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Report of International Sandalwood

Symposium 2012 in Hawaii - USA 21 - 24 September 2012

ITTO PD 459/07 Rev.1 (F) Improving the Enabling Conditions for Sustainable Management of

Sandalwood Forest Resources in East Nusa Tenggara Province

Jakarta, November 2012

RRR EEE PPP OOO RRR TTT

28 November 2012

With regard to the convening of the "International Sandalwood Symposium 2012 in Hawaii " USA on 21-24 September 2012, we respectfully submit the results of the meeting as follows:

1. Symposium was organized by The International Sandalwood Foundation in cooperation with the United Plant Savers, USA. Both organizations have relatively the same mission, namely to preserve species whose population has drastically declined or endangered in the Pacific and Asia through education, research and program of sustained management of natural resources utilization. Invited participants are very diverse ranging from governments, sandalwood entrepreneurs, farmers / growers, researchers, academics, individuals who are interested in sandalwood plant and international organizations such as CITES, etc. from the United States, Australia, France, India, Indonesia, Sri Lanka, Fiji, Tonga and other countries of the Pacific Islands. Indonesia’s participation is represented by Yani Septiani from the Directorate General of Forestry Business Development and ITTO Project PD 459/07 Rev.1

2. The purpose of the symposium is to discuss and share information related to the development and preservation of sandalwood in the whole world. Session presentations are divided into (1) Session 1: Introduction, local and global Sandalwood market and threats, (2) Session 2: Chemistry and Genetics, (3) Session 3: Cultivation and propagation, (4) Session 4: Ecology and Environment; (5) Session 5; Regional Use and Development, (6) Session 6: Regulation and Sustainable management. I had the opportunity for presentation at the 6th session titled "sandalwood resource and its management in East Nusa Tenggara Province of Indonesia". Detailed information about the Symposium is available on the website http://www.sandalwoodfoundation.org/.

3. Most of the presenters explained the results of their studies / research and only a few convey concrete activities on the ground. Indonesia delivered report of activities that have been and are being conducted in order to support the development and preservation of sandalwood in East Nusa Tenggara (NTT). Starting from the improve-ment process in sandalwood management policy in two target districts (East Sumba and South Central Timor), community capacity building through training in the cultivation of sandalwood and making of community sandalwood nursery in several villages in four target districts (TTS, East Sumba, Flores and East Alor). The present-ation received appreciation from all participants because of the activities we are doing is real and concrete as well as it involves local communities. There are several organizations that are interested in the development of sandalwood in NTT, some of them is Wescrop from Australia and Aromatic Sandalwood. A few researchers from James Cook University are also interested to share information on a training manual for sandalwood cultivation that can be used for local communities. They now have already a simple manual and will be translated to the Indonesian language to enrich the training of sandalwood cultivation in the province of NTT. A sandalwood consult-ant from India is also interested in knowing the potential supply of sandalwood from NTT, because the current world supply of sandalwood is filled 90% by Indian sandal-wood, and 10% from Indonesia. Also, a researcher on sandalwood plant diseases

http://www.sandalwoodfoundation.org/.

from India are also very keen to share his research results because the sandalwood species studied is the same species of sandalwood growing in NTT which is Santalum album. And the current sandalwood crop growing in TTS District is affected by a disease which causes white patches on the leaves. This network has been channeled to institutions in the NTT province to be followed up.

4. Other important information to be shared are: (i) sandalwood populations have declined because of over exploitation without any effort to replant, this happens not only in Indonesia but also in the whole world. Even in Hawaii, from the six species that exist there, one species will be submitted to CITES as an endangered plants (but not Santalum album). (ii) The research / study of NTT sandalwood shows that its oil quality is the most superior in the world (iii) Sandalwood researchers in the world do not yet know that sandalwood distribution in Indonesia is not only in the NTT province but it is also found naturally regenerating in Aceh (ITTO Survey Team, sandalwood found in Pidie and Aceh Besar Districts) (iv) regulation for sandalwood regulation is actually not only in Indonesia but in Australia as well, the government had issued special rules relating these sandalwood. One of the representatives of the Government of Australia (FPC-Forest Products Commission) conveyed relevant information on Sandalwood in Australia. The rules issued encourage communities to grow sandalwood on infertile land and other rules related to control and maintaining sustainability. While the small countries in the Pacific Islands such as Tonga and Fiji are still struggling with the rules that are less effective and have not been pro community. All presentation materials will be bound in a book of proceedings and circulated to all participants. So ends this report for further directives.

Jakarta, 26 November 2012 Yani Septiani

APPENDIX 1.

