Effects of Indonesia Forest Fire 2

II. Legal Clusters
3. Discourse and Status:
The fires have caused conflicts with neighboring nations. As mentioned before, the practice of setting fires to clear lands have been illegal since 1994. Most people breathing the air would like for this particular law to be enforced. There has been many studies that have been done in Indonesia regarding the fires. Johann Goldammer, Chief of the Fire Ecology Research Group at Germany's Freiburg University started the only known study of Southeast Asian fires. He suggests the Indonesia set up a land-management system that protects the forest with proper satellite and radio communications to stop fires early, while educating farmers in good, controlled burning practices. He even goes further to suggest fire quotas for each farmer.
According to the umbrella law of forestry issued in 1967, all forest in Indonesia owned by the Government, the Government has the right to convert, to change the use, and to give its right to a private company. This means that the Government did not recognize the traditional law or traditional right of indigenous people on their forests. Then the New Order Government gave forest concession to some retired generals instead of to the local residents. This gave them the right to log the forest and all the indigenous people was gotten rid of their forests. Indigenous people have been prohibited to go inside the forest. Thus this created conflicts between the indigenous people and the concession companies.
It is widely agreed that there needs to be policies made to address this issue; however, the government has yet to step up.

4. Forum and Scope:
Although the fires are originating in Indonesia, the effects of the fire has been causing damages to the region which Indonesia is located. This will also affect other countries around the world who import palm oil as well.

5. Decision Breadth:
Currently, Indonesia, Malaysia, Singapore, and parts of Thailand, Hong Kong and the Philippines is affected by this fire. The regional tourism as well as health is at risk.

6. Legal Standing:
There has been studies which have been set up to measure the pollutant standard index (PSI). Indonesia has set up a task force to look into the fire problem. Indonesia did pass a law which makes clearing land through man-made fires illegal in 1994.

7. Geographic Cluster
a. Geographic Domain: Asia
b. Geographic Site: East Asia
c. Geographic Impact: Indonesia

8. Sub-National Factors:
There is a suggestion from some environmental groups to embargo any palm oil which may have come from lands which were cleared due to man-made fires. This has not been imposed on Indonesia. Rather, there has been a small grassroots movement to educate the consumer about this issue, so that the consumers would hesitate to buy palm oils produced by Indonesia.


9. Type of Habitat:Tropical
III. Trade Clusters
10. Type of Measure:
Currently, some people are working towards an import ban on any products produced on forest lands cleared illegally through fires.

11. Direct v. Indirect Impacts:
Direct: If the environmental organizations are able to help pass laws on what is an "acceptable" palm oil, as well as other industries tied to the forest land, there will be direct impact on the export side of the Indonesia economy. Indonesa with its economic situation at the moment is relying heavily on its ability to export, and majority of their high cost exports come from the forest lands. Indonesia is in need of foregin exchange to pay back its foreign debts, so it is crucial that Indonesia is able to export its products abroad.

12. Relation of Trade Measure to Environmental Impact
a. Directly Related to Product: Yes to Palm Oil.
b. Indirectly Related to Product: Yes to Trees (Wood).
c. Not Related to Product: No.
d. Related to Process: Yes to Deforestation.

13. Trade Product Identification:
Palm oil is a raw to intermediate product. Palm oil is used to make cooking oil, margarine, soaps, etc.

14. Economic Data
According to the Department of Agriculture's Foreign Agricultural Service, the US imported over $400 million in lumber last year (out of $11 billion worth of total wood imports). And this does not include wood products from other countries that contain components from Indonesian forests.
The demand for both palm oil and rubber has been growing. In 1996, the US imported over $900 million worth of rubber and latex from Indonesia, more than twice as much as timber, and nearly twice as much from just four years earlier.
Palm oil has been one of the fastest growing subsectors in Indonesia. In two decades, annual output grew from less than 400,000 tons to more than four million. The palm oil industry is continuing to enjoy its trmendous growth. Imports to the US more than doubled from 1995 to 1996, reaching nearly $78 million in value. The industry will continue its rapid growth--there are plans by the Government to double palm oil concessions by year 2000 to over 13 milion acres.

15. Impact of Trade Restriction:
The exports of palm oil could be cut and the price of palm oil could increase. With the current economic situation in Indonesia, if restrictions were to be put on any products from the forest, many would be out of jobs, contributing to the increasing number of poverty in Indonesia. Indonesia relies heavily on its ability to export. In 1994, approximately $41.3 billion worth wasw exported.