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Prospects for Green Jobs (GJ) in Indonesian Forestry Sector

Khoirul Anam - FSP KAHUTINDO

( Trade Union Perspective )

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• Founded 14 Juli 1973 as Serikat Buruh Perkayuan (Wood Labour Union)• Coverage: Forestry (HPH-HTI-HTR), Wood Processing Industries, Plantation &

allied sectors• Membership (June 2010): 96.456 workers; 178 Unit; 25 Districts; 12 Provinces• Main-campaign: “Sustainable Forest for Sustainable Jobs”• National Affiliation: Confederation of Indonesian Trade Unions (KSPI-CITU): 1,3M

International Affiliation: Building and Wood Workers International (BWI): 11M• National Representations:

– National Tripartite Board - LEI - DKN– National OHS Council - FLEGT-EU

• Global Representations:– UNFCCC - FSC - AFP– The Forest Dialogues - PEFC - ASETUC

• Joint Campaigns:– BWI, USW, IUF, CFMEU, ForestWorks

About KAHUTINDO(Indonesian Forestry and Allied Workers’ Union)

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1. Industries and Green House Gases (GHGs) Emission in Indonesia

2. Potential of Green Jobs (GJ) in Forestry Sector

3. Real Issues: Problems and Challenges4. Trade Union Recommendations

Presentation Structure

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1. Industriesand GHGs Emission

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RI: 80% GHG Emission from Deforestation and Forest Degradation

Source: PEACE-World Bank-DFID. 2007. Indonesia and Climate Change: Current Status and Policies.

GHG Emission Composition Comparison in 6 Countries

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Profile of RI GHG Emission in 2020(BAU Scenario)

BAU: Business as Usual

0

0,5

1

1,5

2

2,5

3

2000 2005 2020

Forest & Peat Land

Waste

Agriculture

Industry

Energy &Transportation

Source: Bappenas, 2010

Emis

i (G

ton

CO

2 e)

1,72

2,12

2,95

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80% GHGs Emission from Deforestation?

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Potential Activities in Forestry SectorIn RI Climate Change Mitigation

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Indonesia Forests

Production

Forest 82,84 M

ha62,57%

Others19,70 M

ha 14,88%

Conservation

Forest 29,85M

ha 22,55%

100187,7762955,38871132,398Total

4687,0472546,9762140,071Not Forested

54100,72948,4125092,327Forested

%Area (M ha)%Area (M ha)%Area (M ha)

TOTALOTHER LAND-USE (APL)FOREST AREASLAND COVER

FOREST COVER

Indonesian Forest Coverage = 132.397.729 ha

or 71% of Indonesian Land Coverage (187.787.000 Ha)

Source: MoF-Dirjen BPK

60% of RI GHG Emission Sourced from Forest and Peat Land (in and outside the forest areas);

17-20% of Global GHG Emission Sourced from Deforestation and Degradation of Forest;

75% Deforestation and Degradation of World’s Forest happen in Tropical zones, incl. RI.

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Pace of Deforestation & Degradation of Forest

0

0,5

1

1,5

2

2,5

3

3,5

4

1990-1996 1997-2000 2001-2003 2004-2006

Whole Indonesia Inside Forests Outside Forests

-0,410,300,680,50Outside the Forests (APL)-0,760,782,831,37In the Forest Areas

0,51,171,083,511,87Whole Indonesia

2005-2007FAO

2004-2006(M ha)

2001-2003(M ha)

1997-2000(M ha)

1990-1996(M ha)

DEFORESTATION PACE

Source: MoF-Dirjen BPK

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13,09 14,04

3,24 3,510

2

4

6

8

10

12

14

16

1990-1996 1997-2000 2001-2003 2004-2006

MIO

ha

13,09 14,04

3,24 3,51

Pace of Deforestation (Accummulated)from Deforestation Pace Data

Source: MoF-Dirjen BPK

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Potential of Emission ReductionsAFOLU in Indonesia

