DEGARADTION FOREST AND UNEMPLOYMENT:

TOWARDS SMALL SCALE FOREST MANAGEMENT

(Forest Degradation and Unemployment: Towards Small-scale
Forest Management)

HERRY PURNOMO1

ABSTRACT

along with the concept of poverty Alleviation and forest sustainability, forestry
employment is the major concern among policy makers. The forest's sustainability and job
availability are critical indicators for the performance of the government. The relationship
between employment and forestry development is unclear especially when it offer section with
illegal forestry activities. This study aims at generating projection of the forestry employment in
Indonesia in relation to the dynamic of forestry sector and its related industries ,. The study used
dynamic systems to implement the relation between structure of forest industries, actors and their
institutions. The study found that the current practice of forest management will experience with a
boom-and-bust of forestry employment, starting with Riau Followed by East Kalimantan and
Papua. Massive forest planting will benefit if it is located in deforested land, but if it is located in
different existing land with trees it may jeopardize the employment and community's livelihoods.
Small-scale forestry can boost the employment to meet the overall government targets on
unemployment and poverty reduction as well as rehabilitation of forest ,

Keywords: forest degradation, unemployment, land-right scenarios, small-scale forestry,

poverty-reduction

PRELIMINARY

In 2006 the United Indonesia Cabinet (KIB) is targeting the number of unemployed
to 9.6 million, but unemployment is expected to increase by LIPI (Indonesian Institute of
Sciences) to 11.7 million and by INDEF (Institute for Development of Economics and
Finance) To 12.3 million people. increase unemployment experienced by the same half-
open (underemployment) Which amounts to 30 million people.
ILO (International Labor Organization) Estimates the number of workers in
Indonesia's forestry sector is three million people, one million people are direct labor,
while two million people were employed indirectly. KAHUTINDO
(Indonesian Forestry Workers Union) estimates the number of forestry labor as many as
two million people. Forestry sector workers expected to lose about one million people
during 2004 and 2005. The company HPH (forest concession) decreased felling, wood
industry raw material shortages. While the furniture industry and furniture continue to lay
off (termination) employees because of lack of raw materials, lost in the design, low
productivity, and lost the competition with China, Vietnam and the Philippines.
Indonesian forest area of 110 million hectares continue to damage the increasingly
large. If before the reform era (1997) estimated the damage rate was 1.6 million hectares
per year, after the reforms around 3.5 million hectares per year. Illegal logging (illegal
logging) Occur where-where. Minister of Forestry, MS Kaban, informing the amount of
degraded land in Indonesia reached 60 million hectares, 10 times the island of Java.
Forests in Sumatra will disappear in 5 years and in Borneo within 10 years. The World
Bank said that Indonesia's lowland forests will disappear by 2010 if action to stop
deforestation is not done effectively. The main forest damage caused by illegal logging,
fires, transmigration and conversion to plantation and agricultural lands (Sato, 2005).
On the other hand illegal logging and land conversion through GPA (timber
harvesting permit) are difficult to eradicate. Illegal logging provides employment doubled
from the official logging based on CTR (Annual Work Plan). While providing employment
to convert forests as logging-based CTR. Deforestation is difficult to eradicate because
hundreds of thousands of workers tegantung him. In the future workforce depend on
forest-damaging operations will be increasingly large.
This article presents a trend (trend) And labor force scenarios forestry sector for
twenty years using system dynamics modeling in three provinces namely Riau, East
Kalimantan and Papua. These three provinces, the province with the richest natural
resources in Indonesia, including forests and mines accompanied by social and political
problems are complex. The scenario ahead is based on forest conditions and the existing
workforce.

