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Completion Reportreport ITTO CITES PHASE — II Establishment of An Integrated Agarwood Cluster in Bintan Island, Indonesia CompletionCompletion ReportReport Ministry of Environment and Forestry Agency for Research, Development and Innovation Center for Biotechnology and Tree Improvement Research and Development in cooperation with International Tropical Timber Organization (ITTO) – CITES Phase II Project Indonesia March - 2016 ITTO CITES Phase II Establishment of An Integrated Agarwood Cluster in Bintan Island, Indonesia Completion Report Ministry of Environment and Forestry Agency for Research, Development and Innovation Center for Biotechnology and Tree Improvement Research and Development in cooperation with International Tropical Timber Organization (ITTO) – CITES Phase II Project Indonesia March - 2016 Project number : ITTO Collaborative Program with CITES “Support to ITTO-CITES Implementation for tree species and trade/market transparency (TMT) Activity: Establishment of an Integrated Agarwood Cluster in Bintan Island, Indonesia Starting date of the activity : January 1, 2015 Duration of the activity : 12 months, extended to 15 months Project costs (US $) : ITTO: US$ 99,070 and GOI (in kind): US$ 21,907 The ordinal number and type : Activity Completion Report of the report Activity technical and scientific : Activity Management Unit staff 1. Team Leader for 2 activities : M. Charomaini Z 2. Agarwood Team Leader : Harisetijono 3. Activity Secretary : Siti Nurjanah 4. Assistant : Nopa Purwasi National Expert, Research Assistant and Technical Expert 1. Dr. Maman Turjaman, National Expert for activity 1.1. 2. Dr. Erdy Santoso, National Expert for activity 1.3. 3. Dr. Hariyatno Dwiprabowo, National Expert for activity 2.1 4. Agustinus P Tampubolon, Research assistant for activity 2.1 5. Ibrahim Yusuf, Technical Expert for activity 2.1 Implementing Agency : Center for Forest Biotechnology and Tree Improvement Research and Development Jalan Palagan Tentara Km. 15, Purwobinangun Pakem, Sleman - Yogyakarta Phone. + 62 – 274 – 895954 Fax: + 62 – 274 - 896080 Email: [email protected] Collaborating Agency : Center for Forest Research and Development Jalan Gunung Batu No. 5, Bogor Phone. + 62 – 251 – 8633 - 234 Fax: + 62 – 251 - 8638 – 111 Email: - The place and date the report : Bogor, 31 March 2016 was issued Table of Contents Executive Summary 1 1. Activity Identification 4 1.1. Context 4 1.1.1. Activity location 4 1.1.2. Relevant to Nationaland Regional Policy and Programme 4 1.2. The Origin and The Main Oroblem To Be Addressed 5 2. Activity Objectives and Implementation Strategy 5 2.1. Rationale and Specific Objective 5 2.2. Adjustment Made in the Implementation Phase 6 2.3. Implementation Strategy 6 3. Activity Performance 9 3.1. Performance of Each Activity 9 3.2. Output Achievement 10 4. Activity Outcome, Target Beneficiaries Involvement 19 4.1. The Achievement of Specific Objective 19 4.2. Situation at Activity Completion 20 4.3. Participation of The Target Beneficiaries 20 4.4. Expectation of Activity Sustainability after Activity Completion 21 5. Assessment and Analysis 21 6. Lessons Learned 22 7. Conclusions and Recommendations 24 Appendix 1. Activity Financial Statement – ITTO Contribution 25 Appendix 2. Activity Cash Flow Statement – ITTO Contribution 27 Appendix 3. Activity Financial Statement – GoI in kind Contribution 29 Appendix 4. Activity Cash Flow Statement – GoI in kind Contribution 31 EXECUTIVE SUMMARY 1. Activity context, origin and problem to be addressed Agarwood is one of the Non-timber Forest Product produced from the infestation of microorganisme to plant species, primary from the family of Thymmeliaceae. Two of the genera from this family, Aquilaria and Gyrinops have been listed in CITES Appendix due to their population depletion in the wild. In last decades, the artificial plantation of some of those agarwood producing species have been started nationwide, and some have produced artificially propagated agarwood. In response to the growing plantation activities of the agarwood, it seems necessary to establish an integrated agarwood management which cover all aspect of agarwood production, conservation until the processing and market, called cluster. This activity is, therefore, attempted to contribute to the enhancement of the conservation, production and overall sustainable management of agarwood through several activities and approaches. 2. Activity objectives The primary objective of the activity is to accelerate the establishment of an integrated agarwood cluster previously planned in Bintan Island, and due to other recent recommendation, moved to Central Bangka. The expected outputs are (i) the development of a design for an integrated agarwood cluster for Indonesia; and (ii) the delopment of a market information system for added transparency. 