SUMMARY

Proyek RED- PD 007/09 Rev.2 (F) “Enhanching Carbon Stock to Reduce Emission from Deforestation and Degradation through SFM initiatives in

Indonesia”

Reducing emission from deforestation and degradation in developing country becomes a

national, regional and international issue. The need for SFM to be part of any scheme to

reduce deforestation and degradation in the tropics is becoming crucial and important. It is

recognized that SFM will not completely eliminate deforestation problems but SFM will

improve forest management and bring economically feasible, ecologically sustainable

and socially acceptable management practices. However information on SFM initiatives in

enhancing forest based carbon stock, carbon sequestration, and carbon storage in green

products in order to reduce GHG CO2 emission has not yet reached the majority of

stakeholders/parties globally and particularly in Indonesia.

In light of the importance of tackling the issues above, the project will promote the SFM as

an important option for forest based climate change mitigation to reduce emission from

and by tropical forest. As first step priority, the proposed project will focus only on initiating

multi-stakeholder processes in developing national strategy to maintain and increase

forest carbon stock through SFM implementation.The expected outputs of the project are:

(1) Information concerning SFM forest based carbon, C stock, CO2 sequestration, and

green products is available; (2) Supporting infrastructure and mechanism to bring

additional incentives in implementing SFM as important option in reducing emission from

deforestation and forest degradation assessed ; (3) Outreach activities to promote public

awareness among relevant stakeholders on SFM initiatives in enhancing forest based

carbon stock, sequestration, and carbon storage in green products in order to reduce GHG

CO2 developed.

After project completion it is expected that strategy will be institutionalized and adopted by

various levels to be the program and action in reducing emission from deforestation and

degradation. The successful implementation of the project will generate awareness among

local people and other related stakeholders to participate in managing forestland in a

sustainable way. Local government, communities and private sector will get incentives from

the ongoing effort in implementing conservation and forest management in reducing

emission from deforestation and degradation.

APPENDIX 2.

1

PD 459/07 (F) Rev.1 1

SANDALWOOD RESOURCES AND ITS MANAGEMENT IN EAST NUSA TENGGARA PROVINCE, INDONESIA

Cooperatton between Indonesia Government (Ministry of Forestry and Local Government of East Nusa Tenggara) and ITTO

PD 459/07 (F) Rev.1 2

2

Kupang

TTS

TTU

Belu

AlorLembata

SikkaEnde

Ngada

Flores Timur

ManggaraiManggarai Barat

Sumba Barat

Sumba Timur

Kota Kupang

Rote Ndao

Sandalwood (local name Sandalwood (local name CENDANA CENDANA ) in ENT) in ENT

Sandalwood plays important roles to livelihood of people in ENT province both economically and culturally

3

PD 459/07 (F) Rev.1 5

The history and nature of sandalwood in East Nusa Tenggara province

The history of Sandalwood (Santalum album L. the local name is Cendana) in East Nusa Tenggara province closely parallels with the history of the province itself.

The wood has been commercially traded by Chinese traders to Malaya and India since the 10th century

During the 15th century, sandalwood from this area has attracted western traders

Traders distributed the wood to other parts of the world,

PD 459/07 (F) Rev.1 6

Sandalwood use in East Nusa Tenggara province

It harvested mainly from natural stands and -main product- sandalwood oil, which is exported to be used in perfume and in the cosmetics industries to USA, Singapore and European countries (Santalum album L.)

The wood also is being used, and deliver to neigbouring islands (such as Bali), for woodcarving and various forms of handicrafts such as fans, pens, beads, rosaries, accessories and handbags.

The wood is also used to make joss sticks for ritual purposes and marketed domestically or exported mainly to Taiwan

4

PD 459/07 (F) Rev.1 7

Sandalwood contribution for local government income

Sandalwood plays an important role as one of the main sources of local government for long time

From 1986/1987 to 1991/1992, sandalwood contributed about 2.5 billion rupiah annually or about 40% of the total local Gov revenue (91/92 to 97/98 contributed 12-37 %)

After this period this contribution declined. The resource is being rapidly depleted due to mainly weak of policy, economic and local institutional framework for sustainable management of Sandalwood resources

However, sandalwood is still considered an important asset by the local government.

PD 459/07 (F) Rev.1 8

Population of Sandalwood is decreasing

Unsustainable wood harvesting (Over cutting), wild grazing and land conversion to support agriculture activities has caused sandalwood population in ENT province continuously decreasing.

Efforts on sandalwood plantations are limited In the mean time, demand on sandalwood oil industries remains high to fulfill both domestic and export markets.

These conditions have been continuing since long time and may direct to sandalwood extinction in the region.

Previous studies have identified the root problems :sandalwood management

5

PD 459/07 (F) Rev.1 9

The studies concluded that low participation of local people on sustaining or cultivating sandalwood resources was caused by previous in effective local government policies that neglecting local people’s rights.

Low economical benefits and unclear rights on sandalwood management have constrained local people participation in sandalwood cultivation activities.

