This sub-project complements the existing elements of the Indonesia/UK Tropical Forestry Management Project by putting into practice and extending the work that SMAT (Senior Management Advisory Team) has done in identifying the steps to be taken in identifying, gazettng and writing management plans for KPHPs (Forest Utilisation Production Units).

Government of Indonesia has encouraged the logging of its natural forests for about 20 years. The nation's forests, excluding nature reserves and protection forests, are divided into over 500 20-year concessions. Concessions are managed on 35 year rotations under the Indonesia Selection System. In theory only trees over 50cm diameter are eligible to be felled and sufficient trees are left behind after felling to ensure sustained yields. In practice future yields are uncertain as no systematic measurements exist of the growth of merchantable trees left behind after logging. The composition of the residual forest in some areas is incapable of replacing the volume cut within the time frame allowed.

The total area of natural forest is continually decreasing to make way for agricultural crops. Managing natural forest is a very long-term business so it is essential that forests dedicated to production be legally constituted and protected from other land users. The natural forest that eventually remains will have to be more intensively managed if it is to contribute to future wood supply on a sustainable basis. This sub-project will directly assist provincial authorities in reserving natural forest for production as KPHPs and intensifying its management.

To identify means by which all forest and forest land stakeholders' interests are fully represented and taken into account in establishing and managing KPHPs (Forest Utilisation Production Units)

To assist provincial authorities in central Kalimantan, Jambi and possibly Riau to introduce sustainable dipterocarp forest production by gazetting and managing KPHPs. The project seeks to contribute to the introduction throughout Indonesia of a new model of sustainable dipterocarp forest production which takes account of the needs of all people concerned.

To improve the capacity within the provinces to respond to forest fires and vegetation changes.

• Establishment of provincial KPHP (Kesatnan Pengusahaan Hutan Produksi - Forest Utilisation Production Unit) implementation teams.
• The division of areas of land capability classes HPB (Normal Production Forest) and HPT (Limited Production Forest) stocked with dipterocarp forest into rational KHHPs in agreement with traditional land-users and existing HPH (Forest Utilisation Licence) holders.
• In each Province, dipterocarp forest types defined and model improved. Management plans written and agreed covering all major types identified.
• Planning methodology drawn up and agreed for dipterocarp forest which will eventually be converted to other land use.
• Methodology drawn up for forecasting long term estimates of wood and NTFP (Non Timber Forest Product) production from dipterocarp KPHPs and conversion forest.
• Broad monitoring systems set up using AVHRR imagery from a NOAA satellite to detect fires and possibly vegetation change.