adat	Traditional law governing indigenous Indonesian communities
Apkindo	Association of Indonesian Plywood Producers
APHI	Association of Indonesian Forest Concession Holders
Bulog	The State Logistics Agency that has, at various points, been responsible for the import and distribution of dozens of major food commodities including rice, wheat, flour and sugar. The organization was, and to some extent still is, known for depressing the prices of commodities it bought, and/or inflating the prices of the commodities it sold, in order to capture rent from the sizeable spread between the two price levels.
clear fell, clear cut	To remove all trees of commercial size and value from a forest area. Clear felling is the harvesting practice used by companies with land clearing licenses ("IPK"). Clear felling in Indonesia does not purport to be a sustainable harvesting practice, and in that sense contrasts with the Indonesian selective felling system ("TPTI") practiced in Indonesian natural forest concessions, which in theory is supposed to constitute a sustainable harvesting practice.
dbh	"Diameter at breast height" of a tree measured 1.3 meters above the ground.
dana reboisasi (DR)	The "reforestation fee," Indonesia's largest timber levy, is currently set at US$10/m3 for meranti. The fee is principally used to subsidize industrial timber plantations. The holders of natural forest timber concessions are expected to finance their own reforestation efforts. During the Suharto years, the DR was widely used to subsidize a wide range of activities unrelated to forestry, including operations of the heavily indebted parastatal airplane manufacturer IPTN.
Dinas Kehutanan	One of two distinct provincial bureaucratic strata of the forestry bureaucracy. The Dinas Kehutanan in any given province is answerable to the governor of that province, and has the responsibility for enforcing national forestry laws.
dipterocarp	More of the commercially valuable trees of Southeast Asia's humid lowland forests can be found in this family than any other. Important species found within the dipterocarp family include shorea, kapur, keruing, and meranti.
economic rent	Economics divides profit into normal profit and above-normal profit. Normal profit is defined as the amount needed to attract and retain a firm in a particular line of business. Any profit over and above that amount is defined as above-normal profit, or economic rent. Economic rent is divided into the amount captured by the government through levies and taxes, and the remainder earned by the firm. The Indonesian forest products industry is characterized by a high amount of economic rent, a small portion of which is captured by the government through levies and taxes, and most of which goes to timber businessmen, who then in many cases pass it along to politicians.
Golkar	The abbreviation for Golongan Karya, the former, and to some extent still, ruling political party of Indonesia.
hardwood	Nearly all the trees of commercial value in Southeast Asia's humid forests are leaf-bearing hardwoods, as opposed to needle and cone-bearing softwoods.
hectare	Land area equal to 2.54 acres.
HPH	Hak Pengusahaan Hutan is a license granted for the selective harvest of natural forests over a 20 year period, renewable for another 15 years. Indonesia has 464 HPH's spread across 51.5 million hectares, with 30 percent licensed to five conglomerates.
HTI	Hutan Tanaman Industri is a license to grow an industrial forest over a 30 year period. Licensees are allowed to clear 100 percent of the area, but are only required to replant 25 percent. Indonesia's 23 HTI's designated for the purposes of growing pulp are enormous, mostly ranging in size from 100,000 to 300,000 hectares.
IHH	Iuran Hasil Hutan means "forest products royalty." This was, until recently, Indonesia's second largest forest levy, set at 6 percent of a species' domestic price. It was recently replaced by the PSDH levy.
IPK	Ijin Pemanfaatan Kayu are licenses to clear land for the purposes of industrial timber and agricultural plantations, transmigration sites, and the like. Roundwood harvested from IPKs is now a vital source of hardwood for plywood mills and sawmills consuming about half, and pulp mills the other half of raw material from IPKs in the one province examined for this study. If present trends continue, IPKs will become the single most important source of roundwood in Indonesia, surpassing the total output of HPH's in about a year's time. Wood harvested from IPK's is exempted from the PSDH levy.
ITFMP	The UK-Indonesia Tropical Forestry Programme (ITFMP) is a project of the UK Department for International Development (DFID). ITFMP has operated in cooperation with the Indonesia Department of Forestry throughout the 1990's, and sponsored this study.
Kanwil	The Kantor Wilayah is one of two distinct layers of the forestry bureaucracy at the provincial level. The Kanwil has responsibility for implementing national forestry laws, and is answerable to department headquarters in Jakarta.
