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Overview
Indonesia, the world's largest archipelago, is endowed with abundant natural resources. The country hosts 1.43 million square kilometers of tropical forests and the largest area of rainforest outside Brazil. Indonesia is also home to diverse animals and plants. The rich forests and surrounding seawater provide a habitat for 10% of all known plants and one eighth of all animals. The sea surrounding the archipelago also provides Indonesia with copious oil and natural gas reserves.
For more information see the UNDAC Mission Report and UNEP Report.
The abundance of natural resources faces serious challenges. The country suffers from deforestation caused by both legal and illegal logging, and forest fires. Forest fires and urbanization have led to severe air pollution, while oil spills and the increasing dumping of industrial waste make maritime pollution a serious concern.
Deforestation
The most serious environmental problem in Indonesia is deforestation, which results from three major factors.
Logging
Legal and illegal logging has caused significant deforestation. Since the beginning of the New Order regime in 1965, Indonesia has used its natural resources, including its forests, as a major boost for economic development. The Suharto government maintained sole control over forests and promoted timber production by granting logging concessions. By the end of the 1970s, Indonesia's share of total global exports of tropical wood had risen from zero to 40%.
While legal logging poses a threat to Indonesia's forest resources, illegal logging, organized by companies with strong links to well-connected businesses and the military, has also been prevalent. Illegal logging became a more serious problem after the economic crisis in 1997. The reduced power of the central government and related ministries to oversee forestry activities has increased illegal logging activities. Further, the rise in unemployment pushed Indonesians to use the natural forests as an alternative source of income.
As a result of rampant logging, observers estimate that one of the world's most biologically diverse lowland forests, located in Sumatra, could disappear within three years.
For more information, see, Asia Times, "Indonesia's record-breaking forest disappearing fast."
The government is aware of the environmental consequences of deforestation. Yet, after decades of heavy subsidies and concession licensing to the private sector, it retains minimal control over the management of forest resources.
Land Clearing
Deforestation in Indonesia also results from land clearing by the burning of large areas. Woods have been cleared and converted into agricultural and timber plantation lands partly in order to secure resettlement area for the Transmigration Plan.
For more information please see Transmigration
The government also plans to clear lands for coal mining as coal is deposited beneath the jungle in the Indonesian hinterlands.
Forest Fires
Forest fires are the third major cause of deforestation in Indonesia. In 1991, a series of fires broke out in Southern Kalimantan and Sumatra, ravaging more than 500 square kilometers. In 1997, fires burnt 7,500 square kilometers of forests, resulting in 262 deaths, according to the World Wide Fund for Nature (WWF).
For more information please see United Nations Environment Programme.
In 1998, fires also destroyed forest resources and biodiversity, and caused heavy air pollution. The major reason for the fires in 1997 and 1998 was land clearing. However, the unusual prolongation of the dry season amid El Nino also provided perfect conditions for the fires to spread uncontrolled. In addition, the poor emergency response capacity of the Indonesian government extended the crisis, requiring the government to request international assistance. Irresponsible land clearing and logging has contributed in part to uncontrolled forest fires in Kalimantan.
For more information please see International Assistance.
For more information on the environmental situation in Kalimantan, see the Kalimantan regional brief
The consequences of the fires have been immense. Apart from the destruction of forest resources, the fires destroyed and disrupted the unique ecosystem. Moreover, the thick smog created by the fire caused severe air pollution in the region, in Thailand, the Philippines, Singapore and Malaysia as well as throughout Indonesia. The carbon dioxide produced by burning trees and plants also contributed to the greenhouse effect, potentially causing changes in local weather and rain patterns. Lastly, the air pollution threatened people's health, causing asthma and respiratory diseases.
Urban Pollution
One of the major costs of rapid industrialization in Indonesia has been urban pollution. The country's urban population rose to 30% in 1995 from 15% in 1970. The concentration of people and economic activities without a sound government policy to support them prompted serious water and land pollution.
