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Realizing Integrated Forestry and Farming System in Selected Villages in West , South and Background

• APP has been initiated an Integrated Forestry and Farming System (IFFS/DMPA) program to provide sustainable alternative livelihood for communities surrounding APP pulpwood suppliers’ concession area. • The 1st stage of the work, ICRAF and CIFOR developed village typologies, defining factors impacting IFFS, and policy analysis related to the program. • Field studies by YKAN/TNC, ICRAF and CIFOR in 6 villages of IFFS in , South Sumatera and Riau. Objective

• To develop business models that can balance the communities’ livelihood and forest protection. • To link the business model with more permanent and broader institutions e.g. market, government policies and programs. • To scale up the business model initiatives into national platform. Key Performance Indicators

No Principle Criteria

Securing livelihoods of the business Income of participants are increased model participants 1 Participants family education are sustained Participants family health are sustained The number of person participating in the busines are increased Sustainability of business model 2 Number of offtakers increased Market actors supporting the business group are increasing Other business and derivative products are developed based on the business model Increasing amount of investment Best management practices/good Reduction in production cost 3 agricultural practices Production efficiency Business inputs are sufficient

Productivity increased Business model institutions and 4 Business group are established and functioning management are established and fully functioning Business related information are available, up to date and accessible Realizing IFFS in selected Villages in West Kalimantan, and Riau Provinces West Kalimantan

Desa Mengkiang, Kec. Kapuas, Kab. Sanggau

Kelurahan Sungai Sengkuang, Kec. Kapuas, Kab. Sanggau Using SIGAP (Aksi Inspiratif Warga Untuk Perubahan) Approach Villages profile

MENGKIANG VILLAGE SUNGAI SENGKUANG VILLAGE Village Development Severe under-developing village Developing village Index (2018) Area (hectares) 5.375 7.960 Population 1.560 4.866

Poverty rate (BPS data 20% 0% 2017) Access to clean water, • No bathroom inside villagers’ house, • Villagers have a bathroom inside their electricity and fuel gas villagers still using river for latrine house • Limited access to clean water, most of the • All houses have clean water installation villagers still use water from the river for and electrify by PLN household activities houses electrify by PLN • Villagers use gas stove for cooking • Not all villagers use gas stove for cooking DESA MENGKIANG KELURAHAN SUNGAI SENGKUANG Community Livelihood • Rubber farmers • Rubber farmers • Smallholders • Palm oil Smallholders • farmer (DRY AND WET) • Rice farmer (DRY AND WET) • Fisherman (RIVER FISH) • Fisherman (RIVER FISH) • Food stalls • Pepper farmers • Charcoal maker Land use Malay ethnicity: rice field, vegetables/tree garden, Malay ethnicity: rice field, vegetables/tree forest, shrubs garden, forest, shrub

Dayak ethnicity: prohibited forest, nangak forest (villager can access the forest for a non timber forest product only), “proyek” - a common land managed together by villagers, ”poya umum” – a land devoted to build houses for villagers that don’t have land yet Land ownership 1 to 2 hectares per household 0.5 to 1.5 hectares per household Frequency of land and Not many No forest/land fire incident forest fire Findings

• Most existing programs (e.g. government, NGOs and private sector) have not designed to consider the village potential assets; the process in designing the program not based on participatory and not align with the existing village development plan. • The existing economic village institution such as BUMDes, has not been considered as important instruments for the village economic development. • The agriculture and plantation practices have not adopted the good agriculture practices (GAP) that bring added value to the community welfare and environment. • Due to the regulation changing, part of the area of Finantara concession change from forest to non-forest area. The changing provides an opportunity to develop government scheme like social forestry (perhutanan sosial). South Sumatra ICRAF Participative Implementation

• Characterization of pilot village based on social, economic and ecological aspects of communities • Stakeholder mapping of individuals, groups, institutions that are relevant for development of public-private-people partnerships in pilot village • Participatory analyses of: (i) resource mapping based on the five livelihoods capitals; and (ii) options for trees and farming systems • Cost-benefit of various farming systems as the basis of business model development • Options for interventions along the market and value-chain of agroforestry commodities and market actors are developed Ulak Kedondong and Banyu Biru, South Sumatra Ulak Kedondong village, Cengal sub- district, OKI district: • Remote • Close to canal and timber plantations • Recent deforestation, degradation and burn scars • No primary forest

Methods: Banyu Biru village, Air Sugihan • Reconnaissance sub-district, OKI district: • Key informant interviews • Remote • Focus-group discussions • Close to canal and timber (FGDs) plantations • Transect walks • Recent deforestation, • SWOT analysis degradation and burn scars • Market and value-chain • Lot of primary forest analyses Characteristics of social, economic and ecological aspects of communities Characteristics Ulak Kedondong Banyu Biru Social • Ethnicity: native (Malay) • Ethnicity: migrant (Javanese-Sundanese) demography • Education: majority elementary school (SD), younger • Education: medium/high level of education (SMA-university), generations work for companies younger generations work for companies • No farmer group • 19 farmer groups and active Main livelihood Rubber monoculture and AF • Oil palm monoculture, rubber monoculture and AF (with , , timber trees), paddy and other annual crops (, vegetable) Ecology • Lowland (mineral), surrounded by shallow and deep • Lowland (shallow peat turned into mineral soil), surrounded peat by shallow and deep peat Agricultural issues • Low productivity (latex) and low price, mostly old • Low prices of oil palm and rubber and more intensive rubber and low management management • Zero burning policy affect replanting of old rubber • Main mode of transportation: water à low prices of • Limited access to good quality planting materials agricultural product, high cost of agricultural inputs • Pest attacks (pigs) • Limited access to good quality planting materials • Pest attacks (pigs, rats) External support • Agriculture officer of OKI (50.000 rubber seedling for • Agriculture officer of OKI (6000 oil palm seeds and 10000 50 families, 2012) rubber seedlings, 2013) • PT. BMH (DMPA program (2016): livestock (chicken • PT. BAP (DMPA program (2016): paddy cultivation in ZTH, and cow) trainings on organic fertilizer) • BRG (seeds of annual crop: vegetables) • CV-1 (training on planting oil palm) • PT PUSRI (subsidized fertilizers from 2011-present • BRG (canal blocking) Financial access - BUMDES and BRI Map of resources, list of tree species’ priorities and farming options: existing and potential

