The Timber Processing and Retail Sectors in Pekanbaru, Riau: Toward Reforestation by Local People

Abstract

AbstractThe integral role of the timber industry in sustaining local reforestation efforts is often overlooked. The processing and retail sectors of the timber industry are significant in that they add value to forest resources, providing local jobs and lumber supplies. This study examines these sectors in Riau, Indonesia, where deforestation and degraded peatlands have been accelerating. Based on a field survey of randomly selected molding mills and timber kiosks in Pekanbaru, the author examines the nature and scale of timber production, sales, and supply chains. Both the molding mills and timber kiosks could be classified into three types: those that function as subcontractors of large pulp and paper companies, those that operate independently and provide timber supplies for local construction needs, and those that specialize in higher-end wood processing. Those providing local timber supplies demonstrated more adaptability in terms of meeting market demands. Depending on the level of the operation’s independence, timber supply chains were more diversified in terms of the relationships among loggers, distributors, and retailers. To develop the timber sector in the context of local reforestation, it is necessary to consider how local people connect with the local timber processing and retail sectors and how to improve local timber supply chains. Reforestation programs must construct sustainable management systems that restore forests while at the same time using forest resources. This includes developing land ownership and use systems to produce timber sustainably and replanting tree species that are useful as timber.