GFG in the district of Bener Meriah is hostage to those in government and in regulatory positions who are
operating as local timber barons. The illegal logging network is pervasive throughout local governance
structure, starting with the Bupati (district chief )Tagore, a timber baron well-known throughout the district.
“Local panglong (wood shops) don't have to look further than Pak Tagore for their supplies of timber,” says a
local source. “He is very reliable due to his connections throughout the district.”41
While much of the district is afflicted by the same pattern of forest abuse, the subdistrict of Timang Gajah
stands out. The subdistrict chief, Muchlis, is so close to the Bupati that he is known as “Tagore's golden boy.”
Muchlis has a close working relationship with several panglong in the area. Finally, after a series of rumours
about illegal logging in the area, the district police seized illegally felled timber in January 2008. While the
amount was small only 4 m³, this was sufficient to implicate the Pantan Pediangan village chief, Sahadat,
who was eventually detained in February. Sahadat alleged that Muchlis ordered him to source wood to
repair three bridges. In turn, Muchlis told the police that he received permission to log from Tagore. Local
media report that the detention of Sahadat sparked localised demonstrations, with other village chiefs
demanding his release. After Muchlis himself was arrested in April 2008, more demonstrations occurred,
with more than 100 village heads turning out. According to local sources, the demonstrators report that they
were “ordered” to demonstrate by Tagore.
Local sources report that the timber barons of Timang Gajah were not operating alone; similar and
coordinated logging has been taking place in the nearby subdistrict of Pinto Rime, with much of the wood
finding its way to the even more lucrative market of Bireuen.42 In late 2007, more than 1,000 m³ of illegal
timber was found, but no arrests were made.43 A member of the local parliament and the district government
argued that the suspects should not be detained as this would prevent them from carrying out the duties of
their public office. Local people report that localised logging continues despite the publicity surrounding the
case and the ongoing police investigation.
prominent figure in the foreign donor community in order to engage in forest exploitation. In many
Aceh said, “the ‘web of political, economic and cases, however, authority figures are precisely
social exchanges that surround illegal logging’ those who are engaged in illegal activities.
constitute institutionalised sets of relationships and
norms of behaviour that will be very difficult to During the conflict, the Indonesian security forces
break.”44 were heavily involved in illegal logging. Now,
According to Transparency International, in 2008 Box 5: Who mind the minders?

Indonesia was ranked as the 54th most corrupt Despite the moratorium on logging, the local
country in the world, out of a total of 180 countries - panglongs (timber suppliers) do not need to import
more corrupt than even Nepal and Niger. With the wood from outside Aceh; most wood for sale is
influx of post-tsunami and post-conflict aid since locally felled. How do these panglongs receive a
2005, an entrenched culture of opportunism and supply of wood? Often working in groups of no
corruption has grown in Aceh, reaching epidemic more than five people, local villagers take chain
proportions in relation to exploitation of natural saws and enough food and supplies to enable them
resources, including forests. Discouragingly, Aceh's to stay in the forest to log for several days. They
institutions of democracy, the very stakeholders of leave the timber in a predesignated location, cut to
good forest governance - parliament, courts, police, the size ordered. Next comes a team of timber
and provincial district and lower governance gatherers, whose job it is to deliver the timber to the
structures - are often responsible for the problem, agent. “We transport the logs at times when we
either through corrupt actions themselves or know there won't be many police around,” says one
through lack of political will or capacity to oppose interviewee. “If we do meet them we just pay
powerful vested interests. The situation is made around Rp 50,000 - 100,000 (US$5.10 - 10.20) per
even more difficult by the legacy of the conflict in truck. The wood we sell all carries documents
Aceh: many of those involved in bad forest stating it was logged before the current
governance, whether in formal or informal positions moratorium, but this is not the case; we receive it
of power, were part of the former GAM network - from the forests nearby. If I want to, I can place an
known for its reprisals in the past - with the result that order today and receive the wood in around one
ordinary Acehnese are afraid to speak out (even week. We also have a furniture making business
though reprisals are not now occurring). here, that makes it easier to use the wood.
Sometimes people from the Department of
Corruption in the forest sector manifests itself most Forestry comes around to do inspections. But
obviously in the illegal logging and poaching that are that's usually no problem either, just as with the
common in most of Aceh's forested areas. The police, we give small share of our profits.”45 Such
financial rewards for those end dealers involved in examples come not only from the Bener Meriah
the illegal trade in high-value hardwood species case above; informants have also told Eye on Aceh
(semaram, merbau, meranti, and kruing) are of such practices in the south, west, central, north,
extremely high. As a consequence, it is well worth and Aceh Besar areas of the province.
16
however, the change of the political guard that new port, to iron works in Aceh Besar, and coal in the
accompanied the peace process in Aceh has led to west of the province - all have involved at least the
an increased number of former GAM combatants facilitation of the old GAM network in either
getting involved in illegal logging. Many former navigating Aceh's bureaucracy (much of which is
combatants are now contractors who use their old made up of former combatants), to facilitating
networks of power and influence to obtain permits companys' entry into communities. In some cases,
for mining, roads, and other construction and, since former combatants indeed actually have a 'hidden'
many members of their old network are now sitting stake in the company. While in the central area of
in Bupati and vice-Bupati positions, it is not difficult Aceh where there is a plan to extract gold from a
for them to ensure that their crimes against the protected forest area, the legacy of the conflict can
forest, and against the people of Aceh, are ignored. also be seen; in this area, local militia groups have
Land disputes and forest clearing are common, from facilitated the company that plans to extract gold
clearing the mangrove forests in East Aceh for a from underneath protected forest area.
Box 6: The permit without basis

