Forestry sector reform and distributional change of natural resource rent in Indonesia

After the collapse of the centralized Soeharto regime, deforestation caused by over logging accelerated. To tackle this problem, an IMF/World Bank-led forestry sector reform program adopted a market-friendly approach involving the resumption of round wood exports and raising of the resource rent fee...

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Autor principal: Kato, G.
Formato: Journal Article
Lenguaje:Inglés
Publicado: 2005
Materias:
Acceso en línea:https://hdl.handle.net/10568/19134
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author Kato, G.
author_browse Kato, G.
author_facet Kato, G.
author_sort Kato, G.
collection Repository of Agricultural Research Outputs (CGSpace)
description After the collapse of the centralized Soeharto regime, deforestation caused by over logging accelerated. To tackle this problem, an IMF/World Bank-led forestry sector reform program adopted a market-friendly approach involving the resumption of round wood exports and raising of the resource rent fee, with the aim to stop rent accumulation by plywood companies, which had enjoyed a supply of round wood at privileged prices. The Indonesian government, for its part, decentralized the forest concession management system to provide incentives for local governments and communities to carry out sustainable forest management. However, neither policy reform worked effectively. The round wood export ban was reimposed and the forest management system centralized again with cooperation from a newly funded industry led institution. In the midst of the confusion surrounding the policy reversal, the gap between the price of round wood in international and domestic markets failed to contract, although rent allocations to plywood industries were reduced during 1998 2003. The rents were not collected properly by the government, but accumulated unexpectedly in the hands of players in the black market for round wood.
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spelling CGSpace191342025-01-24T14:20:42Z Forestry sector reform and distributional change of natural resource rent in Indonesia Kato, G. concession (land) decentralization forest management forestry policies forest products industry rent After the collapse of the centralized Soeharto regime, deforestation caused by over logging accelerated. To tackle this problem, an IMF/World Bank-led forestry sector reform program adopted a market-friendly approach involving the resumption of round wood exports and raising of the resource rent fee, with the aim to stop rent accumulation by plywood companies, which had enjoyed a supply of round wood at privileged prices. The Indonesian government, for its part, decentralized the forest concession management system to provide incentives for local governments and communities to carry out sustainable forest management. However, neither policy reform worked effectively. The round wood export ban was reimposed and the forest management system centralized again with cooperation from a newly funded industry led institution. In the midst of the confusion surrounding the policy reversal, the gap between the price of round wood in international and domestic markets failed to contract, although rent allocations to plywood industries were reduced during 1998 2003. The rents were not collected properly by the government, but accumulated unexpectedly in the hands of players in the black market for round wood. 2005 2012-06-04T09:09:09Z 2012-06-04T09:09:09Z Journal Article https://hdl.handle.net/10568/19134 en Kato, G. 2005. Forestry sector reform and distributional change of natural resource rent in Indonesia . Developing Economies 43 (1) :149-170.
spellingShingle concession (land)
decentralization
forest management
forestry policies
forest products industry
rent
Kato, G.
Forestry sector reform and distributional change of natural resource rent in Indonesia
title Forestry sector reform and distributional change of natural resource rent in Indonesia
title_full Forestry sector reform and distributional change of natural resource rent in Indonesia
title_fullStr Forestry sector reform and distributional change of natural resource rent in Indonesia
title_full_unstemmed Forestry sector reform and distributional change of natural resource rent in Indonesia
title_short Forestry sector reform and distributional change of natural resource rent in Indonesia
title_sort forestry sector reform and distributional change of natural resource rent in indonesia
topic concession (land)
decentralization
forest management
forestry policies
forest products industry
rent
url https://hdl.handle.net/10568/19134
work_keys_str_mv AT katog forestrysectorreformanddistributionalchangeofnaturalresourcerentinindonesia