Introduction

Dede RohadiSeconded Scientist from FORDAForests and Livelihoods Research Portfolio

Education Background• Agriculture Technology• Wood science• Forestry

Research Experiences• Sawmilling, timber drying• Community-based Forest Management - NTFP• Smallholder timber plantations

Smallholder Timber Plantation System in Indonesia: An Overview

Presented to the Visitors from Maryland UniversityCIFOR, 15 January 2015

By. Dede Rohadi

My presentation

• Types of timber plantations • History of smallholder timber plantations• Practices of smallholder timber plantations• Value chain of smallholder timber• Challenges and opportunities

Types of timber plantations

Timber Estates

Smallholder Plantations

On Private Lands

On State Forests/LandsHutan Kemasyarakatan (Community Forest)

Hutan Tanaman Rakyat (Community Plantation Forest)

Hutan Desa (Village Forest)

On Communal Forests/Lands Hutan Adat (Customary Forest)

Hutan Rakyat (Private Forest)

Hutan Tanaman Industri (Concession/Industrial Timber Plantation)

Perhutani/Inhutani (State Owned Timber Plantation)

Brief history of timber plantations

• Agroforestry (timber and non timber plantations) have been long been practiced in Indonesia

• Basic Forestry Law (UU No. 5/1967) divided the country’s forests into State Forests and Private Forests

• Some initiatives to involve smallholders in managing state forests have been started since 1990s.

• The Social Forestry program was launched in 2003 – providing more access of people/community to state forests (HKm, HTR, HD, GERHAN)

• Hutan Rakyat (Private Forest) remains the most progressive in smallholder timber plantation development.

Practices of smallholder timber plantations

• Timber is planted mostly in agroforestry systems

• Timber plantations are mostly as additional source of income. Timber plays as household saving account.

• On harvesting, timber growers do slash for cash, they tend to be as price takers.

• Farmers investment in timber management generally are low.

• Timber produced from smallholder plantations is generally low in quality.

Value chain of smallholder timber

Individual

farmer

Farmer'sGroup

Informant

Middlemen

Sawmill

TimberDepot

Wood basedIndustry

Retailer Local Consumers

WoodWorkers

Exporter

Case of smallholder teak at Gunungkidul

End usersGrower Broker Processors Traders

Value chain of smallholder timber

No. Specification Gunung kidul

Pati Sumbawa Bulu kumba

Konawe Selatan

1 Wood species Teak Sengon Teak Teak; Bitti Teak

2 Price ranges:

a Farm gate, stumpage (Rp/m3)

850,000 400,000 800,000 800,000;650,000

No data

b Farm gate, squared plank, certified (Rp/m3)

- - - - 1,750,000

c Middlemen, log (Rp/m3)

2,500,000 675,000 - - -

d Middlemen, squared plank (Rp/m3)

- - 2,500,000 1,800,000 -

e Farmers group, squared plank, certified (Rp/m3)

1,650,000 500,000 - - 5.500,000

Illustration of smallholder’s log prices

Challenges and opportunities

Challenges Opportunities

Limited land ownership Social Forestry Program

Limited capacity in timber plantation business

• Limited capital Microfinance programs (KUHR, BLU HTR)

• Market awareness, knowledge and skill of silviculture

Facilitation programs

Low economic outcomes • Collective marketing• Value adding• Certification

Restrictive regulations Simplification

Thanks for your attention

Smallholder timber plantations

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Teak; 11.62%Timber other

than

teak;

2.98%

Foodcrops

and an-imal husbandry; 24.89%

Other re-

sources; 60.51%

Household source of income structure

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Quality of smallholder timber

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Facts about timber certification

• Costly• No premium price• Low demand for

certified products

FSC Certi-fied; 36%

SVLK Certified; 24%

Non Certi-fied; 40%

Cost for timber certification (Stewart and Rohadi et al 2014)

No. Case StudyCertification costs

Preparation First assessment Surveillance

1 Gunungkidul (FSC) Rp 100 M USD 13,000 USD 8,500

2 Gunungkidul (LEI) >Rp 80 M NA Rp 15 - 20 M

3 Pati (FSC) Rp 308 M Rp 80 M > Rp 25 M

4 Konawe Selatan (FSC) Rp 150 M Rp 80 M Rp 30 M

5 Konawe Selatan (SVLK)

Rp 25 M NA NA

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