KPHP	Indonesian abbreviation for "Production Forest Management Unit." KPHPs are intended to have geographically and economically rational boundaries drawn in consultation with local communities, and to pursue sustainable logging. Until June 1999 the ITFMP operated six pilot KPHPs, containing part or all of eleven HPH's, in Riau, Jambi, and Central Kalimantan provinces. The Department of Forestry intends, at some point, to redraw the boundaries of the nation's timber concessions, changing them to KPHPs.
krismon	Indonesian abbreviation for the monetary and economic crisis to beset the country beginning in 1997.
Lydekker's line	A line marking the eastern limit of Asian flora. Lydekker's line runs in a southeast-northwest direction, and separates West Irian from most of Maluku and the rest of Indonesia.
m3	Notation for a cubic meter of wood, the most widely used measure for roundwood, sawn timber, and plywood. (Pulp and paper are more typically measured in metric tons.)
meranti	The most commercially important hardwood species in Indonesia. Meranti is most often used for plywood face veneers. Dark, medium, and light red meranti, as well as yellow and white meranti are well known, and sought after.
moldings	Rough sawn timber processed in some way, for example, sanded, planed and/or shaped. After the government placed a 200 percent levy on the export of rough sawn timber in 1991, sawmills found it impossible to export that commodity, so many went "downstream" into the mouldings export business.
NGO	Non-governmental organization. Connotes organizations rooted firmly in civil society and exhibiting a degree of independence from the government.
pesantren	Islamic boarding schools found across Indonesia.
PPH	Direktorat Penyiapan Pengusahaan Hutan (Directorate for Preparation of Forest Utilization) prints a schedule showing the supply links between hundreds of mills and timber concessions.
PPHH	Direktorat Pemanfaatan dan Peredaran Hasil Hutan (Directorate for the Utilization and Distribution of Forest Products) prints a list of active and canceled HPH's and HTI's.
PRSL	Policy Review Support Loan. Under the terms of these loans, numbered PRSL I and PRSL II, the Department of Forestry, along with many other national agencies, agreed to make a series of reforms in exchange for a massive transfusion of cash from the IMF and World Bank to the national treasury.
PSDH	Indonesian abbreviation for "forest resource royalty." This is now the second largest forest levy in Indonesia, and requires concessionaires to pay 6 percent (raised recently to 10 percent) of a blended average of the domestic and international prices of particular wood species. The PSDH for red meranti is now set a US$8/m3. The PSDH replaced the IHH levy. Recipients of IPK licenses are not required to pay the PSDH.
reformasi	The ongoing reform of the country's political and economic systems during the post-New Order period
rough sawn timber	Kiln-dried logs run through a bandsaw and made into boards, but otherwise unprocessed. A large price gap is thought to exist between rough sawn timber sold on the Indonesian domestic market (US$45-55/m3) and on the world market (US$770-850/m3). Export of this commodity from Indonesia has been nearly impossible throughout the 1990's, initially because of a 200 percent export tariff, and now because of a requirement that exporters must obtain three letters of permission from the government to export.
RKT	A Rencana Kerja Tahun or "annual cutting plan" is published annually by each HPH holder. Each plan ranges from about 50 to 200 pages. Part fiction and part fact, RKTs nevertheless contain enormous amounts of useful information, including the number, species, and sizes of trees that will be legally removed by the concessionaire in that year, and (usually) maps depicting the spatial location of past, present, and future coupes.
rwe	All manufactured forest products have a "roundwood equivalent," that is to say, the volume of roundwood required to make the same volume of a given wood-based product. In Indonesia, a cubic meter of sawn timber and plywood are thought to have a roundwood equivalent of two cubic meters. A cubic meter of pulp and paper, about four.
silviculture	The science of harvesting and regenerating trees in natural forests. In theory, silvicultural systems emulate the ecology of the forests in which they are carried out. However in practice this is often not the case.
sustainable	Used in the context of tropical forestry, "sustainable" suggests that silvicultural practices are being employed which ensure a given flow of commercial timber from a forest area. Most observers agree that the achievement of sustainable forestry in tropical forests has rarely been realized.
timber group	A company holding more than one timber concessions.
TPTI	The Indonesian silvicultural system based on selective cutting and enrichment planting.
yayasan	"Charitable foundations" sometimes used in Indonesia to generate and/or shelter illicit income.