Current Status of Forest Concessions in Southeast Asia · Current Status of Forest Concessions in...

Forestry Policy and Institutions Working Paper 33

CurrentStatusofForestConcessionsinSoutheastAsia

2016

CurrentStatusofForestConcessionsinSoutheastAsia

BarneyChan

Consultant

Food and Agriculture Organization of the United Nations

Rome, 2016

Disclaimer

The Forestry Policy and InstitutionsWorking Papers report on issues in the work programme of Fao. These working papers do not reflect any official position of FAO. Please refer to the FAO Web site (www.fao.org/forestry) for official information. The purpose of these papers is to provide early information on ongoing activities and programmes, to facilitate dialogue and to stimulate discussion. The Forest Economics, Policy and Products Division works in the broad areas of strenghthening national institutional capacities, including research, education and extension; forest policies and governance; support to national forest programmes; forests, poverty alleviation and food security; participatory forestry and sustainable livelihoods. For further information please contact: For further information, please contact: Cesar Sabogal Forestry Officer Forestry Department, FAO Viale Delle terme di Caracalla 00153 Rome, Italy Email: [email protected] Website: www.fao.org/forestry Comments and feedback are welcome. For quotation: FAO.2016. Current Status of Forest Concessions in Southeast Asia, by, Barney Chan Consultant. Forestry Policy and Institutions Working Paper No. 33. Rome.

© FAO 2016

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Contents

ListofTables..........................................................................................................................................vi

ListofFigures.........................................................................................................................................vi

ListofBoxes...........................................................................................................................................vi

ListofAcronyms

EXECUTIVESUMMARY........................................................................................................................viii

Transparency..................................................................................................................................ix

LocalCommunitiesandRights........................................................................................................x

ForestManagement........................................................................................................................x

Governance.....................................................................................................................................x

TimberCertification........................................................................................................................x

NationalSummaries............................................................................................................................x

LaoPDR...........................................................................................................................................x

Cambodia.......................................................................................................................................xi

Myanmar........................................................................................................................................xi

Indonesia........................................................................................................................................xi

Malaysia.........................................................................................................................................xi

PapuaNewGuinea.........................................................................................................................xi

Recommendations............................................................................................................................xii

RestorationandRehabilitation.....................................................................................................xii

Certification...................................................................................................................................xii

LandUsePolicy.............................................................................................................................xii

CapacityBuildingandTraining......................................................................................................xii

GovernanceIssues........................................................................................................................xii

1.INTRODUCTION..................................................................................................................................1

2.ABOUTSOUTHEASTASIA..................................................................................................................1

Economy..............................................................................................................................................1

Population...........................................................................................................................................2

NaturalForestResources....................................................................................................................2

Forestconcessions..............................................................................................................................3

Logging................................................................................................................................................4

TimberIndustries................................................................................................................................7

Historicaldevelopments.....................................................................................................................8

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Stateoftheindustry.........................................................................................................................10

3.QUESTIONNAIREONCONCESSIONFORESTRYINTHEREGION.......................................................10

Transparency.....................................................................................................................................11

LocalCommunitiesandRights..........................................................................................................11

ForestManagement..........................................................................................................................12

Governance.......................................................................................................................................12

TimberCertification..........................................................................................................................13

4.FOURCOUNTRYPROFILES................................................................................................................14

LaoPDR.............................................................................................................................................14

Economy&Livelihood...................................................................................................................14

Policies..........................................................................................................................................15

ForestResources...........................................................................................................................16

Forestconcessions........................................................................................................................16

Localcommunity...........................................................................................................................17

Forest&Timberindustry..............................................................................................................18

Legality&Certification..................................................................................................................19

Cambodia..........................................................................................................................................20

Economy........................................................................................................................................20

Policies..........................................................................................................................................20


ForestConcessions........................................................................................................................21

LocalCommunity...........................................................................................................................23

ForestandTimberIndustry...........................................................................................................24

LegalityandCertification..............................................................................................................25

Myanmar...........................................................................................................................................26

Economy........................................................................................................................................26

Policies..........................................................................................................................................27


ForestConcessions........................................................................................................................29

LocalCommunity...........................................................................................................................29

ForestandTimberindustry...........................................................................................................30


Indonesia...........................................................................................................................................32

EconomyandLivelihood...............................................................................................................32

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Policies..........................................................................................................................................33


LocalCommunity...........................................................................................................................36

ForestandTimberIndustry...........................................................................................................36


4.DISCUSSION.....................................................................................................................................38

Transparency.....................................................................................................................................38

LocalCommunitiesandRights..........................................................................................................39

Abuses...........................................................................................................................................39

Legalchallenges............................................................................................................................40

ForestManagement..........................................................................................................................41

Governance.......................................................................................................................................41

MasterplanofLandUse................................................................................................................41

Technologyandgoverning............................................................................................................42

TimberCertificationandMarketFailure...........................................................................................43

5.RECOMMENDATIONS......................................................................................................................43

RestorationandRehabilitation.........................................................................................................44

Certification.......................................................................................................................................44

TechnicalObstacles.......................................................................................................................44

Marketfailure...............................................................................................................................45

LandUsePolicy.................................................................................................................................46

CapacityBuildingandTraining..........................................................................................................46

Governance.......................................................................................................................................48

Haze...............................................................................................................................................48

References............................................................................................................................................50

Appendix1.TermsofReference..........................................................................................................53

Appendix2.Questionnaire...................................................................................................................54

Appendix3.MeetingwithExperts.......................................................................................................55

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ListofTables

Table1. GDPpercapitaandcountryTable2. TotalpopulationandpercentageoftotalpopulationinruralareasTable3. Forestresourcesintheregion(2000–2010)Table4. Productionoflogs,sawntimber,veneerandplywoodTable5. Relativesizeoftimberindustries(2011)Table6. TotalareacertifiedbyFSCandPEFCbycountryTable7. OverviewofinvestmentprojectsinLaoPDRbycountryTable8. EconomicLandConcessionsTable9. Logproduction2007–2011Table10. Myanmar'sforesttypesandareaTable11. StatusofpermanentforestestateinMyanmarTable12. Indonesia'sforestareaandforestclassificationTable13. AreaunderindustrialconcessionsinIndonesiaTable14. TypesofforestlicensesTable15. Selectedforestrysectorexports(USD)Table16. Certifiedarea,CSPOsupplyandCSPOsales

ListofFigures

Figure1. MapofLaoPDR.ConcessionsandprotectedforestsFigure2. MapofforestcoverandprotectedareasinCambodiaFigure3. MapofMyanmar.LanduseandforestcoverFigure4. MapofIndonesia.Forestareas

ListofBoxes

Box1. HarvestingandlogtransportinSarawak,MalaysiaBox2. LoggingConcessionsinMalaysiaBox3. Landownershipandforestmanagement,PapuaNewGuinea

ListofAcronyms

AAC AnnualallowablecutAMAN AliansiMaeyarakatAdatNusantara(alocalsocialmovementofindigenouspeoplesin Indonesia)API AirPollutantIndexAPRODEV AssociationofWorldCouncilofChurchesrelatedDevelopmentOrganisationsASEAN AssociationofSoutheastAsianNationsBIG GeospatialInformationAgencyBNPB NationalAgencyforDisasterManagementC&I Criteriaandindicators

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CFI CommunityForestryInstructionCSPO CertifiedSustainablePalmOilDoFI DepartmentofForestInspectionDP DetailedHarvestingPlanELC EconomicLandConcessionsEU EuropeanUnionFDI ForeignDirectInvestmentsFMA ForestManagementAgreementFPIC Free,PriorandInformedConsentFSC ForestStewardshipCouncilGIA GeospatialInformationAgencyGP GeneralHarvestingPlanHPH HakPengusahaanHutan(HPH)orForestConcessionsandForestExploitationRightsITTO InternationalTropicalTimberOrganizationIUPHHK-R LicensesforTimberUtilizationandEcosystemRestoration(IzinUsahaPemanfaatanHasil HutanKayuRestorasiEkosistem)LDC LeastDevelopedCountryLPR People'sDemocraticRepublicLULUCF LandUse,Land-UseChangeandForestryMAFF MinistryofAgriculture,ForestryandFisheriesMFCS MyanmarForestCertificationSchemeMoE MinistryofEnvironmentMOECAF MinistryofEnvironmentalConservationandForestryMOEF MinistryofEnvironmentandForestryMP3EI MasterPlanfortheAccelerationandExpansionofIndonesia’sEconomicDevelopmentMSS MyanmarSelectiveSystemMTE MyanmarTimberEnterpriseNCR NativeCustomaryRightsNFP NationalForestProgrammeNGPES NationalGrowthandPovertyEradicationStrategyNSEDP NationalSocio-EconomicDevelopmentPlanNTFP Non-timberforestproductODC OpenDevelopmentCambodiaPEC PermittoEnterCoupePFR PermanentForestReservePNGFA PapuaNewGuineaForestAuthorityREDD+ ReducedEmissionsfromDeforestationandDegradationRGC RoyalGovernmentofCambodiaRIL ReducedimpactloggingRSPO RoundtableonSustainablePlamOilSFM SustainableforestmanagementSFMLA SustainableForestManagementLicenceAgreementSILK SistemInformasiLegalitasKayuSLC SocialLandConcessionsSOP StandardOperatingProcedure

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STA SarawakTimberAssociationSVLK TimberLegalityAssuranceSystemTA TimberAuthorityTBI BorneoInitiativeinIndonesiaTCCM TimberCertificationCommitteeofMyanmarTLAS TimberLegalityAssuranceSystemVPA VoluntaryPartnershipAgreementWALHI IndonesianForumfortheEnvironmentWWF WorldWideFundforNature

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EXECUTIVESUMMARY

AtypicalcharacteristicofSoutheastAsianforestsistheprevalenceoftheDipterocarpaceaefamilyoftrees,predominantintheforestsofBorneo,Sumatra,Java,PeninsulaMalaysiaandmoisterpartsofthePhilippines.TimbersfromthefamilydominatetheSoutheastAsiantimberindustryasitproduceslong,straightandknotfreelogswhichareidealforplywoodandsawntimber.

ThedensecommercialstockingofforestsinSoutheastAsiahavemadeittheworld’sleadingtropicallogproducingregion(85.56millionm3in2012tobecomparedtotropicalAfricathatproduced28.50millionm3andLatinAmerica39.94millionm3).

Forestconcessionsforloggingnaturalforestsaremoreknownthanothertypesofconcessionslikethoseforestablishingrubber,coffeeandotheragriculturalplantations.

Concessionsizevaryfromsmallareastoareaslargerthan100,000ha,givenincontractforperiodsrangingfromonetoahundredyears.Insomecasesthelandunderforestconcessionisallocatedforconversiontooilpalm,rice,rubber,coffeeandothercrops.Someconcessionsoverforestlandsaregivenforminingoperationsorthedevelopmentofhydropower.InalmostallcountriesoftheregionforestsareownedbytheState,withexceptionofPapuaNewGuineawherelocalcommunitiesown97%oftheforests.

ThepredominantsilviculturalregimeinproductionforestsisselectiveloggingfirstpioneeredbytheMyanmarSelectiveSystem.Theforestmanagementplanisbasedonannualcoupes,blocks,allowablecutsandguidelinesonenvironmentmanagement.LogskiddingbybulldozeristheusualthoughMyanmaralsouseselephants.Theloggingbusinessmodelisbasedoncontractwork.Loggingiscarriedoutbyamaincontractorwhomaysub-contractoutharvesting,roadconstruction,maintenance,logskidding,etc.Itisdebatablewhethertheseguidelinesareactuallyfollowedbyloggers.Thereishardlyanythirdpartychecking.

Inaqualitativesurveyofopinions,expertsintheregionwereasked:Havetheforestconcessionsmettheirinstitutional,economic,social,andenvironmentalgoals?TheywerealsoaskedforThreePositiveAspectswhichtheyliketointroducetoimprovethesystem,andalsoThreeNegativeAspectsinthecurrentsystemwhichtheyliketoaddressandcorrect.Theirrepliesaregroupedunderfivemainheadings:

Transparency.Thereisaseverelackoftransparencyintheawardandrunningofforestconcessionsintheregion.Inmanycasestheinformationavailableisinadequateandoutofdate.Therearecaseswherethereissimplynoinformationordataonforestconcessionsavailableforsharing.Thisopaqueprocesshasattractedaccusationsofunsavourycronyism,mismanagementofpublicproperties,abuseofpower,politicalpatronageandallmannerofilldealings.Furtherquestionsandspeculationsaboundoverthepossibilitiesofpoliticalorgovernmentbureaucracymanipulationsoverrents,stumpages,annualallowablecuts,etc.

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Localcommunitiesandrights.Userandownershiprightsofindigenouspeoples,forestdependentpeopleandpeoplelivinginornearaconcessionhavebeenandareabused.Localcommunitieshaveverylittlelegalrightstolandandarethereforesubjectedtomanyabusesoverconflictsoflandclaims.Somelocalcommunitiesaredisplacedorevictedfromtheirownlandandthisaddsseveredifficultiestoanalreadyimpoverishedlot.Ontheotherhand,thereareexampleswhereloggingandplantationcompaniesbuildroadsandbridgesandinstallgravityfedwatersupplyforlocalcommunitiesandprovidesimpleclinics,primaryschoolsandgenerationofjobsforthelocals.

Forestmanagement.ThebiggestobstacletoSFMseemstobethesecurityoftenureoftheloggingconcession.Thefearoflosingaconcessionforwhateverreasondoesnotencourageinvestmentsforthelongterm.Intheworstcasescenario,thereisaperverseincentiveto‘cutandrun’beforelosingtheconcession.Also,morefocusedmultiple-uselikeecotourism,carbon,water,paymentforenvironmentalservices,etcshouldbefurtherenhancedandencouraged,soastoimprovefinancialearningstodefraysomeexpensesofcarryingoutsustainableforestmanagement.

Governance.Someagenciesanddepartmentshaveoverlappingpowers.Adepartmentcanawardaconcessionwhichisinconflictwithanotherconcessionoverthesameareabutawardedbyadifferentdepartment.Thereisaneedforinteragencycoordinationforaunifiedandconsistentpolicyandexecution.Monitoringofforestoperationsisgenerallyverylax.Standardoperatingproceduresarenotpractisedontheground.Independentmonitoringbythirdpartiesorcertificationbodiesmighthelpineffectivegoverning.

Timbercertification.Barely2%oftheworld’scertifiedforests,byPEFCandFSC,areinSoutheastAsia.Theintroductionofvoluntarycertificationaspartoftheconcessionagreementshouldbeconsideredwhenthegoverningisweak.Thefirststepincertification,legality,gotapushwiththeEUFLEGTActionPlan.Timberproducingcountriesshouldmovetowardstimbercertificationbyfirstworkingonalegalitysystem.

Nationalsummaries

LaoPDR.Anestimated77%ofthetotalpopulationworksintheagriculturesectormostlyinselfsubsistencefarming.Thenationaldevelopmentplanshavesuccessfullygrowntheeconomybymorethan7%ayearbetween2001and2011.ThehighGDPgrowthisduetohighForeignDirectInvestmentsinLaoPDR’snaturalresources:mining,hydropowerandplantations(mainlypalmoilandrubber).Since2000,almost5%oftheterritoryofLaoPDR(roughly1.1millionha)hasbeenleasedout,mainlytoforeigninvestorsfromVietnam,ChinaandThailand.Thenationalloggingquotaisverysmallbutitcanbeshownthatthecountry'stimberexportshaveincreasedeightfoldfrom2009to2014,toreachavalueofUSD1.7billion.In2014,VietnamandChinatook96%ofallLaotimberexportsintermsofvalue.InSeptember2015,LaoPDRsignedaMemorandumofUnderstandingtoworktowardsaVoluntaryPartnershipAgreement(VPA)undertheEUTimberRegulationwhicharetoensuretimberenteringEUislegallysourced.

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Cambodia.TheNationalForestProgramme2010–2029establishedapolicyframeworkandstrategyforsustainablemanagementofCambodia’sforests.Cambodiaisclassifiedasa“highforestcover,highdeforestationcountry”underREDD+withanaveragelossof145,000haperyearsince2000(whenforestcoverwas10.09millionha).EconomicLandConcessions(ELC)andSocialLandConcessions(SLC)areimportantpillarsinthe2001newLandlawwhenCambodiamoderniseditslegalsystem.ButELCsandSLCsareaccusedfortheirbigpartinlandgrabbingandstrippingofforestsbyallowingconcessionownersmanagementrightsovertheland.IllegallogginghasbeenreportedovertheyearsinCambodia.ThereisanongoingprocessinCambodiatoaddressthelegalityofELCsgrantedinparttoaddressthegrievancesofthevillagers.BySeptember2015,23outof113ELCsundertheMinistryofEnvironmentwerecancelled.

Myanmar.Sinceaneweraofcivilianrulecommencedin2011,therewereclaimsofwidespreadlandgrabbing.By2013,2.14millionhaoflandhadbeenleasedouttoinvestorsincommercialagriculture,themajoritywithouttheconsentofitsowners.InJuly2015,theSixthDraftoftheNationalLandUsePolicywasdiscussedinNayPyiTawandthereisexpectationthatthiswillbethebasisofalongawaitednewlandlawwhichwillsolvemanyoftheproblemscausedbyover-lappinglanduses.Landconversions,particularlyinlargeindustrialestatesandplantations,aresignificantsourcesof‘conversiontimber’.MyanmarbannedlogexportsinApril2014andalsoloweredtheAnnualAllowableCutforteakandhardwood.Itisnowworkingonitsnationaltimbercertificationschemeandchain-of-custody.

Indonesia.In2011thecountrylaunchedadrivetowardsproductionofcommoditiesinordertomeetambitiousplanstoupliftGDP.Transmigration,logging,treeandoilpalmplantations,andotheragriculturecropsarethemaindriversofforestlosses.By2015,productionforestscover69.0millionha,conservationforests27.4millionhaandprotectedforests29.6millionha.Another10.2millionhectaresoflandislicensedforoilpalmcultivation.Thereisaproliferationoflandconflictsbetweencompaniesandlocalcommunities.However,theConstitutionalCourthassidedwiththelocalcommunitiesinclaimsovercustomaryforestsinonelandmarkcase.IndonesiaisthefirstinSoutheastAsiatomakeitsTimberLegalityAssuranceSystem(SVLK)mandatory,andasignedVPAwithEUcameintoforceonMay1st2014.

Malaysia.DifferentforestrylawsapplyforPeninsularMalaysia,SarawakandSabah.PeninsularMalaysiahastheleastforestresourcessinceitsearly(1950s)conversionstorubberandrecently,oilpalm.Loggingistypicallyonshorttermandsmalllicenceareas.Sarawakhasalmost6millionhaofPFEsandawardslargeconcessionsforharvesting,withcyclesof25years.NativeCustomaryClaimsoverconcessionareashavebroughtlandconflictstothecourts.SabahhasconverteditsshorttermharvestinglicencestoSustainableForestManagementLicenceAgreements(SFMLAs),whichprovidelong-termtenureof100yearsandcoverareasthataverage100,000haeach.Currently28SFMLAscover2.14millionha.

PapuaNewGuinea.ThisistheonlycountryinSoutheastAsiawherelocalcommunitiesownthelandandtheforestsonit.Ithaslost4millionhaofforestsovera30yearperiodduetoshiftingagriculture,conversion,logging,miningandnaturaldisasters.TheforestryAct1991stipulatedthatlandowners(‘landsgroup’)mustwillinglytransferrightsovertimberresourcesbeforeaforestmanagementagreementcanbemade.However,therearereportsofconflictsbetweenlandownersanddevelopmentproponents.

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Recommendations

Someissueswithforestconcessionsneedcomplexsolutionswhichwilltakealongtimetoachieve.Theconsultantconcurredwithexpertsintheregionthatitwouldnotberealistictoaddressalltheissuesrelatedtoforestconcessions.Thisstudydoesnotsetouttoidentifyandfixalltheissuesintheregion’sforestconcessionsbutitprioritisedissueswhicharedeemedfixable.Theshortlistedrecommendationsbelowcouldbereadilyadoptedbycountriesintheregionastheyarebasedonexistingexamples.

Restorationandrehabilitation

Hugeexpansesofforestswerebadlydegraded-andarestillbeingdegraded-byextensivebadloggingtechniques,agriculturalconversion,miningandothereconomicactivities.Indonesiahasdevisedaconcessionforecosystemrestorationwith13licensesalreadyissued,coveringatotalareaof515,270ha.Thisinnovativeformofconcessionforestryshouldbepromotedwithaneyeonfinancialviability.

CertificationThebenefitsofthirdpartyverificationandmonitoringintimbercertificationarerecognised.However,therearetechnicalbarriersinimplementationandnotallmarketsrewardcertifiedtimberbyapricepremium.TheBorneoInitiativeinIndonesia(TBI)isafoundationwhichforgeslinksbetweenloggingcompaniesandconsultantswhoprovidementorshipallalongtheprocessofcertification,withcertifyingbodiesasindependentauditors.Thisworkingmodelshouldbepromoted(by2014,12concessionsareFSCcertifiedwithTBIhelp).

LandusepolicyConflictsintheregionareoften,ifnotalways,sparkedbythegovernment,centralorprovisional,grantingaccessorpermissionforcompaniestouselandwithoutFree,PriorandInformedConsent(FPIC)oflocalcommunities.AclearlandusepolicywithaOneMapapproachwillminimisemanyconflictsoverland.IndonesiaisleadingthewayinOneMapanditslessonsshouldbeshared.

Capacitybuildingandtraining

Theissueofcapacityiscriticalandthescaleofneedisenormous,butappreciationoftheproblemislow.Overtheyears,countless‘capacitybuilding’and‘training’projectshavenotclosedthegap.InSarawak,MalaysiathereisanongoingprogrammetotrainSFMmanagersunderapostgraduatediplomaarrangementwithaNewZealanduniveristy.Theprogrammestartedin2006and50participantshavegraduatedsofar.Thisworkingmodelshouldbepromoted.

