Transforming People s Livelihood Modes and Sustainable Forest Management:

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1 Transforming People s Livelihood Modes and Sustainable Forest Management: Lesson from Gunung Kidul, Yogyakarta, Indonesia Fujiwara Takahiro (Kyushu University) San Afri Awang (Universitas Gadjah Mada) Sato Noriko (Kyushu University) At Asia Sustainable Local Resource Management Workshop on March 6, 2012, Kyushu University, Japan

2 Introduction

3 3 Introduction Forest ecosystem services: contribute in not only human well-being but also the existence of all species in the world Source: Millennium Ecosystem Assessment (2005)

4 4 Introduction World Forest Area in 2005: 4,061M ha 80% of forest in 2005 = Publicly Owned (FAO 2010) Decentralization of Forest Management Across the world (e.g. Fisher 1999; Poteete 2004; Barr et al. 2006) Expanding forest area designated for communities and indigenous peoples, individuals, and firms (Sunderlin et al. 2008) One of the most important forest governance trends in the 21st century (Agrawal et al. 2008)

5 5 Introduction Forest Management with the Participation of the Local People/Communities Participatory forest management; Community forestry; Social forestry; Partnership; Collaborative forest management since 1970s e.g. Pardo 1985; Pardo 1995; Inoue 1998; Inoue 2000; Lindayati 2000; Inoue 2003; Thin and Gardingen 2004; Wiersum 2004; Mcdermott and Schreckenberg 2009; Schreckenberg and Luttrell 2009 Indispensable concept in the push for sustainable forest management and poverty alleviation (Inoue 2000; Purnomo et al. 2005; Sunderlin et al. 2005)

6 6 Introduction Indonesia The 3 rd largest tropical rain forest Forest Area (Kawasan Hutan): 137 million ha 71.6% of national territory in Indonesia designated by Ministry of Forestry (MoF) 1) production, 2) protection, 3) conservation forest Under the jurisdiction of MoF Management rights to the state forest companies - Perhutani for forests in Java - Inhutani for forests in the Outer Island

7 7 Introduction Soeharto's regime from 1966 to 1998 Highly centralized forest management for revenue by obtaining foreign currency Forestry sector: second place in GNP The Basic Forest Law 5/1967 All of forests in Indonesia under central government authority Enclosure with violence has caused widespread conflict between state and people Fay and Sirait 2002; Resosudarmo 2004; Rosyadi et al. 2005; Barr et al. 2006; Wollenberg et al. 2006; Wollenberg et al. 2009; Peluso 2011

8 8 Introduction Decentralization of FM (Reformasi) Law No.22 on regional governance in 1999 Law No.25 on fiscal balancing in 1999 Law No.41 on forest in 1999 (NEW FOREST LAW) Establishment of Customary Forest (Hutan Adat) Clarification of Local People s Rights Ministerial Decision No.31 in 1999 Small-scale timber concession licenses (Izin Pemungutan dan Pemanfaatan Kayu, or IPPK) up to 100 ha to district government

9 9 Introduction No People Participation Scheme on Small Timber-plantation Types of Management Community Forest (HKm) Community Plantation Forest (HTR) Village Forest (HD) Companycommunity partnership Companycommunity partnership Land tenure Management Ownership purposes State State State State, managed by State Forest Company State, under Private company Production Conservation Production Production Conservation Production Conservation Target Area (ha) ,000 2,000, ,000 (450,000) 2,650,000 (2,250,000) 100, , Production Farm Forest Private Production 50,000 2,500,000 Source: Adopted from Rohadi et al. (2010), Obidzinski and Dermawan (2010), MoF (2010)

10 10 Introduction Agrarian Reform (Reforma Agraria) The Basic Agrarian Law 5/1960 (BAL) attempted to implement land distribution in a fairer way Parliamentary Decree IX on Agrarian Reform and Management of Natural Resources (Tap MPR IX/2001) respect and protection of the rights of customary communities (Article 4) restructuring of land tenure (so-called, Land for the People ) (Article 5) Forest management for pro-people, pro-poor and pro-environment is necessary to implement forestry land reform (Awang 2010)

11 11 Introduction Research Question Formal announcement by president in Sep million hectares of state land under the jurisdiction of the Ministry of Forestry and the National Land Board slated for redistribution (Republika Online 28 September 2006) (Peluso et al. 2008) the area of forest owned and managed by local people and communities will increase in Indonesia Can people manage forest sustainably? How people can manage forest sustainably?

12 Background of Study and Research Method

13 13 Privately Owned Forest Privately Owned Forest (POF) Hutan Rakyat (People s Forest) considered as final form of decentralization and devolution of forest management Definition of Privately Owned Forest (POF) Hutan Hak (=Right Forest) (Forest Law 41 in 1999) forest located on lands bearing ownership rights Antonym (Hutan Negara= State Forest) forest located on lands bearing no ownership rights

14 14 Privately Owned Forest Home Garden (Pekarangan) Hutan Rakyat Dry Land (Tegalan) Forest (Alas)

15 15 Privately Owned Forest Privately Owned Forest Area (MoF 2004): 1,568, ha Sumatera Java Bali & Nusa Tenggara Kalimantan Sulawesi Maluku Papua Source: MoF (2004)

16 16 Privately Owned Forest Growing importance of POFs Along with the reduction of timber productivity in state forests The amount of POFs timber dramatically increased dramatically during last decade (Hinrichs et al. 2008) Industry observers predicte that community and smallholders will produce more teak and mahogany timber than SFC (Perum Perhutani) in the future (Purnomo et al. 2009) Increasingly important contributors to wood supply (Pramono et al. 2010)

