Investor Presentaiton
■
OPPORTUNITIES AND CHALLENGES OF
THEMATIC ISSUES OF TPL IN RIAU (1)
■ Land and economic reform: Two current policies in regard to land and economic reform in Indonesia
are Agrarian Reform and Law of Job Creation. The total target of agrarian reform is 9 million ha, while the
target under the social forestry programs is 12.7 million ha. Tree plantation can play a key role in social
forestry programs and land redistribution especially on developing smallholder tree plantation through
market and financial support. In Riau, around 1.8 million ha of forest land are illegally occupied by local
communities and the government intends to replace smallholders' oil palm to agroforestry system under
social forestry program. However, smallholder tree plantation is not considered competitive compared to
smallholder oil palm plantation in terms of profitability and rural welfare. Moreover, not all smallholder
farmers agreed to participate in the social forestry program so that it might cause conflicts, especially for
those who claim under customary rights.
Peat and mangrove restoration and management: The target for restoration in Riau is 611,000 ha,
which is mainly located outside the concession areas. Introducing new technology and innovation such
as paludiculture and agro-silvofishery that integrate community participation, private sector partnership
and peat landscape ecosystem policy can be a solution. However, there is a disagreement over what
practices are allowed, which sometimes conflict. The role of private sectors on preserving and restoring
peat areas become important as 2.7 million ha of peat is under the concession areas.View entire presentation