Demand of forest products has consistently increased and will continuely to do so. Meanwhile, natural forests production has decreased during last few decades. As a consequence, industrial forest (IF) plantations have been recognized as a viable option to supply forest products needs. Indonesia has been important country in producing tropical timber and has a lot of potential in developing forest plantations. Within Indonesia, East Kalimantan is an important area for Indonesian IF and its future development. This research has a general goal reviewing the context and drivers of change in forest uses in the IF plantations in Indonesia, understanding how IF has evolved in East Kalimantan, and exploring the role of provincial and local policies in IF development. Two approaches have been conducted to achieve this goal. First, a desk study examined related policies and regulations, statistical data, and documents to provide the context for IF expansion. Next, interviews with relevant stakeholders were conducted to understand the application of written policies and regulation in the field, as well as to review the challenges and the opportunities faced by the stakeholders in IF. Problem in land tenure and access to financial resources are the two major factors hindering in IF development. Several actions by the Government of Indonesia have addressed these factors. However, concrete results have not yet been seen. Further research on specific cases to land tenure problems in IF and a detailed study on financial challenges in IF development are needed to find the solutions of those two problems.
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