PD 459/07 (F) Rev.1 10

Policy and impact

Historically, sandalwood has been appropriated by the ruling class, under traditional law. All sandalwood trees - no matter on whose land they grow - were owned by the king (“Radja”) to control the sandalwood in this area.

After independence of Indonesia (1945)The wood was controlled by the government through a series of regulations covering all aspects of its management. These regulations deal with property rights, resource maintenance, harvesting, marketing and wood allocation. designed to sustain the resource, as well as to maintain local government income, in reality had the opposite effect.

Sandalwood authority was then regulated by local government(Peraturan Daerah or PERDA)

6

Regulations in managing sandalwood resource in ENT

Local Government regulation of sandalwood commodity had discouraged local people to get involved in improving and implementingsustainable sandalwood forest management system in the past:

Regional Government Regulation or “Perda” No. 16/1986 and the Ministry of Home Affairs Decree No. 522.63-433/1988; stated that all naturally regenerated sandalwood (live trees, dead trees and wood) belong to the local government. Any parties could plant sandalwood trees on their own land, but their income share from the harvested wood was only 15%.

Perda No. 2/1999 that abolished the Perda No. 16/1986. In the spirit of decentralization, the authority of sandalwood management was transferred from the provincial government to the district government. The regulations is till neglect community rights and thus discourage them from participating in the maintenance of sandalwood natural regeneration.

Because of the alarming rate of decline in sandalwood, the local government ordered a moratorium on the harvest of sandalwood from 1997 up to 2003. This regulation eliminated income contributions the PAD (Local Gov Revenue) receives from the sale of sandalwood.

5 ditricts in East Nusa Tenggara province has iimprovedregulation regarding Sandalwood management.

PD 459/07 (F) Rev.1 12

ITTO Project PD 459/07 Rev.1

This situation has risen the stakeholders’ concerns ofthe future sustainability of sandalwood. TheMinistry of Forestry, in collaboration with theGovernment of ENT province, and by the support ofthe International Tropical Timber Project supportedproject (PD 459/07 Rev.1:“Improving the enabling conditions for

sustainable manageent of sandalwood forestresources in east Nusa Tenggara province,Indonesia” .

The project aimed at developing sustainablesandalwood resource management throughstrengthening policies, economic incentives andlocal institution capacity.

7

VisiVisiononEast Nusa Tenggara to be a province of sandalwood (cendana) at

2030

The ITTO project in line The ITTO project in line with Vision and with Vision and MisionMision

Local Government of ENTLocal Government of ENT

PD 459/07 (F) Rev.1 14

Output of the ITTO-Indoneisan Government project

Output ITTO PD 459/07 Rev.1

1. New effective Policies in district level for managing the resources formulated and endorsed by executive

2. Appropriate economic incentive framework to support sustainable sandalwood resources developed

3. Capacity of forestry staffs and communities leader in Planning silviculture and utilization of sustainable sandalwood resource improved

4. Raise public awareness on sustainable sandalwood management

8

Selecting of Districts Target

Selected the target districts with theconsideration : Sandalwood natural distribution was still found in

Timor, Sumba , Flores and Alor island. Ineffective local government policy in the past has

result in socio-physiological impact particularly for he communities in Timor and Sumba island.

Sandalwood plantation by communities grow well in Alor island

4 Target Districts are : Distric South Central Timor (TTS) Distric Alor Distric Florest Timur District Sumba Timur

PD 459/07 (F) Rev.1 16

Project Strategy

Reviewing and Analyzing of regulationsmanaged sandalwood resources

Selecting for districts as pilot areas Intensive communication with local

government and also local communitiesto formulate/revise “PERDA”

Improving the capacity of forestry staffand communities

Improving community awareness Supporting standing stock data and

information system Distribution of the seedling and

establishing local community nursery

9

17

Activities of the project

1. Study and analysis in policy framework of sandalwood resources management in province and district levels

2. Study and analysis in economic incentive framework of sandalwood resources management in TTS district

3. Inventory of sandalwood stands at TTS district4. Facilitation of the process ( Development of public

dialogue/consultancy) to review draft local government regulation (PERDA) and executive at provincial and district level and also with DPRD (legislative)

5. Formulation of revised PERDA and academic draf (revised PERDA TTS district No. 25/2001)

6. Facilitation of the development of Master Plan of Sandalwood (FORDA)

7. Study Analysis of need assessment for improving human resource capacity in managing sandalwood resources

8. Formulation of training module of sandalwood resources planning, silviculture and utilization

9. Conducting training for communities leader in Alor District

PD 459/07 (F) Rev.1 18

Study and analysis in policy framework of sandalwood resources management and economic incentive

To support Local Government of ENT to implement priority program and the Action Plan the development of sustainable sandalwood managment

Study and analysis in policy framework of sandalwood resources management and economic incentive (Kabupaten Flores Timur, Sumba Timur, Timor Tengah Selatan dan Alor) by Team of National and International Consultant and assisted by staffs in Provincial and district level

