The Impact of Provincial Forest Subsidies on Deforestation in Indonesia
DOI:
https://doi.org/10.36574/jpp.v5i2.202Keywords:
deforested area; forest; subsidy; tariff; policyAbstract
This study investigates the impact of the forest subsidy on deforested area. Panel data used to examine whether the forest subsidy and the logging tariff policy can curb the deforested area in the province from 2009 to 2019. Pooled OLS was the suitable model to estimate the relationship. The study found unexpected result that the increase in forest subsidy increased the deforested area in a province. Whereas the increase in industry-manufacturing sector worker reduced the deforested area. Another unpredictable result was the logging tariff, which is expected to reduce deforested areas, did not affect the deforested area in a province.
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References
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I. A.P. Resosudarmo, W.D. Sunderlin. Rates and Causes of Deforestation in Indonesia: A Review of Confusion and Solutions (Laju Dan Penyebab Deforestasi Di Indonesia: Penelaahan Kerancuan Dan Penyelesaiannya). CIFOR Occasional Working Paper No.9 (I). Center for International Forestry Research, Bogor, Indonesia, March 1997. https://doi.org/10.17528/cifor/000057.
Yazid, Muhammad. 2020. Do Plantation Commodity as Main Income Influence Deforestation? Evidence from Village Level in Indonesia. Master’s thesis, International University of Japan. Niigata, Japan.
Anastatica, Yolanda. 2020. Do Forest Management Unit and Special Allocation Grants Reduce Deforestation in Indonesia? An Empirical Test. Master’s thesis, International University of Japan. Niigata, Japan.
Andersen, Lykke E. 1996. The Causes of Deforestation in the Brazilian Amazon. Journal of Environment and Development 5 (3): 309–28. https://doi.org/10.1177/107049659600500304.
Anugrah, Nunu. 2020a. Deforestation Decreases, Indonesia Receives USD 103.8 Million from the GCF. Press Conference Number: SP. 354 / HUMAS / PP / HMS. http://ppid.menlhk.go.id/siaran_pers/browse/2627. (accessed August 3, 2020).
———. 2020b. SOFO 2020: Indonesia’s Deforestation Drops Sharply, Jokowi Government’s Commitment to Protect Biodiversity. PRESS RELEASE NUMBER: SP. 213/PR/PP/HMS. http://ppid.menlhk.go.id/siaran_pers/browse/2486. (accessed May 3, 2020).
Ashton, Mark S., C. V.S. Gunatilleke, I. A.U.N. Gunatilleke, B. M.P. Singhakumara, Sunil Gamage, Tomohiro Shibayama, and Chisato Tomimura. 2014. Restoration of Rain Forest beneath Pine Plantations: A Relay Floristic Model with Special Application to Tropical South Asia. Forest Ecology and Management 329: 351–59. https://doi.org/10.1016/j.foreco.2014.02.043.
Balooni, Kulbhushan, and Makoto Inoue. 2007. Decentralized Forest Management in South and Southeast Asia. Journal of Forestry 105 (8): 414–20. https://doi.org/10.1093/jof/105.8.414.
Bettwy, Mike, Tropical Deforestation Affects Rainfall in the U.S. and Around the Globe. News Magazine - Feature (blog), NASA, September 13, 2015, https://www.nasa.gov/centers/goddard/news/topstory/2005/deforest_rainfall.html. (accessed December 3, 2020).
Boucher, Doug, Sarah Roquemore, and Estrellita Fitzhugh. 2013. Brazil’s Success in Reducing Deforestation. Tropical Conservation Science 6 (3): 426–45. https://doi.org/10.1177/194008291300600308.
Burgess, Robin, Matthew Hansen, Benjamin A. Olken, Peter Potapov, and Stefanie Sieber. 2012. The Political Economy of Deforestation in the Tropics. Quarterly Journal of Economics 127 (4): 1707–54. https://doi.org/10.1093/qje/qjs034.
Erwinsyah, Erwinsyah, Harianto Harianto, Bonar M. Sinaga, and Bintang C.H. Simangunsong. 2013. Dampak Kebijakan Provisi Sumberdaya Hutan Dan Dana Reboisasi Terhadap Kesejahteraan (Impact of Provision of Forest Resources Policy and Reforestation Fund on Welfare). Jurnal Analisis Kebijakan Kehutanan (Journal of Forestry Policy Analysis) 10 (1): 15–36. https://doi.org/10.20886/jakk.2013.10.1.15-36.
Evans, Megan C. 2018. Effective Incentives for Reforestation: Lessons from Australia’s Carbon Farming Policies. Current Opinion in Environmental Sustainability 32 (October 2017): 38–45. https://doi.org/10.1016/j.cosust.2018.04.002.
Godar, Javier, Toby A. Gardner, E. Jorge Tizado, and Pablo Pacheco. 2014. Actor-Specific Contributions to the Deforestation Slowdown in the Brazilian Amazon. Proceedings of the National Academy of Sciences of the United States of America 111 (43): 15591–96. https://doi.org/10.1073/pnas.1322825111.
