Index of /ProdukHukum/kehutanan
Analyses of Policies and Economic Incentives for
improving people participation on Sustaining Sandalwood
Resource Management
at East Nusa Tenggara Province
(PRELIMINARY FINDINGS)
Consultant Team of ITTO Project (PD 459/07 (F) Rev. 1)
kshop on sandalwood, Kupang, 22 April 2010
Slide # 1 of 18
Research Questions:
– Are the current policies on sandalwood
sufficiently address local people interests?
– What are the impacts of these policies on
people livelihood, in particular in the
contexts of sandalwood resource
sustainability?
– How local people perceive on these
policies?
– What economic incentives are available
for local people who engaged in
sandalwood resource management?
– What options available on policies and
economic incentives to strengthen local
participation in sustaining sandalwood
resource at East Nusa Tenggara
province?
kshop on sandalwood, Kupang, 22 April 2010
Slide # 2 of 18
Analytical Concepts
Policy: Methods and actions to solve particular problems
through decision, strategies, plans and their operational
implementations in the field (Djogo et al, 2003)
The methods on policy analyses adopted recommendation
as proposed by Runhaar et al (2005):
Content analysis
Stakeholder analysis
Discourse analysis
kshop on sandalwood, Kupang, 22 April 2010
Slide # 3 of 18
Analytical Concepts
Analysis on the economic incentives were conducted
through:
Financial analysis on sandalwood cultivation (plant
establishment, maintenance and harvesting)
Market structure and value chain analysis
Household socio-economics (income sources, share of
sandalwood to household income, household
expenditures,
human
and social capitals)
kshop on sandalwood,
Kupang, 22
April 2010
Slide # 4 of 18
Research Methods
Research Sites:
Policy analyses and part of the
economic analyses (market
structure, economic benefits):
District of Alor, East Sumba,
East Flores and South Central
Timor.
Economic analyses (financial
analysis, market structure and
value chain, household
analysis): District of South
Central Timor
Data Collection:
Interviews and field
observations
kshop on sandalwood,
Kupang,
22 April 2010
Focus Group
Discussions
Slide # 5 of 18
Preliminary Findings
1. Sandalwood uses and management system
Colonial era
a. Sandalwood belongs to the King. The King appointed
Uis Pah or Fetor and Adat chief on sandalwood
exploitation.
b. The benefit sharing: Roots belong to the King, stems
to Fetor and branches to the land owners.
(Ormelling, 1955)
kshop on sandalwood, Kupang, 22 April 2010
Slide # 6 of 18
Preliminary Findings
1. Sandalwood uses and management system
During the independent prior to autonomy era
a. Sandalwood belongs to the state. Land owners (when
they could prove their land rights) have right to obtain
15% of the sandalwood sales (Regional Law No.
16/1986).
b. Local government conducted the wood exploitation,
set the exploitation costs and wood selling prices and
allocated the harvested woods to industries (Governor
Decree No. 7 and No. 8/1993).
c. Community is obliged to maintain sandalwood
regeneration under the Coordinating Board that was
established by the Governor (Governor Decree No.
53/1992).
kshop on sandalwood, Kupang, 22 April 2010
Slide # 7 of 18
Preliminary Findings
1. Sandalwood uses and management system
During the independent prior to autonomy era
d. An example in 1995, based on Governor Decree No.
113/SKEP/HK/1995 : Exploitation cost = Rp 1,300/kg
heartwood, consisted of harvesting wage (Rp 800/kg)
and administration fee (Rp 500/kg).
e. The sandalwood selling price set by the Governor
(Gov. Decree No. 260/SKEP/HK/1995) was Rp
18,000/kg (Class A), Rp 15,300/kg (Class B), Rp
9,000/kg (Mix class), Rp 1,000/kg (sapwood) and Rp
500/kg (small branches).
kshop on sandalwood, Kupang, 22 April 2010
Slide # 8 of 18
Preliminary Findings
1. Sandalwood uses and management system
During the independent prior to autonomy era
kshop on sandalwood, Kupang, 22 April 2010
Slide # 9 of 18
Preliminary Findings
2. Since the autonomy era
a. The Regional Law No. 2/1999 abolished the Regional
Law No. 16/1986.
b. The authority of sandalwood resource management
was delivered to the district government.
c. Until he district law is implemented, sandalwood
resource management follows the Governor
Instruction.
d. Different district responds differently
kshop on sandalwood, Kupang, 22 April 2010
Slide # 10 of 18
Preliminary Findings
2. Since the autonomy era
The case in District of Alor:
– No new law have been issued.
– Sandalwood is treated similarly as with other wood
species (belongs to the state when it is grown in a
state land and follow the SKAU mechanism if it is
grown under private property lands).