10

Inventory of the sandalwood trees in TTS district

Data of Inventory in 23 villages in TTS district

11

PD 459/07 (F) Rev.1 21

Training in 4 target District and Facilitation process in improving and dissemination of local government regulation (PERDA )

Training of sandalwood cultivation forcommunities group and leaders in targetdistricts

Facilitation of PERDA improvement in TimorTengah Selatan and Sumba Timur district.Working together with legislative andexecutive in district level

Training of forestry staffs in district level inplanning and non timber program development

Development of sandalwood nursery forcommunities group in target villages

PD 459/07 (F) Rev.1 22

Other activities

Distribution of the information to motivate localcommunities in planting of sandalwood through LocalTelevision (TVRI Kupang) with Governor of NTT

Socialization of Sandalwood Master Plan in districtlevel (Alor, Flores timur , TTS and Sumba timur)

Distribution of sandalwood seedling , cooperation withlocal NGO to develop the demonstration plot in Kupang

Survey sandalwood potency in Aceh province Implementing KBR-Kebun Bibit untuk Rakyat (Nursery

for communities) with Unit of Watershed Managementin Kupang

study tour to western Australia for the farmers to gainlesson learn from sandalwood management

Study ecology of sandalwood in four target district

12

Documentation in di TTS23

Improvement PERDA No. 25/2001 in TTS and PERDA No. 19/2000 in ENT

Documentation in Sumba timur

PD 459/07 (F) Rev.1

24

trainings of sandalwood cultivation in 4 target districts

13

PD 459/07 (F) Rev.1 25

Training for institution and forestry staff in planning and non timber program development including Sandalwood

Tanaman cendana di desa Batee Kabuoaten Pidie

26

Sandalwood surveyin Aceh province

Kayu gubal cendana yang dikumpulkan masyarakat desa di Kabupaten Pidie

Ekspose potensi Cendana di kantor BP2HPAceh

14

27

Support private sector to participate in developing and conservation of Sandalwood

28

Facilitate implementation of TILAS (indonesian legal wood system)

15

SEN CENDANA SU.. BUAT SEN CENDANA SU.. BUAT KOTONG PUNG MASA DEPANKOTONG PUNG MASA DEPAN

Sandalwood plays important roles to livelihood of people in ENT province both economically and culturally

PD 459/07 (F) Rev.1 30

Publication

Dissemination of the project information in website and other media

http://www.dephut.go.id Antara Newspaper Website

http://www.antaranews.com/berita/1257133474/dephut-dan-itto-kerjasama- kembangkan-cendana-di-ntt

Media Indonesia Website http://www.mediaindonesia.com/read/2009/05/05/74091/89/14/Jepang-Bantu-Masyarakat-di-Pulau-Timor

Koran TempoKompasMajalah MIKIMajalah Tempo edisi InggrisKoran Lokal NTTLeafletStanding BannerBuku

Participation in Exhibition

http://www.dephut.go.idhttp://www.antaranews.com/berita/1257133474/dephhttp://www.mediaindonesia.com/read/2009/05/05/74

16

PD 459/07 (F) Rev.1 31

TERIMA KASIH

sandalwood resource and its management in East Nusa Tenggara province Indonesia, presented in International Sandalwood symposium in

Honolulu Hawaii 21-24 November 2012. Page 1


Yani Septiani1 and Titiek Setyawati2

Directorate General of Forest Utilization, Ministry of Forestry Indonesia and ITTO Project PD 459/07 Rev 1.

Sandalwood (Santalum album Linn.) is an important natural asset for the East Nusa Tenggara (ENT) Province. The wood has a pleasant odor and is used for various products such as handicrafts, woodcarvings, joss sticks, and oil for the perfume and cosmetics industries. Sandalwood has contributed significantly to the regional economy. Over the last two decades in the ENT province, the sandalwood population has been decreasing at an alarming rate due to over cutting, wild grazing, and land conversion to support certain agricultural activities. The Indonesian government has shown concern for the future of sandalwood and has begun working collaboratively with the government of the ENT province with support from the International Tropical Timber Organization (ITTO) to implement a study on sandalwood through an ITTO funded project PD 459/07 (F) Rev. 1, “Improving The Enabling Conditions For Sustainable Management of Sandalwood Forest Resources In East Nusa Tenggara (ENT) Indonesia”. The project aims at developing sustainable sandalwood resource management by strengthening policies, economic incentives, and the capacity of local institutions. This paper presents the results of the study on the sandalwood population including management strategies in the ENT province. Information and opinions of stakeholders were collected from four provincial districts: Alor, East Flores, East Sumba, and Timor Tengah Selatan (South Central Timor). Direct observations, interviews, and group discussions with local stakeholders were completed at the study sites. The study reveals that little improvement on policies to foster more sustainable management of sandalwood resources has taken place in the region during the last decade. Low economic benefits and unclear rights over sandalwood have constrained the local people’s participation in sandalwood cultivation. A number of strategies were recommended for sustaining sandalwood resources. Firstly, existing regulation should be revised so as to give the local people independence in cultivating the sandalwood and in marketing its products. Secondly, government policies and practices should be supportive of the local people’s efforts and should be applied fairly. And lastly, trust should be built at the local community level and among the stakeholders. Although the project’s activities focused primarily on the regulatory framework, other measures relating to the regulatory framework were taken to ensure the sustainable management of forest resources. In particular, technical packages covering all aspects of Sandalwood silviculture including seed collection, seedling production, planting (particularly host selection and management), and post planting operations were developed and disseminated to the local communities.

