Post on 05-Jan-2020
Prepared for the Project by:
Dr. Hiras Sidabutar, Project National Expert and
Mr. Jimmy Chandra, Project Coordinator
Executed by :
Directorate General of Forestry Enterprise Development (BUK), The Ministry of Forestry of Indonesia
In collaboration with :
The Indonesian Sawmill and Woodworking Association (ISWA)
With the assistance of:
The International Tropical Timber Organization (ITTO)
Jakarta, July 2013
Project Title : Operational Strategies for the Promotion of Efficient Utilization of Rubberwood from Sustainable Sources in Indonesia
Serial Number : PD 523/08 Rev. 1 (I) Executing Agency : Directorate General of Forestry Enterprise Development (BUK), The
Ministry of Forestry of Indonesia Manggala Wanabakti Forestry Center, Block I, Floor 5 Jl. Gatot Soebroto, Senayan, Jakarta Phone: 62‐21 5730379 Collaborating Agency : Indonesian Sawmill & Woodworking Association (ISWA) Manggala Wanabakti Forestry Center, Block IV, Floor 8, Wing C Jl. Gatot Soebroto, Senayan, Jakarta Phone: 62‐21 5746336 Starting date : May 2010 Duration : 36 months Budget : ITTO US$ 605,094 Disbursed amount US$ 449,040 GOI/ISWA US$ 302,700 Total US$ 907,794 Project Key Personnel:
‐ Mr. Jimmy Chandra, Project Coordinator
‐ Dr. Hiras P. Sidabutar, National Expert
‐ Ms. Diah Herlinawati, Project Secretary
‐ Ms. Herlina Lesmana, Project Finance
‐ Mr. Josef Dwinanta, Project Technician Published by : BUK, ISWA and ITTO
Place & date : Jakarta, July 2013 Copyright © ITTO Project PD 523/08 Rev. 1 (I) This report is the product of the BUK, ISWA and ITTO; interested parties may reproduce the report in whole or in part solely for own use by acknowledging its source, otherwise requires prior written permission of the copyright owner if used for commercial purposes.
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List of abbreviation
BUK : Bina Usaha Kehutanan/Forestry Enterprise Development BRIK : Forest Industry Revitalization Body CEA : Crop‐Estate Agency DG : Directorate General FORDA : Forestry Research and Development Agency GOI : Government of Indonesia Inpres : Presidential Instruction IPB : Bogor Agriculture University/Insitut Pertanian Bogor ISWA : Indonesian Sawmill & Woodworking Association ITTO : International Tropical Timber Organization JPFA : Jambi Provincial Forestry Agency MOF : Ministry of Forestry MOU : Memorandum of Understanding MDF : Medium Density Fibreboard NGO : Non‐government Organization NOL : No Objection Letter PCA : Provincial Crop‐estate Agency PFA : Provincial Forestry Agency PMT : Project Management Team PTC : Project Technical Committee PTPN : Perkebunan Nusantara Co. Ltd. PSC : Project Steering Committee R & D : Research & Development SKAU : Surat Keterangan Asal Usul/Certificate of Origin UGM : Gajah Mada University YPO : Yearly Plan of Operation
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Table of contents
List of abbreviations ……..……………………………………………….………………………………………………………. iii
Table of contents …….……………………………………………….…………………………………………………………….. iv
Executive summary ….…………………………………………..…………………………………………………………………. v 1. PROJECT IDENTIFICATION
1.1. Context ………………………….……………………………………………………………………………………. 1 1.2. Origin and problem ………………..…………………………..………………………………………………….. 2
2. PROJECT OBJECTIVES AND IMPLEMENTATION STRATEGY
2.1. Project objectives ………….……………………………………………………………………………………. 4 2.2. Project implementation strategy ………………………………………………………………………….. 4 2.3. Assumptions and risks …………..……….……………………………………………………………………….. 5
3. PROJECT PERFORMANCE
3.1. Planned vs realized performance ……………………………………………………………………………. 7 3.2. Time schedule ..............................………………………………………………………………………….. 10 3.3. Inputs applied ..............……………..………………………………………………………………………….. 10
4. PROJECT OUTCOME AND INVOLMENT OF TARGET BENEFICIARIES
4.1. Achievement of the specific objective …………………………………………………………………. 12 4.2. Pre‐Project’s vs at project completion’s situations ……………………………………………….. 19 4.3. Involvement of the target beneficiaries ……………………………………………………………….. 26 4.4. Project sustainability .....…………..………………………………………………………………………….. 28
5. ASSESMENT AND ANALYSIS
5.1. Project rationale and identification process ………………………………………………………. 30 5.2. The problems addressed, project design and implementation strategy ……………….. 30 5.3. Critical differences between planned and actual implementation ......……………….. 31 5.4. Adequacy of projects inputs …..………………………………………………………………………….. 33 5.5. External influences ...............…..………………………………………………………………………….. 34 5.6. Project beneficiaries ............…..………………………………………………………………………….. 34 5.7. Project sustainability .............…..………………………………………………………………………….. 35 5.8. The institutions involved in project implementation ........………………………………….. 35
6. LESSONS LEARNED
6.1. Project identification and design …………………………………………………………..……………. 37 6.2. Project implementation ……………………………………………………………………….…………….. 37
7. CONCLUSIONS AND ROCOMMENDATIONS
7.1. Conclusions ………………………………….………………………………………………………..……………. 39 7.2. Recommendations ………..…………………………………………………………………….…………….. 40
Selected references
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Executive summary Project identification and design
1. The Indonesian wood industry had been facing raw material supply problem since early 1990s as evident by the decreasing capacity utilization rates of installed capacity in the primary wood industries and declining production of both sawn timber and plywood.
2. Completed ITTO pre‐project documented in 2005 that the total area of rubber plantations in Indonesia was around 3.4 million hectares; replacement of old, unproductive plantations could yield about 13.5 m3 of logs in a sustainable basis but only around 22 percent of this potential had been utilized by the primary forest industries.
3. The full utilization of the log potential would be a significant contribution to lessening the raw material supply problem facing the national wood industry. Accordingly, the key problem addressed by the project was “very low utilization rate of rubberwood from old rubber plantations”.
4. The key problem was adequately analyzed in order to clearly reveal its direct as well as indirect causes and consequences; the clear cause‐effect relationship had facilitated construction of a sound project design having the elements that were relevant to solving the problems at hand.
5. Correspond to the key problem addressed, the specific objective of the project was defined as “to promote the utilization of rubberwood from sustainable sources” which was expected to be achieved through delivery of five outputs and execution of twenty‐two activities.
Project implementation and strategy
6. The project was executed by the Directorate General of Forestry Enterprise Development (BUK) of the Ministry of Forestry in collaboration with the Indonesian Sawmill and Woodworking Association (ISWA) for thirty‐six months starting May 2010.
7. The strategy pursued comprised three major elements namely to motivate and convince the rubber growers, improve enabling conditions and demonstrate appropriate technologies for action. The strategy was operationalized in a collaborative manner involving the primary beneficiaries, concerned government authorities and partners.
8. The project had been implemented in a smooth fashion without major difficulties and with only minor adjustments to planned activities and budget which was attributable
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mainly to the sound project design, appropriate implementation strategy, supportive main stakeholders and able project management team.
9. The project was implemented in full observance of the project agreement, existing ITTO rules and procedures as well as GOI’s regulations governing international cooperation. During the course of project implementation, three yearly plans of operation, five bi‐annual progress reports and three financial audit reports had been submitted to ITTO while fourteen no‐objection letters had been issued by ITTO at the request of the executing agency.
10. The assumptions made were valid during the project duration; the potential risks identified during the project formulation stage had been successfully kept from occurring through execution of pre‐specified mitigating measures in a consistent manner.
