The Effectiveness of Forest Moratorium Policy and its Impacts on the Indonesia’s Economy

Abstract

This paper discusses the economic effects of the forest moratorium policy which has been launched by the government of Indonesia through the Presidential Decree no. 10 of 2011 dated 20^th of May 2011. The issues addressed in the paper are the impacts on: land uses and natural forest area, carbon emissions, domestic prices, export-import, GDP, and poverty rate. Using the quantitative method of IRSA-Indonesia 5 – an inter-regional CGE model, the results show that the forest moratorium policy has both positive and negative impacts on Indonesia’s economy.

Keywords: forest moratorium, CGE modelling, economic impact.