RESEARCH METHODS

Berck and Hoffmann (2002) explains that there are several methods that can be used to
assess the impact of policies on the environment and natural resources jobs. They examined the
four methods, the supply-demand analysis (supply demand analysis) general equilibrium
simulation input-output (IO), social accounting matrix (SAM) and analysis time series
econometric, Each of these methods has advantages and disadvantages. IO and SAM method
requires an understanding of the structure of the system that are affected by the policy and data
intensive, which unfortunately rarely available in developing countries. while the analysistime
series has an advantage by putting the dimension of time on the system.
 System dynamics method (systems dynamics) Used in this study has the
dimension of time as the analysistime series, However, unlike the IO and SAM method,
system dynamics require more intensive understanding, not data-intensive, on how a
system works (Grantet al.1997; Sterman, 2000). The dynamics of such systems to
combine understanding of the structure and the SAM method such as the time dimension
analysis methodtime series,
System dynamics is the study of changes in the system over time to take into
account the feedback. Forrester (1999) defines the system dynamics as a field to
understand how things change over time. The dynamics of the system stems from or
formed by equationsdifferenceand differential. Modeling in this study followed the
following stages (Grantet al., 1997): (a) Develop a conceptual model; (B) Develop
technical specifications and assumptions used; (C) Evaluation of the model; and (d) Use of
the model to create future scenarios are possible. The method employed is reinforced
bylearning scenario (Fahey and Randall, 1998) and soft system methodology
(Checkland, 1989).
The general structure of the model follows the approach of SIA (Structure-
Institution-Actor) Used by Sato (2005) to analyze the impact of economic policies. 'S' is
the field of play where the actors play, 'I' is the rules of the game, both formal and
informal, and 'A' is an actor. If we use the metaphor of a fist, then both fighters are 'A', the
ring is 'S', while the rules of boxing is 'I'.

RESULTS AND DISCUSSION

Model development
Conceptual Model
The concept of this model is presented in the form of Stoks (stocks) And streams
(flows) As presented in Figure 1. The 'R' symbolizes the positive loop or reinforcement
while 'B' symbolizes the negative or feedback loops balance (balancing feedback).
Logging of natural forests experience both legally and illegally into timber, which is then
processed into wood derivative products. Timber and wood derived products to the market
and then sold both domestically and internationally. Natural forests possessed the capacity
to grow if it is managed well. Government run reforestation programs like GERHAN
(Reforestation and Land Rehabilitation Movement) with a certain success rate. Natural
forests are also being converted into plantations and plantations such as oil palm and
rubber.
Investment from logging firms affect the rate of natural forest logging, both legal
and illegal. The company's revenue in the company's cash flow alone, taxes to the
government and the banks that finance investments. Investment in plantations affect the
rate of conversion of natural forests and planting
 47

back areas that have been deforested. While investment in forest product processing
industry to increase the capacity of the industry for processing wood.

Shipping timber
delivery of products
natural growth reforestation wood derivatives
Mark
et

natural legal
forest timber Product
and illegal wood
+ The rate of derivatives
The rate of logging processing
+
wood

Konversi2
+ industrial capacity
Konversi1
money
+ masuk3
R industry
R oth Forest
alakan l The rate of logging
egal da plant
n illegal plantations
Konversi3
Company
+ R forests processing
Use plant Investation wood
other land R huta
n tana
man
managing
investasi2
Money masuk2 +
Company
product land Forest
other plant
money masuk1
investasi3 +
delivery of products
Company
logging
legal and
illegal
industry revenue
revenue from
pasar2 logging
Admission
revenue from fee
forest harvesting crops
Money coming 4
Income cost of money2
government
money masuk4
Income Bank
community

revenue from
land use
other

Figure 1. Stock, flow and causal relationships of the conceptual model of a forestry labor
All material transfer, which is symbolized by valvegenerate employment. Jobs can
be created through logging activities in the forest, industry
wood processing, forest reforestation programs, community forestry and others. Forest
activities, both legal and illegal will create jobs.
Specifications and Assumptions
Forests in Indonesia can be divided into four functions, namely production,
protection, conservation and conversion. For each function occurs logging and
reforestation. Legally, logging only occurs in production forests, using the Indonesian
Selective Logging formula (TPTI) and modification. Conversion of forest land to other
uses such as agriculture and plantations involves GPA on forest conversion mechanism.
Forest plant was built on unproductive production forest. But in fact illegal logging and
wash bowl GPA occurs in all forest functions. Reforestation is also done diantranya
through GERHAN program, with a target of three million hectares in 2007. These
activities are assumed to occur in a variety of forest functions as presented in Table 1.
Table 1. Assumptions location of the activities associated with forests
forest
activity functions
Forest Forest Forest Forest Forest
conservatio
production production protected n conversion
permanent limited
logging v v
based RKTI
GPA v v v
Illegal logging v v
(illegal logging)
forest plantations v v
agroforestry v
(agroforestry)
reforestation and v v v v
rehabilitation