Confusion created by the non-specific nature of several points in Law No.11/2006 and the lack of more
specific local qanuns often benefits those involved in businesses that change land use patterns, such as
plantations and logging. “Permits” are often given by corrupt district-level officials who have no authority to
do so. And based on those permits, companies have begun logging, planting plantations, have made
roads, and other activities that often remain undetected until it is too late.
For example, on the island of Simeulu off the west coast of Aceh, the Bupati, Darmili, was taken to court in a
very public case for having given approval in 2003 for a Simeulue government-business enterprise (PDKS)
to open up a 5,000 ha area for development of a palm oil plantation despite the fact that the head of the local
Department of Forestry had already informed him that 3,375 ha of the area was protected forest. Darmili
was also the Chief of the Supervisory Board of the PDKS, suggesting some self-interest in the issuing of the
permit. In May 2008, Darmili was sentenced to a year's imprisonment for the crime of converting protected
forest into palm oil plantation. However, the defence team appealed the ruling by arguing that their client's
authority was based on the pre-LOGA Laws No.22/1999 on Regional Autonomy and No.18/2001 on
Special Authonomy for Aceh, which encouraged economic development and gave power to the districts to
pursue this.46 The case is currently with the national Supreme Court in Jakarta. Meanwhile, Darmili is not in
detention and retains his position as Bupati.
17
proper review processes, such as in the case of

IV. Reform and its challenges_____
BPKEL and its overlap with the existing structures
The capacity of Aceh's forest management that have a stake in managing the Leuser
structures to effectively respond to and resolve ecosystem and the TNGL (see Box 7). Observers
critical situations has failed to keep pace with the agree that “[t]he Governor should avoid making
mounting threats to the province's forests. That this hurried decisions about new initiatives by
is so is largely due to a range of institutional examining what bodies already exist and the scope
constraints, including funding issues and of their mandate, in order to ensure there will be no
inadequate cooperation and support from local, overlapping authorities. Moreover, proper
provincial and central government agencies, management structures and systems must be in
including in some cases law enforcement agencies. place, together with a legal basis with which to
There is clearly an urgent need for wide-ranging operate.”48
reform, including introducing transparency and
accountability into the sector. Moreover, much work The fact that conserving Aceh's forests has never
needs to be done to bridge the knowledge gap of produced tangible income has always made it
stakeholders and to encourage their inclusion in the difficult to argue for a moratorium on logging and
management of Aceh's forests, as well as a broader conversion. Over the longer run, however, a
understanding of the breadth of forest governance possible avenue for conservation lies in the
issues - many of which are often ignored - as well as UNEP/UNDP/FAO Reduction of Emissions from
to build capacity to plan and implement policy. Deforestation or Degradation (REDD) initiative, a
multi-donor trust fund that allows donors to pool
As with any process of change, reform agendas - resources and provide funding with the aim of
and the desire for change that lies behind them - significantly reducing global emissions from
must be internally driven, and the capacity to push deforestation and forest degradation in developing
forward progressive reform agendas must be countries. Indonesia has already been selected as
present. This is a critical problem facing Aceh today: one of the nine countries eligible for phase one
while the rhetoric of reform can be found in the funds. With a real and calculable financial value
corridors of many government departments, in being assigned to Aceh's forests, the government
district, sub-district and village governance has decided to take notice and pledge to improve
structures, the commitment and ability to make the enforcement of protection mechanisms. Initial
changes required to achieve good forest financial gain from REDD is estimated to be in the
governance is low. multi-million dollar bracket, with longer-terms gains
in the multi-billion dollar range.
Some structural initiatives are underway, such as
the BPKEL. The current Governor is also engaging Legislative and bureaucratic confusion and
wideranging, and in the context of Aceh, quite overlap on the one hand, and the existence of a
innovative efforts not only to save Aceh's forests, but shadow system of governance built around
also to ensure the results are sustainable over the corruption on the other, both pose substantial
longer term by training staff and legislating best obstacles to reform of forest governance. Other
practice. For example, the Drafting Team for obstacles also exist, however, including:
Strategic Planning of Forest Management in Aceh
(Tim Penyusunan Rencana Stretegis Pengelolaan Lack of awareness of the importance of
Hutan Aceh -TIPERESKA) is an initiative, formed by forests, alienation, and exclusion at the
a Governor's decree in October 2007, to develop an community level
all-inclusive plan for forest management in the The true environmental, economic, and social
province.47 The team's main task is to “supervise the importance of Aceh's forests is poorly understood
strategic planning of Aceh's forest management.” It by many of the people who live near them. As
is a multi-stakeholder effort, comprising noted above (p.10“Adverse consequences”), local
representatives from Aceh's political and communities often do not recognise the degree to
government institutions and local departments, which they depend on forests for a wide range of
donors, international NGOs and 'experts.' It aims to non-timber forest resources and services -
identify the minimal amount of forest to be including clean water, foods and medicines, and
safeguarded, and the location of that forest.
non-wood building materials - until these
Furthermore, it will assess mechanisms to keep
resources and services are lost. Furthermore, due
future logging at the community level and to ensure
to the complexities of land tenure in Aceh, many
that benefits from environmental services are
local communities lack a sense of appreciation
distributed equally. Hopefully this ongoing forest
sector review process will identify key problem and belonging in relation to their local forests,
areas and recommend and help initiate institutional viewing them as merely cash resources, rather
reform that will enable the better management of the than for the non-cash value that they might have.
forests. TIPERESKA's report and When forests disappear, it is the women who feel
recommendations is not available to be quoted the impact first, being the ones who gather forest
publicly at time of publication. fruit and other NTFRs such as medicines, and
often also firewood. However, in Aceh, the women
Nevertheless, mistakes have already been made in generally do not have access to governance
a bid to reform the sector too quickly, without structures to lodge complaints, so their increasing
18
Box 7: The Leuser Ecosystem: a hopeful example of cooperative management?