GovernanceissuesGovernmentsmustgovernforestconcessions.Governmentagenciesawardconcessionswithrelevantlegaltermswhichmustbesatisfied.Andifnot,theconcessionholdersmustfacethefullbruntofthelaw.NofailureissoobviouslydemonstratedfortensofmillionslivinginIndonesia,MalaysiaandSingaporetosee(andexperience)asthefailureinmanagingtheIndonesiaforestfiresandthesmokefromthefires.Therearemanyreasonswhyforestsburnbutitisclearthatagriculturalplantationsplayabigpartintheforestfires.Governmentsmustchargeconcessionairesfornotfollowingthelaws.

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IntroductionThisreportonforestconcessionsinSoutheastAsiaispartofaglobalinitiativetoimproveforestconcessionpoliciesandpractices,particularlyfortropicalnaturalproductionforests.FAO,inpartnershipwithITTO,CIFORandCIRAD,isleadingthisinitiativeentitledMakingforestconcessionsworktosustainforests,economiesandlivelihoods”.TasksandobjectivesarestatedinAppendix1.

Thereporthasbeenpreparedbasedoninformationfromadeskstudy,anelectronicsurveyandvisitstofourpre-identifiedcountries(LaoPDR,Cambodia,MyanmarandIndonesia)tointerviewexperts,abigproportionofwhomwerefromthegovernment.

Thedeskstudyonrecentlypublishedmaterialwasconductedtoscopeoutthemainpointstobeconsidered,concentratingonthe‘goodsandbads’offorestconcessionsingeneral.Thereadilyavailablepublicationsaremostlyfromcivilsocietyentitiesworkingintheregion,universitiesandresearchersfromintergovernmentalorganisations.Veryfewofficialdocumentsarepublishedordistributedfreely.Also,theprivatesectorhasverylittlecontributedtopublications.

AnelectronicsurveywasconductedtoelicitopinionsfromexpertswhoareworkingonSoutheastAsianforestryissues.Thefeedbackwascollatedintoparameterswhichwereusedtogaugethesituationofforestconcessionsintheregion.

AboutSoutheastAsia

SoutheastAsia,byconvention,isageographicalregionwhichcovers12countries:BruneiDarussalam,Cambodia,Indonesia,LaoPDR,Malaysia,Myanmar,Philippines,Singapore,Thailand,Vietnam,TimorLesteandPapuaNewGuinea.

Economy

TheeconomiesofSoutheastAsiannationsaremostlyvibrant.WorldBankcalculationofGDPpercapitashowsveryhealthyimprovementsoverthelastfiveyears(Table1).

Table1.GDPpercapitaandcountry(late2015,inUSD)

Country 2009 2014 Country 2009 2014Myanmar N/A 1,197 Singapore 38,577 56,286Thailand 3,978 5,560 Brunei 27,212 40,776Laos 930 1,707 Philippines 1,832 2,843Cambodia 735 1,084 Indonesia 2,272 3,514Vietnam 1,232 2,052 TimorLeste 779 1,280Malaysia 7,278 10,829 PapuaNewGuinea 1,208 N/A

Source:WorldBank(http://data.worldbank.org/indicator/NY.GDP.PCAP.CD)

ThecombinedGDPoftheAssociationofSoutheastAsianNations(ASEAN)1membersisintheorderofUSD2.4trillionin2013.ASEAN,initselfamajormarketwithitscombinedpopulationof600million,

1TheAssociationofSoutheastAsianNations(ASEAN)comprisesallthenationsinSoutheastAsiaexceptTimorLesteandPapuaNewGuinea.Bytheendof2015,thetencountriesinASEANplantolaunchasinglemarket,theASEANEconomicCommunity(AEC)forgoods,services,capitalandlabour.

2

isoneofthemostopeneconomicregionsintheworldwithtotalmerchandiseexportsofoverUSD1.2trillion-nearly54%oftotalASEANGDPand7%ofglobalexports(ADB,2014)2.TheASEANFreeTradeAreaisabouttobelaunched.

Population

ThetotalpopulationofSoutheastAsiainfiveyears,from2009to2014,grew6.2%from595to631million.SoutheastAsianationsarepredominantlyrural(Table2).CountrieswithalowerGDPandahigherpercentageoftheirpopulationlivingintheruralareasindicateapronouncedleantowardsanagrarianeconomy.Incaseswhentheabsolutenumbersoftheirpopulationlivingintheruralareasareveryhigh,itcanbeexpectedthatthereisseverepopulationpressureonforests.Asamatteroffact,shiftingcultivationispractisedwidelyinsomecountries.

Table2.Totalpopulationandpercentageoftotalpopulationinruralareas

Country 2009TotalPopulation

2009%inruralareas

2014TotalPopulation

2014%inruralareas

Myanmar 51,540,490 69 53,718,958 66Thailand 66,277,335 57 67,222,972 51Laos 6,257,968 68 6,894,098 62Cambodia 14,144,225 80 15,408,270 79Vietnam 86,025,000 70 90,730,000 67Malaysia 27,790,324 30 30,187,896 26Singapore 4,987,600 0 5,469,700 0Brunei 394,400 25 423,205 23Philippines 91,886,400 54 100,096,496 56Indonesia 237,486,894 51 252,812,245 47TimorLeste 1,049,156 71 1,212,107 68PapuaNewGuinea 6,704,829 87 7,476,108 87TOTAL 594,544,621 631,652,055

Source:WorldBank3

Naturalforestresources

Differencesintheloggingandtimberindustriesinthethreemajortropicalregionsarereflectiveofthedifferencesintheirtropicalrainforests.Approximatelyhalfoftheworld’stropicalrainforestsareintropicalAmerica(centredintheAmazonbasin),whiletherainforestsofSoutheastAsia(Indo-Malayanrainforests)areconsideredthesecondmostextensiveandlargerthanthethirdblock,theAfricanRainforests(centredintheCongoBasin).Moreimportantly,theIndo-MalayanrainforestsarericherintreespeciesthansimilarareasinAfricaandmostsimilarareasintropicalAmerica(Whitmore,1997).

ThetreefamilyDipterocarpaceae(dipterocarps)isimportanttothetimberindustrylikenoothertreefamilyinSoutheastAsia.ItdominatestheSoutheastAsiantimberindustry.DipterocarptreesarepredominantintheforestsofBorneo,Sumatra,Java,PeninsularMalaysiaandthewetterPhilippines(Primack,2005).2http://www.adb.org/features/asean-economic-community-12-things-know.3Totalpopulationsource:http://data.worldbank.org/indicator/SP.POP.TOTL.%ruralsource:http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS.

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Thecommercialvalueofdipterocarptimberisobviousbylookingatthetrees.Thetreesareverytallwithalong,straightandcleanbole.Dipterocarpshavecanopyheightsoftenupto50mandcanhavenobranchesuntilaheightof20m.Theirlogscanbesortedintoasmallnumberofgroupsofratherhomogenouswoodproperties(e.g.red,whiteandyellowseraya/meranti,kapur,keruingetc).Thismakestheirlogsidealforthetimberindustry.Forexample,theplywoodindustrydemandsrawlogswhicharestraightformaximumrecoveryandknot-free(nobranches)forblemishfreeveneers.

Thestockingofthedipterocarpforestsmakesthemattractivetargetsfordevelopersofagriculturalplantations(orminesorevenhydropower).Clearcuttingofforestsinsuch‘developments’producesubstantialvolumeoftimberforimmediatesales.Althoughclearingoflandforestatecropslikerubbertreesandoilpalmshasgreatlycontributedtothedevelopmentoftheregion,thereareunfortunatelycaseswhere“development”stopsaftertheconversiontimberhasbeensold.

Table3providesanoverviewoftheforestareaanditsannualchangerate,theareaclassifiedunderpermanentforestestate(PFE),theareaofcertifiedforestandtheareaundersustainableforestmanagement(SFM)forthemostforestedcountriesinSoutheastAsia.

Table3.Forestresourcesintheregion(2000–2010)

Country Forestarea

(‘000ha)

%oflandarea

Annualchangerate2000–2010

Publiclyowned(%)

PFE(%)

Areawith

FMP(%)

CertifiedForestArea(%)

AreaunderSFM(%)(‘000ha/yr) %

Cambodia 10,094 57 -145 -1.33 100 82 16 0 0Indonesia 94.432 52 -498 -0.51 91 70 19 1 5LaoPDR 15,751 68 -78 -0.48 100 - - - -Malaysia 20,456 62 -144 -0.54 98 68 69 26 47PNG 28,726 63 -141 -0.48 3 36 3 n.s. 1Philippines 7,665 26 55 0.74 85 79 28 0 1Vietnam 13,797 44 207 1.64 72 - - - -Myanmar 31,773 47 -278 -0.81 100 - - - -

Source:AdaptedfromSabogaletal,.2013.Note:ns=notsignificant.

Forestconcessions

Aconcessionisbasicallyalegalarrangementwherebyagovernment(orauthorityincontrol)concedesagrantorprivilegewhichallowstheconcessionholdereconomic,orsomeformofbenefits.TheWorldBankcategorisedforestconcessionsintotwokinds:utilisationandmanagement.Aforestconcessionisacontractbetweenaforestownerandanotherpartypermittingtheharvestinginthecaseofaforestutilisationcontractand/ormanaging,inthecaseofforestmanagementcontract,ofspecifiedresourcesfromagivenforestarea.Utilisationcoversharvestofbothtimberandnon-timberproducts,aswellasforestservicessuchaswatershedprotection,profitfrombiodiversityortourism(Gray,2000).

Forestconcessionsforloggingnaturalforestsarebetterknownthanothertypesofconcessionslikeforrubber,coffeeorotheragriculturalplantations.Insomecasesthelandunderforestconcessionisallocatedforconversiontooilpalm,rice,rubber,coffeeandothercrops.Moreover,someconcessionsinforestlandsaregivenforminingoperationsordevelopmentofhydropower.

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TheoverallstrikingfeatureinSoutheastAsiaistheownershipoftheforests.Inmostcountries,thegovernmentisthebiggestifnottheonlyowner,exceptinPapuaNewGuineawherelocalcommunitiesown97%oftheforests(seeTable3).

Thereisgenerallynotransparencyintheprocessofforestconcessionallocation,nopubliclyannouncedauctionsorbiddingsystems.

Logging

Countrieswithsubstantialforestresourceshavepushedtheregiontotheforefrontinloggingandtimberindustries.Theapproachtologgingissimilarinthedifferentcountriesasforestsarealsogenerallysimilar,exceptforthedriernorthernpartsofSoutheastAsia.

Inthe1990s,theloggingpracticesinSoutheastAsiancountriesweresomewhatinfluencedbytwoinnovativedocuments:theITTOGuidelinesforSustainableManagementofNaturalTropicalForestsManagement(1992)andtheFAOCodeofPracticeforForestHarvestinginAsia-Pacific(1999).Thewaytheloggingindustryhavesincedeveloped,itisdebatablewhethertheseguidelineshavebeen/areactuallyfollowedbyloggersasthereishardlyanythirdpartychecking.

TheITTOGuidelinesfortheEstablishmentandSustainableManagementofPlantedTropicalForestswereusedbyIndonesiaandMalaysiaintheirloggingprocedures.ThesetwocountrieswentondevelopingtheirownnationaltimbercertificationschemesbasedonanotherITTOpublication,theITTOCriteriaandIndicatorsforSFM(1998).Currently,MyanmarisworkingonitsownnationalcertificationschemeusingthesameITTOC&Iastheframework.

SomecountriesusedtheFAOCodeofPracticetodevelopcountry-specificcodesofharvesting(Cambodia,Indonesia,LaoPDR,MalaysiaandMyanmar).IndonesiaandMalaysiawentfurtheranddevelopedtheirownguidelinesforreducedimpactlogging(RIL)tosupplementthecodeofharvesting.

AllcountriesinSoutheastAsiahavedevelopedtheirownselectivelogging“systems”.Preparingaforestmanagementplanisthefirststep,whenthelicensedareaisdividedintoannualcoupes(orareastobeloggedinayear).Coupesaredividedintosmallerblocksforbettermanagementandcontrol.Logskiddingisdonebybulldozers,exceptinMyanmarwhereelephantsareusedtoo.Theprocedurestoharvestandmovelogsoutoftheforesthavesimilarchecksandbalancesinpaperworkandphysicalinspections(seeBox1).

Thebusinessmodelforloggingintheregionisbasedoncontractswithpaymentsbasedonvolume(forlogharvesting)orkilometres(forroadconstruction,maintenanceandtransport).Themaincontractorforharvestingisusuallysupportedbyafewsub-contractors.ThisisoftentheweaklinkinthechainofcommandwhenitcomestoSFM.Sub-contractorsareproductionfocusedandnotSFM-oriented.

Loggingworkersaremainlydrawnfromlocalcommunities.Thereseemstobenowidespreadreportsoflabourabusesandgenerallylocalsarehappyforthejobopportunities.Healthandsanitaryconditionsintheloggingcampsareunderthecontrolofforestdepartments.Themostcommoncomplainisrelatedtopublichealthlikeincidencesofmalaria(thoughmalariaalsostrikesoutsideloggingcamps).

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Therearemanyreportedcasesofconflictsbetweenloggersandlocalcommunitiesduetooverlappinglandclaims.TheseconflictsareongoinginIndonesia,Malaysia,CambodiaandMyanmar(seecountryprofilesbelow).

Box1.HarvestingandlogtransportinSarawak,Malaysia

AGeneralHarvestingPlan(knownastheGP)mustfirstbepreparedtoshowthelayoutandsizeofannualcoupes,harvestingsequences,loggingroads,campsandlogdumpsforthelicensedarea.TheGPneedstobestudiedandapprovedbytheForestDepartment.

ThesecondstepistoprepareaDetailedHarvestingPlan(DP)withoperationalprescriptionsatthecoupelevel,includingloggingblocks,surveyedroadalignments,identifiedprotectedorconservationareas(includingareasofshiftingcultivation),andtheproposedharvestingmethod.

LoggingoperatorshavetoapplyforaPermittoEnterCoupe(PEC)asasafeguardtoensurecompliancewiththeapprovedGPandDP.TheForestDepartmentwillthenverifysatisfactorycomplianceoncoupeandblockdemarcationontheground.Atopographicalmapoftherequiredscalehastobepreparedtoshowroadalignmentandconstruction(subjecttoapprovedengineeringspecifications).TreeenumerationdonebeforethePECisendorsedtostartlogging.

Logsarepropertymarked,scaledandgradedbeforegettingaLogProductionIdentitytag.Theoperatorthensubmitsaproductionreportforcheckingpurposes.Aphysicalinspectionofthelogsismadebeforeatransitremovalpassisissuedtoallowlogstobetransportedoutoftheloggingarea.

Lastly,theoperatorappliesfortheassessmentofroyaltyofthelogsbysubmittingaLogSpecificationForm.ARoyaltyRemovalPasswillbeissuedtoallowfurtherlogmovementstoindicatethattheyhavebeenassessedforroyaltyandduestobepaid.

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Box2.LoggingconcessionsinMalaysia

The13StategovernmentsinMalaysiahavejurisdictionoveragriculture,landandsoilconservation,rivers,waterandforestresourcesundertheMalaysianConstitution.TheNationalLandCouncilwasestablishedin1972topromoteacommonapproachinforestmanagementinthedifferentstatesandthenationalForestryActwaspassedin1984.ThisActprovidedabasisforforestdevelopmentandprotection,andwithprovisionsmadetostrengthenenforcementandintroducepenaltiesforinfringements.Despitethis,eachStatecontinuestohavevariationsinmanagementpracticesbutallpractisetheselectivemanagementsystembasedondiameterlimits.

PeninsularMalaysia.Ingeneral,forestconcessionsarecategorizedaccordingtosizeoftheareaandthelengthofthetenure.InPeninsularMalaysia,forestconcessionsareshorttermlogginglicensesusuallyonsmallareaswithdurationof1–2years.TheseallocationsarebasedontheannualcoupeorannualallowablecutforeachState.However,someStatesallocatelargerareasforlongtermconcessionsgivenonalongerdurationof20–30years.By2015,thetotalareaofsuchlongtermlicensestotalled620,025haofwhich422,742hahavealreadybeenharvested(PersonalCommunication,ShaharuddinIsmail.03Nov2015).ConcessionsinPeninsularMalaysiacanbesaidtoresembleloggingpermits,withsizesrangingfrom80–130ha,sometimesbigger.ForestmanagementislargelycarriedoutbytheStateForestDepartment.

Sabah.AsofDecember2013,thetotalareaofPermanentForestReserve(PFR)was3.61millionha.ThepercentageofPFRinrelationtoSabah’stotallandmassof7.362millionhaisabout49%.ThePFRincludestheCommercialForestReserveof2.17millionha.In1997,shorttermtimberharvestinglicenceswerephasedouttomakewayforSustainableForestManagementLicenceAgreements(SFMLAs),whichprovidelong-termtenureof100yearsandcoverareasthataverage100,000haeach.Currently,28SFMLAshavebeenawardedtoprivatesectorcompaniesandaquasi-governmentorganization(YayasanSabah),coveringatotalofabout2.14millionhaofmostlylogged-overforestoftheState’sproductionforestreserves.TheSFMLAholdersaretocarryouttheirforestmanagementactivitiesbasedona10-yearForestManagementPlanwhichdetailshowtheFMUareacanbesustainablymanagedthroughmultiple-useuseforestmanagement(MashorJ.,2014).

Sarawak.ForestsinSarawakaredividedintothreecategories:PermanentForestEstate(PFE),StatelandForestandtotallyprotectedarea(TPA).Sixmillionha(outof12.4millionha)havebeendesignatedasPFEswhicharesetasideforcommercialproductionoftimber.Outofthese6millionha,onemillionhahasbeensetasidefor‘plantedforests’(306,486haplantedby2012).Withinthe5.0millionhaPFEs,about50%oftheforestswillbeexcludedfromloggingduetosteepslopes(over35degrees),communalland,shiftingagriculture,etc.

Statelandforestoccupies5.7millionhaandincludeswatercatchmentareas,urbanareas,etc.ThereisanongoinggazettingexercisetoincreasethesizeofTPAstoonemillionhafromthecurrent774,819ha.LocalcommunitieshaveNativeCustomaryRights(NCR)over1.6millionhaofland.

TheSarawakselectivemanagementsystemwasderivedfromearlyFAOwork(1960suntilmid-1970s).Logginglicensesrangefromsmallshorttermlicenseforclearing(fewhundredha)tobiglicense(upto100,000ha)forlongtermharvestingcyclesof25years.(ForestDepartmentSarawak,2012).The2012DepartmentAnnualReportshows141FTLF30licensesandanother169otherFTLlicensesrenewed.

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Box3.Landownershipandforestmanagement,PapuaNewGuinea(PNG)

ThesystemoflandandresourceownershipinPNGisuniqueandthenaturalforestsandthelandonwhichtheygrowonareownedbythepeoplethroughtheirtribalclangroupings.Thisamountstoapproximately97percentofthelandbeingownedbythetribalgroups.ThereareveryfewGovernment-ownedlandsorforestsasdistincttotherestofSoutheastAsia.

ThePapuaNewGuineaForestAuthority(PNGFA)estimatestheforestedareastobe29millionhawith24millionhastillintact.Thisisadeclinefromthe33millionhaestimatedin1975.Thelossofsome4millionhaovera30-yearperiodispartiallyattributedtoshiftingcultivation,conversionofforestedlandstoagriculture,logging,urbandevelopment,infrastructuredevelopment,miningdevelopments,andvariousnaturaldisasters(Personalcommunication,RMcCarthy.31Oct2015).

Theareaandnumberoftimberconcessionshadincreasedovertheyearsfromanareaofalittleover1,000hectaresin1940toover11millionin2009.Forestresourcesinmanyoftheseconcessionshavebeenalmostexhaustedintermsoftheirresourcebase.Concessionsplayedtheimportantroleofactingas“vehicles”forimmediatedevelopment.Timberconcessionsthathavebeenacquiredsince1991areintendedtofacilitateSFM.Assuch,a35-yearcuttingcyclehasbeenprescribedintothecurrentlyexecutedForestManagementAgreements(FMAs).

Inordertofacilitatedevelopmentofanyforestarea,especiallythroughloggingoperations,theForestryAct1991stipulatesthattherightsovertimberresourcesmustbewillinglytransferredbythelandownerstotheState.ThisisundertakenbyapplyingtheprovisionoftheActthatrelatestoaFMAforaperiodof50years.Therearealsootherlegalmeanstoharvesttimberfromcustomary-ownedlands,i.e.throughtheallocationofaTimberAuthority(TA).Thisismostlyforashort-termperiod(annual)andrestrictstheharvestablevolumeto5,000m3annually.Inmostcases,thetimberharvestedisonlyfordomesticprocessing.

UndertheAct,beforeaforestmanagementagreementismadeovercustomaryland,thetitleofthelandownersmustbevestedinalandgrouporgroupsunderthe‘landsgroup’incorporationactandregisteredunderalawprovidingfortheregistrationoftitletocustomaryland.TheActprovidesthatforestryoperationsmayonlybepermittedoncustomarylandwhereaforestmanagementagreementhasbeenenteredintobetweencustomaryowners(‘landsgroup’)andPNGFA.

Thesuccessfulprojectproponentwillsubmittheresultsofitsfeasibilitystudytotheprovincialforestmanagementcommittee(PFMC)intheformofadraftprojectagreement.ThePFMCwithassistancefromPNGFAwillthenberesponsiblefornegotiatingtheprojectagreementandsubmittingthefinaldrafttotheNationalForestBoard.Oncetheprojectagreementandenvironmentpermitareapprovef,thesuccessfulforestindustryparticipantcanapplyforthetimberpermit.TheTimberPermitconfersrightsonthepermitholdertocarryoutforestmanagementandharvestingoperationswithintheprojectareaforthetermsofthepermit.

UponapprovaloftheTimberPermit,afiveyearworkingplanispreparedfollowingPNGFA’sManualwhichcoversfiveyearplans,projectstatements,annualplans,setupplansandclearance,andapprovals.

Timberindustries

ThetimberindustryinSoutheastAsiaisthestrongestandmostdevelopedintheworld’sthreetropicalforestregions.Thelatestfive-year(2008–2012)productionstatisticsavailableshowsthatSoutheastAsiaproduced55.8%ofthethreeregions’logs,35.8%ofthesawntimber,58.3%oftheveneerandamassive84.7%oftheplywood(Table4).