Timber, the logging of natural forests, flowing on the official or unofficial sawmill,
woodworking and plywood mills. Assumed logging exploitation factor is 0.7. Some wild
wood menghara / supply (feed or supply) Pulp mills. It's hard to know exactly the
relationship between the origin of the wood with wood processing location. Assumed
timber from concessions and GPA menghara official sawmills, plywood mills and
woodworking; of the wild wood at sawmills unofficial menghara, pulp and smuggling to
the outside; while from the plantations will flow to the pulp mill (Table 2).
Forestry sector is traditionally defined as the number of Division 02, 20 and 21
ofInternational Standard Industrial Classification(ISIC Revision 3.0). All three sub-
sectors represent 'forest', 'wood industry' and 'kerta pulp and paper industry (pulp and
paper industry) '(Lebedys, 2004). Division 36 (furniture) and Class 2411 (charcoal) often
included in the Forestry Sector.
Table 2. Assumptions timber flow
wood processing
the origin of Sawmill plywood and Porridge smuggling
wood
Official Not processing paper
official wood
logging barbasis v v
CTR
GPA v v
Illegal logging v v v
forest plantations v

Employment data used refers to the study of forestry labor practiced by Obidzinski
and Barr (2003) in Riau as in Table 3 for the forestry sub-sector and Table 4 for the sub-
sectors of the wood industry and pulp and paper industries. The second parameter table
employment is assumed to apply to East Kalimantan and Papua. This assumption is
acceptable given the purpose of making this model is to create a scenario ahead is not to
make predictions that require a higher data accuracy (Fahey and Randall 1998). GPA
forestry sub-sector and illegal logging absorb labor per hectare is greatest, followed by
plantation and logging CTR-based official. But for per cubic meter of timber, plantations
absorb the largest labor. Wood working industry (woodworking), Plywood and pulp and
paper mill employs more than sawing.
The yield to the official assumed sawmill 0.7 0.5 while for illegal sawmills. The
yield for working wood and plywood is assumed to be 0.5. Employment based on wood
products produced by the factories for wood processing.
implementation of the model
The model wears array (array) To deal with the province. Province of Riau, East
Kalimantan and Papua filling lines provided. All 27 provinces in Indonesia can fill these
lines in the future. Forestry labor in Indonesia can be derived from the processing of all 30
provinces. This model is implemented with STELLA version 8.0.
Table 3. Labor absorption forestry sub-sector (Obidzinski and Barr, 2003)
Pembersi Large
Forest Absorption
han land Large Forest Produktivi
plant Power tengaga
Production for Penan plant Prosenta bags (units /
Type of activity that work work
logs (M3) Forest man that se (%) person/
harvested directly (Person / 1000
plant (Ha) manageable year)
(Ha) unit / year)
(Ha) (Ha)
HPH 113 065 2,032 5.4 55.6 18.0
GPA 3656686 3782 10.0 966.9 1.0
Production of illegal
logs 13,944,089 14 396 37.9 968.6 1.0
Harvesting pulp
plantations
year to 7 25,500 1,846 4.9 13.8 72.4

