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Completion Report COMPLETION REPORT ITTO Project PD 459/07 Rev.1 (F) Improving the Enabling Conditions for Sustainable Management of Sandalwood Forest Resources in East Nusa Tenggara Province Host Government : Indonesia Executing Agency : Directorate General of Forest Utilization Ministry of Forestry Collaborating Agency : Forestry Service of East Nusa Tenggara Province Jakarta, March 2013 : • Title “Improving the Enabling Conditions for Sustainable Management of Sandalwood Forest Resources in : East Nusa Tenggara Province” • Project number PD 459/07 Rev.1 (F) • Host Government : Republic of Indonesia • Executing Agency : Directorate of Forest Utilization and Planning Development DG of Forestry Utulization (BUK) Ministry of Forestry Indonesia • Collaborating Agency : Forestry Service of East Nusa Tenggara Province (NTT) • Starting date of the Pro ject: : 23 November 2009 • Duration of the Project 7 months • Project costs (US $) : Source USD ITTO 593.163 Government of Indonesia 125.000 Total 718.163 Disclaimer: This report is the product of the ITTO, and Ministry of Forestry, Indonesia. Interested parties may reproduce the report in whole or in part provided that it is not sold or put to commercial use and its source is acknowledged. FOREWORD Sandalwood (Santalum Album Linn.) is an important tree species in East Nusa Tenggara province because of its economic value and the best endemic tree in the world. Past regulations and policies are identified as the main reasons behind the decrease of Sandalwood population particularly in Timor island. Regulations and policies which excluded communities resulted in the scarcity of Sandalwood. Supported by ITTO (International Tropical Timber Organization) through Project PD 459/07 Rev.1 (F); “Improving the Enabling Conditions for Sustainable Management of Sandalwood Forest Resources in East Nusa Tenggara” , the Ministry of Forestry of Indonesia currently supports Sandalwood conservation in East Nusa Tenggara through strengthening policy frameworks, economic incentive, and local institution for sustainable Sandalwood management. It becomes a priority program to deal with Sandalwood- related issues in East Nusa Tenggara. At the inial stage with a support from ITTO, policy analysis and economic incentive for Sandalwood management in East Nusa Tenggara as the realisation of the Action Plan and the Master Plan of Sandalwood management, have been conducted. From the study, inputs from communities, the elders and NGOs should be considered and applied for sustainable Sandalwood management in East Nusa Tenggara. We thank the Formulation Team and the ITTO PD 459/07 Rev.1 Team who have worked hard to prepare this book. I hope that important information in this book can be shared with all agencies to manage Sandalwood sustainably in East Nusa Tenggara. This report presents concisely the implementation of the project activities and achievements of the project in accordance with existing ITTO Manual. Jakarta, March 2013 Yani septiani Project Coordinator This report presents concisely the implementation of the project activities and achievements of the project in accordance with existing ITTO Manual. ACKNOWLEDGMENTS We would like to take this opportunity to acknowledge those individuals and institutions that have actively involved in the project cycle, from its development stage to project completion. First of all, we would like to express our sincere thanks to ITTO and donor countries for financing the project that made its implementation possible; we are particularly indebted to Mr. Emmanuel Ze Meka, the ITTO Executive Director, and Mr. Eduardo Mansur, Dr. Tetra Yanuariadi and Dr. Hwan Ok Ma for their continued support to the project implementation. We also would like to express a very great appreciation to Elizabeth Lukas, Field Coordinator of ITTO project PD 459/07 Rev.1 (F) for her hard work and support during the implementation of the sandalwood project in ENT, Dr. Dede Rochadi, Dr. Retno Mariyani, Dr. Michael Riwu Kaho and Dr. Don Gilmour or their assistance during the consultancy process. And we particularly grateful for the assistance given by Listya Kusumawardhani and Mr. Mintarjo from Ministry of Forest and Ben Polo Maing from Forestry Service ENT province. At last we would like to LIST OF ABBREVIATIONS AND ACRONYMS AAC : Annual Allowable Cut APBD : Local Government Budget Bappeda : Regional Planning Agency BP2HP : Unit Office of Forest Product Utilization Forest Bupati : Regent in District Level BUK : Directorate General of Forest Utilization BUMN : State owned enterprise CIFOR : Center for International Forest Research CSR : Corporate Social Responsibility DPRD : Legislative Local Government ENT : East Nusa Tenggara FGD : Focused Group Discussion FORDA : Forest Research Development