Indonesia's tropical forests are a vital source of food, fuel, shelter, and employment for more than one-fifth of the country's population and a crucial resource in the fight against climate change. However, many communities that rely on the world’s third-largest tropical rainforest face economic challenges, including elevated poverty rates and limited opportunities to develop surrounding land.
The Indonesian government's Agrarian Reform Program seeks to reduce poverty and promote rural economic development by granting local and indigenous communities legal access to forest areas. The Social Forestry Program, launched in 2015, was a significant step toward these goals.
The Social Forestry Program aims to provide communities with legal access to 12.7 million hectares of state forests, allowing them to sustainably manage these resources for their livelihoods and forest conservation. By the end of 2023, nearly 10,000 Social Forestry permits had been issued nationally, covering 6.4 million hectares, including 251,000 hectares of customary forest (Hutan Adat), referring to forests situated within the lands of indigenous peoples.
This initiative has gradually empowered indigenous peoples and local communities to manage forests sustainably, contributing to both climate protection and improved livelihoods.
Muhammad Yahdi, known as Uda Yadi, together with his community in Taram Nagari, West Sumatra, initiated an innovative agroforestry and ecotourism project centered around the surrounding forests after the Nagari Forests Management Unit of Taram Nagari received a social forestry license in 2017. Under this license, indigenous peoples and local communities have been entrusted with the sustainable management of approximately 800 hectares of pristine forest land utilized for eco-tourism and agroforestry.
The ecotourism initiative in Taram Nagari has thrived with the support of indigenous communities. They developed essential infrastructure such as well-maintained walking paths and food stalls. Offering attractions like pine forests, waterfall bathing, and the tranquility of the forests, the ecotourism area has become a haven for nature enthusiasts. This sustainable approach not only generates income for locals but also preserves the forests.
Through strategic promotion and social media marketing, the ecotourism area generates daily income of around IDR50 million (around US$3,200) during peak season. The success of this venture has led to a significant increase in visitors from 70,000 in 2018 to 260,000 in 2021. With this success in ecotourism comes a transition from illegal logging to sustainable livelihoods within the sector. Additionally, communities have diversified into agroforestry businesses exploring various commodities such as cocoa mushrooms rubber coconuts fruits rattan among other non-timber forest products.
In North Maluku province Mancelina Lobby Head Todowongi Village led community-based business model following acquisition social forestry license December responsible management hectare state paved way ventures producing red ginger drinks rattan-based furniture
For generations villagers Todowongi cultivated red ginger state recognizing health benefits With social forestry capacity building modernized production methods enhancing value creating source income license legal harvest rattan crafting selling rattan-based furniture
Monthly revenue powdered ginger sales reached IDR5 million (US$320) supporting daily needs children's school fees Requests rattan-based furniture increasing indicating growing market demand
Under Lobby leadership production house dedicated facility intended community use processing equipment various products fostered partnerships village-owned enterprises utilizes social media platforms product promotion allocates village funds support local businesses
Social forestry presents opportunity reduce emissions preserving forest cover boosting local economy demonstrated success stories Uda Yadi Mancelina Lobby Provinces potential advance foundation regional green economic development West Sumatra provincial government launched initiative known Integrated Regional Development incorporates range endeavors encompass forestry agriculture tourism creative economy industry agrarian spatial planning infrastructure
World Bank supports Indonesia efforts through programs Strengthening Social Forestry SSF Project facilitates legal access promotes community-based sustainable management hectares city districts West Sumatra Lampung West Nusa Tenggara North Maluku supports provinces integrating principles regional plans
By program expected benefit approximately people including women reduce tons CO2 emissions enhance cover rehabilitating degraded important biodiversity conservation SSF yielded tangible results households gaining learning participating business contributed increased cover within hectares land
Indonesia’s program shows governments local development work together promote value build help fight change initiative creates template scale replicate successes