Land preparation HTI

29.500 1,278 3.4 23.1 43.3
year to 1
HTI planting year
55,000 10 066 26.5 5.5 183.0
number 1
maintenance HTI
200,000 4,594 12.1 43.5 23.0
2-6 years
17.71384
amount million 25,500 29.500 55,000 200,000 37 944 100.0
Table 4. Labor absorption sub-sectors of the wood industry and pulp and paper (Obidzinski and Barr, 2003)
Product- Absorption
Power absorption power
Consumption Prosen- tivitas labor
employment (person /
Industry Production work 1000
roundwood tage (%) (M3 / person / (Person / 1000
directly raw material
year) product unit
Plywood and
3
woodworking (m ) 1052316 2104632 26 573 54.8 39.6 25.25 12.63
3
Official sawmills (m ) 1187364 2374728 12 499 25.8 95.0 10.53 5.26
Unofficial sawmill
3 867 240 1.73448 million 2,641 5.4 328.4 3.05 1.52
(M)
Pulp and paper
2
(Adt ) 3,150,000 15.435 million 6,840 14.1 460.5 2.17 0.44

amount 48 553 100.0

2 3
Air Dry Tons; to measure the dry weight of the pulp with maximum humidity of 10%. 1 Adt of pulp = 4.12 GMT = 4,71 m log. Green
3
Metric Tons used to heavy logs without water content; 1 GMT = 1,143 m log (Botha, unpublished data, 2003)
evaluation Model
Vanclay (1994) and Grant et al.(1997) uses the term 'evaluation model' of the
'validation of models'. This is to emphasize the relative usefulness of the model. A useful
model for a specific purpose, but not necessarily beneficial for other purposes. Forestry
labor models developed here was evaluated using three criteria: the logic models, the logic
outputs and the fit between the projections made by the expected pattern.
Inspections of each parameter and the relationships that exist in the model
concluded that the model is rational. Inspections carried out: from simple, such as an
increase in the stock stands up to the more complex such as the relationship between
logging, industry and finance. Performance models rated one by one. For example, the
model is sensitive to several parameters such as changes in the CPI as presented in Figure
2. This means that the GPA are affecting levels of employment. The higher GPA then
labor increases in the short term, but in the long run it will collapse. The whole
performance models rated. This assessment concluded that the model is in line with the
basic principles of forest management and the economy, and can be the basis of further
discussion on alternative forest management policies.

Total Forestry employ ment: 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11 - 12 - 13 - 15 - 16 - 17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 - 25 - 26 - 27 -

1: 2000000

1: 1000000

1: 0
0 5 10 15 20

Page 6 Y ears

U ntitled

Figure 2. Number of forestry labor is very sensitive to large changes in the CPI
usage Model
Employment Trends
Figure 3 is projected across the forestry labor directly, including illegal logging, in
the three provinces of Riau, East Kalimantan and Papua with forestry practices as it is now
characterized by the decline of logging in the logging areas, the increase in illegal logging,
land conversion GPA and development HTI , This picture explains that the forestry sector
employment will still rise due to illegal logging, land conversion GPA, timber and related
industries. This increase reached one million people in the three provinces. But forestry in
the three provinces will collapse within 5-15 years. That is, there is nothing left in the
Forestry Sector, both primary and industrial activities associated with HTI.

700000
Papua
600000 n
Fri lah power work

500000
400000
300000 Kaltim
200000
100000 Riau
0
5 9 1 5 9 1 5
00 0 01 1 1 02 2
2 2007 20 2 2013 20 2017 20 2 2023 20
Year