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Table4.Productionoflogs,sawntimber,veneerandplywood(in‘000m3)

2008 2009 2010 2011 2012Africa Logs 29,588 29,388 28,580 28,335 28,504

Sawn 5,069 4,948 5,210 5,524 5,490

Veneer 961 954 1,044 1,059 1,068

Plywood 512 462 413 431 461

LatinAmerica

Logs 39,221 39,485 39,687 39,611 39,904

Sawn 18,049 18,609 18,712 18,832 18,940

Veneer 363 369 367 368 365

Plywood 1,162 958 906 873 900

SoutheastAsia

Logs 96,400 87,097 80,727 85,057 83,568

Sawn 13,534 12,879 13,721 13,411 13,049

Veneer 1,770 1,845 1,884 2,151 2,010

Plywood 8,031 7,580 7.987 7,613 8,056

Source:ITTOAnnualReview,2012.

Plywoodmanufacturingisamoresophisticatedprocessthansawmillingandrequiresasignificantlyhighercapitaloutlay,oftenrunningintotensofmillionsofUSdollarsperfactory.Productionoffaceveneermusthavegoodqualityinputlogswhichmeanstheforestresourcesavailablemustbeofmatchingqualitytoo.

ThetwobiggestplywoodproducersinSoutheastAsiaareIndonesiaandMalaysia.Thehugeinvestmentsinplywoodproductioninthesetwocountriesreflectedthere-investmentsmadebyearliertimberindustrialistswhoweretypicallyloggers(andlogsellers)intheearlydays.AtypicalplywoodfactoryinSoutheastAsiarunningonthreeshiftscanemploywellover1,000workerssoplywoodisamajorcontributorofemploymentinbothcountries.

Historicaldevelopments

AftertheSecondWorldWar,SoutheastAsiancountriesplayedasignificantroleassuppliersoftimberandtimberproductstomainlyJapan,SouthKoreaandTaiwan,andtoalesserextenttoEuropeandtheUnitedStates.Chinabecameabigimporteronlyinrecentyears.

InSoutheastAsia,thefirstcountrytoexploititsforestresourcescommercially,andinabigindustrialway,wasthePhilippines.Apartfromitscomparativelygoodqualitylogs,itwasitsproximitytothemajorimportingcountryofJapanwhichplayedasignificantroleforthisearlystart.ThePhilippinesbecameamajorsupplieroftropicallogstoJapaninthe1950s.

When,intheearly1960s,thelogsupplyinPhilippinesstartedtodwindle,loggingactivitiesstartedtopickupinSabah(Malaysia).SabahwasjoinedbyIndonesiaandbythe1970s,SabahandIndonesiahadreplacedPhilippinesasthemainlogsupplierstoJapan.Andby1973,IndonesiahadreplacedPhilippinesastheworld’sleadinghardwoodexporter.

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Sarawak(Malaysia)startedlateintheloggingbusinessmainlyduetoaperceptionthatitslogsarenotasgoodqualityasthoseofPhilippines,SabahandIndonesia.LoggingvolumesinSarawakstartedtopickuponlyinthelate1980sandbythenanothersignificantdevelopmenttookplaceintheregion:logexportbans.

Indonesiabannedlogexportsin1985andstartedgoingdownstreamfollowingamajorchangeinitsnationalpolicy.Plywoodfactoriesmushroomedasaresulttoconsumetheenormousvolumeoflogscomingoutoftheforests.Atitspeak,therewere115plywoodfactoriesoperatinginIndonesiaanditsplywoodbecameamajorsuppliertotheJapanesemarketaswellasinEurope.

Sabahalsobannedtheexportsoflogsin1993thoughin1996thebanwasreversedandlogswerebackintheinternationalmarkets.In1992,SarawakinitiatedaLogExportRestrictionQuotawhichessentiallybroughttheexportvolumesslowlydownastheStatedevelopeddownstreammills,primarilyplywood,toproducevalue-addedproductstoreplacelogexports.

Inresponsetothecurtailingofregionallogsupply,majorimporterslikeJapanandSouthKoreabegantorationalisetheiruseoftropicallogsandtolookforalternativesupplies.JapaneseplywoodmanufacturersstartedexperimentingwithtemperatelogsfromNewZealandandsuccessfullydevelopedcompoundplywoodmadefromtropicalandtemperatetimberusinggoodtropicalveneerforfaceandcheaperpineveneerforcore.PapuaNewGuineasawtheopportunityandincreaseditsloggingactivitiesandstartedtoexportlogstoJapanandelsewhere.

ThecomparativesizeofthetimberindustriesinSoutheastAsiatodaycanbeseeninTable5.ThetablehasnodatafromLaoPDRwhichisnotamemberofITTOandVietnamonlybecameamemberinJune2014;however,bywayofcomparison,Smirnov(2015)estimatedthetimberexportsfromLaoPDRin2014tobearoundUSD1.7billion.Also,theexportfiguresdidnotincludefurniturewhichwoulddistorttherelativepositionofthecountries,e.g.MalaysiaexportedaboutUSD2.55billionworthoffurniturein2011.For2015theVietnamTimberandForestproductAssociationpredictedtheexportofVietnamesewoodproducts,mainlyfurniture,toreachUSD7.0billion.4

Table5.Relativesizeoftimberindustries(2011)

Source:ITTOAnnualReview,2012.

4http://www.vietrade.gov.vn/en/index.php?option=com_content&view=article&id=2308:wood-industry-is-unlikely-to-reach-us7-billion-export-target-for-2015&catid=270:vietnam-industry-news&Itemid=3635Totalexportsrefertologs,sawntimber,veneerandplywood.Nofurniture.

Country Logproduction(m3)

TotalExports5(USD)

Myanmar 5,290,000 1,053,284Thailand 8,700,000 658,663,000Cambodia 275,000 61,416,000Laos na NaVietnam na NaPhilippines 3,627,000 124,928,000Malaysia 17,170,000 3,695,633,000Indonesia 45,587,000 2,571,763,000PNG 4,418,000 755,736,000

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Stateoftheindustry

AsnapshotoftheindustryinSoutheastAsiatodayshowstheformerlogexporterslikeThailandandPhilippinesarenowimportinglogs.FormermajorlogexporterslikeIndonesia,SabahandSarawakarenowmajorexportersofplywood.Vietnam,notasignificantloggingcountryinthepast,isnowabigexporterofwoodenfurniture.

Inrecentyears,SoutheastAsianforestryismentionedmoreinthesamebreathasclimatechangethansustainablemanagement;wherecarbonisseeminglymoreimportantthanbiodiversityinsomecircles,andlegalityhassomehowbecomemoreimportantthanSFM.Oilpalmplantationsarereplacingloggingconcessionsasrevenuegenerators.However,itisstilltheIndonesianforestfireswhicharecatchingalltheinternationalattentionassmoke,attimesdangerouslythickandunhealthy,spreadsoverafewneighbouringcountries.

QuestionnaireonConcessionForestryintheRegion

Anelectronicquestionnairewiththepurposeofcapturingtheopinionofamuchlargerspectrumofstakeholdersonasetoffewselectedissues/propositionswascarriedoutinaccordancewiththeToR(seeAppendix1).

InAugust2015,thequestionnairewassenttoselectedexpertsidentifiedashavingworkexperienceonforestryissuesinSoutheastAsia.Theseexpertsarefromthegovernment,thecivilsociety,timbercertificationorganisations,privatesectorandinter-governmentorganisationswhoworkintheregion(seeAppendix2).

Thisisaqualitativequestionnairethatasks:Haveforestconcessionsmettheirinstitutional,economic,social,andenvironmentalgoals?

(a) ThePositives.Whatgood/positiveaspects(e.g.,legality,fiscal,social,environmental,transparency,economic,institutional,landuse,tenuresecurity,etc)thatyouwouldliketointroduceintothecurrentconcessionsystem??Whichthreepositiveaspectsyouwouldliketointroducetoimprovethesystem?

(b) TheNegatives.Whatarethebad/negativeaspects(e.g.,legality,fiscal,social,environmental,transparency,economic,institutional,landuse,tenuresecurity,etc)ofthecurrentconcessionsystem?Whatareyourthreenegativeaspectsyouwouldliketobeaddressedandcorrected?

AllrespondentshaveverystrongopinionswhichistobeexpectedconsideringthewealthofknowledgefromtheirworkingexperienceinSoutheastAsia.Somesaidtheiropinionsareonbothsidesofacoin:whattheysawasanegativecanbeconsideredadesiredpositive.Mostgavespecificsonwhattheysawasnegativesandwhataspectsarelackinginthepositives.

Allopinionscapturedaresummarisedunderfivemainheadingsandreportedbelowinnoparticularorder.Theyshouldallbeconsideredimportant.However,itisimportanttonotethatthereisaconvergenceofopinionswithmanyexpertsstatingthesamepointsvigorously.

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Transparency

Thereisaseverelackoftransparencyintheawardandrunningofforestconcessionsintheregion.Thisisnotonlyastrongperceptionbutarealityasresearchontheprofilesofthefourcountriesforthisstudywashinderedconsiderablybyalackofopennessinsomesectors.Generally,informationontheallocationofforestareasbywayofconcessionarrangementsisveryhardtocomeby.

Firstly,thelackofinformationflowsfromtheauthoritiestotheinterestedpublic.Inmanycasestheinformationavailableisinadequateandoutofdate.Insomecases,theinformationisinaccurate.Secondly,therearecaseswhenthereissimplynoinformationavailableforsharingandthisisnotbecausetheofficialsdonotwanttoshare.Theyhavenothingtosharebecausenodatawasrecorded(eg.numberandsizeofforestconcessions).

Mostquestionnairerespondentspointoutthelackofinformationonforestconcessionsoverland,forestedorotherwise.Theprocessofawardingaconcessionisnotpublic;citizensofacountrydonotknowhowcertainpartiesareawardedconcessions.Thereisnoapparentopentenderorbidding,andiftherearesuchprocesses,theyarenotmadeknowntothepublic.Unfortunately,thisopaqueprocesshasattractedaccusationsofunsavourycronyism,mismanagementofpublicproperties,abuseofpower,politicalpatronageandallmannerofilland/orillegaldealings.Insuchanopaquesituation,furtherquestionsandspeculationsaboundoverthepossibilitiesofpoliticalorgovernmentbureaucracymanipulationsoverrents,stumpages,annualallowablecuts(AAC),etc.

Localcommunitiesandrights

Inthisstudy,theterm‘localcommunity’isusedasashorthandreferencetoindigenouspeoples,forestdependentpeopleandtopeopleingeneralwholiveinornearaconcession.Inthecontextofforestconcessions,theissueisreallyoverrightsofthelocalcommunity:userrightsandownershiprights.

Mostexpertssaidthisisoneofthemostglaringnegativesofmanyconcessionprogrammes,andasoneexpertdescribedconcessions:runningroughshodoverlocalpeople.Localcommunitieshaveverylittlelegalrightstolandandarethereforesubjectedtomanyabusesoverconflictsoflandclaims.Somelocalcommunitiesaredisplacedorevictedfromtheirownlandandthisaddsseveredifficultiestoanalreadyimpoverishedlot.

Ontheotherhand,fewexpertshavepointedoutthattherearepositivecontributionsthatsomeconcessionairesmaketolocalcommunities.Intheruralareasthereisalackofinfrastructureasthegovernment’sreachislimitedbybudgetandinfluencedbythelowpopulationdensities.Itisnotunusualforloggingandplantationcompaniestobuildroadsandbridgesandeveninstallgravityfedwatersupply.Simpleclinicswithmedicalfacilitiesareprovidedbytheconcessionairesand,insomebiggercamps,primaryschoolsarebuiltandruntoo.Thereisalsojobgenerationforthelocalcommunitiesandupliftingofvocationalskills.Marketgardeningandhusbandryareencouragedtofeedtoworkersinthecampwhileprovidingcashincomes.Somescientistsarethankfuloflogisticssupportwhendoingfieldresearchinconcessions.

However,thenegativesoverwhelmedthepositivesfromexpertfeedbacks.

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Forestmanagement

Someexpertssaidmostforestmanagement,intheformoflogging,inSoutheastAsiaarenotsustainable,pointingoutatincorrectloggingmethodswhichdamagetheenvironmentandcreatesocialconflictswhileignoringtheAACandotherloggingguidelineswhicharesupposedlyputinplacebytheauthorities.Thequalityofloggingdifferswidelythroughtheregionmainlyduetothelevelofexpertiseandexpectationsoftheauthoritiesincharge.

a) Tenure.ExpertssaythebiggestobstacletoSFMisthesecurityoftenureoftheloggingconcession.Thefearoflosingaconcessionforwhateverreasoncausesuncertaintiesfortheconcessionholderandinturn,doesnotencourageinvestmentsforthelongterm.Intheworstcasescenario,thereisaperverseincentiveto‘cutandrun’beforelosingtheconcession.Thedurationorperiodoftenureisalsoamajorconsideration:ifitistooshort,againthereisnoincentivetoinvestinbetterandmoreexpensiveloggingmethodsandequipment.Theperiodhastobelongenoughsothattheconcessionairehasareasonablechanceofrecoupinghisinvestments.InSabah,Malaysiaconcessionsaregivenfor100yearsthoughresearchershavesaidtoolongaperiodcanalsobedetrimentaltoSFM(Gray,2002).

b) Multiple-useapproach.Theapproachtologgingneedsafreshmodel.Expertssuggestamultiple-useforestmanagementconcessionmightbemoreconducivetopromoteSFM.Multiple-usemanagementdoestakeplaceinsomeloggingconcessions(especiallycollectingNFTP,huntingandfishing),buttherearefewexamplesofplannedmultiple-usemanagementconcessionsinSoutheastAsia(Sabogal,2013).Morefocusedmultiple-uselikeecotourism,carbon,water,paymentforenvironmentalservices,etc.shouldbefurtherenhancedandencouraged,soastoimprovefinancialearningstodefraysomeexpensesofcarryingoutSFM.

Damagetotheenvironmentandlackofconservationeffortsareobservedbyexpertsandarewelldocumentedbycivilsocieties.Insteadofcontributingtothedegradationoftheenvironmentandwildlife,concessionoperatorscanbeguidedtocontributepositivelyifthereareappropriaterequirementsandlegalinstrumentsspecifiedintheconcessionagreement.Wildlifeexpertswantlegalobligationsonconcessionairestoworkwithgovernmentagenciesonconservationandpoachingofwildlife,andmanagementofthreatenedandendangeredspecies.Somesaidenvironmentdegradationisnotfromthelackofrulesandregulationsbutfrompoormonitoring.

Governance

InSoutheastAsiathereareaccusationsofcorruptioningeneral,particularlyconcerningconcessionswiththeireconomicsbenefits.Thelackoftransparencyintheawardandrunningofforestconcessionssupportsuchaccusations.However,inmanycasesthereisgovernanceinthesensethatlawsareinplace,legalinstitutionsaretheretoexecutethelawsandagenciesliketheforestrydepartmentandpoliceareonhandtoenforcethelaws.However,theseeminglackofwillbythegovernmenttocarryoutitsfiduciarydutiesofgoverningbyitsownlawssupportsaccusationofcorruption,oratleastabreachofduty.

a) Interagencycoordination.Expertspointedoutthatinsomecountries,governmentagenciesanddepartmentshaveoverlappingpowers.Adepartmentcanawardaconcessionwhichisinconflictwithaconcessionoverthesameareabutawardedbyadifferentdepartment.Thereisaneedfor

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interagencycoordination,aclearingagencyoratleastsomeformofmanagementwhichpullsthevarioussectorsanddisciplinesintoaunifiedandconsistentpolicy,forandduringimplementation.Inconsistentpolicieshavebeenknowntoharmthedevelopmentofcommunityforestryandsmall-scaleconcessions.

b) Monitoring.Thereisacommonperceptionamongstexpertsintheregionthatmonitoringisverylax.Agreementscoveringconcessions,especiallythoseslatedforlogging,spelloutoperationalproceduresincludingguidelinesonenvironmentandlocalcommunities.Allthesestandardoperatingproceduresaregoodonlywhentheyarepractisedontheground,andiftheyarenotpractised,theauthoritiesshouldthrowthebookatthem.

Further,thereisaneedtomakesuretheconcessionaireworkswithinitsdemarcatedboundaryanddoesnotintrudeintoadjoiningareas.Oneexperthascalledforindependentmonitorsthoughthegovernmentisthebiggeststakeholderandshouldplaythebiggestpartinmonitoring.

Timbercertification

Theusefulnessoftimbercertificationisthepartplayedbyindependentthirdpartiesespeciallywhenthereisabreakdowninacountry’sgoverningsystem.Expertshavecalledforintroductionofvoluntarycertificationaspartoftheconcessionagreement.Theareacertifiedbythetwoleadingsystemsintheworld,FSCandPEFC(Table6)indicatesthatcertificationintheregionisstillverylow.Asamatteroffact,marely2%oftheworld’scertifiedforestsareinSoutheastAsia.

Table6.TotalareacertifiedbyFSCandPEFCbycountry

Area(ha) FSC PEFCCambodia 12,746 ---Indonesia 2,028,963 610,798LaosPDR 132,702 ---Malaysia 673,334 4,661,816Vietnam 133,613 ---SEAsiaTotal 2,981,358 5,272,614WorldTotal 181,207,602 268,331,160SEAsia/World 1.65% 1.96%

Sources:FSC&PEFC,2015.

Legality.Allformsoftimbercertificationstartswiththeissueoflegality.ThepushforlegalitygotaboostwhentheEUFLEGTActionPlancameintoforceinMarch2013.TheactionplanseeksaVoluntaryPartnershipAgreement(VPA)betweentheEUandatimber-exportingcountryoutsidetheEU.Expertssaidthereisanurgentneedfortimberproducingcountriestomovetowardstimbercertificationbyfirstworkingonasystemtoassuretimberislegallyproduced.IndonesiahasitsTimberLegalityAssuranceSystem(Indonesianacronym,SVLK)toensuretimberproductsandrawmaterialsobtainedorderivedfromsourcesthatmeetthelegalstandards.MalaysiahasitsTimberLegalityAssuranceSystem.Myanmarisworkingontheirs.

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Fourcountryprofiles

VisitsweremadeinAugust/September2015toLaoPDR,Cambodia,MyanmarandIndonesiatomeetgovernmentofficialsandexperts.Itmustbeacknowledgedthatthemanyofficialsinterviewedweremostlyforthcominginsharingwhateverinformationanddatatheyhave.Thisisimportantsincemuchoftheinformationanddatawerenotpublishedorreadilyavailable(seeAppendix3).

LaoPDR

TheLaoPeople'sDemocraticRepublic(PDR)hasatotallandareaofabout236,800km2andapopulationof6.61million(2005Census).ThenominalGDPisUSD11.676billion(2014estimate)andGDPpercapitaisUSD1,692.TheGinicoefficientismediumat36.7andpovertyrateis20.5%(UNDP).

MuchofLaoPDRismountainous,whichrestrictsaccess,communicationsandthedevelopmentofmodernirrigationsystems.Thecountryisdividedadministrativelyinto17provincesandonespecialzone.Theseareinturndividedinto138districtswith11,640villagesand748,529households.

Economyanlivelihoods

Agriculturalproductioninuplandareasisstilldominatedbysubsistencecroppingundershiftingcultivation,andthiscanonlyproduceenoughriceforseventoninemonthsoftheirannualconsumption.Ruralpovertyintheuplandsisdirectlylinkedtolanddegradationwhichresultedfrominappropriateagriculturalsystems.

FarmerfamiliesareconsideredtheheartofLaoPDR’sagriculturalproduction.Theysustainagriculture’scontributiontotheeconomyofaround30%ofthetotalGDP.Anestimated77%ofthetotalpopulationworksintheagriculturesector;mostofthemarefarmingfamilies,usuallyworkingtheirownfields.TodayLaofarmerfamiliesarefacingeconomichardshipandremainvulnerabletotherapidlychangingeconomicworld.Inthelasttenyears,LaoPDRhasseenashiftfromsubsistencetomarketorientedagriculture.Currently,33%offamilyfarmersareproducingmainlyforsale(FAO,2014).

Thegovernmenthasrecognisedthatpoverty,alternativelivelihoods,foodsecurity,andsecurityoflandtenuremustbeaddressedbeforeshiftingcultivationintheuplandscanbemanaged.Thishastobedonebeforethegovernmentcanfocusonconservingtheenvironment.

Anestimated83%ofthecountry’spopulationisruralandreliesheavilyonforestsfortheirlivelihoods,fromfood,fueltobuildingmaterialandNTFPs.Thegrowingcompetinginterestsoverlandandnaturalresourcesbetweenlocalcommunitiesandlarge-scaleinvestmentsseemaforegoneconclusion.

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Source:CentreforDevelopmentandEnvironment,MoNRE2012.

Figure1.MapofLaoPDR.Landconcessionsandprotectedforests

Policies

TheGovernmentofLaoPDRconsidersdecentralizedforestmanagementakeynationalstrategytoalleviatepovertyintheuplandareas.Anumberofpolicyandlegalframeworksanddecentralizedlandmanagementapproacheswereformulated,adjustedandtestedtosupporttheseefforts.However,onemajordeficiencyisthelimitedcapacitiesattheprovincialanddistrictlevelsforcarryingoutmanagementanddevelopmentactivities.Continuedtrainingandestablishmentofsupportservicesareneededatprovincialanddistrictlevels(Pravongviengkham,2003)6.

TheGovernmentofLaoPDRundertakesaseriesoffive-yeardevelopmentplans(NationalSocio-EconomicDevelopmentPlan,NSEDP)andthecurrentoneisthe7thNSEDP(2011-2015).ThePlanis

6DeputyPermanentSecretary,MinistryofAgricultureandForestry,LaoPDR.

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expectedtocreatenewchangesbytakingfirmstepstograduatefromLeastDevelopedCountry(LDC)statusby2020,andwidenanddeepenregionalandinternationalintegration.

TheNationalGrowthandPovertyEradicationStrategy(NGPES)istheframeworkunderwhichthegovernmentplanstodevelopandimplementitsinitiativestoendpovertyandsustainnationalgrowth,particularlyintheruralareas.The7thNSEDPtargetedaGDPgrowthofatleast8%annually.Andinordertoachievesuchahighgrowth,thePlanreliesheavilyonForeignDirectInvestments(FDI).TheFDIsareinvestedinLaoPDR’snaturalresources:mining,hydropowerandplantationsectorsoftheeconomy.