Project performance
11. All planned project activities had been fully executed with minor adjustments to timing of execution of three activities and to the scope of two activities while two new activities had been identified and implemented with the prior endorsement of the Project Steering Committee (PSC).
12. All planned and additional activities had been completed within the sanctioned time and financial budget; the activities were completed within thirty‐six months with ITTO funds expended in a total amount of US$ 439,819 or US$ 9,221 unspent funds by end of June 2013.
Project outcome and involvement of target beneficiaries
13. Achievement of the project has been assessed using the revised indicators; five defined outputs had been achieved or delivered noting that Output 1 was achieved partially while Outputs 2 and 5 were slightly short of the targets. The specific objective has been declared as “nearly achieved” due mainly to the partial achievement of Output 1 and the short of targets performance of Outputs 2 and 5.
14. Among the tangible project results are the proceedings of the workshops, technical reports on the implementation of pertinent activities of individual outputs, manuals on appropriate technologies, several technical documents of various topics, and 398 trained farmers on skills for rubber tree harvesting, agro‐forestry model development, rubberwood preservation, charcoal making and logs sawing operations.
15. The policy implication that worth mentioning is the announcement of Permenhut No. 30 of 2012; formulation of this ministerial decree took into account the comments and observations on the requirement of SKAU for shipment of forest products made by the main stakeholders during the occasions of the workshops organized under the project.
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16. The primary beneficiaries were actively involved in the project implementation: rubber farmers were involved in the training programs, dialogues and workshops; the rubber companies were involved in the conduct of feasibility study, organized dialogues and workshops; the wood industries were involved in the procurement, installment and testing of sawing machineries and in organized dialogues and workshops.
Lesson learned
17. Among the important lessons learned from the project formulation process are:
The key problem addressed by the project was identified under the completed pre‐project and adequately analyzed involving the main stakeholders; the problem analysis identified direct and indirect causes as well as consequences of the key problem that the cause‐effect relationship was definitely clear and easy to digest.
The clear cause‐effect relationship had facilitated construction of a sound project design having strong vertical logic, relevant elements and well defined interventions .
The sound project design had eased the operational planning and facilitated the smooth project implementation with only minor adjustments to planned activities.
The implementation strategy adopted that comprised elements of motivating and convincing of rubber plantations owners, improvement of enabling conditions and introduction of appropriate technologies was proved applicable and effective in achieving the specific objective.
The variations between planned and actual implementation had occured due mainly to the lack of information on specific matters and the Project Coordinator’s concern over operational efficiency; the variations could have been avoided by conducting an ex‐ante evaluation prior to commencing with the project operations.
The critical determining factors of project sustainability include applicability of the technologies and skills learned by farmers from the project, continued political support by the governments at different levels and enhanced cooperation between rubber and wood processing companies in the utilization of rubberwood from replanting areas.
18. Among the important lessons learned from the project implementation process are:
The Executing Agency of the project was the Directorate General of BUK that had mandated ISWA to fully implement the project based on a Memorandum of Understanding signed by both parties establishing roles and responsibilities of each in a clear manner which had avoided any confusion during the course of project implementation.
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To implement the project, ISWA had established a small Project Management Team (PMT) comprising four project key personnel, one national expert and two DG BUK counterparts; the small PMT proved able to adequately perform project management tasks in an efficient manner.
The monitoring and evaluation of progress in implementation had been performed through two Project Technical Committee (PTC) meetings, four PSC meetings and monthly technical meetings of the PMT; such meetings had greatly contributed to the smooth project operations.
The strategy pursued in implementing the project was defined during the project formulation stage consistent with the project elements specified and operationalized in a collaborative manner by working closely with the primary beneficiaries, relevant institutions and national consultants; the strategy proved effective in achieving the specific objective.
The project was managed in full compliance with existing ITTO rules and procedures; all the documents required by ITTO including (Yearly Plans of Operation) YPOs, bi‐annual progress reports, financial audit reports and documents of particular had been timely submitted to ITTO and facilitated immediate issuance of any approvals requested by ISWA.
The roles and responsibilities of ISWA and the national consultants were well elaborated in the respective terms of reference which had facilitated accomplishment of assigned tasks in an effective fashion.
The project had been successfuly completed within the sanctioned financial and time budget due mainly to the adequate project design, supportive primary beneficiaries and partners, strong coordination with ITTO and DG of BUK as well as the cooperative and competent national consultants.
The active participation of rubber farmers in the implementation of relevant activities was realized without any major difficulties because the farmers were convinced that the activities would greatly contribute to their livelihood.
The original indicators of achievement defined in the Logical Framework Matrix (LFM) was exclusively based on the project design constructed during the formulation stage; appropriateness of the indicators as a tool for measuring achievement was evaluated regularly at the beginnings of current years of operation and adjusments made as necessary based on actual progress in implementation.
Conclusions and recommendations
19. The conclusions drawn from the entire process on formulation and implementation stages are:
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The key problem addressed by the project “very low rate of utilization of rubberwood from sustainable sources” was identified under the completed ITTO‐assisted pre‐project involving the main stakeholders based on the preliminary estimate of existing rubberwood growing stock and its state of utilization; successful removal of the key problem would greatly contribute to lessening the wood supply problem facing the national wood industry.
The key problem was adequately analyzed, its causes and sub‐causes as well as consequence were clearly specified; the project design was constructed based on a clear and logical cause‐effect relationship that its vertical logic was strong and its elements were consistent with the problems to be resolved.
The project was implemented by ISWA on behalf of Directorate General of Forestry Enterprise Development (BUK) with close supervision by the Directorate of Forest Product Processing and Marketing (BPPHH) of BUK without any major administrative or operational difficulties.
The project had been smoothly implemented and successfully completed to achieve its defined specific objective; the smooth implementation and successful completion of the project were made possible by, among others :
‐ The sound project design that eased operational planning; ‐ The effectiveness and appropriateness of the implementation strategy; ‐ The adequate resources in terms of manpower, funds and time; ‐ The generally strong support of the primary beneficiaries and partners, and ‐ The able project management team.
The project operations were managed by a small management team comprising the project coordinator, a secretary, a finance staff, a technician, a national expert and two BUK counterparts that was able to complete the project within the sanctioned financial and time budget.
The specific objective defined was nearly achieved through the full execution of twenty‐two planned as well as two additional activities pertaining to five outputs and delivery of the outputs noting that three outputs were fully achieved and two outputs were slightly short of targets.
The assumptions made were valid throughout the project duration and the mitigating measures defined were effective in preventing the potential risks from happening.
The indicators of achievement originally defined had been revisited at the beginnings of current years of operations and necessary adjustments made based on progress in implementation to ensure applicability and appropriateness of the indicators as the tool for measuring project achievements.
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The primary beneficiaries of the project had demonstrated their cooperative and supportive attitude towards the project implementation noting that the rubber companies were less cooperative for business policy, technical and administrative reasons.
20. The following recommendations have been made based on above lessons learned and conclusions:
It is strongly recommended that any ITTO project proponent to perform an adequate analysis of the problem to be addressed in accordance with existing ITTO manual on project formulation to ensure clarity of cause‐effect relationship.
To be sound, a project design must be constructed based on a clear cause‐effect relationship to ensure relevance and effectiveness of project interventions to solving the problems at hand.
Any collaboration in project implementation should be based on a memorandum of understanding that clearly defines roles and responsibilities of the parties involved in order to avoid unnecessary confusion and disharmony of institutional relation during the project implementation.
To ensure a smooth implementation and successful completion of a project, appropriateness of strategy for implementation, adequacy of inputs as well as support of primary beneficiaries and partners are among the enabling conditions that are required to prevail.
It is best to employ a small but able project management team in order to minimize cost of personnel, ensure effectiveness of coordination and increase adaptability to changing project environment.
Achievements of a project must be assessed using the pre‐specified indicators; to be realistic as a tool for measuring achievements, such indicators need to be occasionally revisited and adjusted as necessary based on progress in implementation.