The management of the Leuser Ecosystem is an interesting example of an attempt at a collaborative multi-
stakeholder system of forest management. The Ecosystem covers a 2.6 million ha (26,000 square
kilometres - km²) area, 80 percent of which is in Aceh and the remainder of which is in North Sumatra. The
9,000 km² Gunung Leuser National Park is part of the broader Leuser Ecosystem which is regarded as one
of the most important and richest sites of biodiversity in the world; it forms part of the UNESCO Tropical
Rainforest Heritage of Sumatra site, designated a World Heritage Site in 2004. It is an area of spectacular
valleys and volcanos, characterised by tropical rainforest and lowland forests but also including alpine
areas and swamps. Around 194 species of reptiles and amphibians and 387 bird species have been
recorded in the area as well as at least 127 mammal species, including the Sumatran elephant, Sumatran
tiger, Sumatran rhinoceros, and Sumatran orang-utan. About 8,500 different plant species grow in its
beach, swamp, lowland, mountain and alpine ecosystems.49 The area acts further as a life-support system
for more than two million indigenous people who rely on the ecological services provided by an intact
ecosystem, primary among which is fresh water.
Although much of the Leuser Ecosystem enjoys protected status, it is under severe pressure from many
fronts. Several serious and ongoing threats to the ecosystem can be identified, most significant being illegal
logging; poaching and trading of wildlife and plants; illegal settlement and clearing; and floods and
droughts. Particularly as the supply of high value logs elsewhere dwindles, the lowland forests are under
special threat, being the most accessible for logging as well as for encroachment by palm oil plantations and
local communities. Indeed, a 2006 report by a UNESCO World Heritage monitoring mission found that the
value and integrity of the area is in decline, which will continue without a major intervention.50
The management and protection of such a vast area, stretching across two provinces, poses a serious
challenge for forest governance systems. The Gunung Leuser National Park, gazetted in 1998, is relatively
well protected and policed. However, the rest of the Ecosystem area - as so often with Aceh's forests -
seemingly falls under multiple jurisdictions. As part of an international effort to save the area, a 1998
Indonesian Presidential Decree (Keppres 33/1998) mandated central Indonesian government
management of the Ecosystem, with implementation to occur in collaboration with the Leuser International
Foundation (LIF) for a period of thirty years - an arrangement to be extended as necessary to ensure the
area's conservation.51 The project comprises three significant components: effective and sustainable
management and protection of Leuser and Ulu Masen forests; integrating conservation and environmental
concerns into Aceh's reconstruction and development planning process; and putting in place project
procedures and management systems. The process puts significant emphasis on multi-stakeholder
engagement, especially through the establishment of a multi-stakeholder governance framework.
For its part, the new Acehnese government, recognising the ecosystem as a potentially valuable asset, has
used Article 150 of the LOGA to establish a 'home grown' agency, the BPKEL, to coordinate management of
the Ecosystem. However, work of the BPKEL is being hampered by the fact that the agency was established
only by a Governor's Decree. For it to have any real power and an operational budget from the province to
allow it to execute its tasks it must first be legislated by a qanun. Staff at BPKEL are frustrated: “ It will be
into next year [2009] before we have a qanun that will allow us to operate as we should...Until then we are
relying on small handouts and in-kind assistance from various donors.”52
Advocates for the ecosystem hope that the existence of overlapping authorities will boost, rather than
undercut, both governance and programme implementation. “Any NGO or other agency that cares about
the Leuser Ecosystem is welcome to implement a programme or project there, so long as it conforms with
the broader plan to utilise and protect the area”, says Basri, the Secretary General of BPKEL.53 Indeed,
conservationists have racked up one success so far: construction of the controversial Ladia Galaska road
network, 127.39 kilometres of which pass through the Ecosystem in several places, was halted in favour of
redesigning.54 But the jury is still out: the existence of overlapping authorities has the potential to create
confusion and weakness at a time when the response to problems should be clear, affordable, coordinated,
and monitored.
difficulties often go unnoticed while the forests are and its district offices, which reports to the
cut. Governor and to Bupati. This system gives little
opportunity for input by other stakeholders,
At both the provincial and district levels, the including communities - even though it is
problem is exacerbated by the exclusion of local communities who most immediately experience
communities from discussions on forest issues- the consequences, good or bad, of forest use.
management, reform, policies and implementation Unsurprisingly, many communities perceive
in the province. Aceh's forest management model themselves to be missing out in relation to forest
so far is a traditional, top-down system that use, and often talk about unfair benefit sharing
centers around the provincial level DISHUTBUN and discrimination.
19
According to a member of the provincial parliament, the 2004 earthquake and tsunami disaster further
the twin problems of lack of awareness and weakened Aceh's human resources when around
alienation are perhaps the most important issues 5,291 civil servants died in the disaster.58 For
Aceh's forest governance system must address: example, a 2007 World Bank study of local
“The weight of enforcement in managing our government financial management capacity found
[Aceh's] forest should not lie with the security forces that the capacity of district governments in the
as is the case now. We need to raise awareness province varied, but was in general quite low.59
among the local communities who live in or around Common themes were identified: “weaknesses in
the forest about the value of their natural accounting and reporting, cash management and
environment. Ultimately, the success or failure of external auditing.”60 The report's assessment of local
