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Decentralization and the Forestry Sector: Opportunities and Challenges

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Author Info
Linda Christanty () (CFG Jakarta)
Raymond Atje () (Department of Economics, Centre for Strategic and International Studies)
Kurnya Roesad (Department of Economics, Centre for Strategic and International Studies)
Abstract

This paper looks into Indonesia’s recent experience with the decentralization process and assesses opportunities and challenges for the forestry sector. Despite its brief existence since only 2001 and the limited data available, decentralization in the forestry sector has shown some significant trends. The paper finds that co-ordination between different levels of government is still lacking, lacking a clear division of tasks between central, provincial and district governments. Indonesia’s move to a more market – based forestry governance system is currently impeded by the lack of a sound and secure property and tenure rights system, exacerbated by legal uncertainties, and weak monitoring and enforcement capacities on the local level. Overall, when compared to other forest-rich countries, decentralization has not sufficiently empowered regional and local governments in the forestry sector, as the central government retains most of the power to manage the country’s forests.

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File URL: http://www.eaber.org/intranet/documents/26/57/CSIS_Christanty_04_2.pdf
File Format: application/pdf
File Function: First Version, 2005
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Publisher Info
Paper provided by East Asian Bureau of Economic Research in its series Governance Working Papers with number 57.

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Length: 35 pages
Date of creation: Feb 2004
Date of revision:
Handle: RePEc:eab:govern:57

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Related research
Keywords: Indonesia decentralisation forestry sector

Find related papers by JEL classification:
Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
R38 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Government Policies; Regulatory Policies

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References listed on IDEAS
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  1. Syaikhu Usman, 2001. "Indonesia's Decentralization Policy: Initial Experiences and Emerging Problems," Governance Working Papers 123, East Asian Bureau of Economic Research. [Downloadable!]
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