Keywords: Sandalwood, Santalum album, policy analyses, people participation, Sandalwood

1 Project Coordinator ITTO Project PD 459/07 Rev.1 (F) “Improving The Enabling Conditions For Sustainable Management of Sandalwood Forest Resources In East Nusa Tenggara (ENT) Indonesia”. DG of Forest Utilization Ministry of Forestry. Manggala Wanabhakti Building Block 4, 7 th floor Wing B No. 715 Jl. Jend Gatot Subroto Senayan Jakarta 10270 , [email protected] 2 Senior Researcher at Research Center for Conservation and Rehabilitation, Ministry of Forestry, [email protected]

mailto:[email protected]:[email protected]




1. Background Sandalwood (Santalum album Linn.) is an important natural asset for the East Nusa Tenggara (ENT) Province. The wood has a pleasant odor and is used for various products such as handicrafts, woodcarvings, joss sticks, and oil for the perfume and cosmetics industries. Due to its specific characteristics, sandalwood has attracted many visitors and has been commercially traded since the 10th century (Husain, 1983). It has also contributed significantly to the regional economy. From 1986 to 1992, sandalwood contributed to the regional income at an average of Rp 2.5 billion per year, or about 40% of the total ENT provincial income (Suara Pembaharuan in Rohadi et al, 2000). Over the last two decades in the ENT province, the sandalwood population has been decreasing at an alarming rate. From 1970 to 1998, the annual legal production of sandalwood fluctuated between 87 and 995 tons, with an annual average of about 600 tons (Rohadi et al, 2004). Troubled by the threat of the extinction of the sandalwood population, the provincial government banned sandalwood harvesting in 1997 with the ENT Governor Instruction No. 12/1997. It was expected that this moratorium and the ensuing rehabilitation efforts would bring about a recovery of the sandalwood population in the province, but this recovery so far has not materialized. Many studies have identified that an effective policy would address the sustainability of the sandalwood resource (rohadi et.all, 2000). The local people gain little from sustaining sandalwood resources, and unclear rights over sandalwood production have even burdened them. Concerned about the future sustainability of sandalwood, the Ministry of Forestry, in collaboration with the Government of the ENT province and with the support of the International Tropical Timber Organization (ITTO), has taken concrete action through project PD 459/07 (F) Rev. 1, “Improving The Enabling Conditions For Sustainable Management of Sandalwood Forest Resources In East Nusa Tenggara (ENT) Indonesia”. The project aims at developing sustainable sandalwood resource management by strengthening policies, economic incentives, and the capacity of local institutions. This approach is necessary to increase the local people’s participation in maintaining sandalwood resources. The project’s specific objectives were decided through a series of public consultations completed by the Ministry of Forestry from 2006 to 2009. The consultation process revealed that the root problems in the maintenance of sandalwood resources were poor policies, lack of economic incentives available for the people engaged in sandalwood management, low awareness among the local people, and low capacity of local institutions. This report analyzes the results of the management strategies of sandalwood resources in ENT province, based on the project’s field activities.



2. Policies on sandalwood management Sandalwood plays an important role in the livelihood of the people in ENT province. The long history of the economic and cultural importance of sandalwood to people in ENT province is well known (see for the examples McWilliam, 2001 and Rohadi et al, 2004).

Human intervention, however, has decreased sandalwood’s capability to adapt. Over cutting, wild grazing, and land conversion to support certain agricultural activities has been causing the sandalwood population in ENT province to decrease. Unsustainable wood harvesting by the digging up of sandalwood stumps and roots has accelerated sandalwood’s extinction, as the stumps and roots play an important role for sandalwood’s natural regeneration. (Rohadi et al, 2004). Efforts on sandalwood plantations are limited to government pilot projects with limited areas. In the meantime, the demand for sandalwood from the handicrafts and sandalwood oil industries remains high to fulfill both domestic and export markets. These conditions have persisted for quite some time and may continue to accelerate the extinction of sandalwood in the region.