Thispolicyofturninglandintocapitalinthedevelopmentofland-intensiveeconomicactivitiesisonecornerstoneofLaoPDR’slongtermdevelopmentstrategyandhistorymightjudgethisasthedoubleedgedsword.Itispromotedbyboththegovernmentandsomedevelopmentpartners.Atthesametime,internationalmarketshaveencouragedinvestorsfromneighbouringChina,VietnamandThailandtoproduceagriculturalcropsinLaoPDRwhichareinhighdemand.Theseinvestorsareattractedbythecheaplandandcheaplabour(LIWG,2012).

TheNSEDPshavesuccessfullygrowntheeconomymorethan7%ayearbetween2001and2011.ThehighGDPgrowthhasbecomeincreasinglycapitalintensiveattheexpenseofjobcreationforLaotiansandthishascreatedsignificantincomeinequality.Somesegmentsofthepopulationhavenotenjoyedtheeconomicsuccesswhichcamewiththegrowth.

Forestresources

ThetotalforestareainLaoPDRwas15.75millionhectaresor68%oflandareain2000.Thereductionofforestswascalculatedatanaverageof78,000ha/yearovertheperiod2000–2010,orareductionof0.49%overthatperiod(ITTO,2011).

Thenationalforestestateisdividedintothreetypes:

i. ProductionForestAreas.Thereare51suchareaswhicharelegallyestablishedbutveryfewhavebeenproperlydemarcatedwithmanagementplan.TheForestrydeptwantstocompletenationalinventoriesanddevelopplansforSFMinall51areas.

ii. ConservationForestAreas.Thereare21suchareaswithatotalareaof3.5millionhectares.Provincesanddistrictshavealsoestablishedtheirownareas.

iii. ProtectionForestAreas.Thereare262StateProtectionForestswithatotalareaof4.76millionha.

Forestconcessions

Since2000,almost5%oftheterritoryofLaoPDR(roughly1.1millionha)hasbeenleasedout,mainlytoforeigninvestorsfromVietnam,ChinaandThailandformining(50%oftheleasedarea),treeplantationsandagriculture.Theseinvestmentscreateariskydependenceonexportofrawmaterialsandmayhavelimitedbenefitstothelocalpeople(whomainlysupplycheaplabour).Theconcessionsgeneratefewsecurejobsbuttriggerconflictsoverlandtenure.Also,theconcessionsmayresultinenvironmentproblemslikepollution,forestloss,monocultures(palmoil,rubberplantations)andincreasedcarbonemissions(CDE,2013;HeinimannA,2014).

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By2007,thenegativeeffectslikeenvironmentaldegradationandsocialconflictsoflargescaleplantations(andtheirlandclearing)becameseriousenoughforthegovernmentofLaoPDRtoimposeabanongrantingconcessionslargerthan100ha.However,morelarge-scaleconcessionsweresoongrantedafterthebanas,undercertainscenarios,conversionactivitieswereallowed.Thebanwasfollowedbyamoratoriumonminingconcessionsin2009andin2011.Thegovernmentalsosetlimitsonthesizeofrubberplantations(at300,000ha).AnothermoratoriuminJune2012impliedthatnonewconcessionsinmining,rubberandEucalyptusplantationswillbeconsideredbeforetheendof2015(LIWG,2012).

A2012reportshowsthatonly0.97millionhaofLaoPDRisdesignatedasricecultivationeventhoughriceisalocalstapledietandisthemaincropgrowninthecountry.Incontrast,2,642landdeals7havebeenstruckcovering1.1millionha.Ananalysisofthedealsshowsthat1,291deals(coveringatotalareaof995,005ha,or90.5%ofthetotalarea)areintheprimarysector:agriculture,forestry(treeplantations),andmining(exploitation).Thetertiarysectorofcommunications,services/utilities,tourism,transportandwholesale/tradeattracted520deals(totalarea77,557ha).Thesecondarysectorofconstruction,electricityandmanufacturing/processingattracted829dealswithatotalareaof26,966ha(SchonwegerO,2012).

Thesame2012reportshowstheimpactofforeigndirectinvestmentsinlanddealsandhowtheyplayabigpartinlandconversion(Table7).Inthistable,LaoPDRinvestorsincludejoint-venturecompanieswithforeignequities,aswellaslocalcompanies(thebreakdownisunclear)buttheirinvestmentsaresmallhectaresonaveragecomparedtoVietnam,JapanandSouthKorea.

Table7.OverviewofinvestmentprojectsinLaoPDRbycountry

Investorcountry NumberofDeals

TotalArea(ha)

Averagearea(ha)

%ofalldeals

%oftotalarea

China 299 199,015 777 11 18Thailand 127 73,637 701 5 7Vietnam 191 307,169 1,862 7 28LaoPDR 1,705 181,477 117 65 17SouthKorea 75 27,114 405 3 2Japan 21 29,595 1,480 1 3Others 224 278,787 1,245 8 25Total: 1,096,794

Source:Schwonweger,2012.

Localcommunity

RuralcommunitiesinLaoPDRhavelowlevelsofeducationandthereforelacktheabilitytopreventexploitationoftheirlands.Therearereportsofofficialsprofitingfromlandsoldatafractionofthemarketvalue,withlittleornoreturnstothevillagers.InsouthernLaoPDR,therearesimilarreportsofcompaniesclaimingvillageandcommunallandsandthenerectingfencestokeepcommunitiesout;againwithlittleornocompensation(MooreC.,2012).Thetotalareaunderinvestmentprojects

7Dealsareunderstoodas‘businessarrangements’.

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cameupto1,096,794ha(seeTable6)sothenumberofruralcommunitiesdisplacedofftheirlandmustbesubstantial.

Landdealswithforeignersaregenerallycastinverynegativelightbutthereareshiningexamplesofexemplarybehaviour.StoraEnso’strialplantationprojectintheSaravaneandSavannakhetprovincesofSouthernLaoswasestablishedin2006totestgrowingEucalyptusandAcaciatrees.Thetrialprojectissmallinsize(about400ha)butthecompanyisplanningtoexpandto2000ha.Thelandisleasedfromthelocalcommunities.ByclearingthelandofbombsfromtheVietnamwar,itcreatesasafespaceforthelocalcommunitiestogrowfoodandstopdoingshiftingcultivation.Thecompanyalsoteachesmoderncultivatingtechniquestothelocalstoimprovetheirproductivity.StoraEnso’seffortsinsocialdevelopmentcouldbeabestpracticeforforeigninvestmentsinLaoPDR.

Forestandtimberindustry

Thereisnoreliableinformationonlogginglicenses,theharvestquota,officialharvestedvolumesandexportvolumes.Byworkingbackwardsfromtheimportingcountries,itcanbededucedthatLaoPDRtimberexportshavegrownexponentiallyfromtheendof2000s.Exportsincreasedbyeighttimesfrom2009to2014,andreachedavalueofUSD1.7billion.In2014,VietnamandChinatook96%ofallLaotimberexportsbyvalueterms(63%toChinaand33%toVietnam).Thesheervolumeofundocumentedtimbersuggestedthatharvestingandtransportationwereconductedbybigcompanieswithimplicit‘permits’.ThehugevolumesofundocumentedtimberfollowedanincreaseinChineseandVietnameseinvestmentsinLaoPDR.AWWFstudyconcludedthatthepermitsforharvesting‘conversion’timberduringdevelopmentofprojectsbecamealegitimatewayofobtaininghighgradetimber(Smirnov,2015).

TimberexportsfromLaosalmostdoubled(89%)in2011comparedwith2010andthenagainin2013increasingby62%comparedto2012andin2014by70%comparedto2013.TheexportoftimbertoChinaincreased24timesfrom2008to2014(fromUSD44.7milliontoUSD1,045million).In2014itincreasedby140%comparedto2013andChinaovertookVietnamasthebiggestimporterofLaowood.ImportstoVietnaminthesameperiodincreasedby4.2timesfrom$US131.7millionto$US559.5million(Smirnov,2015)

AnITTOReporthasidentifiedanotabletrendinChina’sdiversificationinlogsources,withsignificantsuppliesalsoimportedin2013fromMozambique,Benin,Ghana,DemocraticRepublicofCongo,CentralAfricanRepublic,andLaoPDR(ITTO,2014).

InSeptember2015,thegovernmentprohibitedtheexportoflogsandinstructedthatalltimbersmustbeprocessedinLaoPDRbeforeexporting.Previously,thegovernmentbannedtheexportoflogsbutexceptionswereallowedwhenthegovernmentapprovedspecialcases.Thegovernmentsaidthebanwastoaddvaluetowoodenproductsbyprocessingthetimbersbeforeexportingthem,whilesupplyingmorelogstofulfilincreasingdemandforrawmaterialstolocalwoodprocessingandfurnitureplants.Somedomesticfurniturebusinessoperatorshavealreadysufferedfromtheshortageoftimber.

Alocalnewspaperreporton2011datafromtheMinistryofIndustryandCommerceshowedthattherewere1175sawmills,woodenfurniturefactoriesandwoodprocessingplantsacrossthe

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country.Theillegaltradeintimbertoppedallcasesuncoveredin2014bytheeconomicpolice(orpoliceinchargeofeconomic-cases)accordingtoitsreport.In2014,theeconomicpoliceregistered391illegalcasesnationwideincluding169thatinvolvedtheillegaltradeoftimber(VientianeTimes,18Sep2015)8.

ThedeteriorationofforestqualityandfragmentationoflargeforestcompartmentsmeantthatitwouldbeverydifficulttocarryoutSFM.TheprospectsofSFMareconsideredlowastheloggingquotafor3.5millionhaissetat150,000m3ayear.Nocuttingpermitswereissuedinrecentyears.Alltimberexportedcomefromconversionofforestsinvariousactivitieslikemining,plantations,hydropowerandinfrastructuredevelopment.

Legalityandcertification

Thenationalharvestingquotasaresetverylow.Areportin2011tabulatedthequotaforthefinancialyear2008/9atatotal150,000m3,ofwhich66,270m3camefromtheProductionForestArea,48,890m3fromDevelopmentProjects(approvedbythePrimeminister’sOffice),17,840m3fromDevelopmentProjects(approvedbyProvincialGovernors),and17,000m3fromPlantationDevelopments(Barney,2011).Thetotalannualloggingquotaforloggingseason2013-2014wasonly580,072m3.AccordingtoMr.DuangdyOutthachak,amemberoftheNationalAssembly,whospokeatthe7thordinarysessionoftheNationalAssemblyinJuly2014,“lastyearthegovernmentgavepermissionforacompanytofelltreesinBorikhamxayprovince,amountingtosome600,000cubicmetersoftimber”.Thequotaforthisonecompanyisbiggerthanthenationalquota(Smirnov,2015)

Withsuchasmallsupplyoftimberfromstateforests,itisnotsurprisingthatconversiontimberisthepredominantsourceoftimberinLaoPDR.Illegalloggingisreportedtobesignificant.‘Conversiontimber’isthepredominantsourceoftimberinLaoPDRas1.1millionhaofthecountryisundersomesortoflanddealwhichrequireclearfellingoftheforests.Around60%oftimberextractedin2008camefromquotasinhydroelectricdamsandinfrastructureprojects.ItwasreportedthatonemillioncubicmetreswereloggedtobuildtheNamTheun2damalone(EIA,2011).

In2010,thegovernmentshowedinterestinnegotiatingaFLEGTVPAwiththeEU.SincethenithastakenpreparatorystepswithsupportfrominternationalorganisationsincludingtheEuropeanForestInstitute(throughitsEUFLEGTFacility)andtheGermanAgencyforInternationalCooperation.InSeptember2015,theDepartmentofForestInspection(DoFI),undertheMinistryofAgricultureandForestry,andtheWorldWideFundforNature(WWF),signedaMemorandumofUnderstandingthataimstoenhanceLaos'capacitytoensuredomesticandtrans-boundarytimberflowsarecompliantwiththeEUtimberregulations.WWFwillsupporttheGovernmentinthepreparationofaVPA.

Alocalnewspaperwhichcoveredthesigningceremony,reportedthatin2011theforestrysectorcontributedUSD164.2milliontothenationaleconomy,whichaccountedforapproximately2.1%ofGDP.TheGovernmenthassetatargetof70percentforestcoverby2020(Vientianetimes,26Sep.2015)9.

TheforestconcessionsinLaoPDRarenotdesignedhavinginmindproductiontargetsunderSFM,especiallysincetheloggingquotafor3.5millionhaofconcessionsissetatonly150,000m3ayear.

8http://www.vientianetimes.org.la/FreeContent/FreeConten_Govt_prohibits.htm9http://www.vientianetimes.org.la/sub-new/Previous_224s/FreeContent/FreeConten_DoFl.htm

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Almostallthetimberproducedcomesfromconversionofforestsintosomeotherlanduseslikemining.VietnamandChinaareleadingforeigndirectinvestorsaccountingfor46%ofalltotalleasedareas.

Cambodia

TheKingdomofCambodiaisroughly181,035km2withapopulationof15.5million(estimated2014).ThenominalGDPisUSD16.551billionandGDPpercapitaisUSD1,080.TheGinicoefficientismediumat31.8andthepovertyrateis19.8%(UNDP).

ThenationismainlylowlyingplainsleadingtowardstheMekongDelta(MekongisoneofSoutheastAsia’sgreatriverswithalengthof4,350km).CambodiahasacoastlinealongtheGulfofThailand.Theclimaterevolvesaroundtheannualmonsoons.

Economy

Cambodiaisamongsttheworld’spoorestnations.Themajorityofruralpopulationaresubsistencefarmersanditisthoughtthatupto75%ofthemareconsideredlandless,andhencedependheavilyonaccesstoforestresourcesfortheirneeds.FAOisimplementingafour-yearprojectinpartnershipwiththeMinistryofAgriculture,ForestryandFisheries(MAFF)toimprovefoodsecurityandlinksmallholderstomarkets.SustainableimprovementoflivingstandardsandincomegenerationinruralCambodiaisconstrainedbylowproductivityandprofitabilityandbylimitedoptionsincrops,livestockandfisheries.Smallholdersareconstrainedbyalackofqualityseed,fertiliser,plantprotectionandgrainstorage.Thereislimitedmechanisation,lackofaccesstoruralcredit,poormarketlinkagesandruralinfrastructure.Thereisalsoalackofextensionservicestoprovidetechnicalandbusinessadviceforthesmallholders.

FoodsecurityandahighdeforestationratesetthebackgroundfortheRoyalGovernmenttoimplementaNationalForestProgramme2010–2029.TheRoyalGovernmenthassetsignificantandstrategicgoalsonfoodsecurity,incomegeneration,jobcreationandhealththroughimproveproductivity,agriculturediversificationandtrade.Inthiscontext,forestryandfisheriesarekeysectorsthatneedreformstosupporttheagriculturesector.

Policies

TheNationalForestStatementof2002hasrecognisedtheimportanceoftheagriculturesector.SubsequentdevelopmentoftheNationalForestProgrammewasguidedbytheForestLaw2002andtheIndependentForestSectorReview(2004),theestablishmentoftheTechnicalWorkingGrouponForestandEnvironment(2004)andtheformulationoftheActionPlanforForestandEnvironment(2007–2010).In2007,aNationalForestProgrammeTaskForcewassetupwhichservesasaplatformforcontinuedstakeholdersdialogueandparticipation.

TheNationalForestProgramme2010–2029(NFP)establishedapolicyframeworkandstrategyforsustainablemanagementofCambodia’sforests.Ithasdetailedactionplanswithimplementationbasedonaparticipatoryapproach.TheNFPlaiddownapproachestoreducecarbonemissionsfromdeforestationandforestdegradation.

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Forestresources

TheforestcoverinCambodiahasbeendecliningrapidlyinrecentdecadesduetologging,forestfires,landgrabbing,encroachment,intensifiedshiftingcultivationandexpansionofcashcroppinglikerubber,cashewandcassava.

ThetotalforestareainCambodiawas10.09millionhectaresor57%oflandareain2000.Thereductionofforestswascalculatedatanaverageof145,000ha/yearovertheperiod2000–2010,orareductionof1.33%overthatperiod(ITTO,2011).Asaconsequenceofthislossofforestcover,Cambodiaisclassifiedasa“highforestcover,highdeforestationcountry”underREDD+.

Forestconcessions

ThereisnobetterintroductiontothiscomplexandseeminglyrootofmanylandconflictproblemsfacingCambodiatodaythanbyquotingastatementmadebytheUNSpecialRapporteurontheHumanRightssituationinCambodia(Subedi,2012)10.

“Attheoutset,itshouldbenotedthathistoricalcircumstances,includingthepoliciesoftheKhmerRougeregimeandthewidespreaddestructionanddislocationleftinthewakeofCambodia‘slengthycivilwar,haveledtotheproliferationoflanddisputesthattheGovernmentistryingtomanage.Furthermore,itshouldalsobenotedthatCambodiaasadevelopingcountrymaywishtoprioritizeutilizationofitslandandnaturalresourcesinorderforthecountrytodevelopandbecomemoreprosperous”.

TheRapporteurwentontosaythattheunevenaccesstoinformationhascontributedtoconcessionsbenefitingonlyaminorityandaproliferationoflandrelatedconflictswhichhasthepotentialtocontributetoinstability.

DuringthePolPotregime,theKhmerRougeabolishedprivateownershipofpropertyanddestroyedallofficiallandrecords.Atthistime,allthelandbelongedtotheStateandtherewerenoprivateowners.AftertheKhmerRougefell,andforthenexttenyears,therighttoownlandwasstillnotrecognizedandalllandwasownedbytheState.Thisbegantochangetowardstheendofthe1980s,andin1992,aLandLawwaspassedthatrecognizedtherightofallCambodianstoprivatelyownandtransferland.

10UNdocA/HRC/21/63/Add.1/Rev1

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Source:ForestryAdministration2012

Figure2.MapofforestcoverandprotectedareasinCambodiaIntheearly1990s,Cambodiawasfastchangingfromacentrallyplannedeconomytoamarketeconomy.Afterthefirstgeneralelectionsin1993,theRoyalGovernmentofCambodia(RGC)createdmorethan30forestryconcessionscoveringabout6.5millionha.Theseweretobeexploitedbyprivatecompanies.

AnewLandLawwaspassedin2001.Underthislaw,landinCambodiaisdividedintothreemainclassifications:StateProperty,PrivatePropertyandCollectiveProperty.StatepropertyisdividedintoStatepublicandStateprivateproperty.Collectivepropertyisdividedintomonasteryandindigenouscommunityproperty(Grimsditch,2013).Privateforestconcessionswerecancelledin2002(aftertheLandLawwasenactedin2001)andthelandrevertedbacktotheRGCas“Statepublicland”.

EconomicLandConcessions(ELC)andSocialLandConcessions(SLC)areimportantpillarsinthe2001LandlawwheninternationaldevelopmentbankspressuredCambodiatomoderniseitslegalsystem.TherearethreetypesofconcessionsinthisLandlaw:Economic(foragro-industrialuse),Social(forresidentialandsubsistenceuse),andothers(eg.Miningorindustrialdevelopments).Underthislaw,individualsandcorporationscanapplytooccupylandasaconcessionaire(Neef,2013).

ELCallowsacompanytoleaseStateprivatelandforlargescalefarmingknownas“industrialagriculture”.ELCscanbegrantedforplantations,raisinganimalsandbuildingfactoriestoprocessagriculturalproducts.ELCsweregrantedforgrowingcorn,sugar,cassava,pigbreedingandprocessingfactories.TheMinistryofAgriculture,ForestryandFisheries(MAFF)isresponsibleforgrantingELCs.

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ThereisconflictingdataontheactualnumberofELCs.TheMAFFwebsitelistsallELCsgrantedbutitwaslastupdated08June2012,theMinistryofEnvironment(MoE)issuesELCunderProtectedAreaLaw(2008),theWorldConservationMonitoringCentrehasadifferentnumberofELCs,andOpenDevelopmentCambodia(ODC)maintainsawebsiteofrelevantdata(seeTable8).

ThelawrequiresanEIAreporttobecompletedbeforeapprovalofaELC.ThisisstatedinSub-decreeNo.146onEconomicLandConcessions2005,Article4(3).Thereislittleevidenceofcompliance.

Table8.EconomicLandConcessions

Source:Delux,2015

SLCisaconcessiongrantedtopeoplewhoarelandlessordonothaveenoughland.Thistypeofconcessioncanbeusedtograntresidentialoragriculturelandtothepoor.ExamplesofSLCsgrantedincludeplantationsofcorn,cassava,cashew,sugar,rice,rubber,palmoilandcastoroil.SLCswerealsograntedforpigbreedingandtreeplantations.

OutsideSLCs,localcommunitiesfaceanuphillbattletogetformalrecognitionoftheirtenurerights.Landtitlingisincreasinglybeingpromoted(byFAO,WorldBankandothers)asawaytoencourageresponsibleagricultureinvestmentsbyenhancingvulnerablecommunities’landtenure.Ithasbeensuggestedthatacountrywidesystematiclandregistrationcouldhelpsafeguardsmallholdersagainstlandgrabbing.However,theslowprocessinCambodiahasinsteadseenanavoidanceof‘potentiallydisputed’areasbyconcentratingthelandtitlingprocessindenselypopulatedareaswherepeople’stenurewasmorelessalreadysecured.Landtitlinghasnotchallengethebiggereconomicinterestsforthebenefitofcommunities(Dwyer,2015).

TherehavebeenstrongcriticismsthatELCsandSLCshavebeenabusedtoenrichaselectedfewinCambodia.Theallegedseverityofthisabusehasevokedstronglanguages,forexample“AkleptocraticeliteisstrippingCambodia’sforests”(GlobalWitness,2007).GlobalWitnesswentontolistpowerfulloggingsyndicateswithsuggestionsthatsome“seniorofficialsaredirectlyresponsibleforcorruptionwithintheinstitutionsthattheyhead”.