The potential risks associated with the project implementation should be defined correspond to the assumptions made; relevant mitigating measures identified during the project formulation stage must be exercised and modified as necessary during the course of project implementation.
It is strongly recommended for BUK and ISWA to continue exploring the possibility of establishing cooperation between the rubber companies with wood industries in rubber logs supply through organized dialogues between high‐rank officials of the Ministries of Forestry, Agriculture and State‐owned Companies, in view of increasing value‐added of the rubberwood harvested from replanting areas.
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1. PROJECT IDENTIFICATION
1.1 Context
The utilization rate of installed production capacity in sawmilling industry increased from 86% in
1980 to 97% in 1989 but went down to only 41% in 2005; in the plymilling industry the rates increased
from 51% in 1980 to 99% in 1997 but decreased sharply to 42% in 2005. The main reason was the
timber domestic supply problem due to scarcity of wood raw material, dwindling supply capacity of
natural forest, in-efficiency in processing, low quality of products brought about by the use of
inappropriate, relatively old technologies, lack of professionalism at both management and operation
levels and sluggish adjustment of mentality to the increasing scarcity of wood situation.
Realizing the fact that the national wood industry was weakening which certainly entailed
undesirable far reaching implications, then the government had embarked in five priority programs,
one of which was “revitalization of the forestry sector focusing on the wood industry”. The annual
harvestable, volume of rubber logs was estimated by PPD 80/03 Rev. 2 (I) at around 13.5 million m3 of
which only a tiny part had been utilized by the processing mills mainly in Sumatra Island. This
sustainable resource when fully utilized could significantly reduce the raw material supply problem
facing the national wood industry and increase exports of rubberwood products especially furniture
parts and chip wood.
Among the main activities of the wood industry revitalization program that had been
implemented by the time this project was formulated were:
• To speed up the establishment of forest plantations through identification of suitable lands;
• To improve productivity of natural forest through enrichment planting of logged over areas
using genetically improved planting materials of dipterocarps species in collaboration with
forest concession holders;
• To continue reviewing and enhancing existing rules and regulations on wood industry
development in collaboration with the Ministries of Industry and Trade and with the national
timber associations; and
• To form BRIK (Forest Industry Revitalization Body) in 2003 mandated to oversee exportation
of wood products; export permits are to be granted only to those companies that consume
wood originating from legal and verifiable sources.
In addition, the activities that had been initiated to overcome the raw material supply problem
included:
On the supply side:
- Forest plantation development and introduction of genetically improved fast growing species as
mentioned above
- Practice of reduced impact logging
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- Rehabilitation of degraded forests using fast growing species
On the demand side:
- Improved processing efficiency and product quality
- Product diversification
- Promotion of lesser used species
1.2 Origin and problem
Project PD 523/08 Rev. 1 (I) was built on the findings of completed pre-project PPD 80/03 Rev.
2 (I) entitled “Promoting the utilization of rubberwood from sustainable sources in Indonesia”; the
findings are summarized below:
i. The total area of rubber plantation in Indonesia in 2005 was around 3.37 million ha, distributed
in Sumatra Island 2.38 million ha (71 %), Kalimantan Island 0.83 million ha (25 %) and other
islands 0.16 million ha (4 %).
ii. In terms of ownership, bulk of plantations, 2.88 million ha or 86%, were owned by smallholders
or farmers and 0.49 million ha or 14% by state-owned and private companies.
iii. The smallholding plantations were normally not well managed, highly fragmented with area
less than 5 ha per owner, poor accessibility, low production of latex and limited replacement of
old trees thus harvesting of wood. In contrast, the large scale plantations owned by the
companies were well managed with high accessibility, area of individual blocks averaging well
above 500 ha, with high yield of latex and well scheduled replacement of old plantations.
iv. The rubber companies commonly replace plantations at 25 years of age; applying this
replacement age nation-wide, the rate of replacement or replanting would be around 134,892
ha per year, 116,000 ha by smallholders and 18,892 ha by companies.
v. Based on the preliminary growing stock surveys conducted in Sumatra and Kalimantan, it was
found that the average volume of wood biomass was 240 m3 and 200 m3 per hectare,
respectively. Therefore, around 30.81 million m3 of wood biomass is harvestable per year in
Indonesia of which around 13.5 million m3 were saw logs having average diameter of 20 cm
and up.
vi. Out of the 13.5 million m3 of saw logs, only about 2.96 million m3 or 22 % had been utilized so
far, mostly originating from large scale plantations owned by rubber companies, for sawn
wood and veneer and only a tiny amount of biomass was used in Medium Density
Fibreboard (MDF) making in Sumatra Island.
vii. The extremely low rate of rubberwood utilization were caused mainly by: i) lack of interest in
the utilization of rubberwood owned by companies; ii) lack of incentive and capacity to replace
and utilize old trees by smallholders; iii) weak government policy on rubberwood utilization; iv)
lack of investment in rubberwood utilization mainly due to poor accessibility and unavailability
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of reliable information in terms of quantity, quality and distribution of resource; and iv)
unavailability of appropriate technology for commercial utilization of rubberwood on
smallholding plantations.
The key problem addressed by the project was “very low rate of utilization of rubberwood”. The
corresponding specific objective was defined as “to promote the utilization of rubberwood from
sustainable sources”, i.e. from replanting areas. This objective was certainly relevant to overcoming or
lessening the raw material supply problem facing the national wood industry.
oooOOooo
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2. PROJECT OBJECTIVES AND IMPLEMENTATION STRATEGY
2.1 Project objectives
One of the main problems facing the wood industry in Indonesia was insufficient supply of wood
raw materials. While vast rubberwood biomass was available from rubber plantations to feed the
industry thus potentially could lessen the problem, only a tiny portion of the resource had been utilized
by the industry. Estimated total extractable volume of saw logs in 2005 was around 13.5 million m3 of
which only around 2.96 million m3 or 22% had been used mainly in the production of sawn wood and
veneer. The very low rate of utilization was indeed a waste of rubberwood resource in light of the
shortage of wood raw material supply thus had to be increased to the extent possible considering the
potential harvest from replacement of old rubber plantations. Therefore, it was thought imperative to
promote the utilization of rubberwood resource in the near future in light of resource availability and
the problem facing the national wood industry.
Consistent with the wood industry situation and potential growing stock of rubberwood on old
rubber plantations, the project objectives were defined as follows:
• Development Objective: To contribute to the lessening of wood raw material supply problem facing the national forest industry by utilizing the vast rubberwood available from sustainable sources.
• Specific Objective: To promote the utilization of rubberwood from sustainable sources.
2.2 Project implementation strategy
In order to deliver planned outputs and achieve the specific objective and contribute to
achieving the development objective of the project, the basic strategy adopted is as summarized
below:
• Motivating and convincing
There was a compelling need to first motivate and convince the primary stakeholders to utilize
available rubberwood from replanting areas. The main targets were rubber growers, both
companies and smallholders, concerned government authorities at the central, provincial and
district levels, wood processors and potential investors. To this end, reliable and updated
information on potential benefits of utilizing rubberwood resource; quantity, quality and distribution
of the resource as well as on product markets and processing technologies must be made
available. The said information would bring about clear understanding on the rationale for
rubberwood utilization which in turn would motivate and convince target groups to take part in
rubberwood utilization undertakings. Expected main outcomes of motivating and convincing
activities were increased interest amongst rubber growers to replace old plantations and utilize
available rubberwood in a proper manner.
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• Improving the enabling conditions
Existing policies governing rubberwood utilization appeared less supportive to perform an efficient
utilization of rubberwood resource thus had to be reviewed and enhanced. Adoption of enhanced
policy on rubberwood utilization that takes into account the natural properties of rubberwood, the
plantation settings, efficiency as well as quality of processing was argued as prerequisite to
improving enabling conditions for investment and to building up competitiveness of investors.
