measure the average percent decline in area under forest cover. For Indonesia the average was an annual decline of 0.71 percent.

The total annual rate of deforestation was estimated to be about 300,000 ha in the early 1970s and about 600,000 ha in the early 1980s. Using the estimates of smallholder conversion, shifting cultivation, development projects, poor logging practices, and losses caused by fire, the World Bank (1989) estimated a deforestation rate of between 700,000 and 1,200,000 ha in 1989, or an average of 1.2 percent per year (Table 8) (Government of Indonesia/Ministry of Forestry and Food and Agriculture Organization of the United Nations, 1990). The estimated area of closed forests (forests in which the tree canopies completely cover the land) was 109 million ha in 1990 (Government of Indonesia/Ministry of Forestry and Food and Agriculture Organization of the United Nations, 1990).

In principle, deforestation can be seen to be a result of demand for agricultural land, depending on a variety of factors. In a developing country such as Indonesia, population pressure is one of those factors. Other factors may be also important. In communities where there is industrial development and a nonsubsistence economy (an economy in which not only basic needs but also nonbasic needs such as a higher standard of living, education, and recreation are fulfilled),