Apartfromstrippingoftheforests,therearealsoaccusationsof‘landgrabbing’inCambodia.Landgrabbinghascausedseveresocialunrestsduetoitsstrongimpactsonlivelihoods,especiallyofthepoorinruralareas.

Localcommunity

AreportonlandgrabbinginCambodiadocumentshowaffectedcommunitieshavelosttheirlivelihoodsbecauseoflandgrabbingbynationalandinternationalcorporations.Localcommunitieshavenotbeenconsultedandtheyhavereceivedlittleornocompensationfortheirloss.The

Number Area(millionha) DataSource

ODC 301 2.11 ODC,2015MAFF 118 1.20 MAFF,8Jun2012

MoE 87 0.483 GIS-MoE,2014

UNEP–WCMC 160 1.70 UNEP,2010

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communitieshavebeenevictedfromtheirlandandhavefacedsystematichumanrightsviolations(Haakansson,2011).

AwelldocumentedexampleoflandgrabbingisthecaseofKohKongSugarPlantations(September2006).Atleast459familiesandover5,000haofcommunitylandinSreAmbelandBotumsakorDistrictsinKohKongprovince(southwestCambodia)havebeenaffectedbyasugarplantationproducingsugarfortheEuropeanUnion.VillagershavetriedtolodgecomplaintswithvariouslevelsofRGC,andevenuptotheNationalAssembly,buttonoavail.Armedguardsarenowkeepingvillagersoutoftheclaimedland.Militarypoliceaccompanyingdemolitioncrewswerereportedtofiringshots.Severalprotestorswerewounded(Haakansson,2011).

APRODEV11summarisedthatELCsareamajorcauseoflanddisputes.By2014,APRODEVhasrecorded86disputescausedbyELCswhichaffected17,150householdsor78,890people.Therewere270disputeswithindigenouspeopleandfiveforceddisplacementsin2014.Inrecentyears,theRGChasintroducednewpoliciesandlegalframeworkstoaddresslandandnaturalresourcessoastoimproveimplementationprocedurestominimiselanddisputes.

Most,ifnotall,thedisputescameaboutfromtheconfusioncausedbydifferingagenciesgrantingconcessions.ELCsaregrantedbyMAFF,MoE,andtheMinistryofMineandEnergyforvariouseconomicactivitieslikeagriculture,mining,tourismandconservation.

InMay2012,thePrimeMinisterissuedDirective01on‘MeasurestostrengthenandenhancetheeffectivenessofmanagementofEconomicLandConcessions’.ThesamedirectiveannouncedamoratoriumonthegrantingofnewELCsandareviewofexistingELCs.Thisreviewaimedatgrantinglandtitlesto470,000householdson1.8millionhalivinginELCsandforestconcessions.Directive01callsforincreasedmonitoringofELCsandseekstoresolveandlegaliseunclearlandoccupationbygrantingofsmallscaleELCsorSLCs.


Currentlythereare3.3millionhaoflandcoveredbyvalidforestconcessions.TheForestAdministration,underMAFF,allocatesannualcoupeswhichareopenforbiddingbytheprivatesectortocarryoutlogging.Therewasonlyonecoupepermitin2012withintheproductionforestswhichproducedainsignificantsupplyoftimber.Itisunclearwhatthefuturewillbeforthesevalidforestconcessionssincethemoratoriumeffectivelystoppedallofficiallogging.However,timberisbeingproducedinELCs(seeTable9).

Table9.Logproduction2007–2011(inm3)

2007 2008 2009 2010 2011Logs(domesticcoupe) 1,408 7,188 10,070 5,443 6,542Logs(ELCs) 13,491 31,049 37,113 48,644 135,728Roundlogs,total 16,326 38,428 47,184 54,087 143,456

Source:ForestryStatisticsofCambodia,ForestryAdministration,2012.

11APRODEV,AssociationofWorldCouncilofChurchesrelatedDevelopmentOrganisationsinEurope,basedinBrussels.

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IllegallogginghasbeenreportedovertheyearsinCambodia.AreportinJune2007indicatedthatovertheperiod2003to2006CambodiaofficialrecordsshowednoexportsofsawntimbertoChina.ButimportrecordsinChinashowed154,000m3ofsawntimberwasimportedfromCambodia.Similarly,forplywoodCambodiashowednoexportswhileChinarecordsshowed28,1000m3ofplywoodwereimportedfromCambodia.TheestimatedtaxrevenuelossforthisbatchofsmugglingwasUSD4.5million(GlobalWitness,2007).

MorerecentlyalongarticleintheCambodiaDaily(14Jul2014)detailedillegalactivitiesinthetimbertrade.Seizedillegallysourcedtimberwassupposedtobeauctionedpubliclybuttherewasnoevidencesuchauctionstookplace.Thenewspaperreportedthatthegovernmentofficialschargedwithrunningtheauctionsrefusedtoprovideafullexplanationoftheprocess,whiletensofmillionsofdollarsworthoftimberwereallegedlysoldtoabusinessmanatbargainprices.12


TheRoyalGovernmentofCambodiahasdecidedtotackletheissuesandproblemsrelatedtolandconcessionfirstbeforeittacklesthoseoflogging.ThereisanongoingprocessinCambodiatoaddressthelegalityofELCsgrantedinparttoaddressthegrievancesofthevillagers.InSeptember2013,CambodiaelectedanewMinisterofEnvironmentwhodiscoveredthatthereweremanyproblemswithELCs.Atthattime,theMinistryofEnvironmentcontrolled113ELCsthatwereissuedpreviously.TheseELCscoverprojectsmostlyintheagro-industrylikerubber,cassava,cashewnuts,etc.buttherewereafewforspecialeconomiczone,somefortourismandthreeforconservationprojectstoberunbyprivatecompanies.

TheMinistryofEnvironmentadmittedthattherewereproblemscausedbyimpactsoftheELCsonthelocalcommunity.ItwasdiscoveredthatsomeELCsweregrantedoverlandwhichhadlocalcommunitiesandevenentirevillageswhenitwasassumedtobeinhabitedbyvirtueofthefactthattheareasweremadeintoprotectedareasbyRoyalDecreein1993.InmanycasestheMinistrydidnotdemarcatetheareaproperlyonthegroundtoo.SothegrantingofELCswasassumedtobedoneatthe‘officelevel’withoutgroundsurvey.Someofficialsimpliedthatthecivilwarpreventeddemarcationontheground.

TheMinistryofEnvironmentinitiatedaprocessofreviewintotheexistingELCs.Inaddition,MAFFandMoEsignedanInter-MinisterialProclamation(‘prakas’)onstrengtheningELCmanagementon09May2014whichwasaimedatreducinglanddisputes.AnInter-MinisterialCommitteewasformedtomonitorandassesstheELCs.ChairedbytheDeputyPrimeMinister,thecommitteecomprisesrepresentativesfromthefollowing:

1. MinistryofEnvironment2. MinistryofAgriculture,ForestryandFisheries3. MinistryofLandManagement,UrbanPlanningandConstruction4. MinistryofEconomyandFinance5. MinistryofWaterResourcesandMeteorology6. MinistryofMiningIndustryandEnergy

12https://www.cambodiadaily.com/archives/how-cambodias-secretive-timber-auctions-are-fueling-the-illegal-logging-trade-63919/

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7. MinistryofInterior8. AntiCorruptionUnit9. NationalPolice10.MilitaryPolice11.Governorofthe(concerned)Province

ThecommitteewouldreviewalltheELCsandassesstheirperformancesagainstwhatwereproposedintheprojects.Itwasassumedthatsuchmonitoringwould-asaseniorMinistryofficialsaid-“calmdownthesituation”overconflictswithlocalcommunitiesbysolvingsomeoftheproblems.ThecommitteehasbeenmeetingonceaweekandgiventheworkloadinvolvingsomanyagenciesandELCs,thecommitteeisstilloptimisticthattheycanfinishtheirworkbytheendof2015.

Initialreportsindicatedthatofthe113ELCsundertheMinistryofEnvironment,23werecancelledbytheRGCfornotfollowingtheapprovedprocedurestodeveloporimplementtheprojects.FourELCswerevoluntarilysurrenderedbacktothegovernment.Afurther28ELCsweregiven6-12monthstoprovetheirabilitytocarryonwiththeproposedprojects.

Myanmar

MyanmaristhelargestcountryinmainlandSoutheastAsiawithatotallandareaof676,577km2.Thepopulationinthe2014censuswas51,486,253.ThenominalGDPisUSD65.291billion(2014estimate)andGDPpercapitaisUSD1,269.Thepovertyrateis26%(UNDP).

Thephysicalgeographyofthecountryisstructurallycomplexanddiversewithatopographyofsteepmountainranges(highestisMtHkakaborazi,5,881m)tothenorthandnorthwest,runningtouplandplateausandhillvalleysintheeasternregions.TheundulatingcentraldryzonestretchestothelowlanddeltaregionandanarrowcoastalstripfurthersouthadjoiningThailand.

Apartfromthehigheruplandsinthenorthernregion,theclimateofMyanmarcanbeclassifiedastropicalmonsoonalalthoughimportantregionalvariationsoccurwithinthecountry.Theaverageannualrainfallisashighas2,500mminsomeparts,especiallythecoastalareas,butaslowas500mminthecentraldryzone.

Economy

Myanmarisbasicallyanagriculturalcountryandaccordinglytheagriculturesectorhasbeendesignatedasthemainpillarofthecountry’seconomy.Morethan70%ofthepopulationliveinruralareas.Thecountryis47%coveredwithforests,allownedbytheState.Allteaktreesareownedbythestatenomatterwheretheyaregrowing.

InJulyandAugust2015,therewasseverefloodingandlandslidesinMyanmar.Thesedisastersdisplaced1.6millionpeople,causedalmost120deathsanddamagedagricultureandinfrastructure.Butthecountry’seconomyasawholecontinuestoexpandatarobustpaceoninvestmentstimulatedbystructuralreformandgenerallystrongdomesticdemand.

Figure3.MapofMyanmar.Landuseandforestcover

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Source:MinistryofEnvironmentalConservationandForestry,2015

Policies

Sinceaneweraofcivilianrulein2011,therewereclaimsofwidespreadlandgrabbing.By2013,2.15millionhaoflandhadbeenleasedouttoinvestorsforcommercialagriculture,themajoritywithouttheconsentofitsowners.Rubberplantationsalonecovermorethanaquarterofthisleasedarea.ThisrushforlandisdecimatingthelivelihoodsofMyanmar’speople,70%ofwhomrelyonfarmlands(GlobalWitness,2015).

ThereisexpectationthatalongawaitednewLandLawmightsolvemanyoftheproblemscausedbyoverlappinglanduse.Thereisanongoingprocessofnationalconsultationwithallstakeholdersonalandusepolicy.InJuly2015,theSixthDraft13oftheNationalLandUsePolicywasdiscussedwithstakeholdersinNayPyiTaw.

Thepolicydocumentisthorough.Thefollowingisalistofthechapterheadings:13TheSixthdraftisavailableathttp://www.fdmoecaf.gov.mm/documents

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� ObjectivesandBasicPrinciples� LandUseAdministration� PlanningandChangingLandUse� GrantsandLeasesofLandatthedisposaloftheGovernment� ProceduresRelatedtoLandAcquisition,Relocation,Vompensation,Rehabilitationand

Restitution� LandDisputeResolutionandAppeal� AssessmentandCollectionofLandTax,LandTransferFeeandStampDuties� LandUseRightsofEthnicNationalities� EqualRightsofManandWoman� HarmonisationofLawsandEnactingNewLaw� MonitoringandEvaluation� ResearchandDevelopment

ItiscommendablethattheGovernmentofMyanmarhasallowedandencouragedopendiscussionsonthisimportantLandUsePolicy,whenmanythoughtjustafewyearsagothemilitarygovernmentwouldhavecrackeddownonsuchamove.

InNayPyiTaw,thecivilsocietyandactivistswereconcernedover‘market-basedsolutions’and‘contractfarming’inthedocuments,thoughbothsidesseeminglyadoptedthefreepriorinformedconsentapproachinlanduse.Civilsocietiesarehighlightingtheneedtoensurebenefitsgotothelandless,remedyhistoricalinjustices,promoterightstowomentoownland,promoterightsofethnicminoritygroups,andpublicsupporttobuilddiverseandsustainablelivelihoods(TNI,2015).

Forestresources

In1990,Myanmarhad39.22millionhectaresofforests,andin2000theforestcoverdroppedto34.55millionha.By2005,thecoverwasdownto32.22millionhaandin2010itreached31.77millionha(FRA,2010)(Table10).ThecountryhasthehighestrateofforestlossinSoutheastAsia.

WWFhasclaimedthattheprincipaldriverofforestlossinMyanmarislarge-scaleconversionforagricultureoraquaculture.Theforeststhatareconvertedhaveoftenbeendegradedbyfuelwoodcollectionorlogging.Otherdriversofforestlossincludeshiftingcultivation,conversiontocommercialrubberoroilpalmplantations,andmining.Oilpalmisreportedlydrivingrapiddeforestationinsomeareas(WWF,2014)14.

Table10.Myanmar'sforesttypesandarea

Foresttype Area(‘000ha) %totalforestsMangroveforests 467.3 1.5Tropicalevergreenforests 5,470.6 17.2Mixeddeciduousforests 12,157.3 38.3Dryforests 3,114.7 9.8Dipterocarpforests 1,321.9 4.2Hillandtemperateevergreen 8,541.2 26.9

14https://shar.es/17vZDn

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Foresttype Area(‘000ha) %totalforestsScrubland 700.0 2.2Total 31,773.0 100

Source:FRA,2010.

Table11.StatusofpermanentforestestateinMyanmarCategory Area(km2) %PFE 197,899.4 30.7ReservedForests 121,842.9 18.0ProtectedPublicForests 40,949.6 6.1ProtectedAreaSystem 35,106.9 6.7

Source:PlanningandStatisticsDivision,ForestryDept,2010.

Forestconcessions

Landconversions,particularlywithlargeindustrialestatesandplantations,aresignificantsourcesof‘conversiontimber’.About2.10millionhaofagriculturalconcessionsthroughoutthecountryhavebeenawardedtopredominantlyMyanmarcompaniesbyJuly2013(Woods,2013).

Mostoftheagriculturalconcessionsarelocatedintwoofthemostforestedregionsinthecountry(TanintharyiregionandKachinState).Theseconcessionsaremainlyforproductionofbiofuelandrubber,soitcanbeassumedthatforestclearcuttingistakingplace.DatapublishedquotingsourcesfromtheDepartmentofAgricultureshowedthatbyJuly2013,agriculturalconcessionstotalled484,351ha.Ofthattotalarea,only23%wasactuallyplanted(Woods,2013).

Localcommunity

Inthe1990s,theauthoritiesrecognisedthatlocalcommunitiesinthevillagescouldbemobilisedtoprotectandregenerateadjacentforestswhileensuringtheirsupplyofnon-timberforestproductsaresustained.CommunityForestrywasencouragedwhenthe1992ForestLawandthe1995ForestPolicyenabledthe1995CommunityForestryInstruction(CFI).

ImplementationoftheCFIbeganimmediately,andwaspromotedbyinternationaldonorprojects(e.g.UNDP,JICA,DFID)aswellasthroughtheMyanmarForestDept,andinsomecasesbythecommunityorganizations.ImplementationreceivedamajorboostthroughtheForestryMasterPlan(2001)whichmandatedthat5.51mil.ha(1.36%ofthecountry)behandedovertolocalcommunitiesorForestUserGroups(FUG)by2030-31.

Theannualprogressofcommunityforestryestablishmentsince1995hadaveraged2,810ha,andtherearenow572ForestUsersGroupswithcertificates,managing42,146haofforest.However,therateofCommunityForestryhandoverhasbeenfarlowerthanthatneededtomeettheMasterPlan’s30-yeartarget(whichis918,636haby2030).

TheForestDeptalsoaimstoobtain4.13millionm3ofwoodfuelfromcommunityforests,amountingto25%ofthecountry’stotalwoodfuelrequirementof16.53millionm3by2030,anothertargetunlikelytobeachievedatthecurrentrate(Tint,2011).

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ScientificforestmanagementinthetropicsbeganinMyanmararound1856whenthe“ExploitationcumCulturalSystem”wasestablishedbyDrDietrichBrandis,andsubsequentlycalledtheBrandisSelectionSystem.TheBrandissystemwaslatermodifiedintotheMyanmarSelectiveSystem(MSS)whichlaidthefoundationforotherselectivesystemsinSoutheastAsiainlateryears.ThemainobjectivesoftheMSSaretoharvestannualyieldonasustainablebasisandtoworkoutestimatedfutureyield.

TheMSSisstillusedinMyanmarnaturalforestsandisbasedonanidentifiedAnnualAllowableCut(AAC),girthlimitanda30-yearfellingcycle.ThefundamentalsoftheMSSare:

� FixingAAC.

� ForecastingfutureAACobtainingcompositionanddensitiesoftreespeciesintheforests.

� Improvingforestsbyclimbercutting,improvementfelling,thinningandbroadcastingofteakseeds.

� Improvingnaturalregenerationbyselectionofsoundtreesasseedbearers.

� Improvingnaturalregenerationofforestbycoppicingofdesirablespeciesandcuttingundesirablespecies.

Formanyyears,Myanmarhasbeenknownasaproduceroftropicaltimber,especiallyitsfamousteak;however,forthepasttwodecadesthecountryhasbeenthecentreoftheworld’sattentionfordeforestation.

TheMinistryofEnvironmentalConservationandForestry(MOECAF)placedabanonlogexportsinApril2014,andalsoloweredtheACCforteakfromtheprevious540,600to108,120m3(Myanmarmeasureslogsinhoppustons)15;andforotherhardwoodspecies,from3,604,000to1,081,200m3.ThissignificantreductioninproductionwillcontributetoMyanmar’sprogresstowardssustainableforestmanagementbutthereareotherchallengeswhichareoutsidetherealmsofcommercialforestry.

ThemostcommonaccusationisthatMyanmarhasextractedlogsmuchmorethanitssustainableyield.Therewasconsistentover-harvestingforanumberofyearsduringtheMilitaryRule.Eventhoughtheofficialforestmanagementsystemwasbasedonapre-definedAAC,inrealitytheactualproductionoflogswasbasedonrevenuetargetssetbythethenMinistryofForestry,andplacedupontheMyanmarTimberEnterprise(MTE)tocarryout.(InSeptember2011,theMinistryofForestswascombinedwiththeMinistryofEnvironmenttoformthecurrentMOECAF).

Hardwoodlogexportshavebeengrowingbyvolume,andevenmorebyvaluesincethenewgovernmenttookofficein2011.Between2011and2013,thevolumeoftimberproductexportsjumpedfromabout2.7toover3.3millionm3,withvaluesincreasingfromjustoverUSD1billiontoaboutUSD1.6billion.MuchofMyanmar’stimberisnolongersourcedfromhistoricalharvestingareasasdomesticprivatecompaniesareclear-cuttingforestsforagribusiness,mining,andhydropowersites,andspecialeconomiczones(Woods,2015).

151hoppuston=1.802cubicmetre.

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Therearecurrentlyfiverecognisedwaysofsourcinglogs,eachwithvaryingdegreesoflegality,landrightsregimes,ethnicsourcingandsustainability(Woods,2013):

� State-managed(MTE)forests,largelyconsistingofteak;

� Loggingconcessionsinnaturalforests,mostlyinethnicconflictareas;

� Landconversioninnaturalforestspredominatelydrivenbyagribusinessconcessions,mostly(butnotexclusively)inethnicareas,andalsoknownas‘conversiontimber’;

� Treeplantations,whichisverylimitedinextentsofarduetoahostofpoliticalandeconomicfactors;and

� Communityforests,whichsofararenotallowedtoconductcommercialharvesting.

ThestructureofMOECAFisdividedintofourdepartments:ForestDept,DryZoneGreeningDept,EnvironmentalConservationDept,andSurveyDept.TheMyanmarTimberEnterprise(MTE)isthefiftharmofMOECAFwhichissolelyresponsibleforharvesting,processingandmarketingoftimber.MTEmanages39extractingagencies,sawmills(nineforexportsand58fordomesticmarkets),andwoodbasedindustries(fourplywoodmills,threeveneermills,ninefurniturefactoriesandthreemouldingfactories).MTEadoptsRILprinciplesinitsharvesting,whichincludesusingelephantsforstumpinganddragging.However,thereisnoindependentthirdpartymonitoringandthereisnoassuranceofcompliance.

WhileitwasobservedthatforestmanagementonthegroundwasnotimplementedstrictlyaccordingtotheMSS,forestdegradationanddeforestationwereduenotonlytologgingactivitiesbuttootherfactors:

� illegallogging(insideandaroundborderarea);

� conflictinlanduseduetodamconstruction,mining,andplantation(rubberandpalmoilplantation);and

� productionoffuelwood.Somethinkthiscanbeasmuchas20millionm3ayear,consideringthesizeoftheruralpopulation.

TheprocessoftimbercertificationstartedinMyanmarwithagovernmentdecreein1998madebyMOECAF,andtheTimberCertificationCommitteeofMyanmar(TCCM)wasestablished.TCCMlaterchangedtoMyanmarForestCertificationCommittee(MFCC)tocoverallaspectsoftheforestcertificationprocess.TheMyanmarcriteriaandindicators(C&I)fornaturalforestcertificationwasdevelopedbasedonITTOC&I2007,anditiscurrentlybeingrevised.Thechain-of-custodywasdevelopedbasedonASEANguidelines.Presently,MyanmarisdevelopingitsC&Iforforestplantation.

ThoughMFCCdevelopsandoperatesanindependentMyanmarForestCertificationScheme(MFCS),MFCCstillneedstheMyanmarDeptofStandardsastheNationalAccreditationbodytoaccreditCertificationBodies.Sofar,theDeptofStandardsisstillre-organisingitselfforthisnewrole.

Thereisanurgentneedforachain-of-custodytobesetupandoperatinginordertocontrolthemixingoftimberfromvarioussources.Sincethegovernmentdoesnotdifferentiatethesourcesoftimbersetasideforexports,anyintentionofexportingtoEuropeandAmericawillhavebigissues

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withproofoflegality.Asitis,alltimberisconsideredlegalifithasthestampofMTEandexportedthroughtheportsofYangon,andanytimberexportedthroughthelandborderwithChinaandThailandisconsideredquestionable.SuchanarrangementwillneedtoimproveconsiderablyinordertomeetthestringentconditionsofEUTRortheLaceyAct.