forest management lies with them.”55 government financial capacity found that “all but
three local governments score poorly in at least one
Lack of awareness of the importance of forests strategic area [of financial management].”61
and of community concerns at the official level
Decision makers, meanwhile, also are often In this context, Aceh's lack of human resources in
unaware of the benefits that forests bring to local the area of forest governance is not surprising. What
communities. They also often are unaware of the is more surprising is the general failure of the many
broader impact of deforestation and forest international actors working in the forest
conversion on the province's water, land, air, and management sector in post-tsunami Aceh to
endangered species, and on changes in the global promote the transfer of skills to their Acehnese
climate, as well as the potential economic costs of counterparts. Rather, non-local actors have kept a
environmental and social changes resulting from hold on longer-term planning of forest use in the
forest conversion. Without consultation with province - an unsustainable situation. Indeed,
communities, it is also easy for forest governance comments by some Acehnese forest management
officials to lose sight of local critical issues such as bureaucrats suggest that resentment is building:
poverty reduction, local livelihoods and sustainable “The local DISHUTBUN should be a coordination
forest management.56 center for all stakeholders involved in forest
management. But in fact, several stakeholders that
Lack of independent, confidential, anonymous tend to hold more resources, such as funds and
avenues for reporting illegal activities technical personnel, often do not coordinate their
Many locals do not report illegal activities for fear of work with DISHUTBUN and this results in overlap
reprisals or because they believe that nothing will and bad feeling. In principle, work should be under
come of their stepping forward. The former head of coordination of DISHUTBUN, indeed we will
the Coordinating Agency on Regional Investment welcome this collaboration. It must however, be
(BKPMD) - currently renamed as the Investment done properly so that this assistance is
and Promotion Agency - says: “ The truth of illegal sustainable.”62
logging is that the cukong (baron) is backing it. If the
local villagers do not want to get involved in logging, Lack of certainty about land boundaries and
the cukong will find others do it anyway. For the tenure
villagers to report this matter, they then have to face To manage forested areas, one must know exactly
other officials, such as the police or military, when where those areas are and under whose jurisdiction
it's a common secret that they are usually providing they fall - information that is often lacking in Aceh.
support [to the cukong].This is one of the major The ADB's SPEM programme is trying to help the
obstacles we face in Aceh today in terms of illegal government map this information, but continually
logging. I do not believe that ongoing logging is due encounters problems: “The government does
to economic reasons as many suggest. Of course produce data in which we can see the forest area is
this is a good scapegoat.”57 clearly mapped. The problem is that when we go to
the field to check on the current status of that land,
Lack of human resources we find a palm plantation, a village has sprung up - in
The human capital necessary for good governance other words, the forest is long gone, but the
in every area - not just forest governance - is government department does not update its
noticeably thin on the ground in Aceh. Governance records.”63
capacity was already weak in pre-tsunami Aceh, but
Box 8: The international level
Although an autonomous province, Aceh is bound by the international conventions and agreements to
which Indonesia is already party. Globally, forest management principles were agreed upon during the
Earth Summit in 1992. The Indonesian government has struggled to adhere to all the criteria contained in
international agreements, but has shown good will in the fact that several have been ratified. Indonesia has
also attended and been a supporter of relatively new initiatives such as the United Nations Forum on
Forests/International Arrangement on Forests (UNFF/IAF, 2006) and the International Tropical Timber
Agreement (ITTA, 2006).
Since the tsunami, the Multi Donor Trust Fund (MDTF) a joint donor consortium of 13 countries and three
multilateral agencies created to support post tsunami rehabilitation and reconstruction efforts has extended
a grant of US$17.5 million to Flora and Fauna International (FFI) and the Leuser International Foundation
20
(LIF) to establish a further forest initiative in Aceh, the Aceh Forest and Environment Project (AFEP). The
main aims of AFEP's programmes are to monitor forest areas, mount public awareness campaigns, and
develop local people's income sources. AFEP describes its focus as “promoting strong policies,
institutions and best practices”.64 The early part of the programme focuses on protecting the forest; the
first group of community forest monitors (CFM) have already been employed. GTZ (Germany), USAID (the
United States), and several other donors are also providing various levels of assistance to the province for
natural resource management.
Additionally, to support such international as well as local initiatives, the Asian Development Bank (ADB)
has created a Spatial Planning and Environmental Management (SPEM) programme in Aceh which aims
to fill some of the information gaps regarding forests. The programme is gathering spatial and
environmental data, and is useful in that it identifies forested and environmentally sensitive areas in the
province by district.
It also gives recommendations for land use in some areas. This is, to some degree at least, an initiative that
does involve some stakeholders from the local areas, such as local government and communities. The
overall objective is to establish an information system that will help with planning, implementing and
monitoring forest management. Unfortunately, however, the ADB itself admits that the capacity of local
government officers at both the provincial and district levels to actually use these tools is low: “There is
indeed a great need for capacity building. Unfortunately, that is not part of our [ADB's] mandate.”65 The
Bank is also working with a team of 'experts', including academics from UNSYIAH (Universitas Syiah
Kuala) to draft a Qanun on conservation for Aceh.
International agreements already ratified by Indonesia