Previous studies have identified several root problems in sandalwood management (see among others Rohadi et all, 2000; Rohadi et all, 2004; McWilliam, 2001; Marks, 2002; Forestry service report; ITTO consultants report, 2010). These studies conclude that previous government policies neglecting local people’s rights led to the low participation of local people in the cultivation of sandalwood. The local people gain little from managing sandalwood resources, and unclear rights over sandalwood production have even burdened them. Only rent seeker’s groups, who take sandalwood for granted while ignoring the sustainability of its resources, received the benefits from sandalwood cultivation.

Box 1. Summary of policies and regulations on sandalwood management in ENT region prior to autonomy era (summarized from Rohadi et al, 2000 with additional up-dated information):

a. The government owns all sandalwood that grows in the wild or naturally (living plants, dead plants, and wood assortments). People are allowed to grow sandalwood on their private land, but most of the wood sales go to the government (PERDA No. 16/1986). Sandalwood owners can claim part of the sandalwood sales up to 15% after showing evidence of their land title’s status to the local government (Governor Decree of ENT No 7/1993).

b. The Province Forestry Office carries out a sandalwood inventory every 5 years and determines the allowable annual cut for the next five years (PERDA No. 16/1986, Governor Decree of ENT No 7/1993 and Governor Letter No. 112/SKEP/HK/1995).

c. The regional government harvests and utilizes sandalwood, determines the standard costs of all that is involved in the utilization of sandalwood resources, and prepares the necessary documents to process the harvest and transportation of sandalwood (Governor Decree of ENT No 7 and No. 8/1993 and Governor Letter No. 113/SKEP/HK/1995).

d. The regional government determines the price of sandalwood sales and allocates them to processing companies through an auction system (Governor Decree of ENT No 7/1993, Governor Letter No. 260/SKEP/HK/1995, and Governor Letter No. 5/SKEP/HK/1996).

e. All people have the obligation to maintain and conserve sandalwood. Illegal harvesting or wood stocking as well as damage to the plants will be penalized. In order to monitor the conservation of sandalwood resources, the Governor of ENT province has established the Sandalwood Coordination Board comprising the Bupati (Head of the District), Camat (Head of Sub-district), Kepala Desa (Head of Village), military element and police (Angkatan Bersenjata Republik Indonesia/ABRI, the army title during this era) and other community leaders. The governor decree (i.e: Governor Decree of ENT No 53/1992) decides the membership of this board.



f. The government has improved the profit-sharing system by allocating up to 40 percent of the profits for sandalwood grown on private lands to the local community (PERDA No. 2/1996). However, this PERDA has not been effectively implemented due to the lack of follow-up regulations.

g. Concerned about the continuing decline of sandalwood resources, the regional government of ENT enacted a moratorium on sandalwood harvesting and encouraged the community to cultivate sandalwood (Governor Instruction No. 12/1997). Nevertheless, the regional government exploited massive amounts of sandalwood in an effort known as “Operasi Bersahabat” prior to the moratorium enactment (see Rohadi et al, 2004).

h. Acting within its regional autonomy built into the national government system, the Provincial Government of ENT finally revoked the PERDA No. 16/1986 and further handed over sandalwood management to district governments (PERDA NTT No. 2/1999).

Some revised policies have been enacted to provide for the local people’s needs, but the people’s participation remains low. Believing that Government Regulation No. 16/1986 was neglecting the people’s rights, the provincial government revoked it and devolved the authority over sandalwood regulation to the district governments. Yet not all of the districts have taken the necessary follow-up actions, thereby allowing the status quo on sandalwood regulation to persist. Some districts have introduced new regulations on sandalwood, though it seems the regulations have not yet sufficiently accommodated the local people’s rights and stimulated their participation. The analysis indicates that the new approach of creating more conducive policies that provide better economic incentives to local people is necessary to increase their participation in sustaining sandalwood resources.

3. Approach and Strategy taken The approach taken by the project team to improve the sustainable management of sandalwood resources is: (i) to establish the conditions that enable sustainable management of sandalwood resources in East Nusa Tenggara Province and (2) to improve the capacity of local institutions through :

i. Analyzing the existence and implementation of regulations of sandalwood property rights,

resource maintenance, harvesting, marketing, and wood allocation. Then we will consult with the district leader, community leaders, the private sector, the local representative house, national experts, and other relevant stakeholders. This consultation result as a guideline to continue to the step 2.

ii. Selecting four districts as pilot areas. In the spirit of decentralization, the authority of

sandalwood management was transferred from the provincial government to the district government. The four districts used in this project (Alor, East Flores, South Central Timor, and East Sumba) were selected based on their demographics and historical sandalwood management practices so as to accurately represent the conditions within ENT province.

iii. Establishing intensive communication with the local government and the local

representative house to support the decision making process at the district level. This will involve the local communities and other stakeholders in formulating the economic



means to mobilize financial support and build economic incentives that promote sandalwood resources.

iv. Improving the capacity of the institutions responsible for sandalwood resources, mainly

in the pilot districts. The local communities will be trained in resource cultivation, intensive plantation, and sustainable harvesting.

v. Supporting the availability of a standing stock data and information system.