Localexpertsworkingontimbercertificationsaythemajorchallengestoforestryaredemographicpressure,expansionofagricultureintoforestarea,shiftingcultivation,excessiveuseoffuelwood,overexploitationoftimberandillegallogging.

InJuly2015,acourtinMyanmar’snorthernKachinState,borderingChina,handeddownseverepenalties,ofupto20yearsinprison,to155Chinesenationalsforillegallogging.ManyweresurprisedattheseverityofpunishmentthougheventuallytheChinesegovernmentformallyintervenedforapardon.

Claimsofwidespreadlandgrabbingcamewiththestartofcivilianrulein2011.By2013,2.15millionhaoflandwasleasedoutwithaquarterofthataloneforrubberplanting.However,aNationalLandUsePolicyisclosetoacceptanceandwillbeconvertedintoanewlandlaw.MuchwilldependonthenationalgeneralelectionsinNov2015.

Indonesia

TheRepublicofIndonesiahasatotallandareaof1,904,569km2andapopulationof237,424,363(2011Census).ThenominalGDPisUSD895.677billion(2015estimate)andGDPpercapitaisUSD3,511.TheGinicoefficientismediumat35.6andthepovertyrateis11.4%(UNDP).

Indonesiaischaracterisedbyitslargenumberofislands:17,508intotal,ofwhicharound6,000areinhibited.Thecountryisdividedinto34provinces,eachwithitsownlawsandGovernor.Theprovincesarefurtherdividedintodistrictsforadministrationpurposes.

Economyandlivelihoods

CommoditiesformoneofthemainstaysinIndonesia’seconomyasamajorcontributorofforeignexchangeandnationalincomeaswellasjobcreationfortheworld’sfourthmostpopulouscountry.ThetotalcontributionofcommoditiestothenationreachedUSD45.54billionin2013.Thiswasmadeupofplantationcommodity(USD36.64billion)-ofwhichpalmoilcontributedUSD19.0billion-,tobaccoexcisetaxUSD(8.63billion),andthebalanceofUSD1.26billioncamefromdutiesonCrudePalmOilandCocoabeans.The2013contributionwas27.8%higherthan2012(DirectorateofPlantationsReport,13Jan2015)16.

Thedrivetowardsproductionofcommoditiesispartlyduetothe‘MasterPlanfortheAccelerationandExpansionofIndonesia’sEconomicDevelopment’(referredtoasMP3EI)launchedbytheMinistryforEconomicAffairsin2011.MP3EIsetsouttheroadmaptowardsachievinganannualGDPgrowthof12.7%toraisethenationalGDPuptoUSD4.5trillionbyyear2025,withaccompanyingpercapitaincomeofUSD15,500.ThisambitiousplanwouldbringIndonesiaintotheworld’stoptenlargesteconomies.Theplanencouragesinvestmentsintheexpansionofplantationsfortimber,oilpalmandfoodcrops,andinnaturalresourceextractions,particularlyloggingandmining.

16http://ditjenbun.pertanian.go.id/berita-372-peran-perkebunan-dalam-perekonomian-nasional.html

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Policies

Duringthe1997AsianFinancialCrisis,theWorldBankandIMFimposedstrictconditionsonIndonesiaforafinancialsupportpackageofUSD40billion.Indonesia'seconomicinstabilityatthattimewasreinforcedbyitspoliticalinstability.ByMay1998thePresidentresignedandwassucceededbyhisdeputy.

Decentralisation

OneoftheconditionsimposedonIndonesiaforthefinancialsupportwastodecentraliseitsgovernmentmachinery.Anotherconditionwastoremovethethenexistingbanonlogexports.Itwasafarreachingprocesswhichdevolvedmuchoftheauthorityoverland-usetotheprovinciallevels,includingthesemi-autonomousdistrictandmunicipalgovernments.Thisledtoaseriesofissuesrelatedtoenvironmentmanagement,conflictsofauthorityandashortageofappropriatecapacity,resourcesandfundingandalackofpoliticalaccountabilityoflocalofficials.Theseabuseseventuallycreatedanetworkofrentseekers(Anderson,2015).

Figure4.MapofIndonesia.ForestAreas.

Source:DGForestPlanning,DepartmentofForestry2014

Moratoriumonnewconcessions

InMay2012,Indonesiadecreedatwo-yearmoratoriumontheissuanceofnewforestconcessionsforlogging,oilpalmplantations,andwood-fibreplantationsaspartofaUSD1billionIndonesia–NorwayREDD+deal.TheUSD1billionwasNorway’scontributiontothedevelopmentandimplementationofaREDD+programmeinIndonesia.Themoratoriumcoveredanareaof65millionhathoughmostofthatwasalreadyprotected.Themoratoriumwasextendedforanothertwoyearstoallowthegovernmenttimetoimprovelanduseplanningandperformdatacollectionandinformationsystems,andworktowardsIndonesia’slowemissionsdevelopmentgoals.Essentially,itgavethegovernmenttimetoharmonisemapsfromdifferingagencieswithdifferingdatasets.

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InSeptember2013,aPresidentialdecreeestablishedthe‘ManagingAgencyfortheReductionofEmissionsfromDeforestationandDegradationofForestandPeatlands’,andsincethenanumberofprovinceshavedevelopedstrategiesandactionplansforimplementingREDD+.However,inJanuary2015anotherPresidentialDecree(No16,2015)closeddowntheAgency.TheNationalCouncilonClimateChangewasalsocloseddownandtogetherwiththeformerREDD+AgencyhasbeenabsorbedintothenewMinistryofEnvironmentandForestry(MOEF),underthenewDirectorateGeneralofClimateChange.Whiletheworkisessentiallycarriedoutbythesameofficialsinanewoffice,itremainstobeseenwhetherthismovewillimprovetheirperformanceortheperceivedloweringofprioritywillbeahindrance.

OneMap

Indonesiaofficiallyimplementedthe‘OneMappolicy’inDecember2014tohelpresolvedisagreementsresultingfromtheuseofdifferentdataandmapsthathadoftencausedlanddisputesandoverlappingpermitsforplantationandminingoperations.TheGeospatialInformationAgency(Indonesianacronym,BIG)wastaskedwiththestandardizationoftheexistingmaps.Thisisexpectedtoclarifyconcessionboundariesandtohelpmakecompaniesaccountablefortheiractionswithintheirboundaries.However,progressisreportedlyslow.Ittookthreeyearsbeforethegovernmentwasabletofulfilitsmandateforimplementingtheone-mappolicy,asstipulatedinLawNo.4/2011ongeospatialinformation.Workisinprogressasothersectorsarefeedinginthethematicmaps.

Forestresources

Outofthe190.5millionhaoflandinIndonesia,126millionha(66%oftotalarea)aremanagedbytheMoEFandlocalgovernments.Productionforestscover69.0millionha,conservationforests27.4millionhaandprotectedforests29.6millionha.MoEFhasdirectcontrolover49.8millionhawhicharelicensed(seeTable12).Another10.2millionhaoflandarelicensedforoilpalmcultivation.Forestryandoilpalmconcessionstogethermakeup31.4%oftheentirecountry.

Table12.Indonesia'sforestareaandforestclassification

Source:DepHut,2015.

Thechallengeisforestlossduetoavarietyofreasons,fromagricultureconversiontoforestfires(whichisverysignificant).AccordingtoofficialMinistryofForestrymaps,Indonesialostatleast

Category haConservationForests 27,429,535ProtectedForests 29,629,349ProductionForestsLimitedproductionForestsPermanentproduction.ForestsForestsforConversion

69,035,45626,798,373 29,294,799 12,942,284

Total 126,094,341NautralForests 20,218,418IndustrialPlantations 10,647,017EcosystemRestoration 515,270NTFP 304,936

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1,240,000haofforestovertheperiod2009to2011.Halfofthistookplaceinjustthreeprovinces:CentralKalimantan(296,000ha),Riau(230,000ha)andWestKalimantan(95,000ha)(Greenpeace,2013).

Forestconcessions

Thetotalareaofindustrialconcessionsoccupiesover56millionha,includinglogging,oilpalm,fibre,mininganmixed(Table13).

Table13.AreaunderindustrialconcessionsinIndonesia

Regions Landarea(ha)

IndustrialSectors(ha) AllIndustriesOilPalm Logging Fibre Mining Mixed

Kalimantan 53,602,272 8,367,206 9,129,299 4,242,584 2,538,180 4,737,105 29,077,375

Sumatra 47,639,870 3,099,060 1,368,171 4,467,859 1,583,892 767,572 11,286,553

Papua 41,505,929 416,636 10,442,780 1,412,020 N/A 275,783 12,547,219

Sulawesi 18,738,282 249,154 1,663,584 441,988 N/A 24,141 2,378,868

Moloccus 7,884,757 0 1,325,608 44,330 N/A 0 1,369,939

Total 169,371,110 12,132,057 23,992,442 10,608,782 4,122,072 5,804,600 56,659,954

Source:ConservationLetters(Abood,2015).

Table13doesnotincludesomeagriculturalcropslikecoffee.IndonesiaisthefourthlargestcoffeeproducerafterBrazil,VietnamandColombia.Thecountrycurrentlyhasaround1.1millionhaofcoffeeplantations,withproductionvolumerisingfromaround400,000tonsayearinthe1990stoleveloutataround650,000tonssince2002,accordingtodatafromGAEKI(IndonesianCoffeeExporters’Associations)andtheAgricultureMinistry.Ofthetotalcoffeeplantationarea,96%iscultivatedbysmallfarmersandtheremainderisrunbyprivateandstate-ownedcompanies,withonlyaround77%ofthelanddeemedproductive.GAEKIsaidrecentlythatthegovernmentneededtoprovidemorelandtogrowcoffeeandintensifyproductionifitwantedtoovertakeBrazil(JakartaPost.29Sep2015)17.

Oilpalmconcessions

Theareaunderoilpalmin1990wasaboutonemillionha.Thisdoubledby1995withrecordsshowing658,000haownedbysmallholders,962,000habyprivateestatesand405,000habythegovernment.Between1995and2000,theareaunderoilpalmdoubledto4,158,077haandby2010ithaddoubledagainto8,385,394ha.IndonesiaovertookMalaysiain2006astheworld’slargestpalmoilproducer.

In2013,mostoftheoilpalmwasgrownonSumatra(64.1%)andKalimantan(32.0%)withasmallerportiononSulawesi(2.9%)andtherestinPapuaandelsewhere.ThepalmoilindustryinIndonesiaisdominatedbyverybiggroupsofcompanieswiththegovernmentownedestatesformingonly6.9%oftheareasunderoilpalm.Smallholdersaccountforasignificant44.1%oftheareabutwithlower

17http://www.thejakartapost.com/news/2015/09/29/indonesia-needs-boost-coffee-production.html

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yields,theyaccountforonly34%oftheproduction.TheDirectorateofPlantationsestimatedatotalareaof10.2millionhaunderoilpalmin2014.

Localcommunity

Therearemanyreportsandpublicationsdetailingillegallogging,deforestation,landdisputes,socialinjustices,etc.,allseeminglycausedbyoratleastrelatedtoconcessionsofforestsandoilpalm.Since1900thecountryhaslosthalfofitsforests.Almostallthelostforestsaretraditionallandofthelocalcommunities.Inrecenttimes,transmigration,logging,treeandoilpalmplantations,andotheragriculturearethemaindriversoftheforestlosses.Consequentlythereisaproliferationoflandconflictsbetweencompaniesandlocalcommunities(Colchester,2014).

TheconstitutionalcourtdecisionNo.35/PUU-X/2012isconsideredamajorvictoryfortheindigenous

peopleofIndonesia.AliansiMaeyarakatAdatNusantaraorAMAN,alocalsocialmovementofindigenouspeoplesinIndonesia,saidthattherearetwosignificantconclusionsfromthislandmarkdecision:(1)thefirstrelatestoindigenouspeoples’rightsoverindigenousterritories,orinthiscase,customaryforest.And(2)itreaffirmstheprovisionsfordeterminingtheexistenceofindigenouspeoplesinanareaasprovidedinthe1945ConstitutionoftheRepublicofIndonesia(whichhasfiveprovisionsfordeterminingtheexistenceofindigenouspeoples).

AMANandothercivilsocietybodiesworkingwithlocalcommunitiesunderstoodthatthedecisionNo.35/PUU-X/2012meansaconcessioncannotbegivenoverforestswhichareclaimedbyindigenouspeoples,especiallybymakingsweepingstatementsthattherearenoindigenouspeopleslivinginthearea.However,thereareclaimsthattheMoEFandotherministriesareslowtoincorporatethisdecisionintotheirworkscopeandsomelanddisputescontinueontheground.


TheobjectivesofSFMarestatedintheForestryLawMo41/1999,whoseArticle2spellsoutthatimplementationisbasedonbenefitsandsustainableforestry,democracy,justice,solidarity,opennessandintegrity.

However,therearechallengesforexecutingthislaw.SFMhasbeenunderdiscussionsincethemid-1980s.PolicydiscussionstopromoteSFMinIndonesiahavefocusedalmostexclusivelyonreformingtheHakPengusahaanHutan(HPH)orForestConcessionsandForestExploitationRights.PolicyanalystsadvocatingthereformoftheHPHsystemhaveprioritisedthreeobjectives(Personalcommunication,JohanKieft.15Sep2015):

� Increasethegovernment’scapacitytoenforcethetechnicalaspectsofSFM.

� Significantincreaseintimberroyaltiesandfeestohaltflowofresourcerents.

� Liftingtheprohibitiverestrictionsonlogexports(inplacesince8Oct2001).

Currently,underthelicensescheme,timbercanbeusedcommerciallyfromnaturalforests(IUPHHK-HA)andplantationforests(IUPHHK-HT).Thetypesoflicensesarelisted(seeTable14).

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Table16.Typesofforestlicenses

No. Typeoflicense Acronym

1 LicenseforUtilisationofNaturalForestTimberProducts IUPHHK-HA

2 LicenseforUtilisationofPlantationTimberProducts IUPHHK-HT

3 LicenseforUtilisationofEcosystemRestorationTimberForestproducts

IUPHHK-RE

4 LicenseforConversiontoProductionForests HPK

5 LicenseforProductionForestLandUse/non-mining IPPKHProduction/non-mining

6 LicenseforforestLandUseforSurveys/exploration(includingmining)

IPPKHSurvey/Exploration

Table15.Selectedforestrysectorexports(inUSD)

2012 2013 2014

Panel 2,357,294,770 2,640,258,603 2,793,483,865Woodworking 650,023,620 649,673,733 807,251,309Pulp 1,545,403,689 1,848,770,872 1,721,891,823Paper 611,546,324 602,415,810 633,620,761

Source:DeptofForestry,SVLKWorkshop.25Aug2015


ExpertshavesaidthatthirdpartymonitoringliketimbercertificationiscriticaltotheperformanceofconcessionairesincarryingoutSFM.Manyprivatecompaniesadmittothelackoftechnicalcompetencytodocertification.

Legalityisanimportantfirststeptowardstimbercertification.TheIndonesianTimberLegalityAssuranceSystem(Indonesianacronym,SVLK)aimstotoensurethattimberproductsandrawmaterialsareobtainedorderivedfromsourceswhoseoriginsandmanagementmeetthelegalstandards.InJune2009,theIndonesiangovernmentmadeSVLKmandatoryandallprivateandstate-ownedforests(IUPPHK,HKm,HTR)mustadoptthisverificationoflegality.Atthesametime,achain-of-custodymustbeinplacetoshowthetimberrawmaterialforfinishedproductshasalsobeenverifiedunderSVLK.

SVLKincludestrackingthevalidityofthetimberoriginrightfromtheverybeginningtoendproducts.Itstartsfromtheutilizationlicense,markingsofidentitydocumentsaccompanyingthetimberfromthelogging,transportationfromtheforesttotimberproduction,andthepackingandshippingprocess.SVLKeffectivelyappliesinalltypesofforestmanagementinIndonesia.

Inamovetobringtransparencytotheprocess,thegovernmentimplementedSistemInformasiLegalitasKayu(SILK)whichisawebsitetoshareinformationontheprocessaswellascertificateholders(https://silk.dephut.go.id/index.php).

IndonesiastartednegotiatingaVPAwithEUinMarch2007.TheVPAwasagreedandsignedon30Sep2013.ItwasratifiedinApril2014andcameintoforceon1May2014.InSeptemberandOctober

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2014,IndonesiaandtheEUheldthefirstJointImplementationCommittee(JIC)meetingandtechnicalworkingsessionsontheVPAannexreview,VPAmonitoringmechanismsandthejointTimberLegalityAssuranceSystem(TLAS)assessment.

Asitstands,theSVLKcertifiedtimberisnotrecognisedasFLEGTlicensedtimberforanautomaticgreenlaneproofoflegality.IndonesiaisworkingwithEUtogetthisrecognition.

4.DISCUSSION

Forestconcessionscanbeausefultoolfortheutilisationofforestresourcesinalegalmannerbutthedevilisinthedetails.Theproblemsofforestconcessionsaremainlyduetotheveryfactthattheforeststhemselvesareverycomplexecosystems.Thisisfurthercompoundedbyanotherissue,especiallyinSoutheastAsia,thattherearemanycommunitieswholiveandexistinsidetheforests.Andoftentheinteractionsoftheselocalcommunitiesandtheforestconcessionairesgiverisetoproblems.

Moreover,theenvironmentalhealthoftheforestsisgenerallytreatedas‘publicgoods’byallstakeholders:government,forestconcessionairesandinmanycases,evenbythelocalcommunities.Thisgivesrisetothefree-riderproblemwheneveryonewantstoenjoythebenefitwithoutpersonallycontributingtothebettermanagementofthatbenefit.Suchpublicgoodsareusuallynotinternalisedintoaforestconcessionthusnotconsideredanassetwhichwarrantspropercareanduse.

TheWorldBankhaslistedeightissuesfacingforestconcessions:(1)Publicorprivateforestownershipandmanagement,(2)Publicbenefitsofnaturalforests,(3)Localcommunityforestuseandbenefits,(4)Lengthofconcessionagreement,(5)Concessionsizeandforestfees,(6)Biddingonconcessionsandtransparencyinconcessionallocation,(7)Concessionmanagementincentivesandperformanceincentives,and(8)Inspecting,monitoring,andauditingforestmanagement(Gray,2000).Aquestionnairetoexperts(chapter3)intheregionhasaddedissuesfromrecentdevelopments.Takenasawhole,themorepressingissuesaregroupedunderfiveheadings.

Transparency

AllfourcountrieshavelittletransparencyintheallocationandmanagementofconcessionsthoughtherearesomepromisingmovesinIndonesia.Incountrieswhereinternationalcivilsocietiesandactivistsareactive,thereareattemptstocollectandsharedatathroughawebsitewhichisaccessibletoall.Thisisamajorsteptofostertransparency,forexampleinLaoPDR:<www.opendevelopmentcambodia.net>inCambodiaand<www.decide.la>.

Inallfourcountries,theapplicationandapprovalprocessofobtainingaconcessionisnotpubliclyknown,thestructureoftheconcessionisnotreadilyavailableandtheexecutionandmonitoringoftheconcessionoperationsarenotmadepublic.

Expertshaveconcernsaboutthelackofinformationontheprocessleadinguptotheaward.Duediligenceshouldbeconductedbeforeawardingtheconcessiontoanyparticularpersonorcompany.Therearequestionsofpastperformance,outstandingissuesofconflictswithlocalcommunitiesorlaws,careofenvironmentandconservation.Aftertheaward,thereisalsoverylittleinformation

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duringtheexploitationstage.Conflictsarisewhenconcessionboundariesarenotpublicised.Nomapsareshowninpublic.Inmanycases,eventhenamesoftheconcessionairesarenotknown,makingitverydifficulttoseekclarificationsoveruserights,demarcations,publicrightofway,collectionsofNTFP,etc.

InSeptember2013,thethenIndonesianMinistryofForestry(nowMoEF)launchedanonlineportalthatprovidesinformationonhowtoobtainpermitsforactivitiesrelatedtoforestry.Priortothis,applicantshadtoprocessdifferentrequirementsatdifferentofficesintheministry,shuttlingbetweendirectorates,withnocertaintyofprocessingtimeandcost.Thewebsitealsooffersdailyupdatesonthenumberofpermitsbeingprocessed(JakartaPost,12Sep2013)18.

ThisinitiativeispartofabureaucraticreformasstipulatedinthePresidentialRegulationNo.81/2010andcanbeseenasIndonesia’smovetowardsmoretransparency.Theonlinelicensingsystemwasthefirststageofaone-stop,integratedandmulti-roofforestrylicensingsystemreform.However,arecentevaluation(Kartdodihardjo,2014)concluded:theexpectationsofserviceusershavenotallbeenmet.Timelinessoftheserviceproviderneedscontinuousimprovementandtheunofficialfeesthatserviceusershavetopayaretheissuesofmostconcern.

Localactivistshaveclaimedthattheplantospeedupthelicensingsystemmightworkagainsttheenvironmentofthecountryandpromotefasterdeforestationinstead.TheIndonesianForumfortheEnvironment(WALHI)saidthisinitiativeposedahugerisktothecountry’s‘strugglingnaturalenvironment’.WALHIalsonotedthatabuseofforestpermitshasbeenblamedasoneoftheleadingcausesofannualforestfiresinthecountry,andthegovernmentiscurrentlytryingtorevokeconcessionpermitsforlandorforestclearedbyfire(JakartaPost.6Oct2015)19.

Nevertheless,thisisthebestattempttointroducetransparencyinthefourcountriesstudied.Indonesiadeservesrecognitionforthis.

Localcommunitiesandrights

Localcommunitiesinallfourcountriesareunderthreatwithnumerousconflictsinvolvinglocalcommunities.Almostallofthemcanbetraceddowntoalackofformallawsprotectingthelocalcommunitiesandhencetheyareopentoabusesoflandgrabs,displacementsandevenevictions.However,civilsocietiesareactiveinthisareaandhavehelpedmanylocalcommunitiesfightfortheirrights.