Conventions/International Agreements Ratification’s National Legislation
Date
Kyoto Protocol 3 December 2004 Indonesian Law No.17/2004
International Plant Protection Convention 21 June 1997
Convention on Biological Diversity 23 August 1994 Indonesian Law No.5/1994
United Nations Framework Convention on Climate Change 23 August 1994 Indonesian Law No.6/1994
(UNFCCC)
Convention on Wetlands of International Importance 8 August 1992 Presidential Decree
especially as Waterfowl Habitat No.48/1991
Vienna Convention for the Protection of the Ozone Layer 26 June 1992 Presidential Decree
N0.92/1998
Convention concerning the Protection of the World Cultural 6 July 1989 Related to Leuser: there
and Natural Heritage have been various laws and
decrees.
Convention on International Trade in Endangered Species 28 December Presidential Decree
of Wild Fauna and Flora (CITES) 1978 No.43/1978, and amended
by Presidential Decree
No.1/1987.
21
V. Conclusion_________________
This report's findings suggest that most problems of forest management in Aceh are governance problems
that affect many sectors, including forestry, rather than problems relating only to forest governance per se. In
particular, the future of Aceh's forests is profoundly complicated by the fact that an entrenched culture of
opportunism and corruption is pervasive in the province. While it would be inaccurate to suggest Aceh's
forest management problems can all be explained within the context of corruption, forests in Aceh have now
become an integral part of the local political economy, which is on the whole dominated by predatory and
corrupt practices. At the moment, those tasked with managing Aceh's forests are often those responsible for
their destruction, with stakeholders having more personal interest in forest exploitation than building
capacity to manage a public natural resource. Strong political will, at the provincial as well as national levels,
is needed to challenge these often politically and economically well-connected players, particularly in an
environment where systems of transparency and accountability are at best weak, and at worst non-existent.
In this context, the ongoing process of devolution of forest management to the provincial level, while
commendable in terms of building the province's political and economic autonomy, runs the risk of having
disastrous consequences for Aceh's forests.
For good forest governance to be implemented, Aceh requires a strengthening both of regulatory capacity
and longterm political will. For now, Governor Irwandi is a strong supporter of forest governance reform;
however, if he is voted out, reform will stagnate or go into reverse unless better legislation is in place;
implementation and monitoring capacities and commitments are improved; and resistance on the part of
provincial and district level bureaucrats to what is commonly perceived as the “overindulgence of the
governor for policies that come from non-Acehnese” is overcome.66
Beyond these basic governance issues, it is imperative that forest stakeholders in Aceh, broadly defined,
give greater emphasis to the wealth of environmental services supplied by forests. While the search for
alternative livelihoods for locals is crucial, it is equally important that communities understand the full range
of economic and non-economic values of their local forests, and the structural damage to local
environments and economies that can result if crucial ecological functions of the rainforest decline. To these
ends, existing forests should be valued more highly, making them more attractive than alternative land uses
after forest clearing. Second, payments for environmental services make investment in re-creation of
forests more attractive. This can bring forests back into areas where society will benefit, particularly in rural
areas through benefits from salinity amelioration, catchment management, bio-diversity enhancement and
creation of new industries based on renewable resources. However, this will involve adapting to a new way
of thinking about forest management and a radical reform of mechanisms.
Finally, there is a crying need for greater public participation in forest management and governance.
Communities whose lives are inextricably entwined with the future of their forests must be included as
stakeholders in their management. However, apart from some limited efforts by initiatives such as the AFEP
project (see Box 7), and smaller very localised efforts, overall there is almost no public participation in either
the management of Aceh's forests or the process of reform. (For example, the TIPERESKA team has been
tasked with producing recommendations for managing forests in Aceh, but this process includes few multi-
stakeholder consultations.) It is further necessary to ensure that new initiatives do not reinforce existing
power inequalities within communities, and that women are part of the multi stakeholder process at all
levels.
22
Recommendations
1. Develop a master plan for the improvement of forest governance and

