Indonesia’s vast forested areas have the potential to serve as a crucial source of livelihood for local communities. However, the current contributions of these forests to community livelihoods are significantly underutilized in comparison to their potential. This study evaluates the financial performance and sustainability of community forest-based businesses operating around the forest management area of the Lakitan-Bukit Cogong forest management unit (LBC FMU). Data were collected through semi-structured and in-depth interviews with the key informants through purposive sampling. Financial viability analysis and a qualitative approach were used to assess the feasibility of the businesses. The findings revealed that all businesses show positive values for all financial indicators. From profit estimation and value-added distribution, all products are shown to be feasible. Concerning the value and supply chain, the rubber-processing industry has a remarkable flow. Moreover, small forest enterprises (SFEs) highlight natural capital optimization through multitudinous derivatives of products that could support a substantial regenerative economy, including citronella essential oil, native honeybees, rubber-based product, biochar, skewers, and liquid smoke. In addition, the multidimensional scaling and rapid appraisal for forest (MDS-RAPForest) approach generates a result based on multiple dimensions (ecology, economics, social and human resources, and institutional and administrative dimensions) showing that overall, SFEs are categorized as sufficient/quite sustainable. Furthermore, mainstreaming adaptable forest-based enterprises, jurisdiction approaches, and cross-production system strategies are also discussed. Our findings suggest that sustainable NTFP-based activities within a community context can be facilitated through interconnected market systems, appropriate price regulations, and support from stakeholders and legal frameworks.

Indonesian forestry challenges in attributional land-use conflicts of overlapping villages and state forests have affected community livelihoods and forest sustainability for decades. This empirical research uncovers the socio-economic attributes of villages in order to gain a better understanding of people−forest relationships in order to guide improved forest management and governance for long-term sustainability. Data were obtained from 69 villages located in the forest management unit of Lakitan Bukit Cogong in South Sumatra Province. Spatially-explicit quantitative measurements and qualitative approaches were employed to explore the interrelationships between human footprint, village development, and conflict resolution strategies over two decades. The results confirmed that utilization of forest areas as part of the village territory (such as for building settlements, public/social infrastructure facilities, plantations and agricultural fields) has long been administered without permits, destabilizing forest functions. Moreover, aspects such as human population size, proximity of villages to the national road and sub-district capital, and the transmigration settlement units have an impact on the Human Footprint Index and Village Development Index. Furthermore, our analyses identified three distinctive forms of conflict based on village type: (1) villages which are administratively included in the forest area; (2) villages for transmigration settlement; and (3) villages adjacent to company management concession areas. In these villages, the clarity of land/forest boundaries and property rights are predominant conflict issues. Several recommendations are proposed to support sustainable forest development; namely, controlling human activities in the forest, improving village management governance, and resolving associated conflicts.