Abuses

InSoutheastAsia,inevitablytherearelocalinhabitantsinconcessionareas,someofthemhavingsettledinthesameareaforgenerations.Somehavebeenthereevenbeforelawofthelandexistedandallclaimtraditionalorcustomaryrights.Suchtraditionalorcustomaryrightsareusuallynotrecognisedundercodifiedlawsofthecountryandhavebeen,andarestillthesubjectofheatedprotestsincountriesespeciallywhere‘landgrabbing’istakingplace.

18http://www.thejakartapost.com/news/2013/09/12/ministry-ease-permit-application-procedure.html19http://www.thejakartapost.com/news/2015/10/06/new-permit-policy-could-increase-deforestation.html

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Localcommunitieshavelittlerecoursewhenaconcessionisgivenovertheirlandbecauseofthelackofrecognisedrights.Theseoverlappingclaimshaveleadtodisplacementsandevenevictionswhichcreatedtremendoushardshipoverlivelihoods.Insomecases,therearenoalternativelivelihoodswhenthelocalcommunitieslostcontroloverthelandonwhichtheypractisesubsistencefarming.

Legalchallenges

AnexampleisshownintheIndonesiancourtdecisionNo.35/PUU-X/2012inwhichtheConstitutionalCourtdecidedthatcustomaryforestsclaimedbyindigenouspeopleshaveprecedenceoverforestsclaimedbytheState.ThiswasahallmarkdecisioninIndonesia.Butthereareaccusationsbycivilsocietiesthatthisdecisionhasyettobeimplementeduniversallythroughoutthenationinatimelyfashion.

InMalaysia,theFederalCourtheardtheSarawakStategovernment’sappealsontheextentofnativecustomaryrightsoverland.Inessence,theFederalCourtheardargumentsonwhetherthesecustomsarelegallyenforceable,notwithstandingthefactthattheyarenotcontainedincodifiedlaws.Theappealisstillpending.

TherightsundercontentionintheSarawakcaseareverysimilartorightsclaimedbyothercommunitiesinSoutheastAsia:felledandcultivatedlandsbynatives,andincludeorextendtorightstolandinandovertrees,fruittrees,huntinggrounds,fishinggrounds,grazinggroundsandareasforthegatheringoffoodandforestproduceinuncultivatedareaswithintheirbroaderterritorialdomainorcommunalareas.

From2007,theapexcourtofMalaysiahasrecognisedthepre-existinglawsandcustomsofindigenousinhabitants(includingnativesofSarawak,nativesofSabahandPeninsularMalaysiaOrangAsli)relatingtotheircustomarylandswithouttheneedforformalrecognitionofsuchlawsandcustomsbytherelevantlegislaturesandexecutives(unlesssuchrightsarevalidlyextinguishedbythegovernment).Theserightsaredeterminedinaccordancewiththecustoms,practicesandusagesoftheparticularindigenouscommunityandestablishedasamatteroffactthroughthecontinuousoccupationand/orthemaintenanceofatraditionalconnectionwiththelandclaimed(BorneoPost,7Sep2015)20.

Apartfromrecognisingtraditionalandcustomaryrights,thereisaneedtoinvolvelocalcommunitiesactivelyindecisionmakingandworkactivelywithconcessionaires.Sincethelocalcommunitiesareusuallyundereducatedthereisanurgentneedforsupportincapacitybuildingtofacilitateparticipatorymanagementintheconcessions.Trueparticipationofforestdependentcommunitieswillallowthemtobenefitfromconcessions.Participationinconcessionmanagementalsoempowersforestcommunitiesandallowsthemtomakedecisiononforeststheyclaimtobetheirs.Suchdemocraticmanagementregimecansustainlongtermeconomic,socialandenvironmentalobjectives.

Asapartialsolutiontothelackofofficialrecognitionbythelawsofthecountry,aclearlandusepolicy(accompaniedbyadetailedlandusemap)couldalleviatesomeoftheissuesoverconflictinglandclaims.Itisnotedthatsomeconflictsdonotconcernlocalcommunitiesassomebusinessentitiesmightbeinconflictwitheachotherandnotnecessarilywiththelocalcommunities.

20http://www.theborneopost.com/2015/09/07/federal-court-to-hear-state-govts-appeals-on-ncr-land/

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Cambodia’sNationalForestProgramme(2010)recognisedtheimportanceofsectorallanduseplanning.IndonesiaandMyanmarareworkingtowardsanationallandusepolicyandaOneMapapproach.

Forestmanagement

ItseemsthereislittleSFMinSoutheastAsiajudgingbythelackofforestcertificationandvolumesofpublicationspointingoutenvironmentdegradation,illegalloggingandsocialconflicts.SFMiscontentiousinallfourcountries.

ThelackofforestmanagementcertificationdoesnotmeanSFMisnottakingplaceintheregionbutitdoesindicatethelowlevelofachievementbytheloggers.AlltheSoutheastAsianforestscertifiedbytheworld’stwoleadingschemes,FSCandPEFC,donotmakeup2%oftheworld’scertifiedforests.

CountriesintheregiontendtofollowguidelinesproducedbyITTOandFAO,forexample:theITTOguidelinesforSustainableManagementofNaturalTropicalForestsManagement(1992)andtheFAOCodeofpracticeforforestharvestinginAsia-Pacific(1999).However,itisdebatablewhethertheseareactuallycarriedoutonthegroundbyloggersastherewashardlyanythirdpartychecking.

ThemethodsofloggingcanhinderSFM.InSoutheastAsiaaloggingconcessionisselectivelylogged.Aforestmanagementplandividesaconcessionintoannualcoupeswhicharetheareaspermittedbyauthoritiestoworkinduringaspecifiedyear.Foroperationalplanning,eachcoupeisdividedintoblocksandloggingroadsareplannedtoconnecttheblocksintomaintruckingroads.Theconcessionownerwillarrangeforamaincontractortologtheconcession,iftheownerisnotaloggingcontractororlacksthenecessaryresources.Themaincontractormightworksomeblocksbutitisnotuncommontoemploysub-contractorstoworktheblocks.Thisiswhereinmostcasesthechainofcommandbreaksdown.TheconcessionownerandthemaincontractormightbefullyawareofSFManditsrequirementsbutthesmallersub-contractorsareusuallyfocussedonvolumeproductionforprofitability(sub-contractingrateofpaymentisusuallybasedonvolumeproduced).Roadconstructionandmaintenancearealsooftencontractedout.Thesmallsub-contractordoesnothavethecapacityorresourcestocarryoutSFM.

Sincethisbusinessarrangementiscommonintheregion,thereseemstobeaneedtorelookattheresponsibilitiesandaccountabilitiesofeachactorintheloggingoperation.Insomeloggingconcessionagreementsthereisanappendixonforestengineeringplans(e.g.suchplansaremandatoryinSarawak)inwhichskidtrialsandroadbuildingstandards,bufferzonesforwaterways,bridgeconstruction,skiddingslopes,etcareclearlyspelledout.Thesub-contractormustbelegallyheldresponsibletoabidebythisengineeringplanaswellasothergeneralguidelines.

Governance

Masterplanoflanduse

Expertssaythisistherootofmanyevils.ThelackofaMasterplanoraNationalLandUsePolicydoesnotportendwellforclimatechangeinyearstocomeespeciallyintacklingLandUse,Land-UseChangeandForestry(LULUCF).Theimmediateeffectsofthiscriticallackshowupinthenumberandfrequencyofdisputesoverconcessions,conflictswithlocalcommunities,confusionsingovernments.

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Forestconcessionsaregivenoverlandwhichisclaimedbylocalcommunities;landforagricultureisgivenoverfarmlandworkeduponbygenerationsoflocalcommunities;hydrodamsarefloodinglocalcommunitiesoutoftheirland.

Governmentofficialshaveadmittedthatconcessionhavebeengivenoutbasedon‘officemaps’withoutknowledgeofwhatwasactuallyontheground.Insomecountries,thereisalackofdataavailableforsuchpolicydecisions.Concessionshavealsobeenawardedwithoutproperdemarcationofboundarieswhich,notsurprisingly,begsconflictsontheground.Loggingconcessionswereknowntobeallocatedoverlandwithhardlyanytrees.

Onanoperationallevel,afewexpertsfromtheprivatesectorpointedoutthatoverlappingjurisdictionsbydifferentdepartmentssometimesleadtoconflictinginstructionsandguidelineswhichaddunnecessarilytooperatingcosts,ifnotconfusion.Insuchasituation,concessionairescanbreaksomerulesunknowingly.Suchadditionallayersofreportingarenotconducivetoefficientrunningofacommercialoperationandtherearepleasforharmonisationofdepartmentrulesandprocedures.

OnepromisingsolutiontotheseproblemsistheOneMapapproach.Theaimisforonlyoneagencytoproduceamaponwhichdifferentgovernmentdepartmentswilloverlaytheirinterestssoastopreventanyoverlaps(andhenceconfusionoverwhosejurisdictionorlawstofollow).TheOneMapcanthenprogresstocollectingdataandbuildupdifferentthematiclayerssothatallthegovernmentdepartmentsarequiteliterallyonthesamepage

Inconsistentgovernmentpolicyisabugbeartotheprivatesector.Changingthepolicymid-streamcanalsobeharmfulforlargescaleconcessions.TheIndonesianMinistryofEnvironmentandForestryhassetatargetofredistributing12.7millionhaofsocialforests(2015-2019)toaddressrampantlanddisputesinvolvingindigenouscommunities.Mostoftheland(6.8millionha)wouldbetakenfromconcessionforests.Forestrycompanieshaveraisedconcernsoveranewministerialregulationthatrequiresthemtoallocateatleast20%oftheirexistingconcessionareastolocalcommunities,sayingtherulingwouldseverelyhurttheirplantationoperations(JakartaPost,08July2015)21.Concessionaireshavelookedatthismoveasadditionalandunexpectedburden(andtheywouldneedtorecalculatetheirproductionscosts)onlegalconcessionaireswhentheMinistryshouldbetakingseriousactionsagainstillegaloccupationofunmanagedproductionforests(JakartaPost,27Jul2015)22.

Technologyandgoverning

Recentadvancesinsatelliteimageries,LIDAR23,GPS,drones,andevensmarttelephoneshavegivengovernment(andotherslikecivilsocieties)newandbetterwaysofmonitoringwhicharenotonlyfastbutveryaccurate.InLaoPDR,forexample,therearetrialstousedronesandsmartphoneappstomonitorconcessions.Elsewhere,villagersareempoweredandtrainedtowatchoverforestsandwildlife.

21http://www.thejakartapost.com/news/2015/07/08/new-ruling-upsets-forestry-firms.html22http://www.thejakartapost.com/news/2015/07/27/strategy-side-with-indigenous-people.html23LIDAR(LightDetectionandRanging)isaremotesensingmethodthatusespulsedlasertomeasurevariabledistancestotheEarth.Itgeneratesprecise,three-dimensionalinformationabouttheshapeoftheEarthanditssurfacecharacteristics.

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Timbercertificationandmarketfailure

WhilemanyexpertssaidthirdpartyforestcertificationwillcontributetowardsSFMandensureasteadystreamofrevenueflowtothegovernmenttreasuries,theloggingandplantationcompaniesarelessthanenthusiastic.TimbercompaniesdonotseeanypremiumpricespaidforcertifiedlegaltimberproductsletalonecertifiedSFMtimberproducts.

InasimilarveinthepalmoilcompaniesalsosaidthepremiumpaidforRSPOcertifiedoil,ifany,doesnotcovertheiradditionalcosts.Infact,theproductionofRSPOcertifiedoil,knownasCertifiedSustainablePalmOil(CSPO),farsurpassesitsuptakewhichinitselfisalreadyadisincentiveforthepalmoilproducers(seeTable16).

Table16.Certifiedarea,CSPOSupplyandCSPOsales

2008 2009 2010 2011 2012 2013 2014

Area(ha) 125,288 304,421 716,080 1,299,891 2,105,433 2,653,058 3,071,321

Supply(mt) 619,012 1,473,912 3,522,207 5,573,202 8,184,200 9,792,185 11,909,121

Sales(mt) n.a. 343,857 1,281,134 2,490,526 3,479,415 4,513,273 5,349,666

Source:RSPO.

Whilemostexpertscanseethebenefitsofgettingaloggingoroilpalmoperationscertifiedbyrelevantthirdpartyorganisationsalbeittheincreaseproductioncosts,themarketissimplynotresponding.Themarkethasfailedtopayapremiumpriceforcertifiedtimberproductsthussendinganegativesignalforproducerstoskipcertificationandgoaboutbusinessasusual.PalmoilproducershaverespondedtothecallforcertificationasdemonstratedbytheannualincreasesincertifiedareasandCSPO.AgainthemarkethasfailednotonlyfornotpayingafairpremiumpricebutalsofornotbuyinguptheCSPOproduced.Themarkethasfailedtorecognisetheproducers’effortstowardssustainability.

5.RECOMMENDATIONS

ThischapterisasynthesisofthekeysuccessesandfailuresaswellastheachievementsobservedinLaoPDR,Cambodia,MyanmarandIndonesia.Theserecommendationswereshapedbytheopinionsoftheexpertssurveyedwhiletakingonboardsomeincisivecommentsrecordedduringvisitstothefourcountries.

Someissueswithforestconcessionsneedcomplexsolutionswhichwilltakealongtimetoachieve.Theconsultantconcurredwithexpertsintheregionthatitwouldnotberealistictoaddressalltheissuesrelatedtoforestconcessions.Thisstudydoesnotsetouttoidentifyandfixalltheissuesintheregion’sforestconcessionsbutitprioritisedissueswhicharedeemedfixable.Theshortlistedrecommendationsbelowcouldbereadilyadoptedbycountriesintheregionastheyarebasedonexistingexamples.

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Restorationandrehabilitation

Hugeexpensesofforestswerebadlydegraded,andstillbeingdegraded,byextensivebadloggingtechniques,agriculturalconversion,miningandothereconomicactivities.Thesedamagedforestsareresultsofpoorimplementationoftheconcessionsystems.Whileitistoolatetocorrecttheimplementation,itisnottoolatetorestorethedegradedforestsbackintoafunctionalforest.Ecosystemrestorationlicensesareastrategicwaytoreversethedeforestationanddegradationofproductionforests.

Indonesiahasdevisedanapproachtowardsecosystemrestoration.TheMoEFissuesLicensesforTimberUtilizationandEcosystemRestoration(IzinUsahaPemanfaatanHasilHutanKayuRestorasiEkosistem,orIUPHHK-RE).AsatJune2015,Indonesiahasissued13IUPHHK-RElicensescovering515,270haanddirectlyemploying2,227workers.Thelicenseisfor60yearsandcanbeextendedbyanother35years.

ByaProclamation(PP.No.6Tahun2007jo.PP.No.3Tahun2008),Indonesiarecognisesrestorationofecosysteminproductionforestsasanefforttoconservetheareaofproductionforestwhichhasimportantecosystemvalues.TheEcosystemRestorationConcessionaimstoachieveitsobjectivesthroughmaintenance,protectionandrestorationofforestecosystems,andthismayincludeplanting,enrichment,thinning,andanimalbreeding.Inordertorestorebiodiversityandecosystembalanceintheconcession,thelicenseallowsreintroductionofappropriatefloraandfauna.

AreasforIUPHHK-REareidentifiedbyMoEFfromex-productionforests.OnecriterionusedintheidentificationprocessistheavailabilityofNTFPlikerattan,sago,sap,bark,fruits,seeds,eaglewood24andbamboo.MoEFalsoconsiderstheenvironmentalservicesoftheforests:waterresources,biodiversityprotection,absorptionandstorageofcarbon.TheIUPHHK-REallowsarestricteduseoftheforestarea:cultivationofmedicinalandornamentalplants,mushroomfarming,beekeeping,animalbreedingandcultivationofswiftnests25.

These13licenseholdersarepossiblythefirstexamplesofecosystemrestorationinSoutheastAsia.Sarawak,MalaysiahasstartedwithanexperimentalrestorationlicenseinOctober2015.Thechallengeishowtogenerateasteadystreamofincometokeepgoingwhenthereisnoclarityinwherethefundsmightcomefrom.

Certification

Thirdpartycertificationseemstobethedefactoavenueinviewoffailuresbygovernmentstoensureforestmanagementissustainableintheirforests.Consumers,whoaretoofarremovedfromforestryoperationstomakeajudgement,relyonthirdpartycertificationtobeassuredofthelegalityandsustainabilityoftheproductstheyarebuying.

Technicalobstacles

Inthecaseoftimber,thereisverylittlevolumeofcertifiedtropicaltimberproductsavailableintheWesternmarkets.Themainreasonforthislackliesinthecomplexityofthecertificationprocess.Itis24Eaglewood,anIndonesiannameforagarwoodorgaharu(Aquilaria).25Birds’nestsareabigbusinessinAsia.Eg.In2013,itwasestimatedMalaysiaproduced375tonsofediblenests,worthRM1.5billion(approxUS$450millionthen).

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acomplexprocesswhichislong,tediousandexpensive,anditneedsalotoftechnicalinputs.Loggingcompaniesdonothavethetechnicalcompetencytocarryouttheworkstipulatedinthecertificationprocess.Theanswerisnotsimplytoemploysuchexpertstofilltheirgapsinknowledge;theyneedhand-holdingwhichthecertificationorganisationspresentlydonotprovide.

InIndonesia,averypragmaticapproachtosolvethisisrunbyafoundation,theBorneoInitiative(TBI).TBIrecognisescertificationisofvitalimportanceinspiteoftheobstacles.TBIworkstoovercometheobstacleswithfinancialassistanceand,moreimportantly,linkagetoaprofessionalnetworkofexpertswhocanassistwiththeprocessofcertification.

TheapproachandworkofTBIaddressmostoftheproblemsfacedbyloggerswhoaretryingtogettheiroperationscertified.TBIforgeslinksbetweentheloggingcompaniesandconsultantswhoprovidementorshipallalongtheprocessofcertification,withcertifyingbodiesasindependentauditors.

By2014,TBIhassupported40forestconcessionswith4.2millionha:12ofthemhavebeenawardedfullFSCcertificates,twoControlledWoodcertificates(the14concessionscover1.4millionha).Ofthe40concessionssupportedbyTBI,39areactivelyloggingwithatotaloutputof1.8millionm3roundwood,harvestedfromatotalproductionareaof2.6millionha.

Marketfailure

Thetechnicaldifficultiesingettingcertificationareexacerbatedbywrongsignalsfromthemarkets.Thereisnopremiumpaidbytimberbuyersforcertifiedtimber(whetherbyFSCorPEFC)andthereisnopremiumpaidfortimberthatiscertifiedasbeingproducedlegally

Inthecaseofpalmoil,thepremiumpaidforRSPOcertifiedoilissmall,ifatallthereispremium.AMalaysianpalmoilproducersaidhesawapremiumofUSD0.40permetrictonbeingpaidforRSPOcertifiedoilinAugust2015(Personalcommunication,KSHo.5Oct2015)whentheaverageCPOpricewasUSD489.

Tomakemattersworse,theactualsalesofRSPOcertifiedoilarenotmatchingtheproductionofcertifiedoil.In2014,only44.9%ofcertifiedoilwassold.In2013,46.1%.In2012,42.5%.Thislowuptakeofcertifiedoilisprovingtobeadisincentiveforoilpalmplantationstobecertified.

Thedisincentivesignalssentbythemarketsexposeamorecriticalproblem:marketfailure.Activistsand‘Greencivilsocieties’havelongpressuredtheproduceroftimberandpalmoiltodemonstratetheiradherencetoacceptableenvironmentandsocialcarebygettingtheiroperationscertified.However,marketsintheenvironmentallysensitivecountries(especiallyinEurope)arenotrespondingtothissentiment.Consumersseemtobevotingbytheirwalletsandbuyingproductsfortheirpricesratherthanfortheir‘greenness’.

Thefailuresinthemarketsneedtobefixed.Ifthepricesforcertifiedproductsareattractiveenough,theproducerswillrespondaccordinglywithoutanyoutsidepressuresneeded.

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Landusepolicy

Conflictsintheregionareoften,ifnotalways,sparkedbythegovernment,centralorprovisional,grantingaccessorpermissionforcompaniestouselandwithoutFree,PriorandInformedConsent(FPIC)oflocalcommunities.Thismightbeduetothefactthatlocalcommunitiesarerarelygrantedclearrightstotheirlandandthustendtobesidelinedbytheauthoritiesespeciallywhenstrongeconomicpressuresareputtobear.

Inpartthisproblemmightbeduetoalackofclearpolicyonlanduse.Detractorspostulatethatinsomecasesthelackofanationallandusepolicymightbeadeliberateploytoallowarbitrarygrantingoflandandrightsaspoliticalpatronage.Thereisalsonomechanismtoredressgrievancesorresolveongoingconflictsoverlanduse.

Theissuesandconfusionofwhoownswhatandwhereareduetothelackofadetailedandcomprehensivemap.TheconceptofOneMapasasolutionisbeingtested,invariousdegreeofdevelopment,inthreeofthefourcountriesstudied.TheconceptcallsfortheproductionofOneMapwithup-to-datedatawhichwillbereferencedandusedbyeverygovernmentagencies.

InIndonesia,thelackofcoordinationbetweenthecentralgovernmentanddistrictgovernmentsisevenmorepronounced.Theheadsofdistrictgovernmentshaveenjoyedautonomyinnatural-resourcemanagementsincedecentralisationstartedinthelate1990s.Theambiguitycreatesanexcuseforcompaniestoblameoneanotherorthelocalcommunitiesforanyenvironmentalviolationslikeforestfires.

TheIndonesiangovernmentisimplementingitsOneMapinitiativetotacklethelandtenurechaos.Inlate2014,Indonesia'sGeospatialInformationAgencyrolledoutastandardlandcovermapafterconsolidatingspatialdatafrom13governmentagencies.

InMyanmar,therearehighhopesthatanewLandLawwillbeputinplacebythenewgovernmentaftertheirGeneralElectionson08November2015.ItisexpectedthenewLandLawwillreflecttheNationalLandUsepolicywhichhasbeenunderintensediscussionsoveranumberofyears.Thegovernmenthastakenareasonablyopenapproachwithmulti-stakeholdersmeetingssowhenthePolicyisfinallyadopted,itcouldstarttheproductionofOneMaptobeusedbyallgovernmentagenciestoavoidfurtherconflictsoverlanduse.

