ACIAR’S FORESTRY PROGRAMIN INDONESIA

Presentation to consultation workshop

February 2007

• ACIAR’s Forestry Program – guiding parameters

• Current status of forestry in Indonesia

• Indonesian forestry – competitive advantages

• A vision for Indonesian forestry

• Current ACIAR-Indonesia forestry priorities

• ACIAR’s Indonesia project portfolio

• Key issues

OUTLINE

• Budget around $3 million annually

• Countrieso Indonesiao PNGo Pacifico Laoso Vietnam

• Focus on economic impacts

• Availability of Australian expertise

ACIAR’s FORESTRY PROGRAMSome guiding parameters

• Extensive, highly diverse tropical forests• sustainability challenge – over-exploitation, illegal logging

• Large plantation resource• teak• acacia – sustainability question

• Internationally significant processing sector• pulp and paper• plywood

• Major contribution to export economy

• Major contribution also to domestic economy• many communities dependent on forests for livelihoods• NTFPs• local processing, e.g. furniture

FORESTRY IN INDONESIA

• Extensive areas of native forest capable of sustained yield of a wide range of products, if properly managed

• Climate and soils conducive to good tree growth

• Large and expanding plantation estate

• Sophisticated processing industry

• Communities knowledgable about forests and aware of their importance

INDONESIAN FORESTRY – COMPETITIVE ADVANTAGES

• Sustainably managed native forestso production of tropical timbero integrated with the production of a broad range of products and services

• A larger plantation estateo sustainably managedo appropriately sitedo extensive community involvemento feeding a large processing industry

• A larger, more diversified processing industry• Wider use of integrated agroforestry practices,

including for the production of non-timber forest products

A VISION FOR INDONESIAN FORESTRY

• Integrating pest and disease management with improved production systems in high value plantation crops

• Development and domestication of eastern Indonesian non-timber forest product species for income generation

• Development of tree farming models with improved smallholder-plantation company cooperation

• Improved utilisation and value addition of timber from fast-growing and high value plantation species

• Development of sustainable timber-crop-livestock systems for the dry tropics of Eastern Indonesia

CURRENT ACIAR-INDONESIA FORESTRY PRIORITIES

Bilateral Program

• Root rot of acacia plantations

• Site management for realisation of genetic gains in acacia plantations

• Community partnerships

• Commercial development of non-timber forest products in eastern Indonesia (under development)

• Integrated timber-forage-livestock agroforestry systems for eastern Indonesia (scoping study underway)

• Options for teak industry development in South-east Sulawesi (scoping study to be conducted)

• Processing technologies for diversification of plantation timber processing (under development)

ACIAR’s INDONESIAN FORESTRY PORTFOLIO

Multilateral Program

• Agroforestry mozaics (ICRAF)

• Decentralisation (CIFOR)

• Improving economic outcomes for smallholders growing teak (CIFOR)

ACIAR’s INDONESIAN FORESTRY PORTFOLIO

• How best to deploy ACIAR’s investment in Indonesian forestry

• plantations

• processing

• non-timber forest products

• etc

• Linking with capacity building

• e.g. maximising JAF opportunities

KEY ISSUES