Therefore, reviewing of existing policies and improving coordination amongst authorities
concerned were thought indispensable for improvement of the enabling conditions which would
motivate and convince stakeholders to invest in rubberwood resource utilization.
• Equipping for action
Considering the natural properties of rubberwood and the environment of its utilization, there was
a compelling need to introduce appropriate technologies. These technologies had to be pilot
tested prior to disseminating to interested parties through various means. Without these
technologies it was hard to imagine how rubberwood from farmers’ plantations could be efficiently
utilized.
It should be emphasized that utilization of wood from large plantations and that from
smallholding plantations had to be carried out using different strategies and activities due to the fact
that features of these two groups of plantation are considerably different from each other in terms of
accessibility, wood quality and perception of owners towards utilization. To be successfully
implemented, the project would have to work closely with government authorities at all levels, with
local universities and NGOs, with ISWA members companies taking advantage of their established
network at the project sites and with other forestry associations.
Provinces of Jambi and South Sumatra had been selected as the location of the project as
these two provinces alone contain around thirty-six percent of smallholding plantations in Indonesia.
Two districts in each province were selected as the project sites in close consultation with the
respective provincial governments, namely Batanghari and Muaro Jambi districts in Jambi provinces;
Ogan Ilir and Banyuasin districts in South Sumatra province. In addition, North Sumatra province was
also selected as the project site to implement the activities relating to rubber companies as most
rubber plantations owned by companies were located in this province.
2.3 Assumptions and risks
The major assumptions made to ensure a successful implementation of the project were: i)
competent consultants are available in time, ii) rubber companies are cooperative, iii) rubber farmers
are supportive, iv) political support of the governments continues, and v) appropriate technologies are
adopted by forest beneficiaries. To avoid the risks associated with each of the assumptions, planned
mitigating measures are as described in Table 1:
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Table 1. Assumptions, potential risks and mitigating measures
Assumptions Potential risks Mitigating measures
Competent consultants are available in time
Competent consultants not available in time
To solicit needed consultants well in advance and sign MOUs with qualified consultants at the early stage
Rubber companies are cooperative
Rubber companies not cooperative
ISWA executives are to make early contacts with selected companies in North Sumatra explaining the objectives of the project
Rubber farmers are supportive
Rubber farmers not supportive of the project
To conduct intensive dialogue with farmers in collaboration with concerned local governments and local NGO elucidating the project objectives
Political commitment of the government continues
Commitment to increasing rubberwood utilization weakening
To continuously communicate and coordinate with concerned government authorities especially the Ministries of Forestry, Agriculture and Interior through organization of consultative meetings and workshops
Appropriate technologies adopted
Target beneficiaries not keen to adopt new technologies
To undertake technology transfer through conduct of relevant training programs by experienced trainers; such programs are to be designed taking into account the interest of target beneficiaries, educational as well as occupational background of participants
oooOOooo
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3. PROJECT PERFORMANCE
3.1 Planned vs realized performance
a. Specific objective
The specific objective was defined during the project formulation stage as “to promote the
utilization of rubberwood from sustainable sources”, corresponded to the key problem addressed.
There was no change made to this defined specific objective during the project implementation.
b. Outputs and activities
Table 2. Progress in implementation and summarized findings
Output/Activity Completion
status/change made to activity
Summarized findings
Output 1: Interest in the utilization of rubber wood owned by big companies increased
Act. 1.1 To provide reliable information on potential benefits of utilizing rubber wood owned by big companies
100 %, YPO 1 No change
• Investment in rubberwood processing by PTPN II not
feasible, insufficient log supply • App. 1,000 ha harvest is required to support
investment in economic scale of sawmilling and woodworking
• Findings presented to the workshop in Medan
Act. 1.2 To facilitate intensive dialogue between large-scale rubber tree growers and the wood industry for adjustment of replanting schedule by big companies to ensure steady supply of wood to processing mills
100 %, YPO 3 No change
• Consultations conducted with the Executives of
PTPN II, PTPN III, Bridgestone SRE and London Sumatera companies
• Discouraging result, adjustment to replanting schedule not in the interest of rubber companies
Act. 1.3 To organize one national workshop on rubber wood utilization involving main stakeholders
100 %, YPO 1 No change
• The national workshop on “Promoting the Utilization
of Rubberwood from Replanting Areas of Companies and Farmers” conducted in Medan on 20-21 January 2011
• 64 participants discussed on 5 professional papers • Problems on rubberwood utilization identified
Act. 1.4 To facilitate establishment of joint investment between rubber growers and wood processors in rubberwood utilization
100 %, YPO 3 No change
• Establishment of joint investment not feasible due to
bussiness policy of rubber companies • PTPN III looks reluctant to cooperate with ISWA
member companies in favor of its subsidiary company
Output 2: Incentives for and capacity in the utilization of wood from farmers’ plantations improved
Act. 2.1 To provide reliable information on potential benefits of utilizing rubber wood owned by farmers
100 %, YPO 2 No change
• Potential use of rubberwood identified
• Potential revenue of farmers from rubberwood utilization estimated and communicated
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Act. 2.2 To carry out intensive consultation with farmers regarding requirements for and impacts of rubber wood utilization on farmers’ livelihood
100 %, YPO 2 No change
• Constraints to and requirements for rubberwood utilization by farmers identified through dialogues
• Farmers are in need of incentive and assistance to replace old plantations
Act. 2.3 To establish models plantation with cash-crops inter-planting for demonstration and training of farmers (4 sites, total 20 Ha)
100 %, YPO 2 No change
• Agro-forestry model for rubber replanting established at four sites totalling 14 ha in size
• The rubber planted under agro-forestry model developed well
• Yield of cash-crops less satisfactory particularly in Jambi province due to poor experience and treatments
Act. 2.4 To train farmers on efficient techniques for replanting and harvesting of old trees (4 trainings, 80 trainees)
100 %, YPO 2 Adjusted, see Section 5.3
• 87 farmers trained on agro-forestry techniques
• 80 farmers trained on harvesting techniques
• Farmers found interested in agro-forestry model for replanting
Act.2.5 To identify feasible options for adoption by local governments to assist farmers in replanting of rubber
100 %, YPO 2 No change
• Support of seedlings, fertilizers, pesticide, etc. (saprodi) using central and local government funds
• Development of access road to plantation sites to increase economic value of rubberwood
• Deregulation of procedures and requirements for obtaining bank credit and transporting of rubberwood products
Output 3: Government policy governing rubber wood resource utilization revised and enhanced
