Component 2 consists of the following sub-components:
Sub-component 2.1: Strengthening management capacity within the State Forest Area: FMU development.
Sub-component 2.2: Strengthening provincial and district governments to supervise and monitor the implementation of Sustainable Estate Crops:
7.2.1 Sub-component 2.1: Strengthening management capacity within the state forest area : FMU development
Baseline data analysis shows that Sub-component 2.1 is relevant to seven issues. Strengthening management capacity is expected to boost the FMU’s capacity to deal with tenurial conflict and to handle complaints. However, strengthening their capacity may also result in new conflicts related to the enforcement of Forest Area demarcation boundaries. This risk needs to be addressed more explicitly. Such risks can be addressed using RPF and PF, specifically on access restriction.
Consequently, FMU needs to be empowered with RPF and PFA. Summary of the analysis is provided in Table 30.
Table 30 Summary of analysis of issues related to Sub-component 2.1.
Issue s
Context Analysis Source of Data &
Information Forest
Governance
Strengthening government capacity on:
Institutional building
Since Indonesian government established the FMUs as forest management in the fields, there are several issues that related with staff capacity on how they achieve their target and vision. The FMUs is relatively new
organization on the forestry sectors, there is
GIZ, GGGI, KLHK,
still have gap regulation, lack of human resources capacity, etc.
Planning and implementation of Sustainable forest management
As a forest manager, the FMU is required to have capabilities for landscape management and planning, because in reality in the FMU region - there are various types of land uses with varying capacity of management units, including IUPHHK-HA, IUPHHK-HTI, Protection Forests, social forestry, etc.
The forestry sector business activities in East Kalimantan consist of: 64 IUPHHK-HA Units, 48 HT IUPHHK Units. From existing permits, 23 units have obtained SFM, 23 units have SVLK and 5 units have FSC. Need more intervention from FMU to improve the achievement of unit management (private sectors) on sustainable forest management.
Social economic Development
The FMU also has a mandate to increase forestry sector revenues. In the field, there are community activities around the forest for subsistence or economic interests. The FMU has challenges in providing the legality of community activities, including to improve the economy of the community. The potential of non-timber forest products has not been optimally pursued, where this can improve community welfare and reduce emissions, and can reduce land conflicts
Capacity building for forest administration will provide officials with the capability to manage, supervise and ensure that activity conducted by the private sector in managing the forest area is aligned with licensing requirements (including some measures to address environmental and social risks). Improved capacity for forest fire prevention is urgent, as fires destroyed more than 6,000 ha of forest in East Kalimantan from 2006 to 2015, in addition to illegal logging that destroyed 17,349 ha (outside of concession areas) in the same period.
Government capacity limitations may directly impact environmental management, especially regarding FMU function for sustainability and emission reduction and sustainable forest management.
Acceleration of the implementation of the One Map Policy is needed, for it may reduce complexity in mapping for forest administration. Therefore, governments’ implementing the One Map Policy also need to be encouraged to allow a comprehensive conflict resolution strategy. In the environmental sector, the implementation of this sub-component will result in some positive conditions, such as:
Clear FMU boundaries that will improve forest area management by the FMUs;
Improved capacity for the FMUs to manage forest area;
Improved forest protection and other ecosystem services (enhancing biodiversity); and
Improved quality of habitat, and environment and protected areas within estate crop areas.
Strengthening government capacity is linked with expectations such as:
Capacity to handle complaints and resolve tenurial conflicts;
Ability to provide access to alternative livelihoods, resulting in improved community livelihoods; and
Social inclusion for vulnerable groups so that they receive benefits from programs.
Other anticipated impacts include:
Potential delay in capacity building for conducting Environmental Assessment (OP/BP 4.01) and developing Environmental Action Plan (OP/BP 4.02); and
Lack of reputable training providers for conducting Environmental Assessment (OP/BP 4.01), Environmental Action Plan (OP/BP 4.02), natural habitats management (OP/BP 4.04), and forest management (OP/BP 4.36).
There is a need to increase FMU capacity to support implementation of agrarian land reform (TORA).
Communities obtaining a license under the TORA scheme will need to be facilitated by the FMU to ensure proper identification of forest area (i.e., unproductive area, and changing the forest status to other use area), as well as ensuring that principles for preventing environmental and social risks are adopted by the new “owners” of the area. Therefore, skills in facilitating/mentoring for local communities will need to be improved as well within the FMU.
Challenges in improving the function of FMU include improving the quality and quantity of human resources, especially in recruitment process. Current capacity within FMU revealed that 56% of technically-capable employees were recruited at national level, and only 44% were recruited locally.
In addition, subjectivity and personal favouritism still occur during recruitment. Furthermore, FMUs urgently need important capacity in managing conflicts or resolving problem, especially when confronted with dispute settlement in overlapping rights in areas with concessions or customary land.