sustainable forest management in Aceh that is, in both process and
outcome, inclusive and participatory.
2. Review and amend confusing, outdated, and conflicting legislation.

Legislate key prerequisites for good forest governance in local qanun as a
priority.
3. Build institutional capacity to implement new and existing legislation.
4. Create an Aceh Conservation Agency that will coordinate all agencies and
departments, NGOs, and others working on conservation issues province-
wide.
5. Develop multi-stakeholder processes for consultation, compliance, and

transparency. Devise mechanisms for the flow of accurate information
between forest governance stakeholders. Build the capacity of local people
to enable them to participate meaningfully in consultations and processes of
forest governance and management. Devise strategies to actively
encourage the participation of women in consultations and processes and to
build the capacity of women to participate equally in multi-stakeholder
initiatives.
6. Begin a process of awareness raising and education for local NGOs, civil
servants, and communities through schools, universities, and workplaces.
7. Devise monitoring and review systems for both mechanisms and

implementing institutions. All forestry stakeholders, including local
communities, must be actively involved in monitoring government efforts in
the forestry sector.
8. Work with local communities to come up with alternative livelihood

strategies that do not rely on forest conversion.
9. Build the trust and support of communities to implement and regulate to stop
illegal logging. Advertise widely a free phone hotline for people to report
illegal logging anonymously, and devote appropriate resources to ensure
results.
23
Appendix 1: Checklist
The following are some of the most relevant points of analysis from the checklist.
1. Is there awareness of the wide variety of 6. Does political will exist for good
stakeholders involved in forest forest governance?
governance? 7. Does good forest governance face
2. Is there awareness of breadth of issues financial constraints?
and problems? 8. How clear and enforceable are
3. How strong is capacity to undertake legislation and oversight
tasks related to good forest mechanisms?
governance? 9. Is the public aware of legislation? Of
4. How clear and strong are systems to their rights? Of international,
implement good forest governance? national and local regulatory
5. How much information exists on the instruments?
ecology, conservation value, and use 10. Are international, national and local
patterns of forests? regulatory instruments being
implemented?
24
Appendix 2: Conservation forest, protected forest and production
67
forest.
1. Conservation forest area means a forest area with specific characteristics, having the main
function of preserving and sustaining plant and animal diversity and its ecosystem. Conservation
forest is divided into two types; Nature reserve forest and Nature conservation forest.
1.1 Nature reserve forest means a forest with specific characteristics, having the main function
of preserving plant and animal diversity and life, together with its ecosystem. Under this
category, it includes nature reserves (Cagar Alam), and wildlife reserves (Suaka
Margasatwa).
1.2 Nature conservation forest means a forest with specific characteristics, having the main
function of protecting life-supporting systems, preserving species diversity of plants and
animals, and sustainable use of biological resources. This category includes national parks
(Taman Nasional), natural parks (Taman Wisata Alam), grand forest parks (Taman Hutan
Raya), and hunting parks (Taman Buru).
2. Protected forest means a forest area having the main function of protecting life-supporting
systems for hydrology, preventing floods, controlling erosion, preventing sea water intrusion and
maintaining soil fertility.
3. Production forest is for the production of forest products; logging concessions are permitted.
Production forest is divided into three categories; limited production forest, fixed production forest,
and convertible production forest.
3.1 Limited production forest: the forest that is for selected logging (tebang pilih). Generally this
type of production forest is located in steep or sharp slope area which is not easy for
logging.
3.2 Fixed production forest: the forest that can be used as a source of on going timber supply,
and allowed to log completely to be turned into industrial forest estate or sustainable forest.
3.3 Convertible production forest: available for conversion to non-forest activities, such as
plantations, transmigration, agriculture, industry, community settlement, and others.
25
Appendix 3: Illustration on the Structure of Forest Governance in Aceh. 68
TIPERESKA
BPKEL
BAPEDALN A D
o f Irrigation*
Department
Ce n t ra l G o vernm e nt
planning– co o r d inat e d
G o vernm e nt
In t e rdepartment
Se c re t a r i a t
Provincial
Pro v i n c i a l
by B a pp e d a
BAPPEDA
DI SHUT BUN
POLHUT
POLHUT
BKSDA
Dep a r t men t o f
Fores t r y
UPT
DISTAMBEN
POLHUT
BPDAS
Legend
POLHUT
T NG L
Coordinative relationship
LIF
Hierarchicical management structure within Aceh government line

