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Logging, Forestry Industry, and the Regional Economy

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Forest Resources Management in Indonesia (1968-2004)
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Abstract

Under the first Pelita (Pembangunan Lima Tahun) (Five-Year Development), 1967–1969, only two foreign investment companies were registered within the forestry sector in East Kalimantan. The rapid development of foreign and domestic investment in the forestry sector began during the Pelita I to Pelita III (1969/1970–1983/1984) periods, where investment in the forestry sector reached 33.9 % of total investment in East Kalimantan. For example, in 1981/1982 there were 105 logging concession holders, with a total forest size area reached of 11,812,000 ha. This investment rapidly decreased to 2.97 % of total investments under Pelita IV (1984/1985–1988/1989) (Table 10.1) until Pelita V (1989/1990–1993/1994) provided for no new projects, only extensions on previous projects, with the level of investment amounting to 0.82 % of total investment in East Kalimantan.

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Notes

  1. 1.

    For further information in terms of ‘Logging Companies’ in East Kalimantan-->, see HPH --> dan Ekonomi Regional: Kasus Kalimantan Timur (Forest Logging Concession --> and Regional Economics), Jakarta: Walhi --> , 1993 , pp. 8–12.

  2. 2.

    The impact of the ‘log ban’ suffered a total decreased of ‘wood processes industries’ in Taiwan--> from 156 to become 25 units, in Japan--> from 406 to 105 units and South Korea from 60 to 6 units. See Wibisono, Christianto, PDBI (Pusat Data Bisnis Indonesia), A Profile of Indonesian Forestry Business Featuring Timber and Wood Based Industry, 1989.

  3. 3.

    Badan Pusat Statistik Kalimantan Timur (Statistic Bureau Agency in East Kalimantan-->), 1990 and Dinas Kehutanan Propinsi Kalimantan Timur (Provincial Forest Agency), 1990; Walhi--> 1993, Op Cit, pp. 25–26.

  4. 4.

    For further information in terms of log production and width log areas, See Provincial Forest Agency East Kalimantan --> , 1990; Walhi-->, op Cit, 1993, pp. 18.

  5. 5.

    Inoue, Makoto, ‘Republic of Indonesia: Natural Environment and Economy’, in Japan--> Environmental Council (ed.), The State of Environment in Asia 1999/2000. 2000, pp. 89.

  6. 6.

    Log, which is processed in sawn timber and plywood industries accounted on log unit of wood processing production, namely 100 m3 sawn timber is equivalent to 1.82 m3 of plywood and 2.30 m3 log.

  7. 7.

    Mubariq, Ahmad (1992), Rente Ekonomi dan Eksploitasi Hutan Alam (Economic Timber Values and Natural Forest Exploitation), Report by Walhi-->, pp. 1–2.

  8. 8.

    Walhi--> (1993), Op Cit, pp. 39–40.

  9. 9.

    Local community’s income per month around Rp. 60,000–100,000 but average Rp. 60,000. If we compared with US$ (dollar) kurs rate into rupiah in 1987 was 1,643.85 and 1,842.81 in 1990. See Pacific Exchange Rate Service on Foreign Currency Units Per 1 US$ (dollar; http://fx.Sauder.ubc.ca; accessed March 14, 2014).

References

  • Mubariq A (1992) Rente Ekonomi dan Eksploitasi Hutan Alam [Economic timber interest and exploitation on natural forest]. Walhi Press, Jakarta

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  • HPH dan Ekonomi Regional: Kasus Kalimantan Timur (Forest logging concession and regional economy: a case study of East Kalimantan) (1993). Walhi, Jakarta

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  • Inoue M (2000) Introduction: Indonesia’s natural environment and economy. In: Japan Environmental Council (ed) The state of the environment in Asia 1999–2000. Springer Press, Tokyo

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  • Provincial Forestry Agency in Figure (1999/2000)

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  • Wibisono C (1989) A profile of Indonesian forestry business featuring timberand wood based industry. Pusat Data Bisnis Indonesia (PDBI), Jakarta

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Hidayat, H. (2016). Logging, Forestry Industry, and the Regional Economy. In: Forest Resources Management in Indonesia (1968-2004). Springer, Singapore. https://doi.org/10.1007/978-981-287-745-1_10

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