Agency FPC : Forest Product Commission (in Perth Australia) GOI : Government of Indonesia HTI : Hutan Tanaman Industri (Forest Plantation Estate) ITTA : International Tropical Timber Agreement ITTO : International Tropical Timber Organization MoF : Ministry of Forestry NGO : Non Government Organization NTT : Nusa Tenggara Timur (East Nusa Tenggara) PMU : Project Management Unit Proglada : Program Legislatif Daerah- District Legislation Program PSC : Project Steering Committee RADJA : King/Traditional Head of a Region RAN PERDA : Draft of Local Government Regulation SCBFWM : Strengthening Communities Based Forest Watershed Management TTS : Timor Tengah Selatan (South Central Timor) UGM : University of Gajah Mada TABLE OF CONTENTS FOREWORD ACKNOWLEDGEMENTS LIST OF ABBREVIATIONS AND ACRONYMS TABLE OF CONTENTS EXECUTIVE SUMMARY 1. Project Identification ………………………………………………………………………………………………8 1.1. Context………………………………………………………………………………………………………….8 1.2. Origin and problems addressed……………………………………………………………………………...9 2. Project Objectives and Implementation Strategy…………………………………………………………... 15 2.1. Project rationale……………………………………………………………………………………………. 15 2.2. Project objectives and implementation strategy ………………………………………………………….16 2.3 Assumption and risks………………………………………………………………………………………...16 3. Project Performance ……………………………………………………………………………………………..18 3.1. Planned vs realized project elements………………………………………………………………………18 3.2. Project duration……………………………………………………………………………………………….21 3.3. Project budget………………………………………………………………………………………………...21 4. Project outcome and Target Beneficiaries Involvement……………………………………………………22 4.1. The specific objective achieved…………………………………………………………………………….22 4.2. Existing situation at project completion vs pre-project situation…………………………………………24 4.3. Involvement of project beneficiaries………………………………………………………………………..25 4.4. Project sustainability…………………………………………………………………………………………26 5. Assessment and Analysis……………………………………………………………………………………….25 5.1. Project rationale and identification process………………………………………………………………..25 5.2. Problem addressed, objectives and implementation strategy…………………………………………...25 5.3. Critical differences between planned and actual project implementation………………………………29 5.4. Adequacy of time and project inputs……………………………………………………………………….30 5.5. External influences…………………………………………………………………………………………...30 5.6. Project beneficiaries………………………………………………………………………………………….31 5.7. Sustainability…………………………………………………………………………………………………..31 5.8. The institutions involved……………………………………………………………………………………...32 6. Lessons Learned ………………………………………………………………………………………………….33 6.1. Project identification and design……………………………………………………………………………33 6.2. Operational matters…………………………………………………………………………………………..34 7. Conclusions and Recommendations…………………………………………………………………………..35 7.1. Conclusions…………………………………………………………………………………………………...35 7.2. Recommendations…………………………………………………………………………………………...36 Annex 1. Project financial statement Annex 2. Project cash flow statement Annex 3. Documentation Page | 6 EXECUTIVE SUMMARY Sandalwood (Santalum album L.) is a fancy extinct endemic species from East Nusa Tenggara (ENT) Province Indonesia. Sandalwood is harvested mainly from natural stands and the wood is used for the production of handicrafts, joss sticks and, the main sandalwood product from the region, sandalwood oil, which is exported to be used in perfume and in the cosmetics industries all over the world. However, the resources are being rapidly depleted due to unsustainable harvesting and ineffective policy framework. Beside that the economic framework of this commodity is unclear as well, leading to the significant loss for local farmers whom their livelihood is mainly dependent on sandalwood commodity. Also low capacity of local stakeholders in maintaining natural regeneration of sandalwood utilization has led to the condition where that commodity has nearly becoming extinct. In light of the importance of tackling the issues above, the project will support the sustainable management of Sandalwood Resources to be well performed. As a top priority, the proposed project will focus on to strengthen the policy, economic incentive and local institutional framework for sustainable management of Sandalwood resource. These would be important first steps to address many issues of the sandalwood resource which is in line with ITTO Guidelines for the criteria and indicators for the sustainable management of tropical forest (ITTO Policy Development Series No 15). The project intends to contribute to the sustainable management of Sandalwood Resources in East Nusa Tenggara (NTT) Province. These forest resources have been seriously depleted due to high demand of sandalwood has stimulated over exploitation by illegal illegal logging
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