The role of the FMU in licensing needs to be strengthened and justified. FMUs can provide technical recommendations during licensing process for large corporations. During licensing process for micro/small scale businesses, FMU can be given a more significant role beyond recommendations.67 For this reason, governance guidelines for licensing by FMU are needed. FMU that can operate well (i.e., model FMU), can serve as an instrument in good forestry governance.
In the context of ERP, development of FMU should be strengthened toward sustainable forest management. It will bring positive impacts in environment and social aspects through improvement and resolution in tenurial conflict and dispute; capacity building of official; overcome governance risk;
increasing participation of stakeholder; increasing access to FGRM; facilitating social inclusion; and open access to human livelihood surrounding the forest area. Actions to accelerate the development of independent and strong FMU are also relevant with aspects such as infrastructure, capacity building and financial scheme.68
67 Strategi Pengembangan FMU dan Perubahan Struktur Kehutanan Indonesia. 2014. Direktorat Jenderal Planologi Kehutanan – Kementerian Lingkungan Hidup dan Kehutanan & GIZ.
68 Butarbutar, T. 2017. Percepatan dan Pengarusutamaan Pembangunan FMU menuju Hutan Masa Depan. Rembug Nasional Lingkungan Hidup dan Kehutanan. GIZ
7.2.2. Sub-component 2.2: Strengthening provincial and district governments to supervise and monitor the implementation of sustainable estate crops
Summary of the analysis for Sub-component 2.2 is provided in Table 36.
Table 31 Summary of analysis of issues related to Sub-component 2.2.
Issues Context Analysis Source of Data &
Information Forest
governance;
protect
remaining forest or high
conservation forest value
The East Kalimantan Government has
designated area as plantation area approximately 3,269,561 Ha. And there is around 871,947 ha forested area established inside those area. Part of thus forest is identified as high conservation value that should be protected. So far, unit pengelola perkebunan tidak memiliki kapasitas dan ketrampilan dalam pengelolaan hutan (HCV area).
In the scheme of sustainable palm oil development, both ISPO and RSPO, have encouraged the protection of HCV areas in their concessions. However, this protection has not been supported by regulations that support the protection of plantation HCV areas,
Forum Kepala Sawit
Berkelanjutan Indonesia, 2017
ERPD, 2017
Promote activity for reducing deforestation and sustainable plantation principle
Construction of palm oil plantations in East Kalimantan need to account for the protection of natural forest areas. If expansion is needed, the main step is not to increase the area, but increase land productivity. If forced to open new land, then use marginal land with low carbon stock. Eventually, it will overcome the risks of forest governance to reduce deforestation in East Kalimantan.
Initially, oil palm farmers paid little attention to the use of certified seeds to ensure productivity. In addition, garden management that has not been effective causes the average productivity of oil palm plantations to only reach around 2-3 tons per ha, still far enough compared to Malaysia, where production reaches 12 tons per ha.
DDPI, 2017
Issues Context Analysis Source of Data &
Information Forest
governance;
protect
remaining forest or high
conservation forest value
The East Kalimantan Government has designated area as plantation area approximately 3,269,561 Ha. And there is around 871,947 ha forested area established inside those area. Part of thus forest is identified as high conservation value that should be protected. So far, unit pengelola perkebunan tidak memiliki kapasitas dan ketrampilan dalam pengelolaan hutan (HCV area).
In the scheme of sustainable palm oil development, both ISPO and RSPO, have
Forum Kepala Sawit
Berkelanjutan Indonesia, 2017
ERPD, 2017
Issues Context Analysis Source of Data &
Information encouraged the protection of HCV areas in their
concessions. However, this protection has not been supported by regulations that support the protection of plantation HCV areas,
Promote activity for reducing deforestation and sustainable plantation principle
23 estate crops companies have got ISPO certification. The delayed assessment of
plantation companies has become an obstacle in implementing ISPO. The guidelines for
sustainable smallholders needed to implementation of sustainable plantations
Estate Crops Agency, 2017
Facilitation of sustainable palm oil plantations will optimize production and promote best practices.
Sustainable plantations (e.g., RSPO, ISPO) can help reduce degradation, and it will be achieved when the capacities of the above-mentioned stakeholders are enhanced. Sustainable plantations can be achieved with effective cooperation from all stakeholders. Indonesia targets for increase palm oil production to 40 million tons by 202069, this development needs to be accompanied by environmenal and social considerations. Other principles to support sustainable estate crops include High Conservation Values (HCV). Principles of HCV can be applied in plantation sector, and can ultimately contribute to the protection of natural resource at provincial scale.
Furthermore, increasing the capacity of government officials (provincial & district) will also have a positive effect on social conditions surrounding plantation area. Positive impacts may include higher participation of stakeholders in protecting the natural resources surrounding forest areas to support sustainable estate crops. This sub-component also seeks to address plantation conflict by supporting the Working Group for resolving disturbances to plantation activities (currently under the administration of Plantation Agency at provincial level. Empowering provincial and district governments mean increasing the numbers and capacity of staffs involved in the conflict resolution.
Ultimately, this will improve the mechanism at district level. This can be part of the proposed FGRM (integrated under provincial secretariat).