Inconsequential IFC Scheme

Commercial Timber Estate Development in Java and Papua

It is not wise to say that the target of timber estate development is as a main raw material supplier for pulp and paper industry, it is meant to be implemented in critical area such as; abandoned reed area and other low carbon emission area which have been calculated about 250.000 ha in Indonesia by World Bank’s program called “IFC – International Finance Support”, as it is mentioned in media (KOMPAS, 11/18).

Furthermore, it is also declared that Papua and Java are the chosen locations for that project implementation. Papua, with its exceptional autonomy privileges has its own forestry policy which will designate for an indigenous forest management, in fact the forest itself still sustain as a natural forest.

Meanwhile in Java, land and forest have been commercially exploited for centuries, started from 17th century in colonialisms era and up until now. At the present time, Java’s Forest has been legally occupied by state based enterprise – Perum Perhutani with its exceptional law. Not less than 34 million ha of Java’s Forest is under Perhutani authorities, as more than halves of them are abandoned as it is started get “boomed” for illegal logging in 1997 which involving many parties, including some of Perhutani’s elements. Until now, these land and forest conflicts in Java between Perhutani and People still in high tension. By the 10th year of reformation, not less than 300 hostility cases have been occurred.

Appropriate Area Identification

Department of Forestry in Fay (2002) said, about 56% of Indonesia’s forest area are in co-inside condition. It means that the area is overlapped for its claim between government, industry, and local (indigenous) community. This condition will trigger linger any conflicts in those area. Through the years, these conflicts have been chronically ignored.

Community based forest area is succeedly registered by KpSHK – Konsorsium Pendukung Sistem Hutan Kerakyatan along with indigenous people organization network and civil society in Indonesia (2005). In those registration clearly said that 16 million ha of community based forest area is co-inside with the state forest area. The community usually utilizes the area for their production (commercial) and protection of the forest.

Until now, district and state government, especially Department of Forestry are failed to identify a critical forest area. Designation of a reed/ savanna as a target in IFC’s commercial timber estate development program needs a further explanation. Forest is in fact is not limited for its tree stands, in several Indonesia’s island , reed or as it is called savanna and peat land are widely spread in 5 big island in Indonesia which are; Sumatra, Kalimantan, Papua, Sulawesi and Nusa Tenggara.

Logical False Perception

75 – 200 million USD is already prepared for the program implementation with its target about 250 thousands ha (this is similar with community based timber estate program – HTR for a community’s income generating poverty) in critical forest area. This funding scheme is in fact could increase the carbon emission release from fire based forest cavity (slash and burn) that still conducted in commercial timber state, the development of canal in peat land area, which will destroy the whole peat area. Those activities could increase the rate of land and peat land fire, which could also triggered for a conflict within the area (land and forest authorization status).

Even though, it is distinguished to see the purpose of this funding scheme, which to fulfill the needs of pulp and paper raw material from a critical area and it also gave its priority to community participation to get an additional economical income. As long as there isn’t any clarity about the land status itself, it is believed that IFC’s funding scheme is inconsequential.

One thought on “Inconsequential IFC Scheme

  1. We need your support for our research to stop using paper bags for Cement Industry, and changing to Plastic bag cement, within we can save millions of tree from illegal logging and stop killing papyrus tree were we need that tree to reduce a climate change.


    Joe Wang
    Student of Forest and Agriculture
    Cornell University, Ithaca NY

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