Dede Rohadi, Maarit Kallio, Haruni Krisnawati and Philip Manalu Presentation for the conference on Taking stock of smallholders and community forestry Montpellier France March 24-26, 2010

1. Economic incentives and household perceptions on smallholder timber plantations: Lessons from case studies in Indonesia By: Dede Rohadi, Maarit Kallio, Haruni Krisnawati and Philip Manalu

2. Background The importance of smallholder timber plantations (in particular in Indonesia): High demand on wood and diminished supply of timber from natural forests. Smallholder timber plantations could potentially contribute in timber supply and be as mean of poverty alleviation. Government is intensifying its efforts to support the development of smallholder timber plantations.

3. Characteristics of various people participation schemes on smallholder timber plantations in Indonesia

4. Key questions: What are the available economical benefits of timber plantations for smallholders? What are smallholder’s perceptions on these benefits as compared to other income generating activities? What are the challenges for improving economical benefits and smallholders’ livelihoods through timber plantations? What policy interventions are necessary for these challenges to overcome?

6. Smallholder teak (Tectona grandis) plantations at Gunungkidul district, Yogyakarta

7. Smallholder kadam (Anthocephalus cadamba) plantations at Tanah Laut district, South Kalimantan

8. Other land use systems:

9. Food crops at Gunungkidul

16. Household surveys, In-depth interviews, FGD, Farm inventories

18. [N1]IS there potential income per month for timber? RESULTS AND DISCUSSIONS Financial analyses of smallholder timber plantations and other farm based activities

19. [N1]IS there potential income per month for timber? RESULTS AND DISCUSSIONS Household perceptions on timber plantation activities (Gunungkidul) Teak contributes relatively low in the household income structure

20. [N1]IS there potential income per month for timber? RESULTS AND DISCUSSIONS Household perceptions on timber plantation activities (Gunungkidul) Households in Gunungkidul allocate in average 10% of their limited area for growing teak

21. [N1]IS there potential income per month for timber? RESULTS AND DISCUSSIONS Household perceptions on timber plantation activities (Gunungkidul) The main reason for planting teak is for household saving account and safety net

22. [N1]IS there potential income per month for timber? RESULTS AND DISCUSSIONS Household perceptions on timber plantation activities (Tanah Laut) The main household income comes from off farm activities

23. [N1]IS there potential income per month for timber? RESULTS AND DISCUSSIONS Household perceptions on timber plantation activities (Tanah Laut) Timber planters allocate significantly for rubber plantations

24. [N1]IS there potential income per month for timber? RESULTS AND DISCUSSIONS Household perceptions on timber plantation activities (Tanah Laut) Rubber seems the most favorite species for non timber planters

25. [N1]IS there potential income per month for timber? RESULTS AND DISCUSSIONS Household perceptions on timber plantation activities (Tanah Laut) Timber plantations are generally objected for saving accounts

27. Low bargaining power

28. Limited capital to purchase production inputs

29. Manage their timber plantations based on traditions

31. provide better market information and assist farmers’ collective action to improve market access and bargaining power

32. provide micro finance supports through soft loan programs which are carefully designed to meet farmers’ needs

33. Prevent timber trade regulation that tends to generate high transaction costs