Understanding policy frameworks to facilitate smallholders’
production and integrated marketing of timber and NTFPs in Ind...
Policy constraints to facilitate
cost-effective smallholders’ production, and
integrated marketing of timber & NTFPs
Landscape
level
Marketing chains Buyers
(Processing company)
Timber
NTFPs
Farm level
management
Production system
Com. for...
Integrated timber & NTFPs management
Facilitated by a favourable policy and regulation
frameworks, type of management:
 e...
A favourable policy and regulation frameworks
Serve as incentives for optimisation of timber and NTFPs production
system a...
Preliminary findings:
Household livelihood strategy in managing
timber and NTFPs is driven by forestry policy
and regulati...
Landscape of community teak plantation
and rice fields in Pelat (Sumbawa, WNT)
NTFPs in the local outlet in the city
of Su...
Limited timber uses
(in village-trading)
Household income portfolio
Privately-
owned lands
Protected forests
or nature res...
Household income
portfolio
Privately-owned lands
Processing
More flexibilities
in exploring
various
economic
opportunities...
Procedures for verifying the legality of timber coming from privately-owned lands
Villagelevelistrictandprovinciallevels
F...
Scenario policy analysis at the landscape level:
inter-relation between products &
landscape level management
Timber (local species),
rattan, honey, etc
Bamboo
Casuarina sp
Coffee plantation
Candle nuts
Herbs, vegetables,
cashew nut...
1. Current policy frameworks restrain smallholder producers from
benefiting optimally due to:
a. Disincentives to producti...
2. Roles of middle-men & brokers – trade offs between:
a. Suppressing farm gate prices (enjoying significant profit margin...
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Understanding policy frameworks to facilitate smallholders’ production and integrated marketing of timber and NTFPs in Indonesia

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This presentation by Ani Adiwinata Nawir and Philip Manalu from CIFOR given during the Forests Asia Summit in the discussion forum "Equitable development: Improving livelihood benefits for smallholders in the forestry value chain " focuses on policy constraints to facilitate cost-effective smallholders’ production, and integrated marketing of timber & NTFPs, integrated timber & NTFPs management and Scenario policy analysis at the landscape level, especially inter-relation between products & landscape level management.

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Understanding policy frameworks to facilitate smallholders’ production and integrated marketing of timber and NTFPs in Indonesia