Industrial pollution and vehicle emissions are the main causes of air pollution in metropolitan areas. People living in urban areas also face water pollution. A recent study by the Ministry of Health in Indonesia indicates that 40.6% of all water supplies in urban areas are contaminated with fecal waste due to poor sewerage and sanitation system. The urban solid waste, toxic waste, chemicals and pesticides pose another threat to land pollution. In addition, large landfills increase the level of methane gas and carbon dioxide in the air.
Maritime Pollution
The pollution of seawater surrounding the archipelago stems from industrialization, oil-shipping accidents, deforestation and the illegal dumping of sewage. Oil spills often occur when oil tankers collide or ground in the Strait of Malacca, a major channel for world oil transport. The spillage of 12,000 tons of crude oil in 1992 and another 15,000 tons in 1993 seriously damaged coral reefs, other forms of marine life and human health.
Another serious risk to Indonesia's seawater is siltation, prompted by deforestation and land clearing. Heavy siltation has triggered reef degradation and altered water flows.
Government Response
The Indonesian government recognizes the extent of the problems of environmental degradation and has taken steps to improve the situation.
Regarding forest protection, the government reserved 19 million hectares - about 10% of Indonesia's total land area - as parks and reserves, and another 30 million as permanent protection forests. In 1994, the government recognized that the Transmigration Program was one of the most threatening factors in forest destruction. As a result, the government and the World Bank jointly launched an initiative to reduce the number of settlers by more than 60%, giving priority to the protection of the environment and indigenous people.
After the forest fires of 1997 and 1998, the government launched a series of joint projects with Germany, including Promotion of Sustainable Forest Management in East Kalimantan (SFMP) and Integrated Forest Fire Management.
Concerning maritime pollution, the government has reserved 30 hectares of marine conservation areas to protect the ecosystem and natural resources.
Despite these efforts to rectify the problems, various impediments block effective implementation of these measures.
International Assistance
After the fires in 1997, Indonesia received extensive assistance from the international community. In September 1997, the United Nations Disaster Assessment and Coordination Team (UNDAC) was sent to Indonesia to assess the fire situation and to identify the needs for international assistance. International assistance began the following year.
In response to the fires in 1998, the United Nations Environment Program (UNEP) and the Office for the Coordination for Humanitarian Affairs (OCHA) jointly managed plans to enhance Indonesia's fire fighting capacity. The plans included the provision of fire fighting packages and other specialized equipment, training, expertise, special aircraft support and communication tools. In addition, other UN agencies, including UNDP, FAO, WMO, WHO and UNESCO provided assistance.
Since 1997 FAO has helped the Indonesian government to develop the National Fire Protection Policy and to build the institutional capacity of the Ministry of Forestry. During the 1997 fires, UNICEF handed out facemasks, while WMO worked on solving smoke and haze problems.
Challenges
The World Bank points to the shortage in staff, expertise, infrastructure and budgets, coupled with the vast size and remoteness of the affected, as major reasons for the unsuccessful implementation of the government's environmental protection schemes.
For more information please see Environmental Defense and World Bank.
In order to improve the environmental situation in Indonesia, the World Bank recommends that the Indonesian government set priorities to make the most efficient use of the limited financial and administrative resources. These priorities include water supply and sanitation, solid waste management, vehicle emissions control in urban centers, industrial pollution control, and the management of forest concessions.
While concentrating on the priority areas is the most urgent task, the World Bank also suggests that the government simultaneously strengthen its institutional capacity in an effort to handle the various further tasks. Finally, the Bank recommends soliciting the participation of various stakeholders in the government's efforts in order to create synergy effects in solving the environmental priorities.
For more information please see The World Bank Group's "Indonesia: Environment and Development Executive Summary."
Resources
For more information on environmental issues in Indonesia, please click on the following links:
The Context for Community Forestry in Indonesia: The International Network of Forests and Communities 2001 Report.
Indonesia: An Environmental Security Assessment, by Elizabeth Borelli: Air Command and Staff College Air University.
Between Danger and Opportunity: Indonesia's Forests In an Era of Economic Crisis and Political Change, by William Sunderlin.
Indonesia: Natural Resources and Law Enforcement, Asia Report No. 29, by the International Crisis Group, December 20, 2001
Updated May 2002
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