3. The most critical differences between planned and realized Activity implementation Activity Personnel: Personnels involved in both administrative and field activities are slightly different from that mentioned in original documents with similar in qualification. Therefore, the quality of the project remains similiar. Time schedule: Significant delay in the schedule from the starting date and some extention of implementation. It should be started in 2014, due to long administrative procedure, the project started in April 2015. Weak administrative management in internal Executing Agency has also caused other delay in the actual execution of most acttivities. The extension of the activity period from the starting date was only three months, January through March 2016. The extension was made to finalize some activities. Budget Amendment: There are some reallocated unspent funds to support the completion of some activities. 1 | P a g e 4. The situation prevailing after activity completion, as compared to the Pre-Activity situation including the situation of the target beneficiaries, and indicates the post-activity sustainability (a brief description) There are several conditions which have been reversed from the original situations as described below: (a). The reasonable concept of Agarwood integrated development (cluster), from conservation, plantation, production, processing until marketting possibilities, including research and development activities have been adopted and technically feasible to be implemented. All relevant stakeholders have involved from the premature drafts until the final and widely adopted concept. Roles of each institution, time frame and direct contribution have been identified. This concept is basically ready to be implemented and is likely to be successfully implemented. However, consistent supports and commitments from the Government of Central Bangka will determine the progress. (b). The legal support from local government has been obtained in the form of land allocation for various reasearch and development activities as part of the integrated management. Nearly 40 ha of state land have been identified and declared as for research and development activities for agarwood cluster. (c). A specifically designed agarwood website to ease and provide easy access for agarwood marketting in Indonesia as well as online registration for agarwood plantation have also been developed. This web is critically important for wide communication activities accross stakeholder, especially grower and trader. 5. The most relevant outcome of the analysis of the activity implementation The longterm integrated management for agarwood (cluster), website and market analyses for agarwood trade could be as important outputs and findings of this activity. 6. The lessons learned The original plan for this activity, the establishment of agarwood cluster was located in Bintan Island. Recent recomendation made the location changed to District of Central Bangka, the Province of Bangka Belitung Island. One of the reasons is the presence of letter of appointment for Central Bangka to be the agarwood cluster by the Directorate General of Land Rehabilitation and Social Forestry, Ministry of Forestry (now Ministry of Environment and Forestry-MoEF). This ITTO-CITES project welcomed by the local government, eventhough no direct cash contribution by the local government during the implementation of all activities. The commitment from all relevant stakeholders to sustain and continue all initiated activities including the concepts of agarwood cluster will be seen in the years to come. Indonesian CITES Management Authority, Directorare General of Nature Conservation and Ecosystem, MoEF is expected to monitor the progress and the implementation of the findings and outputs. Lesson learned from technical matters is that the presence of barrier in communication between Activity Management Units of this Agarwood Activity, which is located in Bogor, to the Executing Agency of this project (Center for Biotechnology and Tree Improvement) located in Yogyakarta. The administrative procedures introduced by the Executing Agency have made significant delay in the implementation of overall project activities. 2 | P a g e 7. Recommendations To ensure the sustainability of agarwood cluster in Central Bangka, its is recomended to conduct coordination and integration agarwood programme with supporting by all stakeholders including by farmer group, forestry extention, Bangka Belitung University with applying the principle of one stop services business from the plantations to product marketing of agarwood. All stakeholders should focus in some segment of agarwood product and capable to get benefit and enhance
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