Country Brief

In Indonesia, forest certification has been in place for more than 15 years. FSC is widely known in the timber and forestry sector of Indonesia. In Indonesia, more than 1 million hectares of forest have attained FSC certification, with 195 companies holding FSC Chain of Custody (CoC) certificates.

Indonesia is one of the biggest timber producer countries in Southeast Asia, linked into thousands of suppliers and buyers worldwide. Rates of forest degradation and deforestation have dropped sharply in the past seven years, but there are still major challenges for the conservation of natural resources. One key limitation is the fact that forest values have always been measured in terms of timber production. No account has been taken of the many environmental services (ES) produced by forests, such as carbon sequestration, water supply and purification, landscape and biodiversity protection.

Scope of project

The ForCES project will expand the existing concept of Payment for Ecosystem Services (PES) in Indonesia into certification scope under FSC. The project will contribute to the development of the forest community’s FSC sustainable forest management (SFM), which has thus far only been achieved by two community forests in Indonesia. Over the course of the project many activities will be conducted in the with regards to policy, standard review for FSC certification and PES, capacity building, market analysis for FSC PES, and monitoring and evaluation. It seeks to investigate measurement for ES and their application in emerging markets for biodiversity conservation, carbon, eco-tourism and water service.

Project sites

Lombok Island
In 2004, WWF Indonesia initiated a PES scheme (for water) in Rinjani Protected Area, Lombok Island. The Rinjani landscape covers a total area of 125,000 hectares of semi-evergreen and tropical rainforest. It is divided into production forest, reserved area and national park, with four districts: Kabupaten Lombok Barat, Kabupaten Lombok Utara, Kab. Lombok Timur and Kab. Lombok Tengah. A WWF study in 2004 revealed that the economic value of the ecosystem services from this landscape may be as high as IDR 5.178 trillion (USD575.3 million). The PES scheme has been adopted as part of local government policy, and a sustainable financing model has been set up. This offers incentives for upstream communities to implement good forest management in the Mount Rinjani ecosystem.

West Kalimantan
This site is in the Kapuas Hulu Corridor in West Kalimantan, Borneo island. WWF Indonesia has completed a series of studies to set the baseline for equitable payment for watershed services. The focus activity for this area will be community-based forest management, biodiversity and ecotourism, involving two big national parks: Danau Sentarum National Park and Betung Kerihun National Park.

PT Ratah Timber (Ratah)
PT Ratah Timber has natural forest production, with log production as the main business. It covers 97,690 hectares. Logs are processed into plywood before export to Japan and USA. Located in West Kutai, East Kalimantan, the company conducted FSC assessment in 2011. It is currently undergoing FSC forest management certification.