The national government has committed itself to work towards the sustainable management of the country’s forest resources. At the provincial level, national policies are interpreted through provincial regulations (Perdas) and other legal instruments to give direction to the districts for policy implementation. The Ministry of Forestry aids the ENT provincial government (through the ITTO project) in establishing a master plan for the development of sandalwood over the next 20 years. The ENT provincial government has stated that the establishment of sandalwood plantations is a priority that requires immediate action from all district governments and related stakeholders. Each district government is required to allocate part of its local budget to maintain sandalwood nurseries and plantations.

Some districts in the province have even enacted their own District Perdas (e.g. TTS and Sumba Timur), while others have not (e.g. Alor and Flores Timur). 4. Project intervention progress The project PD 459/07 Rev. 1 supports concrete action for the sustainable management of sandalwood resources in ENT. As its top priorities, the project will focus on strengthening government policy, economic incentives, and local institutional capacity. These are important first steps in addressing many of the issues at stake in the management of sandalwood. Local communities in the province of ENT in general have a positive perception of sandalwood cultivation. The people have a long, historical relationship with sandalwood, and that serves as important capital to sustain it. The participation of local people will easily be encouraged if there are economic incentives to conserve sandalwood. High demand from the market for a variety of sandalwood products and high market prices both domestically and globally may be used as supporting factors. Nevertheless, this economic situation must be supported by regulations that eliminate high transaction costs.

The project is putting forward efforts to facilitate the improvement of local government regulations, such as (PERDA) of TTS district No. 25/2001 and PERDA No. 19/2000 in East Sumba District, by submitting a final draft of these regulations to the legislative body (DPRD) of TTS and East Sumba District. Work on the regulation PERDA No. 19/200 in East Sumba District is still in progress. The revision of the regulatory framework will:

Remove any elements that act as a disincentive for people to engage in sandalwood production on their private land.

Introduce incentives (financial and technical) to encourage people to engage in cultivating and managing sandalwood on their private land.

Empower rural people to take control of their natural resources and benefit from their sustainable management.



Some studies have been carried out to support improved regulation, for example, (i) the assessment on the economic incentive framework for sustainable sandalwood production in Timor Tengah Selatan (TTS) District, and (ii) the sandalwood inventory in 23 villages in TTS district. The results from the inventory also indicated the value of existing sandalwood resources in TTS District and that the sandalwood genetic resources are sufficiently available and well distributed throughout the district. Additionally, (iii) an ecological study of sandalwood in the four target districts and (iv) a study on the relationship between the sandalwood population, its distribution, and other ecological factors were executed. Sandalwood (Santalum album) is a plant ecotype of West Timor whose interaction with climatic and soil factors, certain ecological relationships, and other environmental factors will determine its abundance and distribution. Another important activity is the improvement of the technical capacity of farmers to plant and manage sandalwood more effectively as well as the reorientation of district governments’ operational focus from policing and licensing to supporting the local community. Technical support for communities included the development and dissemination of technical packages covering all aspects of sandalwood silviculture - seed collection, seedling production, planting (particularly host selection and management), and post-planting operations. This technical knowledge of sandalwood cultivation will motivate communities to plant and tend sandalwood on their land and facilitate their cultivation of sandalwood.

The other challenge in sustaining sandalwood resources is in encouraging and building trust with the local community and with stakeholders not merely in technical matters, such as the procedures for building and maintaining plantations. The improved regulations therefore strive to encourage and strengthen a sense of belonging within the local communities. To this end, the project also focuses on raising awareness among all key stakeholders (communities, government officials in relevant agencies, and the private sector) of the rights and responsibilities of communities and others in managing sandalwood resources. A series of activities have been carried out such as: (1) the distribution of the information to motivate local communities in cultivating sandalwood through local radio and television (TVRI Kupang), (2) the socialization of the sandalwood master plan at the district level (Alor, Flores timur, TTS, and Sumba timur), (3) the distribution of sandalwood seedlings by the Forestry Service of ENT province, (4) the establishment of the demonstration plot for sandalwood plantation in Kupang in cooperation with local NGOs and private companies, (5) a survey of sandalwood potential in Aceh province, (6) the development of the KBR-Kebun Bibit untuk Rakyat (Nursery for communities) program with Watershed Management in Kupang, and (7) a study tour to western Australia for the farmers to learn about sandalwood cultivation.



