DEVELOPMENT OF SMALL SCALE FOREST-BASED ENTERPRISES    PARTICIPATORY FOREST MANAGEMENT AREA, WEST KALIMANTAN, INDONESIA

PARTNERS Yayasan Dian Tama (YDT) P.D. Dian Niaga Appropriate Technology International (ATI) Social Forestry Development Project (GTZ-SFDP) Participatory Forest Area Management Body (LPKHP) BCN GRANT $466,249 1 January 1996 through 31 December 1998
BUSINESS DEVELOPMENT & INCOME GENERATION The project is developing two small-scale businesses: one based upon the sale of damar resin, and the other on processing of rattan and bamboo into finished handbag and other handicraft products. Specifically, YDT and its collaborators are: Training 251 community members in bamboo and rattan weaving techniques; Experimenting with and investigating new product designs, in part through "study tours" with community members to craft centers throughout Indonesia; Conducting local market analyses for rattan and bamboo products, as well as participating in local and international exhibits and trade shows; Training 28 community members in damar tapping techniques; Locating market outlets for the semi-processed resin. Villagers living within the Participatory Forest Management Area (PFMA) have produced handicrafts for several years. This project adds value by improving consistency and increasing the quality of the products, as well as building appropriate management structures and market links. Damar tapping and marketing has been re-introduced after a 40-year hiatus. Local farmers stopped tapping when the market collapsed years ago. Projected Revenues 1997 # of Direct Beneficiaries 1997 Rattan/Bamboo: $106,334 140 Damar:        $59,782 33 MONITORING YDT, GTZ-SFDP and LPKHP are working with 13 villages to monitor the project's socioeconomic and biological impacts. 12 community members have been trained in biological monitoring methods, while 3 YDT staff have gone through training in socioeconomic monitoring; Biological monitoring has been expanded to include damar -producing areas. Site Total Area Managed Area Population Sanggau 23,000ha 10,000ha 6,429	UNIQUE FEATURES OF THE PFMA The 120,000ha PFMA, which is not a protected area, covers a broad range of natural habitats. Though much of it has been converted for human use into secondary and agroforests, it still contains important populations of wildlife and vegetation. In 1990, the Indonesian government awarded what is effectively a 10-year lease on the land that now makes up the PFMA. The SFDP, supported by the GTZ, was established as a unique and largely experimental project for forest management and sustainable use working directly with indigenous and migrant communities. GTZ and local communities committed themselves to establishing a management body (LPKHP) representing communities within the PFMA, which would eventually share, then take over, management from GTZ. The SFDP/PFMA brings community members, natural resource managers, scientists, government officials and NGOs together to demonstrate sustainable use of a public forest. THREATS TO BIODIVERSITY Subsistence and commercial hunting; Unsustainable extraction of timber and non-timber forest products. Expansion of commercial and subsistence agriculture. Infrastructure building (e.g. roads). CURRENT & POTENTIAL POLICY IMPACTS Damar and other NTFP, regulated extraction permits. Resource and land tenure rules (e.g., "tree tenure"). Public forest zoning for sustainable use and conservation. Replication of the model to other areas of Indonesia. OTHER PROJECT FEATURES Women comprise the vast majority of weavers. The primary markets for the rattan/bamboo products are Indonesia, the Philippines, Japan, Australia and Europe. For damar, the markets are local and, potentially, Singapore. Of all the NGOs supported by the BCN, YDT and ATI have perhaps the most enterprise skills. YDT began working in the PFMA on an environmentally-responsible charcoal business using otherwise wasted coconut husks.
CONTACT INFORMATION YDT, Jl. Cendrawasih 53B, Pontianak, W. Kalimantan 78111, Indonesia; Fax 62-561-32097; Email diantama@pontianak.wasantara.net.id BCN (Jakarta Office): Jl. Madium No. 3, Menteng, Jakarta 10320, Indonesia; Phone/Fax: 62-21-392-6584; E-Mail bcordes@cbn.net.id

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