Act. 3.1 To review the existing laws, rules and regulations on rubber wood utilization
100 %, YPO 2 No change
• Only Ministry of Forestry (MOF) decrees on shipment of rubberwood were found effected
• Other local regulations (Perda) had been abolished
Act 3.2 To formulate a new policy that encourages efficient utilization of rubber wood resource
100 %, YPO 2 No change
• Inputs to enhance policy on SKAU provided during the workshops
• The inputs were used in the formulation of Permenhut No. P 30 of 2012
Act. 3.3 To organize one national workshop on the new policy involving main stakeholders
100 %, YPO 2 Adjusted, see Section 5.3
• The workshop conducted in Jakarta on 20-21 December 2011
• 60 participants discussed on 5 professional papers • The workshop proposed to formulate a presidential
instruction (Inpres) to accelerate rubberwood utilization nation-wide
Act. 3.4 To establish coordinating mechanisms of rubber wood resource utilization at different levels of government
100 %, YPO 2 No change
• Establishment of the mechanism discussed with concerned provincial and district authorities and wood industries in 4 provinces
• Operation of a new mechanism was not supported by consulted stakeholders
• Need to activate existing institutions by assisting in operational funding and skills
Act. 3.5 To submit the new policy to the government for adoption
100 %, YPO 3 Adjusted, see Section 5.3
• Draft Inpres prepared and discussed with Forestry Research and Development Agency (FORDA) and academicians
Completion Report ‐ July 2013 | 8
• Lack of support on Inpres formulation due mainly to questionable accuracy of growing stock data on farmers’ plantations
• Need to do inventory survey to collect reliable growing stock data to justify formulation of an Inpres
Output 4: Investment in rubber wood utilization increased
Act. 4.1 To provide and disseminate up-dated information on rubber wood growing stock, product markets and processing technologies from primary and secondary sources
100 %, YPO 3 No change
• Information on growing stock, markets and processing technologies obtained from primary and secondary sources searched and uploaded to installed website
• The website is located at www.ittoiswa.com
Act. 4.2 To conduct field surveys on growing stock of farmers’ rubber plantations at four selected sites and produce update map of plantations in Sumatra island
100 %, YPO 2 No change
• Data on growing stock collected from 36 sample plots in 4 districts; average volume of saw logs varied from 16 to 58 m3/ha
• Map of rubber plantations in Sumatra updated in collaboration with DG of Crop-estates of the Ministry of Agriculture
Act. 4.3 To organize two regional workshops on investment in rubber wood resource utilization and its potential role in economic development
100 %, YPO 2 Adjusted, see Section 5.3
• Two planned workshops were combined with prior approval of PSC and conducted in the City of Jambi on 4-5 October 2011
• 71 participants discussed on 8 professional papers • Collaboration between farmers, wood industries and
government is prerequisite to increasing investment
Act. 4.4 To install and operate a publicly accessible rubber wood information system
100 %, YPO 3 No change
• A publically accesible website on rubberwood utilization installed and operational since year 2
• The address of the website is www.ittoiswa.com • Main content of the website comprises “about the
project, source of rubberwood supply, processing technologies and products markets”
Output 5: Appropriate technologies are available for the utilization of rubber wood from smallholding plantations
Act. 5.1 To identify alternative technologies and select most promising alternative
100 %, YPO 1 Adjusted, see Section 5.3
• Promising technologies identified using prespecified criteria including suitability and availability of equipment as well as simplicity and sustainability of operation
• On ground of investment magnitude, farmers are recommended to focus on producing sawn timber, wood chip, wood pellet and charcoal
Act. 5.2 To procure, install and pilot test equipment and facilities for sawing, peeling, chipping and kiln-drying
100 %, YPO 2 Adjusted, see Section 5.3
• Multi-ripper sawing machineries purchased, installed and tested at PT Jaya Cemerlang Industry in Tangerang
• Procurement of equipment for peeling, chipping and kiln-drying was cancelled with approval of PSC due primarily to poor access road
Act. 5.3 To publish and disseminate information on pilot-tested technologies and conduct two trainings for rubber growers, investors and local government staffs
100 %, YPO 3 No change
• 2 training sessions on operation of multi-ripper sawing machineries completed with 37 participants
• 80 farmers trained on preservation of rubber logs using simple techniques and locally available materials and tools
• 114 farmers trained on charcoal making • 28 charcoal kilns distributed to farmers in 12 villages
Act. 5.4 100 %, YPO 3 • Draft R & D program prepared and reviewed involving the main stakeholders including FORDA,
Completion Report ‐ July 2013 | 9
To develop a R&D program on rubber wood resource utilization in collaboration with main stakeholders
No change Centers for R & D on rubber of the Ministry of Agriculture, rubber companies, universities and wood processors
• Final draft R & D program will be submitted to FORDA for use in R & D planning
Notes: The trainings on techniques for wood preservation and charcoal making were supplementary to the original project activities endorsed by the PSC.
3.2 Time schedule
• The project actually commenced in May 2010
• Planned duration of the project was 36 months; planned project activities were all completed
within the sanctioned time, i.e from May 2010 to April 2013
• In accordance with the project agreement, the Executing Agency is to submit a completion
report and relevant technical reports by end of July 2013 and a final financial audit report by
end of August 2013
• The Executing and Collaborating Agencies are currently striving to finish up the reporting work
3.3 Inputs applied
a. Manpower
i. Project Key Personnel
The key personnel employed by the project based on the no-objection-letter (NOL) of ITTO
No. F. 10-0112 of 10 May 2010 were:
- Project Coordinator : Mr. Jimmy Chandra, ISWA
- Project Secretary : Ms. Diah Herlinawati, ISWA
- Finance : Ms. Herlina Lesmana, ISWA
- IT : Mr. Josef Dwinanta, ISWA
In addition, a national expert, Dr. Hiras P. Sidabutar, was also hired by the project at the
request and financial burden of ISWA.
Two BUK counterparts, Ms. Aryani S. Hut. and Mr. Agus Rahmat S. Hut. had been appointed
by BUK through the executive decision of the Director General No. SK 38/VI-BPPHH/2010 of
16 April 2010.
ii. National Consultants
Nine (9) National Consultants had been employed by the project with the prior expressed
approval of ITTO to assist in the execution of Activities 1.1; 2.1; 2.2; 2.3; 2.4; 2.5; 3.1; 3.2; 3.4;
4.1; 4.2; 4.4; 5.1; 5.2; 5.3 and 5.4
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iii. Provincial Jambi Forestry Agency had been appointed as the organizer of the implementation
of Activity 4.3 based on the executive decision of the Directorate of Forest Products
Processing and Marketing No. S.231/BPPHH-3/2011 of 19 July 2011.
iv. NGO Komunitas Anak Kampung was employed by the project to assist in the implementation
of Activities 2.1 and 2.2 as a follow-up to the concern over assuring the smooth project
operations raised by the ITTO Forest Industry Projects Manager at the first meeting of the
PSC on 29 April 2011.
b. Expenditures
Realized expenditures as of 30 June 2013 are as follows:
a. Funds received by ISWA : US $ 449,040
b. Funds expended : US $ 439,819
c. Unspent funds retained by ISWA : US $ 9,221
d. Undisbursed funds by ITTO : US $ -
Financial audit reports on the fiscal years of 2010 and 2011 had been timely submitted to ITTO and
endorsed; with the endorsement of ITTO, the audit report on fiscal year of 2012 will be combined
with the final report scheduled for submission by end of July 2013.
