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The deforestation issues often rise in conjunction with the forest existence awareness and forest ecology considerations. The objective of this paper is to identify the sources of deforestation issues related to the Indonesian forest industry demand for raw material in the future. Research result shows that the main sources of deforestation issues in Indonesia are resettlement program in transmigration, shifting cultivation activities, forest fire, and forest extraction. In the year 2000, quantity demand for raw material will be higher than the capability of forest to supply. Furthermore, all conversion forest area will be lost in the year 2005 if assumed that the conversion and deforestation activities will be done in the conversion forest areas. The important policies suggestive of improving the situation are: (1) increasing replanting program to balance the deforestation, (2) strengthen regulation and forest security in order to control deforestation activities, and (3) correcting the forest management with consideration in sustainable forest management.

Deforestation Issues Related to Continued Forest Industrialization in Indonesia-With Special Reference to Supply and Demand of Raw Materials.