(PRELIMINARY FINDINGS) Consultant Team of ITTO Project (PD 459/07 (F) Rev. 1) shop on sandalwood, Kupang, 22 April 2010 Slide # 1 of 18
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1 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) shop on sandalwood, Kupang, 22 April 2010 Slide # 1 of 18
2 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? shop on sandalwood, Kupang, 22 April 2010 Slide # 2 of 18
3 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 shop on sandalwood, Kupang, 22 April 2010 Slide # 3 of 18
4 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 shop on sandalwood, expenditures, Kupang, 22 human April 2010 and social capitals) Slide # 4 of 18
5 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 shop on sandalwood, Focus Group Kupang, Discussions 22 April 2010 Slide # 5 of 18
6 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) shop on sandalwood, Kupang, 22 April 2010 Slide # 6 of 18
7 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). shop on sandalwood, Kupang, 22 April 2010 Slide # 7 of 18
8 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). shop on sandalwood, Kupang, 22 April 2010 Slide # 8 of 18
9 1. Sandalwood uses and management system During the independent prior to autonomy era shop on sandalwood, Kupang, 22 April 2010 Slide # 9 of 18
10 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 shop on sandalwood, Kupang, 22 April 2010 Slide # 10 of 18
11 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) shop on sandalwood, Kupang, 22 April 2010 Slide # 11 of 18
12 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. shop on sandalwood, Kupang, 22 April 2010 Slide # 12 of 18
13 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. shop on sandalwood, Kupang, 22 April 2010 Slide # 13 of 18
14 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 NGO Community shop on sandalwood, Kupang, 22 April 2010 Slide # 14 of 18
15 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). shop on sandalwood, Kupang, 22 April 2010 Slide # 15 of 18
16 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. shop on sandalwood, Kupang, 22 April 2010 Slide # 16 of 18
17 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. shop on sandalwood, Kupang, 22 April 2010 Slide # 17 of 18
18 shop on sandalwood, Kupang, 22 April 2010 Slide # 18 of 18
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