oooOOooo
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4. PROJECT OUTCOME AND INVOLVEMENT OF TARGET BENEFICIARIES
4.1 Achievement of the specific objective
a. Original vs revised indicators
Table 3. The original and revised indicators of achievement
Project elements Original indicators Adjusted indicators Development Objective To contribute to the lessening of wood raw material supply problem facing the national wood industry
3 years after project completion Reduced gap between supply of and demand for wood raw materials
3 years after project completion: - Production of rubber logs
increased by 5% in North Sumatra, South Sumatra and Jambi provinces, in total or by province compared to 2009
Specific objective To promote the utilization of rubberwood from sustainable sources
By end of project: Production of rubber wood products increased by 10% by end of year 3 5 to 10 investors apply for investment permit by end of year 3
By end of project: - Total production of rubber logs
from replanting areas in project sites increased by 2.5% compared to 2009
- Interest of rubber farmers in
replacing old plantations strongly stimulated through training of at least 300 farmers in 4 districts on appropriate technologies, participation in organized dialogues at 12 villages and 3 workshops
- At least one rubber company signed MoU on cooperation with wood processing mill (s)
Outputs Output 1: Interest in the utilization of rubberwood owned by big companies increased
Reliable information on rubberwood utilization available Adjusted replanting schedule ensuring steady supply of wood to processors adopted by big companies One national workshop organized Exchange of information took place through meetings and discussions with big companies
Feasibility study on rubberwood utilization by rubber companies completed in year 1 Consultation with rubber companies on feasibility of adjusting replanting schedule conducted One national workshop organized in year 1 in Medan, North Sumatra At least one rubber company indicates interest in cooperating with the wood industries in the utilization of rubberwood from
Completion Report ‐ July 2013 | 12
replanting areas in year 3 Output 2: Incentives for and interest in the utilization of wood from farmers’ plantations increased
Reliable information on utilization of farmers’ rubberwood available Intensive consultation with rubber farmers conducted Models of plantation with cash-crops inter-planting established at 4 sites totaling 20 ha At least 80 farmers trained on planting and harvesting skills at 4 sites
Feasibility of utilizing farmers’ rubberwood in 4 districts collaboratively assessed with owning farmers in years 1 & 2 Needed incentives for replacing old rubber plantations by farmers identified in 4 districts in years 1 & 2 Models of rubber replanting with agro-forestry system established at 4 sites totaling 20 ha At least 80 farmers trained on techniques for harvesting of old trees and agro-forestry system, respectively, in 4 districts in years 1 & 2
Output 3: Government policy governing rubberwood resource utilization revised and enhanced
Revised policy document formulated and disseminated One national workshop on policy enhancement organized
Existing policy on rubberwood utilization reviewed and recommendations for enhancement made in year 2 Draft Presidential Instruction (Inpres) completed in year 3 One national workshop on policy enhancement organized in year 2
Output 4: Investment in rubberwood utilization increased
Updated and reliable information on rubber resource, product markets and technologies available Growing stock surveys carried out at 4 sites in Sumatra 5 to 10 investors apply for investment permit by end of year 3 Rubberwood data base system operational Two regional workshops
Updated and reliable information on resource, products markets and technologies available Growing stock surveys carried out at 4 sites in Sumatra At least 2 wood companies in the project sites submitted to concerned authority letters of interest in rubberwood utilization Rubber wood data base system operational and publicly accessible since year 2 One combined regional workshop
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organized
organized in the City of Jambi in year 2
Output 5 Appropriate technologies are available for the utilization of rubberwood from smallholding plantations
One set of equipment and facilities for sawing, peeling, chipping and drying procured and pilot tested at one site in Sumatra Information on tested technologies published and disseminated Two training workshops on appropriate technologies with 40 participants conducted at two sites
One set of equipment and facilities for sawing procured and pilot tested in Tangerang, West Java 3 technical manuals on rubberwood processing published and disseminated by end of project Two training workshops on appropriate technologies with 40 participants conducted at one site in Tangerang in years 2 & 3
b. The outputs achieved and delivered Table 4. Achievement of outputs based on adjusted indicators
Outputs Adjusted indicators Achievement assesed
Outputs Output 1: Interest in the utilization of rubberwood owned by big companies increased
Feasibility study on rubberwood utilization by rubber companies completed in year 1 Consultation with rubber companies on feasibility of adjusting replanting schedule conducted One national workshop organized in year 1 in Medan, North Sumatra At least one rubber company indicates interest in cooperating with the wood industries in the utilization of rubberwood from replanting areas in year 3
Feasibility study on rubberwood utilization by rubber companies completed in year 1 PTPN III expressed interest in such cooperation during the meeting on 6 June 2012 Two wood industries indicated strong interest in cooperation with PTPN III in year 3 The national workshop conducted in year 1 Consultation with 4 rubber companies on adjustment of replanting schedule accomplished
Conclusion: Output 1 is partially achieved; rubber companies were not interested in adjusting their replanting schedules or in making investment in rubberwood utilization Output 2: Incentives for and interest in the utilization of wood from farmers’ plantations increased
Feasibility of utilizing farmers’ rubberwood in 4 districts collaboratively assessed with owning farmers in years 1 & 2
Feasibility of utilizing rubberwood assessed in close consultation with farmers
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Needed incentives for replacing old rubber plantations by farmers identified in 4 districts in years 1 & 2 Models of rubber replanting with agro-forestry system established at 4 sites totaling 20 ha At least 80 farmers trained on techniques for harvesting of old trees and agro-forestry system, respectively, in 4 districts in years 1 & 2
Selected farmers at 12 villages interviewed regarding needed incentives for replacement of old rubber plantations Agro-forestry models for rubber replanting established at 4 sites totalling 14 ha in size 80 farmers trained on harvesting techniques 87 farmers trained on agro-forestry techniques
Conclusion: Output 2 is fully achieved noting that the size of agro-forestry model is 6 ha short of target for technical reasons Output 3: Government policy governing rubberwood resource utilization revised and enhanced
Existing policy on rubberwood utilization reviewed and recommendations for enhancement made in year 2 Draft Presidential Instruction (Inpres) completed in year 3 One national workshop on policy enhancement organized in year 2
Existing policies on rubberwood utilization reviewed and recommendations for policy enhancement provided Draft Inpres prepared and reviewed with the main stakeholders National workshop on policy enhancement conducted as planned
Conclusion: Output 3 is fully achieved noting that further process of Inpres is pending for technical reason Output 4: Investment in rubberwood utilization increased
Updated and reliable information on resource, products markets and technologies available Growing stock surveys carried out at 4 sites in Sumatra At least 2 wood companies in the project sites submitted to concerned authority letters of interest in rubberwood utilization Rubber wood data base system operational and publicly accessible since year 2 One combined regional workshop organized in the City of Jambi in year 2
Relevant information collected and uploaded to website since year 2 Growing stock data collected from 36 sample plots 2 wood industries indicated intention to cooperate with PTPN III in rubberwood utilization Website of rubberwood operational since year 2 The workshop conducted as planned
Conclusion: Output 4 is fully achieved
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Output 5 Appropriate technologies are available for the utilization of rubber wood from smallholding plantations
One set of equipment and facilities for sawing procured and pilot tested in Tangerang, West Java 3 technical manuals on rubberwood processing published and disseminated by end of project Two training workshops on appropriate technologies with 40 participants conducted at one site in Tangerang in years 2 & 3
One set of multi-ripper sawing machineries procured and tested at PT Jaya Cemerlang Industry in Tangerang 3 technical manuals published and disseminated 2 training sessions on appropriate technologies conducted with 37 partipants
Conclusion: Output 5 is fully achieved noting that training participants on sawing techniques were 3 persons short of target
c. The specific objective achieved Table 5. Achievement of the specific objective based on adjusted indicators
Specific Objective Adjusted indicators Achievement assesed
Specific objective To promote the utilization of rubberwood from sustainable sources
By end of project: - Total production of rubber logs
from replanting areas in project sites increased by 2.5% compared to 2009
- Interest of rubber farmers in replacing old plantations strongly stimulated through training of at least 300 farmers in 4 districts on appropriate technologies, participation in organized dialogues at 12 villages and 3 workshops
- At least one rubber company signed MoU on cooperation with wood processing mill (s)
Total production of logs in North Sumatra increased from 173,704 m3 in 2009 to 233,720 m3 in 2012; in Jambi decreased from 63,612 m3 in 2009 to 51,603 m3 in 2011 398 farmers trained on appropriate technologies, dialogues with farmers at 12 villages conducted and farmers participated in 2 workshops No MoU signed by rubber companies and wood industries; PTPN III expressed readiness to cooperate and 2 wood industries indicated intention to cooperate with this company
Conclusion: The specific objective is best to be declared as “nearly achieved“ due to the partial achievement of
Output 1 and incomplete fulfillment of Indicator No. 1
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As described in the previous section, all defined project outputs had been achieved and
delivered, noting that Outputs 1 and 2 were somewhat short of targets for reasons beyond control of
the project (see Table 4). Conceptually, the specific objective must have also been achieved with
delivery of all defined outputs. This must be so because the outputs had been defined fully consistent
with the main causes of the key problem addressed. Hence, delivery of these outputs must have
resolved the main causes (problems) of the key problem addressed thus achieved the specific
objective, the mirror of the key problem.