SKAU = Surat Keterangan Asal Usul (wood legal origin
issued by the head of the village where the wood is
harvested)
kshop on sandalwood, Kupang, 22 April 2010
Slide # 11 of 18
Preliminary Findings
3. Community perceptions on sandalwood policies
The case in District of Alor:
– Sandalwood trees is seen as household saving
accounts.
– Due to relatively young age of the trees, current
policies on sandalwood have not yet attract people
interests.
– More attractive benefit sharing is expected. To some
community, benefit share of 75% for the community
and 25% for the state seems attractive.
– More clarity on property right is expected by the
community.
kshop on sandalwood, Kupang, 22 April 2010
Slide # 12 of 18
Preliminary Findings
3. Community perceptions on sandalwood policies
The case in District of Alor:
– The state and community leaders are the most
influencing stakeholders on sandalwood sustainability
in Alor district.
kshop on sandalwood, Kupang, 22 April 2010
Slide # 13 of 18
Preliminary Findings
3. Community perceptions on sandalwood policies
The case in District of Alor:
– Conflict potential among stakeholders.
Community
NGO
Private
companies
State
State
Private
companie
s
kshop on sandalwood, Kupang, 22 April 2010
NGO
Community
Slide # 14 of 18
Preliminary Findings
4. Economic incentives on sandalwood uses and
management (Rapid appraisal)
The case in District of Alor:
– Sandalwood trees play role as land marks for land
right status.
– Community has minimum experiences on economic
incentives from sandalwood uses.
– Current direct incentives obtained by the community
originated from benefits received from the state’s
sandalwood development program (labor wage,
fertilizers and other extension programs).
kshop on sandalwood, Kupang, 22 April 2010
Slide # 15 of 18
Some lessons learnt (District of Alor)
1. Clarification is needed on
sandalwood ‘s property right and
uses.
2. In general community has positive
views on sandalwood.
3. Strong believe on the benefits of
sandalwood is restricted to
community groups who already
participated in government
program on sandalwood
plantations.
kshop on sandalwood, Kupang, 22 April 2010
Slide # 16 of 18
Proposed follow up actions:
1. Conduct scenario planning
involving various stakeholders (in
particular the most influencing
stakeholders) to discuss
sandalwood uses and
management.
2. Develop a legal draft for new
district law on sandalwood
resources.
kshop on sandalwood, Kupang, 22 April 2010
Slide # 17 of 18
kshop on sandalwood, Kupang, 22 April 2010
Slide # 18 of 18
improving people participation on Sustaining Sandalwood
Resource Management
at East Nusa Tenggara Province
(PRELIMINARY FINDINGS)
Consultant Team of ITTO Project (PD 459/07 (F) Rev. 1)
kshop on sandalwood, Kupang, 22 April 2010
Slide # 1 of 18
Research Questions:
– Are the current policies on sandalwood
sufficiently address local people interests?
– What are the impacts of these policies on
people livelihood, in particular in the
contexts of sandalwood resource
sustainability?
– How local people perceive on these
policies?
– What economic incentives are available
for local people who engaged in
sandalwood resource management?
– What options available on policies and
economic incentives to strengthen local
participation in sustaining sandalwood
resource at East Nusa Tenggara
province?
kshop on sandalwood, Kupang, 22 April 2010
Slide # 2 of 18
Analytical Concepts
Policy: Methods and actions to solve particular problems
through decision, strategies, plans and their operational
implementations in the field (Djogo et al, 2003)
The methods on policy analyses adopted recommendation
as proposed by Runhaar et al (2005):
Content analysis
Stakeholder analysis
Discourse analysis
kshop on sandalwood, Kupang, 22 April 2010
Slide # 3 of 18
Analytical Concepts
Analysis on the economic incentives were conducted
through:
Financial analysis on sandalwood cultivation (plant
establishment, maintenance and harvesting)
Market structure and value chain analysis
Household socio-economics (income sources, share of
sandalwood to household income, household
expenditures,
human
and social capitals)
kshop on sandalwood,
Kupang, 22
April 2010
Slide # 4 of 18
Research Methods
Research Sites:
Policy analyses and part of the
economic analyses (market
structure, economic benefits):
District of Alor, East Sumba,
East Flores and South Central
Timor.
Economic analyses (financial
analysis, market structure and
value chain, household
analysis): District of South
Central Timor
Data Collection:
Interviews and field
observations
kshop on sandalwood,
Kupang,
22 April 2010
Focus Group
Discussions
Slide # 5 of 18
Preliminary Findings
1. Sandalwood uses and management system
Colonial era
a. Sandalwood belongs to the King. The King appointed
Uis Pah or Fetor and Adat chief on sandalwood
exploitation.
b. The benefit sharing: Roots belong to the King, stems
to Fetor and branches to the land owners.
