Smallholders play a significant role in the Indonesian palm oil industry. They cultivate more than 40% of the total plantation area, and their production contributes to the national revenue. However, despite their significant role, smallholders continue to face crop management, financial and environmental challenges. The fact that some smallholder plantations are illegally located in state forestland poses challenges for smallholders as regards getting access to finance, improving yields, and obtaining sustainable certification. Government policy on the collection of levies from exported crude palm oil (CPO fund) and its derivative products provides smallholders the opportunity to replant and support their sustainable practices, thereby reducing deforestation. This paper discusses how fiscal incentives of the CPO fund may have been optimized to prioritize these outcomes. We should prioritize the use of the fund not only to support smallholder replanting, but also to clarify their land tenure rights, so that they could get access to sustainable certification and financial institutions. It is also recommended that funds be allocated to subsidize loan interest to the bank and build productive capital during the grace period. These efforts have to be accompanied by building and improving smallholder databases and strengthening local government.

Pinus merkusii Jungh et de Vriese, known as Tusam or Sumatran pine, is the only pine that grows naturally in the south of the Equator with its natural distribution found in Indonesia, the Philippines, Myanmar, Thailand, Laos, Cambodia, and Vietnam. The Sumatran pine is an economically and ecologically important species in Indonesia that covers three native strains, Aceh, Kerinci, and Tapanuli. The resin tapping of the pine has been practiced for hundreds of years while its timber has long been commercially used for various purposes. Although the pine is known as highland species, its adaptability on a wide spectrum environment makes it suitable for various restoration and rehabilitation purposes both in lowland and highland sites. Its high commercial values have also made the species be massively planted in pine plantations outside their natural distribution in Sumatera (i.e., in Java and Sulawesi island). This paper will review the current condition of Sumatran pine and its potential as a restoration and rehabilitation species and delivering its natural and artificial distribution map in Indonesia. In addition, the paper will also show the genetic variability of the species, determine the current innovative practices in silvicultural aspect both at nursery and plantation scales, describe tree improvement program, including its role in agroforestry practices, pine product both timber and non-timber, and its potential resources in relation with climate change mitigation management.

Milne, S., M. Milne, F. Nurfatriani, and L. Tacconi. 2016. How is global climate policy interpreted on the ground? Insights from the analysis of local discourses about forest management and REDD+ in Indonesia. Ecology and Society 21(2):6.http://dx.doi.org/10.5751/ES-08363-210206

Farmers do not yet have extensive knowledge on the production economic. Therefore, the effectiveness of social forestry (SF) practices in providing economic benefits is still questionable. The study aimed to analyze the economic scale of SF as a lessons for the acceleration of land allocation of SF program. The study was focused on two schemes (community forestry and partnership), and two models of commodity (agroforestry and ecotourism). Study were located in six villages in DI Yogyakarta and East Nusa Tenggara. Data were collected through observation, in-depth interview, and documentation study. Economic scale was analyzed by break even point with profit contribution. The results showed that the economic scale on agroforestry was between 0.169.33 hectare, influenced by commodity preference especially multi purposes tree species. While economic scale for ecotourism was at least 542,897 visitors a year, and affected by number of ecotourism attraction. This study implies to provide policy recommendations: (1) ecotourism will be effective when it is conducted in the forest areas which have multi-attraction spots, and managed by community group with strong network, (2) the permit of timber harvesting within SF area must be easier and more open, and (3) the minimum area adjusted to the commodity as an important consideration for proposing SF.

Role of National Parks (NPs) as carbon storage has still not been well appreciated in REDD+ concept. This is because the methodology for providing incentives for reducing emissions from land sector still uses an additional approach. However, REDD+ activities have also enhanced carbon stocks and implemented sustainable forest management. Technical efforts to improve carbon stocks in NPs can be carried out in the form of utilizing carbon-based environmental services that consist of three schemes, namely: a) emission reduction scheme, b) forest carbon stock conservation scheme, and c) forest carbon stocks enhancement scheme. This study aims to analyze the budget restructure of NPs to support utilization of carbon-based environmental services in NPs. This study uses qualitative and quantitative approach with content and fiscal analysis. The results indicate that the proportion of budget related to the utilization of forest carbon services is still very small compared to the total NP’s budget (15%) in four National Parks. For this reason, restructuring budget is needed and should be based on the use of carbon-based environmental services. This will further illustrate how resource allocation must be optimized and used as a basis for providing incentives for NPs.