In light of the indicators defined in the LFM, achievement of the specific objective is assessed
below: - Indicator 1 : Total production of rubber logs from replanting areas in project sites at project
completion increased by 2.5% compared to 2009
The data collected from the wood industries in Jambi province through the Provincial Forestry
Agency indicated that total rubber logs volume entering the industries decreased from 63,612
m3 in 2009 to only 51,603 m3 in 2011
In North Sumatra province, total volume of rubber logs sold by rubber companies to wood
industries increased from 173,704 m3 in 2009 to 233,720 m3 in 2012
Data on production of rubber logs in South Sumatra province was not available
It is worth commenting on the occurence of different trends on rubber logs production in
North Sumatra and Jambi. In North Sumatra, the logs producers are rubber companies practically
without accessibility problem but lack of interest in efficient rubberwood utilization. The interest
might have been somehow improved through dissemination of relevant information on potential
benefits of rubberwood utilization accruable to rubber companies. The dissemination was
acccomplised through the trainings and workshops organized under the project and through direct
dialogues with the companies. Improved interest might have become the driving force of the
increase in total rubber logs production. Contrary to the situation in North Sumatra, logs owners in
Jambi province were farmers and the problems on rubberwood utilization were mainly the lack of
interest and poor accessibility of plantation sites. While interest might have been improved through
the trainings and information sharing during the workshops and dialogues, accessibility problem
remains. Indeed, it is unrealistic to expect an increase on logs production under the present
condition of access road to farmers’ plantations. This might be part of the force behind the
decreasing production of rubber logs in Jambi province. Other forces might include the lack of
incentives for farmers to replace old plantations, attractive latex price, etc.
It is worth noting that latex is the important source of income for most farmer households.
Price of latex strongly influences decision on replacement of old rubber plantations. During the
2011-2012 period, price of latex was peaking, reached IDR 30-40,000/kg, higher nearly twice as
the normal price at IDR 15-20,000/kg. The lucrative price could have refrained farmers from
replacing old plantations; how unproductive the old trees might be, the trees still produced latex
Completion Report ‐ July 2013 | 17
thus generated additional income for the owners. This might be another reason for the low rubber
logs production in Jambi province.
- Indicator 2 : Interest of rubber farmers in replacing old plantations strongly stimulated through
training of at least 300 farmers in 4 districts on appropriate technologies, participation in organized
dialogues at 12 villages and 3 workshops
Indeed, the interest of rubber farmers in replacing old rubber plantations has been intensified
through implementation of the project activities. The trainings on techniques for harvesting of old
trees, rubber replanting under agro-forestry system, rubberwood preservation, charcoal making
and logs sawing have changed favorably the attitude of farmers towards utilization of rubber
resource. In addition, the dialogues with farmers at 12 villages and with other stakeholders during
the occasions of the workshops have also stimulated interest in rubberwood utilization. This
growing interest, however, is difficult to materialize, at least in the near future, if the fundamental
problem on rubberwood resource utilization, i.e. poor accessibility of plantation sites, is not
removed. The authors’ concern is that by the time the fundamental problem is removed, the
farmers’ interest is already in a weakening or fading out stage that the project might be
unsustainable.
- Indicator 3 : At least one rubber company signed MoU on cooperation with wood processing mill (s)
Towards end of the project no MoU on cooperation had been signed by any rubber company
and wood processor.
PTPN III, owner of largest rubber plantation in North Sumatra, had indicated its readiness to
cooperate with wood industries in the utilization of rubberwood from its replanting areas during
the occasion of consultative meeting on 6 June 2012.
Two ISWA member companies, wood processors in North Sumatra, had expressed their
strong intention to cooperate with PTPN III but unfavorably responded by the latter in favor of
its subsidiary company, PT Tiga Mutiara Nusantara.
Using a signed MoU as the indicator, the specific objective is obviously not achieved, noting that
two wood processors had indicated intention to cooperate with PTPN III although this latter company
had once expressed its readiness to cooperate; using total volume of logs production as the indicator,
the specific objective has been only achieved partially while using the interest of rubber farmers as the
indicator, the specific objective is obviously fully achieved.
Overall then, the specific objective may be declared as partially achieved as only one indicator
is fully achieved, one indicator is partially fulfilled and one indicator is nearly met. Conceptually,
however, with delivery of all pertinent outputs, the specific objective may be categorically declared as
almost fully achieved noting that Output 1 was short of targets.
Completion Report ‐ July 2013 | 18
4.2 Pre-project’s vs at project completion’s situations
a. Tangible project outputs
The tangible results of individual activities under each output which did not exist prior to
implementing the project are listed below:
Output 1
Information on feasibility of rubberwood utilization is now available for use by interested investors
One national workshop on rubberwood utilization was organized in Medan, North Sumatra, on 20-
21 January 2011 with 64 participants and its proceedings produced
A technical report on Output 1 “Strengthening the Interest of Rubber Companies in the Utilization
of Rubberwood on Replanting Areas in North Sumatra” is now ready for publication and
dissemination
Reps. of DGs of BUK, Crop-estates and ITTO adressed the national workhsop in Medan
Output 2
Reliable information on potential benefits of and requirements for rubberwood utilization by
farmers had been collected through consultation with rubber farmer communities and is now
available for use by interested parties
Agro-forestry models for rubber replanting have been established in collaboration with rubber
farmers and can be replicated to other districts with appropriate adjustment for improvement
80 farmers have been trained on harvesting techniques
87 farmers have been trained on agro-forestry techniques
Completion Report ‐ July 2013 | 19
The incentives needed by farmers to replace old plantations had been identified for local
governments to follow-up
A technical report on Output 2 “Improving the Incentives and Capacity for the Utilization of
Farmers’ Rubberwood on Replanting Areas in Jambi and South Sumatra Provinces” is now ready
for publication and dissemination
Training of farmers on felling
Training of farmers on bucking
Newly planted rubber clones with cash-crops inter-planting
Completion Report ‐ July 2013 | 20
2 years old rubber trees on agro-forestry sites in Jambi province
18 months old rubber trees on agro-forestry sites in Ogan Ilir and Banyuasin districts
Output 3
One national workshop on enhancement of policy on rubberwood utilization had been organized
with 65 participants and its proceedings produced
Information on coordinating mechanism and feasibility of its formation is now available for use by
concerned government authorities as well as rubber and wood industry associations
Draft Presidential Instruction (Inpres) had been prepared in close consultation with the main
stakeholders and is now ready for submission to DG of BUK for use or for further process
A technical report on Output 3 “Enhancing Government Policy on the Utilization of Farmers’
Rubberwood on Unproductive Rubber Plantations in Jambi and South Sumatra Provinces” is now
ready for publication and dissemination
Completion Report ‐ July 2013 | 21
DG of BUK, Rep. of ITTO and Rep. of DG Crop-estates addressed the national workshop in Jakarta
Output 4
Information on growing stock, rubberwood markets and processing technologies had been
collected and uploaded to the publically accessible website installed under the project
Information on rubber growing stock had been collected from 36 purposive sample plots
One regional workshop on investment in rubberwood utilization had been organized in the City of
Jambi with 71 participants and its proceedings produced
A technical report on Output 4 “Promoting Investment for the Utilization of Rubberwood on
Unproductive Rubber Plantations” is now ready for publication and dissemination
Reps. of DG BUK and Jambi Government addressed the regional workshop in Jambi
Completion Report ‐ July 2013 | 22
Output 5
One set of multi-ripper sawing machineries had been procured, installed and tested at the factory
site of PT Jaya Cemerlang Industry in Tangerang
37 representatives of rubber farmers, wood industries and governments institutions had been
trained on use of the multi-ripper sawing machineries
114 farmers had been trained on charcoal production techniques
80 farmers had been trained on simple and inexpensive wood preservation techniques
Draft Mid-term R & D program on rubberwood resource utilization had been developed in
collaboration with main stakeholders
A technical report on Output 5 “Developing Appropriate Technologies for the Utilization of
Farmers’ Rubberwood Plantations in Jambi and South Sumatra Provinces” is now ready for
publication and dissemination
Rubber logs to be sawn Multi-ripper sawing machine
Multi-ripper sawing in progress
First and second batches of training participants on the use of multi-ripper sawing machines from Jambi, Banten and West Java Provinces at PT. Jaya Cemerlang Industry in Tangerang
Completion Report ‐ July 2013 | 23
Participants of training on rubberwood preservation
Materials and tools for preservation treatment Coating log-end using paint brush
Coated logs covered with plastic sheet to prevent rain washing
Completion Report ‐ July 2013 | 24
Outdoor lecturing on charcoal making The complete structure of a charcoal drum kiln
Piling of chopped wood inside drum kiln Wood-burnt residual smoke channeled to bamboo pipe and liquefied smoke collected in a container
In addition, a number of technical documents containing technical information on relevant
specific topics or implementation of selected activities are produced in Bahasa Indonesia under the
project; these include:
• Rekayasa Kayu Karet Rakyat untuk Mendukung Pembangunan Rumah Murah
• Petunjuk Teknis Pembuatan Arang Kayu Karet
• Petunjuk Teknis Pengawetan Kayu Karet
• Draft Mid-term R & D Program on Rubberwood Resource Utilization
• Draft Inpres on Accelerating Rubberwood Utilization from Sustainable Sources
• Pelatihan Pengenalan dan Penggunaan Mesin serta Peralatan Pengolah Kayu Karet
b. Sectoral policy and program
During the occasions of the national workshops, participants had repeatedly expressed their
concern over the problems associated with the use of SKAU for shipping of rubberwood products. DG
of BUK had taken into account the experience of and comments made by the wood industries in the
revision of existing ministerial decrees on the requirement for using SKAU for shipment of wood
products originating from private/community forests including rubberwood. The inputs provided by the
Completion Report ‐ July 2013 | 25
project were acknowledged by DG of BUK as evident by the statement made on the communication
letter of the Director of Forest Charges and Forest Products Distribution Management No.