Figure 3. Growth and collapse of the forestry labor

This ecosystem destruction will make Indonesia collapse forever. Unemployment

extraordinary will happen in Sumatra, Kalimantan and Papua. So what can be done? We
have a critical land area of 60 million ha, unemployment and underemployment more than
40 million people, hundreds of research institutes and universities and tens of trillions of
reforestation fund monies. Can we reduce unemployment and poverty?
Scenarios for the Future
Forestry Department has targeted the development of HTI 2.5 million ha in the
period of 4 years. Megawati's government has started GERHAN target millions of
hectares. Both of them did not bring satisfactory results. GERHAN operating the farmers
teak plantations on state lands. They want to plant as a contractor hired by the planting.
The need for labor created by GERHAN temporary. While the HTI development is now
dominated by companies affiliated to the Asia Pulp & Paper (APP group Singapore), Asia
Pacific Resources International (APRIL Singapore) and Raja Garuda Mas Group (RGM)
with an area of millions of hectares. Back farmers simply a labor of planting. Partnerships
between large employers and local communities conducted by PT.
Development plans 2.5 million hectares of HTI could backfire for employment in
Indonesia. The employment of large-scale tree plantations are much smaller than the small-
scale tree plantations. If for small-scale tree plantations 3.5 hectares of land is enough to
provide one job permanently, then for large-scale tree plantations 23.3 hectares of land
required for the job. Moreover there is no land in Indonesia that are free of conflict.
Community claims to land that is formally controlled by the state in every inch of the
territory of Indonesia. That is, for backing the government 2.5 million hectares of land will
be dealing directly with the public that carries rights and their traditional customs. From
computer simulations created if the government imposed the construction of
2,defactodominated society then 182 thousand people will lose jobs. Meanwhile, if the
small-scale tree plantations made the 432 thousand new permanent jobs will be created.
Of course the proponents of large-scale forest will claim they are much more
efficient, because the workers were able to manage the 23.3 hectares of land, while the
small scale of the workers can only manage 3.5 hectares. Large-scale plantation forest
vegetation will create a monoculture (one crop), which is very susceptible to fire and
disease, eliminating flora and fauna that also deserve to live. While small-scale plantations
will produce a mosaic of vegetation multi-cultured (various types of plants) are much more
environmentally friendly. Value-added (value-added) Of small-scale forest plantations
per hectare of land is much larger than the large-scale tree plantations. They can still
pursue other types of plants on the sidelines of the main types. Employment is much
absorbed and money will circulate the results of operations in the villages that will create
centers of community-based economic growth.
Now we are again bemoaning floods, droughts and lonsor that swept across
Indonesia. Can we reap the wisdom of this annual tragedy, and transform into a political
force to pressure the decision makers take the right steps. What steps should be taken?
Farm household to give both individual and group management rights to 60 million the
barren land. Because planting of forest trees is a long term investment then management
rights
The land must be long-term, such as 75 years. The government only monitor, if the land
remained barren in five years the management rights that have been granted in the
household were taken back. This governance rights can be traded with a fixed allotment of
forest land. China was successfully premises in this way, why we do not. Communities
will be responsible if they have a role in decision-making and benefits (MEA, 2005)
If this is done then the tenure reform labor can be absorbed by the small-scale tree
plantations have reached 12.6 million people, or 81% of the number of workers targeted by
the current administration. This tenure reform is an act legalizing the traditional claims
made by members of the public during this time. The investments planting from where?
Governments must believe that the small people able to invest themselves if there is
certainty of land management in the long term. The government simply create and
guarantee certificates of land management rights for 75 years. This planting is expected to
require investment of 90 trillion, equivalent to three years of losses due to illegal logging.
This is equivalent to the investment needed to improve our workers from 2.1 million to 4
million in 2009.

CONCLUSIONS AND RECOMMENDATIONS

This article presents trends and forestry labor scenario in the next 20 years
mempertimbankan forestry sector dynamics, unemployment, deforestation and tenure
reform. Users can adapt and calibrate and played with this model. This model among
others concluded that:
a. Current forestry practices will result in the growth of temporary labor driven by land
conversion and illegal logging; then will collapse started from Riau, East Kalimantan
and Papua.
b. Massive planting of plantations will absorb a lot of labor if done on barren land. But if
done on land claimed communities and converts it would threaten the existing labor
and livelihood.
c. Tenure reform would generate jobs and be able to meet the target
reduction of unemployment up to 5.11% in 2009.
This study suggests adapt and calibrate this model to other provinces in Indonesia.
The decision makers should be able to play alone with this model, develop scenarios and
analyze the scenarios. For this purpose, the model developed here as far as possible be
made simple. If decision-makers do not understand the structure, logic and behavior of the
model, then the results obtained from the model does not fully believed that rarely
implemented in the field.
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