  1. 1. Understanding policy frameworks to facilitate smallholders’ production and integrated marketing of timber and NTFPs in Indonesia (Central Java, West Nusa Tenggara, & East Nusa Tenggara) (ACIAR FST/2012/039, April 2013 – Dec 2016) CIFOR Ani Adiwinata Nawir Philip Manalu Collaborator Team M. Ridha Hakim, Syafrudin Syafii, Yeni F. Nomeni (WWF NT), Julmansyah (KPHP, Sumbawa), Maryudi (Gadjah Mada University), M. Widodo (Mataram University) & Antonius (Undana University)
  2. 2. Policy constraints to facilitate cost-effective smallholders’ production, and integrated marketing of timber & NTFPs
  3. 3. Landscape level Marketing chains Buyers (Processing company) Timber NTFPs Farm level management Production system Com. forestry scheme (HKm): MoF Decree No. P. 37, 2007 & No. P 18, 2009) NTFPs cluster policy (MoF Decree No. 21, 2009) Timber legality verification schemes: various MoF decrees (SKAU, SKSKB, FA-FKB, SVLK) Pro-big scale industry (Ministry of Trade Decree No. 36, 2011) Inter-islands trade (Min. of Trade Decree No. 35, 2011) 1. Overly regulated system – varied based on types of management 2. Overlapping policy & regulation frameworks: regional autonomy District level regulation (Peraturan Daerah-PERDA) District level regulation (Peraturan Daerah-PERDA)
  4. 4. Integrated timber & NTFPs management Facilitated by a favourable policy and regulation frameworks, type of management:  enhances a complementary income portfolio at the household level  optimisation of timber and NTFPs production system,  more cost-effective value chains,  eventually improves management at the landscape level.
  5. 5. A favourable policy and regulation frameworks Serve as incentives for optimisation of timber and NTFPs production system and more cost-effective value chains, through policies and regulations that are:  tailored to local context  resulted from participatory processes: take into account inputs from stakeholders that are affected in the implementation  benefits and risks are predicted and manageable (including the transaction costs of implementing relevant policies and regulations). Policy instruments that increase the comparative advantages of small-scale forestry management practices, and thus stimulate investments in its establishment and management. (Adopted from Enters et al., 2004 and Meijerink, 2007)
  6. 6. Preliminary findings: Household livelihood strategy in managing timber and NTFPs is driven by forestry policy and regulations
  7. 7. Landscape of community teak plantation and rice fields in Pelat (Sumbawa, WNT) NTFPs in the local outlet in the city of Sumbawa (WNT) Household income portfolio in West Nusa Tenggara & East Nusa Tenggara: NTFPs are important & limited trading of timber Pinang (Areca catechu) for menyirih (daily snacking) (TTS, ENT) Other products: honey, ginger, bamboo Timber is not traded commercially and it is limited for domestic uses (TTS, ENT)
  8. 8. Limited timber uses (in village-trading) Household income portfolio Privately- owned lands Protected forests or nature reserve Domesticated NTFPs: e.g. candle nuts Policy regulating access to utilize the forests (Limited) extractive NTFPs: honey Timber management permit (IPKTM, (District level Perda) Verifying timber legality (SKAU) – national level P. 30/Menhut-II/2012 NTFPs Processing & Market Timber processing & marketing Transporting timber Transporting NTFPs Regulated locally based national policy Customary norms & rules Regulated locally based national policy Inter-relation: household livelihood strategy (timber and NTFPs) & forestry policy and regulations (West Nusa Tenggara and East Nusa Tenggara)
  9. 9. Household income portfolio Privately-owned lands Processing More flexibilities in exploring various economic opportunities Harvesting -Transporting: SKAU (P. 30/Menhut-II/2012) Seasonal incomes throughout the year Savings Marketing Transporting NTFPs Timber Processing Marketing Household income portfolio in Yogyakarta, Java: Timber & NTFPs are managed on privately-owned lands; more regulations along the marketing and processing chains Following agriculture products Regulated locally based national policy
  10. 10. Procedures for verifying the legality of timber coming from privately-owned lands Villagelevelistrictandprovinciallevels File: Diagram SKAU Ch 6.doc Privately-owned tree plantation (1) Application for SKAU Village office (4) Measurement (Volume by timber types) Transporting Logs Sawn wood (2) Assessment of ownership entitlement S K A U (3b) Legality confirmed (3a) Rejected (5) Issuing the SKAU by the head of the village (6) The SKAU document attached to wood transported Provincial Forestry Agency (PFA) Distributing the SKAU forms Compiling and reporting monthly Forestry District Agency (FDA) Submitting requests for SKAU forms and reporting monthly on documents issued Allocating the SKAU forms Source: Nawir (2012) 54%-84% HHs do not have land paper Privately-owned land (3a) Rejected (3b) Legality confirmed (1) Application for SKAU (2) Assessment of ownership entitlement (4) Measurement (Volume by timber types) (6) The SKAU document attached to wood transported (5) Issuing the SKAU by the head of the village
  11. 11. Scenario policy analysis at the landscape level: inter-relation between products & landscape level management
  12. 12. Timber (local species), rattan, honey, etc Bamboo Casuarina sp Coffee plantation Candle nuts Herbs, vegetables, cashew nuts, fruits, etcRice fields Pelat (NTB)Batudulang (NTB) Karangmojo (Gunungkidul) Water catchment area: protected forest (800-1300 m) Buffer zone: upstream (400-600 m) Commercial production area: private property (50-300 m) Teak plantation & mixed timber species (low value) Fatumnasi (NTT) Bosen (NTT) Bejiharjo (Gunungkidul)
  13. 13. 1. Current policy frameworks restrain smallholder producers from benefiting optimally due to: a. Disincentives to production systems and low cost-effective value adding industries b. Overly regulated regulations applied independently to timber and NTFPs – high transaction costs c. A lack of understanding about policy and regulation at household level – increasing community knowledge about policy and regulation is crucial (part of project activities in Year 2). Conclusions (1)
  14. 14. 2. Roles of middle-men & brokers – trade offs between: a. Suppressing farm gate prices (enjoying significant profit margin) (-) b. Covering the costs (markets, transportation & transaction & sources of financial capital for investment & household needs (+) E.g. 38% of total (formal) costs sold at farm gate (based on the analysis in West Nusa Tenggara) 3. Product & landscape heterogeneity offers: a. resilience and diverse options in the face of climate variability, b. ability for local households to adapt to government management policy Conclusions (2)
  15. 15. Thank you

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