123Emission 2020 BAU

Post-reduction emission

Land-Use Allocation

Fire Prevention

SFM

Peat Land Rehabilitation

Afforestation Others

1 2 3 4 5

Potential

Reduction

Emission 2020

17.1 8.2 4.7 3.3 2.9 13.0

433207 118

8373

328

2.950

1.287

Source: DNPI

Million Ton CO2 e By performing 5 major activities in emission reduction, Indonesia has the potential to reduce its emissions up to

36%

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2. Potential of Green Jobs (GJ) In Forestry Industries

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Green Jobs Progress To-dateand Future Potential (1)

LimitedLimitedLimitedAviation

ExcellentNegativeExcellentRailwaysExcellentLimitedExcellentMass Transit

GoodLimitedFair to GoodFuel-Efficient CarsTRANSPORTATION

ExcellentGoodExcellentRecyclingGoodFairGoodPulp and Paper

FairFairFairCement

FairFairGoodAluminiumFairFairGoodSteelBASIC

INDUSTRY

UnknownNoneFairCarbon Capture and Sequestration (CCS)

ExcellentGoodExcellentRenewablesENERGI

LONG-TERM GREEN JOB POTENTIAL

GREEN JOB PROGRESS

TO-DATE

GREENING POTENSIAL

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Green Jobs Progress To-dateand Future Potential (2)

ExcellentGoodExcellentSustainable Forestry Management (SFM)

Good to Excellent

LimitedGood to Excellent

Agroforestry

GoodLimitedGoodReforestation/AfforestationFORESTRYUnknownLimitedGoodEnvironmental Services

Good to Excellent

LimitedExcellentOrganic Farming

ExcellentNegativeExcellentSmall Scale Sustainable Farming

AGRICULTURE

ExcellentFairExcellentEfficient Equipment and Appliances

ExcellentGoodExcellentLighting

ExcellentLimitedExcellentRetrofitting

ExcellentLimitedExcellentGreen BuildingsBUILDINGS

LONG-TERM GREEN JOB POTENSIAL

GREEN JOB PROGRESS

TO-DATE

GREENING POTENTIAL

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Opportunities

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Projection of Forest Restoration RI

21.150.000550.0005.750.0005.800.0003.550.0005.500.000Total (Ha)

2.149.20050.000750.000499.200350.000500.0002020

2.199.60050.000750.000549.600350.000500.0002019

2.119.60050.000650.000569.600350.000500.0002018

1.799.60050.000450.000499.600300.000500.0002017

1.749.60050.000350.000549.600300.000500.0002016

1.599.60050.000300.000449.600300.000500.0002015

2.249.60050.000750.000599.600350.000500.0002014

2.106.80050.000650.000556.800350.000500.0002013

1.849.60050.000450.000549.600300.000500.0002012

1.703.20050.000350.000503.200300.000500.0002011

1.623.60050.000300.000473.600300.000500.0002010

Total(Ha)

Partnership Comm. Forest

(Ha)

Natural Conserv.

Forest(Ha)

Planted Forest

HTI + HTR(Ha)

Riverbank Protected

Forest(Ha)

Community Forest

(Ha)Year

Source: MoF-Dirjen BPK

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A. Natural Forests

• Total commercial/processable timber = 3,285 B m3.• Commercial timber diameter 50cm up (eligible for logging and

processing) = 2,036 B m3.• Sustainably harvested potential (35 years rotation) 2.036

M/35yrs = 58,2 M m3/yr• From real harvesting potential outputs 56% = 32,3 M m3/yr

B. Industrial Plantation Forest• Potential 20- 60 M m3 per annum.

Source: Masyarakat Perhutanan Indonesia

Potential of Raw Materials

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• Wood is a building materials that is the most environment-friendly, compare Wood is a building materials that is the most environment-friendly, compare to other materials, ie. Steel, aluminium and concrete, with following to other materials, ie. Steel, aluminium and concrete, with following explanation :explanation :

