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DRAFT for Review-Riau Forestry Sector Employment Study-July 2005

DRAFT for Review-Riau Forestry Sector Employment Study-July 2005

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Published by forestdata
This study analyses forestry sector employment in Indonesia’s Riau province in 2001. Based on official statistics and survey data, it estimates that some 86,500 workers were employed in Riau’s forestry sector in that year. Of these, approximately 38,000 workers were engaged in commercial timber extraction or pulpwood production, while just over 48,500 were involved in wood processing activities at plywood, sawnwood, or pulp and paper mills.
This study analyses forestry sector employment in Indonesia’s Riau province in 2001. Based on official statistics and survey data, it estimates that some 86,500 workers were employed in Riau’s forestry sector in that year. Of these, approximately 38,000 workers were engaged in commercial timber extraction or pulpwood production, while just over 48,500 were involved in wood processing activities at plywood, sawnwood, or pulp and paper mills.

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Published by: forestdata on Nov 08, 2010
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01/27/2012

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The majority of unlicensed sawmills in Riau are concentrated in areas containing the
largest remaining tracts of natural forest. Surveys conducted by WWF-Riau in 2001 and
2002 identified 250 unlicensed sawmills in the vicinity of four main forest complexes in
Riau (Table 22). Cumulatively, these mills employed over 2,600 people and produced
nearly 900,000 m3 of sawn timber per year.

Table 22: Unlicensed Sawmill Production and Employment in Riau, 2001-2002

Sawmills

Forest Area

Number of

mills Employment Production
(m3/day)

Tesso-Nilo

85 370 3,018

Bukit Tigapuluh

52 949 268

Kerumutan

101 1,212 606

Rimbang Baling

12 110 50

Total per day

250 2,641 3,942

Total per year

250 2,641 867,240

Source: Investigations by WWF-Riau in 2002, follow-up to data from 2001.
Note: Annual total is an estimate based on the assumption that there are 20 working days in
a month and sawmills operate 11 months per year (WWF-Riau).

40

The WWF surveys conservatively estimate that unlicensed sawmills in Riau do not recover
more than 50 percent of the logs they process. Based on such assumption, the raw material
needed to produce 867,240 m3 of sawnwood would be approximately 1,734,480 m3 of
logs. These figures are comparable to the officially reported volumes of logs consumed
and sawnwood produced by licensed sawmills (see Table 20). This suggests that the real
production of sawn timber in Riau may be about twice the volume that is reported.

The labor force in unlicensed sawmills is largely composed of workers from outside of
Riau. The data on unlicensed sawmills in the vicinity of Tesso Nilo and Bukit Tigapuluh
National Park show that around 74% of the labor is from the provinces neighboring Riau.
Only 26% are Riau residents. This ratio would indicate that approximately 1,954 Riau
residents and 687 migrant workers were employed in unlicensed sawmills in Riau in 2001-
2002.

It is possible that the figures reported by the WWF survey significantly underestimate the
numbers of illegal sawmills operating in Riau, as well as the numbers of workers employed
in this subsector. In a confidential report, the District Forestry Service in Indragiri Hulu
identified 140 unlicensed sawmills in that district alone. These mills were reported to have
produced 86,715 m3 of sawntimber in 2001 and to have employed 2,077 workers. This
suggests that, on average, annual productivity levels per worker were 42 m3/person/year at
the Indragiri Hulu mills. By contrast, the WWF data suggests that annual productivity
levels per worker were 328 m3/person/year at the 250 illegal sawmills covered in those
surveys. This pronounced discrepancy suggests that further information is needed to
determine, with a greater degree of reliability, the numbers of unlicensed sawmills
operating in Riau, the numbers of workers employed at these facilities, and the
productivity of these workers.

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