(Ormelling, 1955)
kshop on sandalwood, Kupang, 22 April 2010
Slide # 6 of 18
Preliminary Findings
1. Sandalwood uses and management system
During the independent prior to autonomy era
a. Sandalwood belongs to the state. Land owners (when
they could prove their land rights) have right to obtain
15% of the sandalwood sales (Regional Law No.
16/1986).
b. Local government conducted the wood exploitation,
set the exploitation costs and wood selling prices and
allocated the harvested woods to industries (Governor
Decree No. 7 and No. 8/1993).
c. Community is obliged to maintain sandalwood
regeneration under the Coordinating Board that was
established by the Governor (Governor Decree No.
53/1992).
kshop on sandalwood, Kupang, 22 April 2010
Slide # 7 of 18
Preliminary Findings
1. Sandalwood uses and management system
During the independent prior to autonomy era
d. An example in 1995, based on Governor Decree No.
113/SKEP/HK/1995 : Exploitation cost = Rp 1,300/kg
heartwood, consisted of harvesting wage (Rp 800/kg)
and administration fee (Rp 500/kg).
e. The sandalwood selling price set by the Governor
(Gov. Decree No. 260/SKEP/HK/1995) was Rp
18,000/kg (Class A), Rp 15,300/kg (Class B), Rp
9,000/kg (Mix class), Rp 1,000/kg (sapwood) and Rp
500/kg (small branches).
kshop on sandalwood, Kupang, 22 April 2010
Slide # 8 of 18
Preliminary Findings
1. Sandalwood uses and management system
During the independent prior to autonomy era
kshop on sandalwood, Kupang, 22 April 2010
Slide # 9 of 18
Preliminary Findings
2. Since the autonomy era
a. The Regional Law No. 2/1999 abolished the Regional
Law No. 16/1986.
b. The authority of sandalwood resource management
was delivered to the district government.
c. Until he district law is implemented, sandalwood
resource management follows the Governor
Instruction.
d. Different district responds differently
kshop on sandalwood, Kupang, 22 April 2010
Slide # 10 of 18
Preliminary Findings
2. Since the autonomy era
The case in District of Alor:
– No new law have been issued.
– Sandalwood is treated similarly as with other wood
species (belongs to the state when it is grown in a
state land and follow the SKAU mechanism if it is
grown under private property lands).
SKAU = Surat Keterangan Asal Usul (wood legal origin
issued by the head of the village where the wood is
harvested)
kshop on sandalwood, Kupang, 22 April 2010
Slide # 11 of 18
Preliminary Findings
3. Community perceptions on sandalwood policies
The case in District of Alor:
– Sandalwood trees is seen as household saving
accounts.
– Due to relatively young age of the trees, current
policies on sandalwood have not yet attract people
interests.
– More attractive benefit sharing is expected. To some
community, benefit share of 75% for the community
and 25% for the state seems attractive.
– More clarity on property right is expected by the
community.
kshop on sandalwood, Kupang, 22 April 2010
Slide # 12 of 18
Preliminary Findings
3. Community perceptions on sandalwood policies
The case in District of Alor:
– The state and community leaders are the most
influencing stakeholders on sandalwood sustainability
in Alor district.
kshop on sandalwood, Kupang, 22 April 2010
Slide # 13 of 18
Preliminary Findings
3. Community perceptions on sandalwood policies
The case in District of Alor:
– Conflict potential among stakeholders.
Community
NGO
Private
companies
State
State
Private
companie
s
kshop on sandalwood, Kupang, 22 April 2010
NGO
Community
Slide # 14 of 18
Preliminary Findings
4. Economic incentives on sandalwood uses and
management (Rapid appraisal)
The case in District of Alor:
– Sandalwood trees play role as land marks for land
right status.
– Community has minimum experiences on economic
incentives from sandalwood uses.
– Current direct incentives obtained by the community
originated from benefits received from the state’s
sandalwood development program (labor wage,
fertilizers and other extension programs).
kshop on sandalwood, Kupang, 22 April 2010
Slide # 15 of 18
Some lessons learnt (District of Alor)
1. Clarification is needed on
sandalwood ‘s property right and
uses.
2. In general community has positive
views on sandalwood.
3. Strong believe on the benefits of
sandalwood is restricted to
community groups who already
participated in government
program on sandalwood
plantations.
kshop on sandalwood, Kupang, 22 April 2010
Slide # 16 of 18
Proposed follow up actions:
1. Conduct scenario planning
involving various stakeholders (in
particular the most influencing
stakeholders) to discuss
sandalwood uses and
management.
2. Develop a legal draft for new
district law on sandalwood
resources.
kshop on sandalwood, Kupang, 22 April 2010
Slide # 17 of 18
kshop on sandalwood, Kupang, 22 April 2010
Slide # 18 of 18