The impact of decentralization in Indonesia on forests and crops: A case study of Riau, Kampar and Indragiri Hulu provinces.

This study focuses on the effects of decentralization on forests and crops of property in the source districts of Kampar and Indragiri Hulu, located in Riau Province, Sumatra Island, Indonesia. The study was conducted in 2000, preceding the start of decentralization in January 2001, with a brief supplement until March of that year.

It was important to assess the attitude towards decentralization at the provincial level and also to study the deconcentration of the regional office of the Ministry of Forestry and crops based on Jakarta. The fiber demand of two huge pulp and paper companies (RAPP and Indah Kiat) was analyzed at the province-wide level.

Both the original districts have recently been divided: Kampar became three, adding Rokan Hulu and Pelalawan, while Indragiri Hulu split in half, adding Kuantan Singingi. The existence of these new entities, which need to establish separate infrastructure and administration, has complicated the decentralization process.

Much of Indragiri Hulu is occupied by Bukit Tigapuluh National Park and its buffer zone, where there are many stakeholders and conflicts over illegal logging, while Kuantan Singingi has large areas under pulpwood plantations.

Kampar and Rokan Hulu are dominated by oil palm, the local people's claim to plantation land is fiercely contested.

The study found that in 2000, the most serious impact on forests was the result of political reforms and the economic crisis, when the rules of the Suharto government were ignored and timber was cut for quick profits in the face of high demand. Falling rubber prices provided an additional impetus for logging.

After decentralization, despite significant increases in income in the districts, serious environmental and social problems remained. While the presence of local pride is a positive outcome, signs of both xenophobia and the desire to develop at all costs are a cause for concern.