17 17 Privately Owned Forest Common Characteristics of POF Limited labor power for management managed by family members and/or communal farmer s group without integration at the individual level Playing role as farmer s saving, which can provide cash in urgent situation and/or for special purpose The harvesting is conducted according to personal needs (Tebang Butuh). Trees are cut by farmers for their needs even if trees are still immature Awang 2005a; Awang 2005b; Ichwandi et al. 2005; Widayanti et al. 2005; PKHR 2006; Awang et al. 2007; Ichiwandi et al. 2007; Hinrichs et al. 2008; Simon 2008

18 18 Gunung Kidul District Gunung Kidul District Area with many POFs 16,119ha (55% of total forest in GK district) (BPKH:2006) Produced 95,461 m3 logs from POFs in 2009, teak log: 89% (DINAS Kehutanan Gunung Kidul: 2009) GK district plays an important role as wood supplier for teak furniture industries Gunung Kidul, Yogyakarta

19 19 PKHR (2006) Problems in POF management Threat to Sustainability of POF Change in Traditional Management Non-existence of formal policy recognition for POF management Weak position of POF products in market price mechanism In recent years Not yet paid attention to management aspect in POF management Increasinglyintense pressure from industry Not yet designed forest zoning Not yet established organization of privately owned forest management Not yet compiled management plan Not yet fixed boundary of management unit Not yet figured out inventory of POF Insufficient capacity of human resource in management Not yet solid and effective group

20 20 Establishment Process POF Management Unit (RB-UMHRL) (2004-) By PKHR, 2 local NGOs From individual management to collective management Integrated state and POF management at watershed (DAS) GK District Governor Decision (95/KPTS/2005) Establishment of Working Group (POKJA-HRL) Forest certification as a tool for achieving SFM of POF Dengok, Girisekar, Kedung Keris located in different topography area as pilot project (extension to 69 village) Koperasi Wana Manunggal Lestari (KWML) Cooperative Association in 2006 PHBML forest certification by LEI

21 21 Research Method Between January and March 2011 Collecting statistics, document and materials related to POF management, cooperative activities, forest certifications at offices of KWML, Village, District forest agency Interview to 85HH of KWML members in Kedung Keris village Gugung Kidul District Yogyakarta Kedung Keris Girisekar Dengok Google Map

22 Findings

23 23 Findings District Level Village Level Co-op (KWML) Joint Business Forest Planning Alliance (Paguyuban) Sub-Village Level Alliance (Paguyuban) Alliance (Paguyuban) Forest Management Block Block Block POF FG POF FG Farmers Group KTHR POF FG POF FG POF FG

24 24 Findings Bylaw on harvesting and reforestation Village Dengok Girisekar Kedung Keris Harvesting Teak: more than 15 years Mahogany: more than 10 years Others: more than 10 years More than 15 years and More than 15 cm (Diameter) Teak: more than 15 years Mahogany: more than 15 years Acacia: more than 10 years Reforestation (per a logged tree) 2 trees 5 trees 10 trees Source: Bylaw of each POF Famers group alliance

25 25 Findings Experience of logging young trees for obtain money (%) (N=45) (N=45) (N=135) 0 (N=45) Dengok Girisekar Kedung Keris Total

26 26 Findings Reason why respondents borrow money in KK village (%) Expenditure of Education for Children Educa tion Hospital House repairing Family affair Farming Liveli hood Repaying debit Selfbusiness

27 27 Migration of Young Villagers to City for Job Findings Labor power for Forest Management 20% 80% 62% 1% 37% Yes Yes, but a few No Still enough Still enough, but has decreased Already few

28 28 Findings Land Shrinkage by Inheritance Be inherited to equal parts among family members including children who live in other city Whenever inheritance is repeated, POF will become smaller and smaller inherently

29 Discussion and Concluding Remarks

30 30 Discussion Size (girth and length) and quality are two major factors affecting the price of teak logs (Ball et al. 1999) A teak timber which has high percentage of heartwood is more salable and preferred in market (Oteng-Amoako 2004) Characteristics of SF and POF timber: widely different (Kawasaki 2012)

31 31 Discussion Community and smallholders will produce more teak timber than state forest in the future HOWEVER, Difficult to use POF timber as a substitute for ordinary state forest timber for high-quality furniture manufacturing industries. Hardwoods including teak usually require relatively long rotation periods (Keogh 2002:240) How people can produce high-quality teak logs??

32 32 Discussion (%) JAPAN INDONESIA Source: UN(2011) Percentage of population residing in urban areas (Year)

33 33 Discussion JAPAN Malaysia ME & EU Singapore USA AU & NZ Kelly (2010)

34 34 Discussion Historically, livelihood modes have changed in association with forest use (Sunderlin et al. 2005) By increased migration for work since 1990s, decreasing forest dependence, transforming household livelihood portfolios, rapid declining fertility (Peluso 2011)

35 35 Discussion Japanese Past Experience Population outflow from villages to cities, inheritances left to children who live in cities, and the buying and selling of forest land are the main causes of land absentee problems Land absentee problem not only has led to decline the forest management level, but also has influenced other POF management systems (Hirata 1996, Ryuko 2000, Sato 2003, Nakazato and Noguchi 2007).

36 36 Concluding Remarks Toward Sustainable POF Management Local people have to negotiate both economic and social challenges over a long period of time People s livelihood modes are transforming dramatically in current globalization era Not only decentralization of forest management, Policymaker must take fully into account the transforming people s livelihood modes at the same time for sustainable forest management over a long period of time

37 37 Thank You Very Much for Your Attention

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