Natural Resources and Ecosystem Services

Seminar on Ecosystem Restoration Concessions in Indonesia

Indonesia and Japan have historically enjoyed strong relationships. In 2015, 1,533 Japanese private companies were conducting business activities in Indonesia and 18,463 Japanese people were living in Indonesia (JETRO 2017).

There is wide recognition in Japan of the importance of Indonesia’s forests. Indonesia is known as a forest rich county, holding 43% of the total forest area in ASEAN member states (FAO 2015), and as a global center of biodiversity. However, millions of hectares of Indonesia’s forest have been degraded and lost because of human activities, resulting in huge carbon emissions that are contributing to global climate change. The Indonesian government and people are involved in a range of initiatives to maintain the country’s remaining forest estate, and there is strong demand for innovative technologies and management models to conserve the forests.

In Japan, forest conservation has become a major topic for private companies, as a means to contribute to Indonesian society. The Japanese government is also interested in contributing to forest conservation by supporting the engagement of the private sector with this issue. For Japanese companies to contribute to forest conservation with their available resources, they need Indonesian partners who hold the legal right and have responsibility for forest conservation.

Ecosystem Restoration Concessions (ERC) in Indonesia are areas where private companies have acquired the rights for ecosystem restoration in state production forests through a formal license. The name for the license is Timber Forest Product Utilization Business License for Ecosystem Restoration in Natural Forests (IUPHHK-RE: Izin Usaha Pemanfaatan Hasil Hutan Kayu-Restorasi Ekosistem). The license holders can conduct business activities through their management and use of the forests, including payment for environmental services and the sale of non-timber forest products, for a term of 60 years. As most of the natural forests in the ERCs are degraded by past logging activities, their management is expected to contribute to forest restoration. Sixteen licenses over 623,075 ha had been issued by 2016, or for 35% of the allocated areas which cover ~1,792,680 ha. The government is aiming to increase the attractiveness of ERCs to private actors through changes of the ERC regulations, while it has stopped the issue of new business licenses for oil palm, timber and logging operations on primary forests and peatlands since 2011.

For foreign private actors who are interested in the conservation of tropical rainforest or development of innovative technologies or business models for sustainable forest management, ERC license holders can be ideal partners, as they have the exclusive legal right to conserve natural forests over large areas over a long term. Given these advantages of ERCs, it is of no surprise that some Japanese companies are already supporting or cooperating with several ERCs to conserve natural ecosystems.

To promote ERC to Japanese private actors and experts who are interested in forest conservation and the sustainable use of forest resources in Southeast Asia, the Seminar on Ecosystem Restoration Concessions in Indonesia was held at the Embassy of Indonesia in Tokyo on 15 June 2017. Officers of Indonesia’s Ministry of Environment and Forestry responsible for ERC explained the government’s policy, institutions and regulations. Several ERC holders also presented on their management, strategies, the challenges they face and opportunities they foresee to collaborate with Japanese private actors.

Date 15 June 2017 (9:30-17:00) (Registration starts at 9:00)
Venue Lobby of Embassy of Republic of Indonesia in Tokyo access
(5-2-9 Higashigotanda, Shinagawa-Ku, Tokyo 141-0022, Japan)
Co-organizers Institute for Global Environmental Strategies (IGES)
Research Institute for Humanity and Nature (RIHN)
Co-sponsors Okayama University
Kyoto University
Supporters Embassy of Republic of Indonesia in Tokyo
Language English / Japanese with simultaneous interpreting
Participants 68

Moderator: Makino Yamanoshita (Senior Researcher, Institute for Global Environmental Strategies)

Download presentation materials(zip 28.3MB)
9:30 Welcome Speech
Arifin Tasrif (Ambassador of the Republic of Indonesia for Japan and Federation of Micronesia)
9:40 Objective of the Seminar
Hiromitsu Samejima (Researcher, Institute for Global Environmental Strategies)
9:50 Significance of forest Restoration in Indonesia for Japanese Private Sectors
Shiro Chikamatsu (Director, Ecological Economic Solutions)
10:10 Policy Development of Ecosystem Restoration (Target, Progress, and Challenges)
Djohan Utama Perbatasari (Director of Environmental Service Business of Production Forests and Non-Timber Forest Products, Directorate General of Sustainable Production Forest, Ministry of Environment and Forestry)
10:30 Break
10:50 Ecosystem Restoration Progress
Happy Rezkiana (Sub-director of Ecosystem Restoration and Area Utilization, Directorate General of Sustainable Production Forest, Ministry of Environment and Forestry)
11:10 The Importance of Ecological Restoration: Research Approach
Ika Heriansyah Mahir (Principal Researcher, Research, Development and Innovation Agency, Ministry of Environment and Forestry)
11:30 Q & A
11:50 Lunch
13:00 Current Management and Challenges of Ecosystem Restoration Concessions
  • Agus Budi Utomo (Forest and Biodiversity Adviser, Burung Indonesia) and Lisman Sumardjani (Director of Operations, PT Restorasi Ekosistem Indonesia / Hutan Harapan)
  • Aldrianto Priadjati (Director of Conservation, PT Restorasi Habitat Orangutan Indonesia)
  • Dharsono Hartono (President Director, PT Rimba Makmur Utama)
  • Mochammad Asari (Ecosystem Restoration Technical Director, PT Rimba Raya Conservation)
  • Purwadi Soeprihanto (Senior Adviser, PT Ekosistem Khatulistiwa Lestari)

14:40 Break
15:00 Sustainable Use of Forests and Improvement of the Living Standards of Local Communities -Potential of Non-Timber Forest Resources
Masahiko Hori (Executive Director, Japan International Forestry Promotion and Cooperation Center)
15:20 Q & A
16:50 Closing Remarks
Hironori Hamanaka (Chair of the Board of Directors, Institute for Global Environmental Strategies)

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