ACIAR’S FORESTRY PROGRAM IN INDONESIA Presentation to consultation workshop February 2007

ACIAR’s Forestry Program – guiding parameters Current status of forestry in Indonesia Indonesian forestry – competitive advantages A vision for Indonesian forestry Current ACIAR-Indonesia forestry priorities ACIAR’s Indonesia project portfolio Key issues OUTLINE

Budget around $3 million annually Countries o Indonesia o PNG o Pacific o Laos o Vietnam Focus on economic impacts Availability of Australian expertise ACIAR’s FORESTRY PROGRAM Some guiding parameters

Extensive, highly diverse tropical forests sustainability challenge – over-exploitation, illegal logging Large plantation resource teak acacia – sustainability question Internationally significant processing sector pulp and paper plywood Major contribution to export economy Major contribution also to domestic economy many communities dependent on forests for livelihoods NTFPs local processing, e.g. furniture FORESTRY IN INDONESIA

Extensive areas of native forest capable of sustained yield of a wide range of products, if properly managed Climate and soils conducive to good tree growth Large and expanding plantation estate Sophisticated processing industry Communities knowledgable about forests and aware of their importance INDONESIAN FORESTRY – COMPETITIVE ADVANTAGES

Sustainably managed native forests o production of tropical timber o integrated with the production of a broad range of products and services A larger plantation estate o sustainably managed o appropriately sited o extensive community involvement o feeding a large processing industry A larger, more diversified processing industry Wider use of integrated agroforestry practices, including for the production of non-timber forest products A VISION FOR INDONESIAN FORESTRY

Integrating pest and disease management with improved production systems in high value plantation crops Development and domestication of eastern Indonesian non- timber forest product species for income generation Development of tree farming models with improved smallholder-plantation company cooperation Improved utilisation and value addition of timber from fast- growing and high value plantation species Development of sustainable timber-crop-livestock systems for the dry tropics of Eastern Indonesia CURRENT ACIAR-INDONESIA FORESTRY PRIORITIES

Bilateral Program Root rot of acacia plantations Site management for realisation of genetic gains in acacia plantations Community partnerships Commercial development of non-timber forest products in eastern Indonesia (under development) Integrated timber-forage-livestock agroforestry systems for eastern Indonesia (scoping study underway) Options for teak industry development in South-east Sulawesi (scoping study to be conducted) Processing technologies for diversification of plantation timber processing (under development) ACIAR’s INDONESIAN FORESTRY PORTFOLIO

Multilateral Program Agroforestry mozaics (ICRAF) Decentralisation (CIFOR) Improving economic outcomes for smallholders growing teak (CIFOR) ACIAR’s INDONESIAN FORESTRY PORTFOLIO

How best to deploy ACIAR’s investment in Indonesian forestry plantations processing non-timber forest products etc Linking with capacity building e.g. maximising JAF opportunities KEY ISSUES