Index of /ProdukHukum/kehutanan

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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

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– 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?

Research Questions:

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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

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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)

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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

 Focus Group Discussions

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Preliminary Findings

1. Sandalwood uses and management system

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)

Colonial era

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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).

During the independent prior to autonomy era

kshop on sandalwood, Kupang, 22 April 2010 Slide # 7 of 18Slide # 7 of 18

Preliminary Findings

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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

During the independent prior to autonomy era

Preliminary Findings

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During the independent prior to autonomy era

Preliminary Findings

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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

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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)

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3. Community perceptions on sandalwood policies

– 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.

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– The state and community leaders are the most

influencing stakeholders on sandalwood sustainability in Alor district.

3. Community perceptions on sandalwood policies

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– Conflict potential among stakeholders.

Community

3. Community perceptions on sandalwood policies

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4. Economic incentives on sandalwood uses and

management (Rapid appraisal)

– 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).

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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.

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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.

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