OneMapcannotbeproducedwithoutarobustnationalpolicyonlanduse.Andalandusepolicycannotberobustwithoutaninclusivemulti-stakeholdersapproach.IfMyanmar,whichwasruledbyamilitaryjuntafrom1962to2011,canandistakingaseeminglydemocraticmulti-stakeholdersapproachtoformulateitsnationallandusepolicy,Myanmarshouldserveasaninspirationforothercountriestofollow.

Capacitybuildingandtraining

Theissueofcapacityiscriticalandthescaleofneedisenormous,butappreciationoftheproblemislow.Managingtropicalforestsisdifficultduetotheircomplexecosystemswhichinvolvesbothbotanyandzoology,andwiththelocalcommunitieslivingintheforests,sociologyandanthropologyareaddedtofurthercomplicatemanagement.Ontopofallthesedifficulties,thereisoftenanoverridingneedtoconsidertheeconomicstoo.

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Governmentagenciesmanagingforestsarechallengedwhenitcomestotechnicalcompetencyoversomanydisciplines.Oneheadofdepartmenthasadmittedhehasveryfewgraduatesinhisdepartment,letalongproperlyqualifiedforesters.

Intheprivatesector,companiesaredrivenbyprofitsandhavedemonstratedverylittlecareofenvironmentandsocialissuesuntilrecentcallfortimbercertificationandproofoflegality.Technicalcompetencytoaddressthegamutofskillsrequiredinmanagingtropicalforestsislimitedinthecompanies.

Butcapacitybuildingisnotonlyabouttraining.Apartfromhumanresourcesdevelopmentfortheindividuals,thereisanaspectoforganisationaldevelopmentonprocessesandprocedureswhichmightcoverbothpublicandprivatesector.Alsothereareinstitutionalandlegalbackgroundstoconsider.Foralltheseaspectstocometogetherforsuccessfulcapacitybuilding,thegovernmentmustfirstrecognisetheneedandthenputinplaceenablingconditions.

Whilethereseemstobenoshortagesof‘capacitybuilding’or‘training’intheregion,anoutstandingexampleofveryfocussedcapacitybuildingisongoinginSarawak,Malaysia.TheStateauthoritiesrealisedthatloggingcompanieslackrelevanttrainedexecutivestoleadthecompaniesintobetterpracticesandeventuallytocertification(Sarawakauthoritieshavepubliclyaskedthemajorloggingcompaniestobecertifiedby2017).TheState’sForestOrdinancewasamendedtorecogniseappropriatetraining.Thismoveenabledtheprivatesector,intheformoftheSarawakTimberAssociation(STA),toinitiatetraining,firstlyonchainsawoperatorsandmovingontoLogLoading,Clear-fellSitePreparation,andMechanicalSitePreparation.Andfinallytrainingthemanagersinforestoperations.

InaninnovativemoveSTApartneredwithLincolnUniversityofNewZealandtodeliverapostgraduatediplomaprogrammeaimedatmanagingtropicalforestry.Thistrainingprogrammestartedin2006andinthreecohortsofstudents,50graduated.Currentlythereare20studentsenrolledinthefourthcohort.

TherationaleofthispartnershipwasthatSTArecognisedthechallengesintrainingandlookedatLincolnUniversityasaninstitutionwithteachingexpertise.Inshort,LincolnwasropedintomaintainahighstandardintrainingSarawak’sforestmanagerswithmethodologiesfamiliartoallgraduates:lectures,tutorials,projects,fieldtraining,andexaminations.LecturerswiththerequiredexpertisearesourcedfromwithinandoutsideSTAandLincolnUniversity.

The12subjectsthatmakeupthePostgraduateDiplomainAppliedScience(SustainableTropicalForestManagement)coverawiderangeoftopics,examples:PlanningandImplementingForestCertification;CommunitiesandForests;NaturalForestSilviculture;RIL;HarvestingandRoading;etc.Theteachingformatisdesignedaroundtheneedsofworkingmanagers.AllsubjectsaretaughtinSarawakandofferedasintensiveblockcourses.StudentswhosuccessfullycompleteallsubjectsareawardedaLincolnUniversityPostgraduateDiploma26.Suchanintensiveandfocussedtrainingcanfillsomeoftheskillgapsintheregion.

26Moreinformationinhttp://www.lincoln.ac.nz/Study/Study-Options/Forestry-Management-in-Sarawak/

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Governance

Governmentsmustgovernforestconcessions.Failureofgoverningcanproducecatastrophicresults.Nofailureissoobviouslydemonstratedfortensofmillionstosee(andexperience)asthefailureinmanagingtheIndonesiaforestfiresandthesmokefromthefires(euphemisticallycalled‘haze’inSoutheastAsia).

TherearemanyreasonswhytheforestsinIndonesiaburnduringthedryseason:plantationsmallholders,localfarmers,shiftingcultivators,etc.Traditionally,forestsinIndonesiaandothercountrieswhereshiftingcultivationtakesplace,settingtheforestsonfireisanannualeventduringthedryseasonbutbyfarthebiggestfiresarefoundinconcessions.

ObservationsbyGlobalForestWatchbetween5and12SeptemberwerepublishedinJakartaPoston14Sep201527.Theresultsshowthat41%ofthefiresalertsoccurredinpulpwoodplantations,4%inpalmoilconcessions,1%inloggingconcessionsand54%outsideconcessions.Therewere528hotspotsinninepulpwoodconcessions,44inoilpalmconcessions,and11inloggingconcessions.ByOctober,Indonesianauthoritiessaid1.7millionhaoflandhasbeenrazedsofarinthecountry(JakartaPost,23Oct2015)28,

Indonesianlawsareclear:plantationscannotusefirestocleartheirland.Andiffiresarefoundintheirconcessions,regardlessofwholitthefires,theplantationownersaredeemedlegallyresponsible.

SmokehazehadaffectedSoutheastAsiancountriesduringthedryseasonsin1991,1994and1997.FromJulytoOctober1997,ASEANcountriesinparticularBruneiDarussalam,Indonesia,Malaysia,andSingapore,werebadlyaffectedbysmokehazecausedbylandandforestfires.Theseverityandextentofthesmokehazepollutionwereunprecedented,affectingmillionsofpeopleacrosstheregion.ThisleadtotheformulationoftheRegionalHazeActionPlan(RHAP),whichsetsoutco-operativemeasuresneededamongstASEANmembercountriestoaddresstheproblemofsmoke.Despitethis,theIndonesianforestsburneveryyear.

Haze

AstandardwayofmeasuringhazeinSoutheastAsiaisbyusingtheAirPollutantIndex(API)29.Itprovidescomprehensibleinformationabouttheairpollutionlevel.TheAPIsystemincludesfivemajorairpollutants30whichcouldcausepotentialharmtohumanhealthshouldtheyreachunhealthylevels.

DuringthehazeepisodesitiscommonfortheAPIreadingsinMalaysiaandSingaporetogointotheUnhealthyorVeryUnhealthylevelforweeksonend.ThehighestrecordedAPIinMalaysiawasareadingof839on19Sep1997inKuching,wellbeyondHazardous.ThehazeinIndonesiawherethefiresareburningisextremelythick.IntheWestKalimantancityofPontianak,theAPIpeakedat706

27http://www.thejakartapost.com/news/2015/09/14/haze-crisis-turns-deadly.html28http://www.thejakartapost.com/news/2015/10/23/haze-victims-move-ships.html29APIunder50meanshealthyair,51-100Moderate,101-200Unhealthy,201-300VeryUnhealthy,over300Hazardous.30Ozone(O3),carbonmonoxide(CO),nitrogendioxide(NO2),sulphurdioxide(SO2)andparticulatematterwithadiameteroflessthan10micron(PM10).

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on22Sep2015.Onthesameday,atPalangkaraya,capitalofCentralKalimantan,theday'shighwas1,986(AsiaOnline,23Sep2015)31

StandardOperatingProcedure

TheIndonesianMinisterofForestry,theMinisterofAgriculture,theMinisterofEnvironment,andtheHeadoftheNationalAgencyforDisasterManagement(BNPB)agreedonthe‘NationalStandardOperatingProcedureonForestandLandFirePrevention’,andaregulationwassignedon16October2014inJakarta.TheStandardOperatingProcedure(SOP),developedwithsupportfromUNORCID32,wasacollaborativeeffortamongthevariousministries,agencies,andsub-nationalgovernmentstopreventforestandlandfiresinanintegrated,effective,andefficientmanner.Itcontainsacomprehensiveseriesofframeworksandstrategiesaimedatearly-warning,early-detection,andearlyfire-fighting,allofwhichwouldbeimplementedthroughaconcertedeffortandcoordinatedbytheaboveactors(UNORCID,2014).

In2015,thehazehasdisruptedtheFINASwimmingWorldCupinSingaporeandtheKualaLumpurMarathonof30,000runnerswascancelled.Sarawaksawa30%increaseinacuterespiratoryinfectioncasesduetotrans-boundaryhaze.Whentheairqualitybecameveryunhealthy,on05October2015,Malaysiacloseddown6,798schoolswithtotalenrolmentof3.7millionstudentsand300,000teachers(TheStar,05Oct2015)33.

Thenegativeeffectsofthehazegobeyondhumans.VegetablesproductioninseveralMalaysianstateswasdownbyathird,sendingpricesupbymorethantwo-fold.PenangandProvinceWellesleyFarmersAssociationestimatedthatonaveragetwotothreemillionbroilerchickensinthenorthernregionofPenang,Kedah,PerlisandPerakdieinamonthbecauseofthehaze.InSarawak,chickeneggproductionhasdroppedbyabout2%whileinJohor,layingdeclinedbyabout5%sincethestartofthehazeseason(TheStar,2Oct2015)34.

Indonesiawasalsobadlyaffectedbythehaze.Localresidentsstrugglewiththickhazethatputstheirhealthatriskandtheeducationandtransportationsectorsinjeopardy(JakartaPost,29Sep2015)35.InSumatrafourairportswereclosedandeightinKalimantanduetopoorvisibility.InJambi(centralSumatra)twoyoungchildrendiedafterexperiencingacuterespiratoryproblems(Jakartapost,15Sep2015).Unfortunately,thethirddeathduetohazewasa31yearoldcivilservantdiedinRiaufromsuspectedrespiratoryfailure(JakartaPost,8Oct2015)36.

Thegovernmentshouldexertitsjurisdictionsoverconcessionsandstopfiresfromstarting.Thereisnosmokewithoutfire.

31http://news.asiaone.com/news/asia/central-kalimantans-psi-pushing-200032UNORCID,UnitedNationsOfficeforREDD+CoordinationinIndonesia.33http://www.thestar.com.my/News/Nation/2015/10/05/6798-schools-closed-Minister-announces-twoday-shutdown-due-to-haze-danger/34http://www.thestar.com.my/News/Nation/2015/10/02/Haze-choking-farms-too-Prices-set-to-soar-as-produce-dwindles-and-animals-die-warns-association/35http://www.thejakartapost.com/news/2015/09/29/ri-struggles-conquer-haze-crisis.html36http://www.thejakartapost.com/news/2015/10/08/smoke-claims-new-victim-triggers-prolonged-health-crisis.html

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Barney,K.C.(2011).BaselineStudy2,LaoPDR:OverviewofforestGovernance,MarketsandTrade.Foresttrends,forFLEGTAsia.

CDE.(2013).LandConcessionsandLeasesintheLaoPDR.Vientiane:CentreforDevelopmentandEnvironment.

Colchester,M.(2014).AssaultontheCommons:DeforestationandtheDenialofForestPeoples’RightsinIndonesia.Moreton-in-Marsh:ForestPeoplesProgramme.

Delux,C.(2015).PrimaryassessmentondriversofdeforestationandforestdegradationinCambodia.Cambodia:ForestAdministration.

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EIA.(2014).PermittingCrime:HowpalmoilexpansiondrivesillegallogginginIndonesia.London:EnvironmentalInvestigationAgency.

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ForestDepartmentSarawak.(2012).SustainableForestManagementandbiodiversityCOnservationinSarawak,Malaysia.Kuching:ForestDepartmentSarawak.

GlobalWitness.(2015).Guns,CroniesandCrops.London:GlobalWitnessLimited.

Gray,J.(2000).ForestConcessions:ExperienceandLessonsfromCountriesaroundtheWorld.IUFROInternationalSymposium.Belem.

Greenpeace.(2013).Certifyingdestruction:whyconsumercompaniesneedtogobeyondtheRSPOtostopforestdestruction.Amsterdam:GreenpeaceInternational.

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Grimsditch,M.(2013).ACommunityGuidetoEconomicLandConcessions(Facilitators’Edition).PhnomPenh:EquitableCambodia.

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HeinimannA,S.O.(2014).Ontherightpath?LandconcessionsinLaos.Bern:CentreforDevelopmentandEnvironment.

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Kartdodihardjo,H.(2014).TowardsbetterforestgovernanceforREDD+inIndonesia:anevaluationoftheforestlicensingsystem.Jakarta:UNDP.

LIWG.(2012).IntroductiontoLaoLandIssues.ManagingLand,ForestsandnaturalResources:growinginequityorgrowinginequity?LandIssuesWorkingGroup.

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Appendix1:TermsofReference

TASKS AND OBJECTIVES

Under the general supervision of Director, FOM and the direct supervision of the Forest Management Officer, and in close collaboration with relevant FO professional staff in HQ and the Decentralised Offices, the consultant will prepare a report on the status of forest concessions (primarily for timber production but also for non-timber forest products - NTFPs, conservation, restoration, ecotourism and other forest-based uses as relevant) in selected countries of Southeast Asia (Indonesia, Lao PDR, Cambodia and Myanmar).

The report will:

a) Describe the overall forest land status and what can be considered as forest concession, distinguishing industrial concessions, community-based concessions and other status (private forests, etc.).

b) Provide an overview of the history of the experience with forest concessions in the region, considering other countries than those selected for this study (in particular Philippines, Thailand and to a lesser extent Vietnam).

c) Describe the legal, technical and administrative aspects of the forest concession regime in the selected countries, including allocation system; fiscal, legal and normative regimes; transparency (availability of public information on concessions), contract specifications (e.g. on duties of the concessionaire), forest management system and independent certification.

d) Describe linkages/influence of the existing concession regime on national forest policies and vicecersa (e.g. on community forestry, on the approach of REDD+ and FLEGT, etc.) and on the broader policy (rural development, regional initiatives).

e) Identify the main failures/weaknesses and challenges of forest concessions from an institutional, economic, social, legal and environmental standpoint.

f) Present future perspectives on the forest concession regime in each country given changes in the social and land-use conditions (i.e. status of the informal sector, demography, changes in land tenure, competition with alternative land-use, climate change).

g) Identify and briefly describe experiences of forest concessions (at least five cases for the entire region) that show promising elements and drivers of success including social aspects related to working conditions (e.g. employment forms, payment methods, living quarters, sanitation, safety and health), and explicitly note the criteria considered for assessing the success.

h) Present available information on evidence of both positive and negative impacts (ecological, social and economic) of the existing concession regime.

For points (f) (g) and (h), a generic assessment framework shall be developed a priori.

i) Based on the assessment in (f), (g), and (h) identify good practices and promising initiatives found in forest concessions in the region.

j) Synthesize the main achievements, key success factors, lessons learned and recommendations for improving forest concession systems in the region.

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Appendix2:theQuestionnaire

IamreachingouttoyouasanexpertwithexpertiseandworkingexperienceinSoutheastAsianforestry.WeseekyourinputsintoaFAOstudyonthestatusofforestconcessionsinSoutheastAsia.Thiswilltakeonlyafewminutesofyourvaluabletime.

Background.

FAO,inpartnershipwithITTO,CIFORandCIRAD,isleadinganinitiativetoimproveforestconcessionpoliciesandpractices,particularlyfortropicalnaturalproductionforests.Thisinitiative,titled"Makingforestconcessionsworktosustainforests,economiesandlivelihoods"aimstopositivelyinfluencepoliticaldialogueattheinternationalandregionallevelsontheroleofforestconcessionsfordifferentobjectives,andtoprovidepracticalguidancetocountriesinthedesign,implementationandevaluationofforestconcessionsystemsthatbetterrespondtotheireconomic,social,institutionalandenvironmentalgoals.

YourOpinions

Aspartoftheinitiative,wearesurveyingopinionsofstakeholderstoshapethe“lessonslearnedandrecommendationsforimprovingforestconcessionsystemsintheregion”.Stakeholderslikeyouareknowledgeableandhavevaluableon-the-groundexperiencestoshare.

Havetheforestconcessionsmettheirinstitutional,economic,social,andenvironmentalgoals?

(a)ThePositives.Whatgoodaspectswouldyouliketointroduceintothecurrentconcessionsystem?Whatarethepositiveswhicharecurrentlylacking:legality,fiscal,social,environmental,transparency,economic,institutional,landuse,tenuresecurity,etc?WhataretheThreePositiveAspectswhichyouliketointroducetoimprovethesystem?

(b) TheNegatives.Whatarethebadaspectsofthecurrentconcessionsystem?Whatarethenegatives:legality,fiscal,social,environmental,transparency,economic,institutional,landuse,tenuresecurity,etc?WhatareyourThreeNegativeAspectswhichyouliketobeaddressedandcorrected?

PublicationsandDocuments.

Youand/oryourorganisationmighthaveproducedsomepublicationsordocumentsrelatedtoforestconcessionsovertheyears.Canyoupleasesharethesewithusasinputstomakethisstudymorecomplete?

ThisanonymousSurveyofOpinionswillbetreatedconfidentially;neitheryournamenoryourorganizationwillbereportedorlinkedtotheopinionsyoushare.However,publicationsanddocumentswillbeproperlycitedifused.

Finally,pleasefeelfreetosharethisSurveyofOpinionswithyourcolleagues.

Pleasereplyby23August2015

WeTHANKYOUforyourcontribution.

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Appendix3,MeetingwithExperts

Thefollowingexpertsparticipatedinmeetingswiththeconsultant,whoacknowledgewithgratitudetheinformation,data,suggestionandguidanceshared.

Vientiane,LaoPDR(31Aug–02Sep2015)

1 IlariSohlo Consultant

2 AkikoInoguchi FAOLaoPDR ForestryofficerREDD+

3 StephenRudgard FAOLaoPDR Representative

4 PalikoneThalongsengchanh

MinistryAgriculture&Forestry SnrResearcher

5 SomchaySanontry MinistryAgriculture&Forestry(For.) DeputyDirectorGeneral

6 ThongphathVongmany

MinistryAgriculture&Forestry(For.) DirectorGeneral

7 PhommaPathoummavong

MinistryAgriculture&Forestry(For.) ActHead,For.TechniqueStd.

8 BounponeSengthong

MinistryAgriculture&Forestry(For.) HeadHarvestDiv./SUFORD

9 KinnalonePhommasak

MinistryAgriculture&Forestry(For.) DptyDirestorREDD+Office

10 RichardLaity PEFCinternational,LaoPDR PrjtandDevelopment

11 MichaelEpprecht UniversityBern SnrResearchScientist

12 VongNanhthavong UniversityBern ResearchFellow

PhnomPenh,Cambodia(03–04Sep)

13 EtienneCareme FAOCambodia OperationsCoordinator

14 SrunDarith MinistryofEnvironment Advisor

15 WayneBurton GrandisTimberLtd CEO

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16 SungBunra ConservationInternationalCambodia CountryDirector

17 Joel,AllanJurgens WinrockInternational DeputyChiefofParty

18 MathieuvanRijn FAOCambodia ForestryofficerREDD+

19 ChhithSamAth WWFCambodia CountryDirector

20 OumSony NTFPEPCambodia CountryCoordinator

21 (HOUKalyan)Staff CentreforpeopleandForests CountryProgCoordinator

22 ChhengKimsun ForestAdministration DG

23 KhornSaret ForestAdministration DeputyDirector

24 BunVanna ForestAdministration Dir.For.Industry

25 SamrethVanna ForestAdministration Dir.CommunityForestry

26 ChhengChanny RECOFTCCambodia

Bangkok,Thailand(06Sep2015)

27 ThomasEnters UNEP,Bangkok UNREDDProgramme

28 CelinaYong UNDPREDDProgramme,Bangkok StakeholderEngagement

NayPyiTaw&Yangon,Myamar(08–10Sep2015)

29 UShweKyaw MyanmarForestCertificationCommittee Chairman

30 BarberCho MHCCAdvisor/PrivateSector Trader

31 MahnWinTin MyanmarTimberEnterprise GM(Extraction)

32 UNyuntWai MyanmarTimberEnterprise AsstGM(Extraction)

33 DawTinTinMyint MyanmarTimberEnterprise Manager(Extraction)

34 UKyawMyoLin MyanmarTimberEnterprise AsstManager(Extraction)

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35 UKyawKoWin MyanmarTimberEnterprise AsstManager(Extraction)

36 KhinMaungOo ForestDept Director

37 ZawMin ForestDept DeputyDirectorGeneral

38 MyoMin ForestDept Dir.(Nat.For.&Plantation)

Jakarta,Indonesia(14–15Sep2015)

39 Suwito KemitraanPartnership(GovernanceID)

40 HasbiBerliani KemitraanPartnership(GovernanceID)

41 AsepSugihSuntana KEHATI ProgDirector

42 IrwanKurniwanPermadi

TheBorneoInitiative ProgCoordinatorID

43 WimEllenbrock TheBorneoInitiative ProgDirector

44 JohanKieft UNREDDOffice HeadGreenEconomy

45 IndraSumarta APHI

46 PuteraParthama MinistryEnvironment&Forestry DeputyDirector(Sust.Man.)

47 NurMasripatin MinistryEnvironment&Forestry DGClimateChange

48 YogaPrayoga MinistryEnvironment&Forestry Head,CertificationSection

49 SriMurningtyas MinistryEnvironment&Forestry Dir.Int.Cooperation

50 DavidLee PTErnaDjuliawati/LymanTimber SnrManager

51 AgengHerianto FAOIndonesia A–FAOR(Prog)

52 StepiHakim OPMLTimberLegality REDD+WorkingGroup

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