ministries (established by Qanun)
Line of management 0f the agency established by Governor Decree
Permanent executing body of a particular department
Ad-hoc agency tasked to produced certain strategic planning
Non government body who have contract with particular government
ministry for certain period of time to manage certain location of forest.
26
Notes
1. Ministry of Forestry and Plantation Decree No.170/Kpts- 27. Formal government structure refers to provincial government
II/2000, June 2000. agency/department that is established by Qanun.
2. Greenomics Indonesia 24 January 2006. 28. Governor Decree (SK Gubernur) No.660/07/2009 on
3. Official BPS data No. 37/07/Th. XI, 1 July 2008. Assignment of BPKEL to Coordinate Wildlife Management in
4. Ministry of Forestry Decree No.170/Kpts-II/2000 on Nanggroe Aceh Darussalam Province, dated on 5 January
Designation of Forest and Marine Area in Aceh dated June 2009.
2000. 29. Detail descriptions, please refers to table 2 - page 13 and
5. Ministry of Forestry Decree No.170/Kpts-II/2000 on appendix 3 - page 26.
Designation of Forest and Marine Area in Aceh dated on June 30. Saminuddin B.Tou, Head of Forest Inventory and
2000. Management, Provincial Department of Forestry and
6. Eye on Aceh, Aceh, 'Logging a Conflict Zone,' 2004, p.9. See Plantations, Aceh, interviewed 21 April 2008.
also Lesley McCulloch, 'Greed: The silent force of the conflict 31. Denis Ruysschaert, Paneco Foundation, interviewed on 5
in Aceh' in Violence In Between Conflict and Security in August 2008.
Archipelagic Southeast Asia,” Damien Kingsbury, ed. (2005). 32. Data from Yayasan Ecosistem Lestari, 2007.
7. FAO, Forest Resources & Forest Industries in Aceh, 7 33. Jamaluddin, villager of Seumadam village (nearby Tripa
November 2007. swamp), interviewed 12 November 2007.
8. WWF and Greenomics, 'The Implementation Design of Timber 34. The pre-LOGA provincial legislations are Provincial Legislation
for Aceh', March 2005. of Aceh No.47/2001 on Designing of Outboudary of Forest
9. The BRR is legislated by Regulation in Lieu of Law (Peraturan Area (27 August 2001); Provincial Legislation of Aceh
Pemerintah Pengganti Undang-Undang Perpu) No. 2/2005, 16 No.46/2001 on the Management of Grand-forest Pocut Meurah
April 2005. Intan (27 August 2001); Qanun No.14/2002 on Forestry in
10. See Eye on Aceh, 'A People's Agenda? Post-tsunami Aid in Aceh (14 October 2002); Qanun No.15/2002 on Forestry
Aceh,' February 2006. Licence in Aceh (14 October 2002); Qanun No.20/2002 on
11. Saudah Lubis, BRR Environment Unit, telephone interview, 18 Natural Resources Conservation (15 October 2002); Qanun
July 2008. No.21/2002 on Natural Resources Management (15 October
12. IUCN, 2008 Species Assessment. 2002).
13. Data from Central Department of Labour and Transmigration, 35. Saminuddin B.Tou, Head of Forest Inventory and
2008. Management, Provincial Department of Forestry, Aceh,
14. Abdul Kadir, the then head of Transmigration Department of interviewed 21 April 2008.
Aceh, interviewed 16 May 2006. 36. Saminuddin B.Tou, chief of Forest Inventory and Management,
15. UNDP, Timber Analysis Report, 2006. Department of Forestry and Plantation in Aceh, interviewed 22
16. Greenomics Indonesia 24 January 2006. August 2008.
17. Ministry of Forestry, 'Stretegic and Action Plan for Sumateran 37. For a fairly comprehensive analysis of local government
Tiger Conservation 2007-2017', 2007. capacity in Aceh, see World Bank, 'Public Financial
18. Kompas, 26 May 2008. Management in Aceh', March 2007.
19. Kompas, 3 June 2008. 38. Fauzan Azima, head of BPKEL, interviewed on 28 April 2008.
20. Conversion rate US$1 is Rp 9,803 39. Qanun Number 5/2007 on 'The administrative formation and
21. Zainul Arifin Panglima Polem, the then head of Regional job describtion of departments, technical agencies and other
Investment Coordination Agency of Aceh (Badan Koordinasi government institutions of Nanggroe Aceh Darussalam', dated
Penanaman Modal Daerah BKPMD), interviewed 24 February 5 October 2007.
2007. 40. Member of the Provincial Department of Forestry and
22. Quoted from a video documentary produced by Cynthia Fuchs, Plantations, interviewed on 26 June 2008. Interviewee
entitled “The Burning Season”, released 22 July 2008. requested anonymity.
23. World Bank, 41. A local villager, interviewed 17 April 2008.
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/E 42. A local villager, interviewed 19 April 2008.
ASTASIAPACIFICEXT/EXTEAPREGTOPENVIRONMENT/0,,c 43. Serambi Indonesia, 18 October 2007.
ontentMDK:21576161~menuPK:502932~pagePK:34004173~p 44. Mikko Ollikainen, Program Specialist - Environment, World
iPK:34003707~theSitePK:502886,00.html. Bank, interviewed 6 May 2008.
24. Article 4.3(a) of Law No.18/2001 states that Aceh recieves 80% 45. Interview with owner of panglong in North Aceh. Details of
of revenue sharing as provincial income from forestry sector, location have been withheld on interviewee's request.
and central government receives 20%. 46. Serambi Indonesia, 6 May 2008; see also Eye on Aceh 'The
25. Qanun No.14/2002 on Forestry of Nanggroe Aceh Darussalam; Golden Crop? Palm Oil in Post-tsunami Aceh', September
Ministry of Forestry Decree No.665/Kpts-II/2002 on 2007.
Organisational and Job Description of BPDAS; Law 47. Governor Decree No. 522.1 / 534 / 2007 on 31 October 2007.
No.41/1999 on Forestry; Ministry of Forestry Decree 48. Mikko Ollikainen, Program Specialist - Environment, World
No.204/Kpts II/1998 on Organisational and Job Description of Bank, interviewed 6 May 2008.
BKSDA; Governor of Nanggroe Aceh Darussalam Decree 49. Leuser International Foundation information.
No.52/2006 on Establishing of Leuser Ecosystem 50. United Nations Education, Scientific and Cultural Organization
Management Agency (BPKEL) within Aceh province; Ministry (UNESCO), Annual Report 2006.
of Forestry Decree No.6186/Kpts II/2002 on Organisational 51. Article 4.2, Keppres 33/1998. The Multi Donor Trust Fund
and Job Description of National Park agency; Qanun Aceh (MDTF) is funding the LIF project until 2010 with a grant
No.5/2007 on the Structure and Job Description of Provincial totaling US$9.81 million.
Departments, Agencies, and Institutions of Nanggroe Aceh 52. Basri Emka, Secretary general of BPKEL, interviewed 16 July
Darussalam; Interview with Mufti Madjid, head of Irrigation 2008.
Department of Aceh on 15 June 2008; Ministry of Forestry 53. Basri Emka, Secretary general of BPKEL, interviewed 16 July
Decree No. P.557/Menhut-II/2006 on Organisational and Job 2008.
Description of BP2HP. 54. Department of Regional Infrastructure, May 2004. In 2007 the
26. Member of DPRA who requested anonymity, interviewed 19 name changed to the Department of Public Infrastructure.
May 2008. 55. Hamdani Hamid, Head of Commission B of Provincial
Parliament in Aceh, interviewed 21 April 2008.
27
56. Mayers, J and Bass S, Policy that works for forests and -
people: real prospects for governance and livelihoods, 2004.
57. Zainul Abidin Panglima Polem, the then head of BKPMD,
interviewed 14 April 2008.
58. Data from Biro Kepegawaian Provinsi NAD, August 2005.
59. World Bank, 'Public Financial Management in Aceh', March
2007.
2007.
2007.
62. Saminuddin B.Tou, Head of Forest Inventory and Management
of Department of Forestry, Banda Aceh, interviewed 18 April
2008.
63. Pieter Smidt, ADB, interviewed 23 May 2008.
64. The description of AFEP project:
http://www.acehforest.org/description.html
65. Erik van der Zee, Team Leader/ GIS Specialist, ADB - ETESP,
interviewed 18 June 2008.
66. Senior staff in one of provincial government, Banda Aceh,
interviewed 12 June 2008.
67. Law No.41/1999 on Forestry; Interview with Saminuddin B.Tou,
Head of Forest Inventory and Planning of Department of
Forestry and Plantation in Aceh, interviewed on 19 April 2007.
68. This illustration is drawn based on discussions with the officials
from Department of Irrigation (Dinas Pengairan), BKSDA,
BPKEL, DISHUTBUN, Bappeda, Bapedal NAD, TIPERESKA,
Department of Mining and Energy, member of provincial
parliament.
28