No. Material

Energi yang terpakai (Fossil

Fuel energy used) Mj/m3

Pelepasan Carbon (Carbon Released) kg/m3

Penyimpanan Carbon (Carbon Stored) kg/m3

1 Wood 750 15 2502 Baja (steel) 266.000 5.320 03 Beton (Concrete) 4.800 120 04 Aluminium 1.100.000 22.000 0

• Wood extraction is also a renewable natural source product compared to other sectors Wood extraction is also a renewable natural source product compared to other sectors

Forestry Sector: the “Greenest” Industry

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Work Force and Sectors

21.836.768

5.947.673

1.484.59813.611.841

1.139.49512.615.4404.610.695

209.441

43.029.493

Agriculture, Forestry, Plantation, Hunting,Fisheries

Mining and Excavating

Processing Industries

Electricity, Gas, Water

Building

Trade, Restaurant, Hotel

Transportation, Warehouse,Communication

Finance, Insurance, Building and LandRental, Company Services

Community, Social and IndividualServices Source: BPS (2009)

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Green Jobs Good Jobs?

Environment - YESDecent Work - YES

Environment - NODecent Work - YES

Environment - YESDecent Work - NO

Environment - NODecent Work - NO

GREEN JOBSNO GREEN JOBS

NO GREEN JOBS NO GREEN JOBS

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• Conditions of RI Forestry Industries:

3. Real Issues:Problems and Issues (1)

INVESTMENT PERFORMANCE

Total investment in forestry sector of US$ 27,77 Billions consisting of:

• Pulp & Paper US$ 16 B (58 %),

• Plywood US$ 3,3 B (12 %)

• Logging US$ 3,28 B (12 %),

• Forest Plantation US$ 3,00 B (11 %),

• Wood Processing US$ 1,03 B (4 %),

• Furniture US$ 0,80 B (3%)

• Wood Joint US$ 0,19 B (1 %)

• Handycraft US$ 0,17 B (1 %).

WORKFORCE

Directly employed 2,35 M, indirectly employed 1,5 M workers.

• Plywood 492.500 workers• Furniture 472.000 workers• Woodworking 370.000 workers• Pulp & paper 178.624 • Industrial Plantation Forest 185.000 workers• Logging 576.521 workers• Handycraft 70.000 workers

Source: Masyarakat Perhutanan Indonesia

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Workers Conditions in Forestry and Plantation Sectors(Nursery, planting, maintenance, harvesting, logging) :

– Low Skills– Low Wages and Welfare– High risks on occupational health and safety– Minimum provision of Social Security and Health Insurance– Child labour– Discrimination of women workers wage and welfare– Short employment contract & sub-contract (Labor Supplier)– Temporary/seasonal work– Informalised work

3. Real Issues:Problems and Challenges (2)

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3. Real Issues:Problems & Challenges (3)

• Workers Conditions in Forest and Plantation Products Processing Industries (Sawmills, Wood-working, Plywood, Pulp & paper, PKS/CPO, Rubber, Cacao) :– Generally labour intensive (except for pulp & paper:

capital-intensive)– Low wages and welfare (pulp & paper relatively higher)– High risks on occupational health & safety– Minimum provision of Social Security and Health Insurance– Short employment contract & sub-contracting (Labor

Supplier)

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• Upgrading Forestry & Plantation Sectors– Combat against Illegal Logging– Revitalizing Forestry Industries– Restoration of Indonesian Forests– Investments (State & Private) for HPH-HTI-Biofuels– Law enforcement and Delineation– ‘Large’ Scale vs ‘Small’ Scale; Minimalising

informalisation of industry and work• Political Will Government/Regulator to support

Sustainable Development• Promoting Sustainable Forest Management

(SFM) and Premium Price for Wood & Bio-fuels Certification

4. Trade Union Recommendation (1)

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4. Trade Union Recommendations (2)

• Enforcement of Labour Laws and Workers Rights:– Freedom of Associations– Rights to Collective Bargaining– Anti-discrimination

• Improvement of working conditions– Minimise risks and hazards at work

• Improvement of Welfare & Productivity– Social security, health & pension insurances

• Improvement of workers skills through vocational trainings

• Long-term employment

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