WRITTEN QUESTION E-1421/02

by Karin Junker (PSE) to the Commission

(23 May 2002)

Subject: Forest dieback in Indonesia

International environmental organisations are concerned at the situation in Indonesia: of the 162 million hectares of forest covering the island state with its rich vegetation 40 years ago, only half still remains. Experts consider the long-term climatic and ecological repercussions to be alarming. Alongside forest fires, local observers believe that the corrupt political system is chiefly responsible for the loss of vital resources. They claim that the region's autonomy has been consolidated since the fall of the former President Suharto, and state control has become powerless. Local administrative authorities with few funds have enriched themselves by illegally felling trees. NGOs are calling for forest reform, clear rules on ownership and more action to combat illegal logging and corruption in order to safeguard the environment and essential resources for future generations.

The EU is Indonesia's second largest trading partner and the main destination for the export of goods. The EU is also the largest external investor in the region. Over a period of four years, EUR 106 million have been allocated to EC development programmes, mainly to support forestry. In its communication Developing closer relations between Indonesia and the European Union(1), the Commission stresses the need to support Indonesia in its plans for forest reform. It points out that the problems are closely linked to the political process in Indonesia. If that process were improved, EU aid programmes which chiefly focus on fire prevention, sustainable forestry and preserving the ecological balance would be more effective.

Can the Commission answer the following questions:

- To what extent is the Commission exerting pressure on the Indonesian Government to carry through the planned reforms?

- In what way is the Commission cooperating with local and international NGOs?

- Does the Commission see a link between the threat to Indonesia's forests and shortcomings in the local administrative structure?

- Does the Commission have any figures on the extent of deforestation and the scale of corruption?

- What possibilities does the Commission see for eradicating abuse and preventing illegal logging?

(1) COM(2000) 50.

Answer given by Mr Patten on behalf of the Commission

(27 June 2002)

The Commission shares the concerns expressed by the Honourable Member regarding the destruction of forests in Indonesia, and the inadequate governance and regulation of land and forest resources,

which is at the root of the problem. The reported rate of deforestation, if continued, could eliminate the majority of the remaining virgin forests in Indonesia in less than twenty years. Corruption is reportedly related to the allocation of logging permissions, but it is very difficult to quantify the scales involved.

The Commission is implementing measures within its present and proposed future co-operation with Indonesia to try to ameliorate the management of forests in Indonesia. It has, for some years now, been leading the international donors within the Consultative Group policy discussions with Indonesia in pressing for reform in the forestry and land governance sectors. Through ongoing dialogue with the authorities and by including specific conditions and governance aspects in ongoing projects, preservation of the forests is being encouraged. In particular, since 2001, the Commission is financing the creation and operation of the Illegal Logging Response Centre in the Indonesian Ministry of Forestry, which specifically deals with the reporting and control of illegal logging abuses in Indonesia.

At the international level, the Commission is also promoting the implementing and strengthening of measures aimed at the conservation and sustainable management of forests, for example, in the United Nations (UN) Forum on Forests, the Convention on Biological Diversity and the International Tropical Timber Organisation. It also participated in the Forest Law Enforcement Governance and Trade (FLEGT) conference in Bali in September 2001. As a follow-up to that Ministerial conference the Commission held in Brussels in April 2002 an international workshop on Forest Law Enforcement, Governance and Trade (FLEGT). This was attended by the main stakeholder experts from the Member States, other main wood-producing and importing countries, non-governmental organisations (NGOs) and the forest industries. It examined ways of establishing mechanisms for identifying legal/illegal wood production, providing a legality licence, new legislation to prohibit import of illegal wood products into the Community, and due diligence criteria for lending to wood-producing operations, as well as proper sourcing for public contracts. The Commission declared in its Communication Towards a Global Partnership for Sustainable Development(1) that it would develop a European Union action plan by end 2002 on Forest Law Enforcement, Governance and Trade (FLEGT) to combat illegal logging and associated illegal trade and to strengthen international co-operation to address violations of forest law, and forest crime. Accordingly, the Commission itself is now producing a Communication for an EU FLEGT action programme.

The Commission agrees that improved governance at national and regional levels is essential to making progress in forests management in Indonesia. This is why the Country Strategy for Community assistance to Indonesia 2002-2006 is focused on two inter-related sectors, which are good governance and the sustainable management of Indonesia's natural resources especially the forests. The programme of assistance foreseen includes allocations of funding to reinforce the process of decentralisation and to consolidate the judicial system within Indonesia, particularly related to management of forests, land rights and natural resources.

(1) COM(2002) 82 final.