Ulak Kedondong Banyu Biru

Tree species Existing: rubber, timber trees (kelempang, Existing: oil palm, rubber, coffee, timber trees (existing and berangan, pelengas, gelam), fruit trees (acacia, sengon, pulai), fruit trees (coconut, potential) (rambutan, mango, dukuh) orange, mango, , rambutan), jelutong,

Potential: oil palm, acacia, durian, jeruk manis, kelengkeng and sawo Potential: gaharu Unmanaged rubber plantation in Ulak Kedondong Existing rubber agroforestry, rain-fed paddy field, rubber monoculture, rain-fed paddy field, oil farming livestock palm monoculture, oil palm agroforestry (oil systems palm + sengon/coconut), rubber agroforestry (rubber + coconut/coffee or rubber + coconut)

Potential oil palm monoculture and/or AF, rubber rubber monoculture and/or AF, rain-fed paddy farming agroforestry, acacia planting block, rain- field, oil palm monoculture and/or AF systems with fed paddy field GAP Paddy fields in zona tanaman kehidupan of Banyu Biru Interim results: Cost-benefit of various farming systems as the basis of business model development

In remote areas, often Return to Labour is more important as farmers’ In oil palm farming (small scale), combining GAP & zero burning (intv 1) decision making factor in choosing their farming systems, e.g., produces higher NPV than BAU, even higher than GAP & controlled between monoculture or agroforestry, and between business-as-usual practices or Good Agricultural Practices burning (intv 2) and GAP & mechanized land clearing (intv 3) Based on ICRAF unpublished study in lowland areas in Sumatra, Kalimantan and Riau Participatory Action Research to Community-Level Business Model

Pinang Sebatang Barat Village, Siak Kesuma Village, Pelalawan Regency (peat typology) (non-peat typology) Participatory Action Research (PAR) Approach

Reflection Phase: • Scoping study to community • Household survey • Market and supply chain surveys Planning Phase: • FGDs for business model development • Key informant interview and desk review for business plan development (include financial and risk analysis) Forest and land fire • Historical hotspot and burn scar for Pinang Sebatang Barat (upper left) and Kesuma (bottom left) for 2001 to 2020. • Human dimensions, either political, social, cultural and economic, may have strong explanations to the reasons of fire ignition (Purnomo et al. 2017) and burn scar in the two villages.

Pinang Sebatang Barat Kesuma Reflection Phase: • Opportunities to build business plan and model at the community Demography, opportunity, and level: the perception on fire • The community has potential entrepreneurship personality, experience in business, and idea for business (135* and 152** ideas). They can directly supply the products to the nearby market. • State of the use of fire: • Respondents were no longer using fire in land preparation (94%*, 86%**) • Those who were no longer using fire driven by: • The fear of uncontrolled widespread (13%*, 22%**), • The presence of fire ban (22%*, 31%**) • The fear of law enforcer and imprisonment (10%*, 14%**) • The perception of fire to be dangerous (14%*) • Landless (14%*). • Respondents who continued to use fire perceived the fire: • Beneficial (6%*, 26%**) • Local wisdom practice (1%*).

*Pinang Sebatang Barat Village, Siak Regency **Kesuma Village, Pelalawan Regency Planning Phase: Business model and plan development

1. Agroforestry of cassava and melinjo tree, and • The financial analysis (NPV, BCR, IRR, and PRP) edutourism at Pinang Sebatang Barat Village (left) showing both of the business models are feasible 2. Integrated animal husbandry (goat) and animal feed • Pre-implementation study should be done. • (Kaliandra tree and dwarf elephant grass) at Kesuma PLTB (land preparation without using fire) must be introduced and supported Village (right) Lessons Learned • Synergizing programs by different stakeholders with the village development plans and institution (e.g. BUMDes). Village plans should also be participative to build sense of ownership and get supports. • Agroforestry business models of good agriculture practices and zero-burning land preparation exist and can produce higher Net Present Value (NPV) compared to current practices. • Increased technical and management capacities of smallholder farmers are needed through trainings, demonstration plots, and entrepreneurship to induce behavior change and increase adoption rate. • Actor/champion of the business model must be clearly identified, encouraged, and supported • Capturing added-value and connecting the community's business with traditional and modern markets, e.g. e-commerce, chain retail of convenience store. Thank You

• Herry Purnomo • Gerhard • Ratih Loekito • Dyah Manurung • Lailan Ramadhan Puspitaloka • Sonya Dewi • Rudi Zapariza • Benny Okarda • Betha Lusiana • Agus Andrianto • Ni'matul Khsanah • Ahmad • Subekti Rahayu Dermawan