Gonschorek, Gerrit J., and Günther G. Schulze. 2018. Continuity or Change?: Indonesia’s Intergovernmental Fiscal Transfer System under Jokowi. Journal of Southeast Asian Economies 35 (2): 143–64. https://doi.org/10.1355/ae35-2c.
Hargrave, Jorge, and Krisztina Kis-Katos. 2013. Economic Causes of Deforestation in the Brazilian Amazon: A Panel Data Analysis for the 2000s. Environmental and Resource Economics 54: 471–94. https://doi.org/10.1007/s10640-012-9610-2.
Indonesia, Statistics. 2020. Deforestation Rate (Netto) in Indonesia, Inside and Outside Forest Area 2013-2018 (Ha/Year). Indonesia Deforestation Book 2013-2014, 2014-2015, 2015-2016, 2016-2017, Ministry of Environment and Forestry. 2020. https://www.bps.go.id/statictable/2019/11/25/2081/angka-deforestasi-netto-indonesia-di-dalam-dan-di-luar-kawasan-hutan-tahun-2013-2018-ha-th-.html.
Irawan, Silvia, Luca Tacconi, and Irene Ring. 2013. Stakeholders’ Incentives for Land-Use Change and REDD+: The Case of Indonesia. Ecological Economics 87: 75–83. https://doi.org/10.1016/j.ecolecon.2012.12.018.
Princeton University-Research Reports. 2013. If a Tree Falls in Brazil…? Amazon Deforestation Could Mean Droughts for Western U.S. by Kelly, Morgan, U.S. 2013. https://www.princeton.edu/news/2013/11/07/if-tree-falls-brazil-amazon-deforestation-could-mean-droughts-western-us?section=topstories.
Mildrayana, Eri. 2012. The Socio-Economic Factors on Deforestation in Indonesia. Master’s thesis, International University of Japan. Niigata, Japan.
Nepstad, Daniel, David McGrath, Claudia Stickler, Ane Alencar, Andrea Azevedo, Briana Swette, Tathiana Bezerra, et al. 2014. Slowing Amazon Deforestation through Public Policy and Interventions in Beef and Soy Supply Chains. Science 344 (6188): 1118–23. https://doi.org/10.1126/science.1248525.
Ostrom, Elinor. 2000. Collective Action and the Evolution of Social Norms. Journal of Economic Perspectives 14 (2000): 137–58. https://doi.org/10.1257/jep.14.3.137.
President Indonesia, The Republic of Indonesia. 1999. Kehutanan (Forestry). Indonesia.
———. 2020. Rehabilitasi Dan Reklamasi Hutan (Forest Rehabilitation and Reclamation). Indonesia. LN.2020/NO.137, TLN NO.6518, JDIH.SETNEG.GO.ID?: 28 HLM.
Robbins, Jim, Deforestation and Drought. Opinion (News Analysis-blogs), New York Times, October 9, 2015, https://www.nytimes.com/2015/10/11/opinion/sunday/deforestation-and-drought.html. (accessed December 3, 2020)
Statistics Indonesia. 2020. Forest Area and Conservation Waters Area of Indonesia Based on Decree of the Minister of Environment and Forestry until December 2018. Statistics of the Ministry of Environment and Forestry 2018. 2020. https://www.bps.go.id/statictable/2013/12/31/1716/luas-kawasan-hutan-dan-kawasan-konservasi-perairan-indonesia-berdasarkan-surat-keputusan-menteri-lingkungan-hidup-dan-kehutanan-s-d-desember-2018.html.
Susetyo, Pramono Dwi. 2021. Sampai Dimana Rehabilitasi Hutan? (Where Does Forest Rehabilitation Go?). Laman Kabar Baru (News Update Page). 2021. https://www.forestdigest.com/detail/996/perbedaan-reforestasi-reboisasi-rehabilitasi-penghijauan. (accessed March 15, 2021).
I. A.P. Resosudarmo, W.D. Sunderlin. Rates and Causes of Deforestation in Indonesia: A Review of Confusion and Solutions (Laju Dan Penyebab Deforestasi Di Indonesia: Penelaahan Kerancuan Dan Penyelesaiannya). CIFOR Occasional Working Paper No.9 (I). Center for International Forestry Research, Bogor, Indonesia, March 1997. https://doi.org/10.17528/cifor/000057.
Yazid, Muhammad. 2020. Do Plantation Commodity as Main Income Influence Deforestation? Evidence from Village Level in Indonesia. Master’s thesis, International University of Japan. Niigata, Japan.
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Published
2021-10-30
How to Cite
Surandoko, T. (2021). The Impact of Provincial Forest Subsidies on Deforestation in Indonesia. Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning, 5(2), 250–268. https://doi.org/10.36574/jpp.v5i2.202
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