IV. REFERENCES

Butarbutar, T. dan Faah, G. 2008. Perlunya perbaikan kebijakan pengelolaan cendana di NTT menuju pengusahaan cendana yang lestari. Jurnal Analisis Kebijakan Kehutanan Vol. 5 No. 2: 121 – 130.

Dinas Kehutanan Kabupaten Flores Timur. 2010. Data Potensi dan Rencana Pengembangan Cendana. Laporan Dishutbun Flores Timur kepada Dishut NTT pada tanggal 23 Januari 2010.

Dinas Kehutanan Propinsi NTT. 2010. Kebijakan Pengelolaan Cendana. Makalah disampaikan pada Rapat Konsultasi Pengembangan Cendana di Propinsi Nusa Tenggara Timur pada tanggal 14 Januari 2010 di Kupang. Kerjasama antara ITTO, Dinas Kehutanan Propinsi Nusa Tenggara Timur dan Direktorat Bina Pengembangan Hutan Alam – Ditjen BPK, Departemen Kehutanan. Kupang.

Gilmour, D.A., (2011). Economic incentive framework for sustainable Sandalwood production in Timor Tengah Selatan (TTS) District, East Nusa Tenggara Province. Consutant ITTO PD 459/07 project report

Husain, A. M. M. 1983. The rehabilitation of Sandalwood and the trade in Nusa Tenggara Timur, Indonesia. Regional Planning and Preparation of Investment Oriented Projects in NTB – NTT. Direktorat Tata Kota dan Tata Daerah, Direktorat Jenderal Cipta Karya, Departemen Pekerjaan Umum. Jakarta.

Kepala Balai Pengelolaan DAS Benain Noelmina. 2010. Pemberdayaan Masyarakat Dalam Rangka Penanaman Cendana (Sandalwood Album L.). Makalah disampaikan pada Rapat Konsultasi Pengembangan Cendana di Propinsi Nusa Tenggara Timur pada tanggal 14 Januari 2010 di Kupang. Kerjasama antara ITTO, Dinas Kehutanan Propinsi Nusa Tenggara Timur dan Direktorat Bina Pengembangan Hutan Alam – Ditjen BPK, Departemen Kehutanan. Kupang.

Marks, S. V. 2002. NTT sandalwood: Roots of disaster. Bulletin of Indonesian Economic Studies, 38: 2, 223 — 240.

McCulloch, A. K., Meinzen-Dick, R. and Hazell, P. 1998. Property Rights, Collective Action and Technologies for Natural Resource Management: A Conceptual Framework. SP-PRCA Working Paper No. 1. International Food Policy Research Institute (IFPRI). Washington, D.C.

McWilliam, A. 2001. Haumeni, not many: renewed plunder and mismanagement in the Timorese Sandalwood Industry. Resource Management in Asia-Pacific Working Paper No. 29. Resource Management in Asia-Pacific Program, Division of Pacific and Asian History, Research School for Pacific and Asian Studies, The Australian National University. Canberra.

Oakerson, R. J. 1992. Analyzing the Commons: A Framework. In Bromley, D. W. (Ed.). Making The Commons Work. Institute for Contemporary Studies. San Fransisco, California.

Ormeling, F. J. 1955. The Timor problem: A geographical interpretation of an under developed island. PhD. thesis, University of Indonesia. J. B. Wolters, Djakarta and Groningen.



Riwukaho, M., and Koenunu, C. 2010.Inventory survey of Sandalwood in TTS district. 2010. Consultant report ITTO PD 459/07 rev.1.

Riwukaho, M., and Koenunu, C. 2011. Ecology study of Sandalwood in TTS district. Consultant report of ITTO PD 459/07 Rev.1. 2011

Rohadi, D., Maryani, R., Belcher, B., Ruiz Perez, M. and Widyana, M, 2000. Can sandalwood in East Nusa Tenggara survive? Lessons from the policy impact on resource sustainability. Sandalwood Research Newsletter Issue 10. Department of Conservation and Land Management, West Australia.

Rohadi, D., Maryani, R., Widyana, M. and Azhar, I. 2004. A case study of production to consumption system of Sandalwood (Sandalwood album) in South Central Timor, Indonesia. In: Kusters, K. and Belcher, B. (Eds.). Forest Products, Livelihoods and Conservation Volume 1-Asia. Center for International Forestry Research. Bogor. Pp. 187-205.

Rohadi, D. ,Setyawati, T., Maryani, R., Riwukaho, M., Boroh, P., Gilmour, D., Septiani, Y., and Lukas E.2011.Study of Sandalwood management in ENT. Consultant report of ITTO PD 459/07 rev.1.

Suara Pembaruan, 13 Januari 2000. Tataniaga dan penggunaan kayu Cendana sebagai bahan baku menunggu kebijakan.



V. ANNEXES

1. Example of questionnaires used in the study to guide interviews with key informants during rapid appraisal completed by Team 1.

2. Some pictures of research activities.

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