Forest Governance in Aceh - Eye On Aceh Report

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Forest Governance in Aceh - Eye On Aceh Report

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Challenges of Forest Governance in Aceh

March 2009 (second edition)

Cover: Map of forest cover in Aceh (courtesy ADB - ETESP 24 2008)

We are grateful for the financial support of

Map: Environmental sensitivity analysis................................................................................ 2

II. Aceh's forests................................................................................................................... 6

Concept: What is good forest governance (GFG)?................................................................ 11

III. Governance of forests in Aceh today................................................................................ 12

V. Reform and its challenges................................................................................................ 18

II. Aceh Forest_____________________________________________________

The Indonesian government has tried to mitigate the Expansion of settlements

Box 1: The plight of the tiger

Figure 2: Percentage of Poverty in Aceh 2005-2007

South Aceh Box

2005 2006 2007

Low sustainability  Loss of land tenure.

Adverse consequences Taking these factors together, it is not surprising

Concept What is good forest governance?

Pre-requisites for GFG

 A general commitment to good governance principles

 Sustainable forest practices

 A commitment to poverty alleviation

 Adequate human resources

III. The Gover nance of Forest in Aceh Today______________________

Box 2: The New Law on Governing Aceh of 2006

Figure 3: The responsibilities of central and provincial government agencies in managing

Decentralisation within Aceh

Box 3: The Permit labyrinth

Box 4: The example of Bener Meriah

According to Transparency International, in 2008 Box 5: Who mind the minders?

Box 6: The permit without basis

proper review processes, such as in the case of

Box 7: The Leuser Ecosystem: a hopeful example of cooperative management?

International agreements already ratified by Indonesia

1. Develop a master plan for the improvement of forest governance and

2. Review and amend confusing, outdated, and conflicting legislation.

3. Build institutional capacity to implement new and existing legislation.

5. Develop multi-stakeholder processes for consultation, compliance, and

7. Devise monitoring and review systems for both mechanisms and

8. Work with local communities to come up with alternative livelihood

Appendix 3: Illustration on the Structure of Forest Governance in Aceh. 68

Hierarchicical management structure within Aceh government line

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