S.957/BIKPHH-2/2012 of 4 April 2012.
c. Physical environment
In terms of physical environment, during the 3-year period, the project had created the
environment wherein the primary beneficiaries, i.e. rubber farmers, rubber companies and the wood
industries are now more aware of the potential benefits of utilizing rubberwood resource; the problems
facing the efficient utilization of rubberwood from replanting areas are now well perceived and
understood, and; farmers have acquired the skills that enable them to actively participate in the
activities on rubberwood resource utilization.
As regards accessibility problem, it requires strong commitment of the government to invest in
access road construction program. Such a program will certainly create more jobs, augment income
and promote local economies yet the process is not harmful to the environment because rubberwood
is only harvested from replanting areas.
4.3 Involvement of the target beneficiaries
The primary beneficiaries of the project are the wood industry and rubber growers, both farmers
and companies. The project will benefit these beneficiaries directly or indirectly as follows:
• Larger volume of rubber wood available for processing will reduce the idle installed production
capacity, promote processing activities and contribute to local and national economic
development;
• Availability of up-to-date and reliable information on rubber wood resource, product markets and
processing technologies will induce stronger interest in investment on rubberwood processing;
• Training of farmers on replanting and harvesting skills is an invaluable social capital and shall
benefit the farmers in the long run;
• Harvesting of rubber old trees and replanting with cash-crops inter-planting by farmers shall
improve their income through selling of wood and cash-crops;
• Appropriate processing technologies developed under the project can be easily duplicated by
smallholders and big companies owning rubber plantations;
• Cooperation between wood industry with large-scale rubber growers will secure supply of wood
raw materials and augment income of both parties; and
• Enhanced and favorable government policy will allow efficient utilization of rubber wood thus
stronger competitiveness of the wood industry in global market.
The smallholders or farmers, owners of over 80 percent of removable rubber growing stock,
shall be benefited in the future in various ways including: i) harvesting of old trees and selling of wood
Completion Report ‐ July 2013 | 26
to local processors will generate additional income; ii) technical skills acquired through trainings create
self confidence and capacity to carry out activities on replanting and harvesting; and iii) cash crop
inter-planting model plantation generates additional income when properly undertaken and managed.
The big companies can enhance their financial performance through sale of efficiently harvested
rubberwood. Market for raw harvested wood is strong indeed provided that schedule for harvesting
can assure continuous flow of wood to local processors. Processing of rubberwood can be
accomplished either by using own resources or by collaborating with existing wood processors. Selling
of rubber logs will certainly generate revenue accruable to the companies thus enhance their financial
performance.
The secondary beneficiaries of the project include the Ministries of Forestry, Agriculture, Trade
and Industry, local governments, universities and local NGOs. Information on rubber wood resource,
product markets and technologies generated by the project to be publicly made available is of utmost
important for the Ministries in raising their appreciation on the role the rubber wood resource can play
in revitalizing the national wood industry and in decision making concerning efficient rubberwood
utilization. The benefits accruable to local governments include availability of information on the
dynamics of rubberwood resource base and use of the information in local policy making and
economic development planning.
The government institutions were involved in:
The organization of the workshops, the PCAs and PFAs as the participants of all
workshops, Jambi Provincial Forestry Agency (JPFA) as the organizer of the Jambi
workshop and North Sumatra Provincial Forestry Agency (PFA) as the expert panel
member in the Medan workshop;
The compilation of relevant information: the Sei Putih and Sembawa RRCs compiled
relevant information on rubberwood resource status and utilization as presented to the
workshops in Medan and Jakarta; and the FORDA organized the review of draft Inpres
and seconded its experts to assist in project implementation;
The meetings of the PSC as members (DG of BUK, Center for International Cooperation
of MOF, Center for R & D on Forest Products of FORDA, Bureau for Forestry Planning,
and Embassies of the Republics of Japan and Korea in Jakarta); and
The monitoring of project operation from time to time by DG of BUK.
The universities have had the opportunity to take part in implementation of the project by
assigning capable experts to attend the workshops and discussions organized under the project and in
decision making by advising concerned local and central governments. Local NGO has had and will
have the chance to assist local farmers and governments in the implementation of activities designed
to improve livelihood of local communities.
Completion Report ‐ July 2013 | 27
Involvement of the primary beneficiaries is highlighted below:
• The rubber farmers were involved in: The establishment of the agro-forestry models by giving their lands to be used by the
project as the sites of the models;
The physical construction and maintenance of the models;
The trainings on harvesting and agro-forestry development techniques as trainees;
The workshops in Jambi and Jakarta as participants;
The trainings on wood preservation and charcoal making techniques as trainees;
The consultations on rubberwood utilization as respondents; and
The training on sawing techniques using the multi-ripper machineries as trainees.
• The rubber companies were involved in: Hosting meetings and dialogues with the project consultants and ISWA Executives;
The workshops, as speakers in Medan and Jambi and as attendants of all workshops; and
The high-rank officials consultative meeting on cooperation organized on 6 June 2012.
• The wood industries were involved in: The workshops, as attendants of all workshops and as speakers in Medan and Jambi
workshops;
Hosting dialogues;
The installment and operational testing of multi-ripper sawing machineries;
The training on sawing techniques using multi-ripper machineries; and
The high-rank officials consultative meeting on cooperation organized on 6 June 2012.
The rubber farmers are now able to using their skills for producing charcoal and liquefied smoke
of rubberwood; for generating income in land clearing using chain saw and in nearby logging
operations. In addition, trained farmers in Ogan Ilir and Banyuasin districts have indicated their plan to
develop better agro-forestry model for rubber replanting on their own lands. Indeed, the project has
directly benefited farmers by providing daily wages for the establishment of the agro-forestry models,
by granting rubber clone and the yield of cash-crops, by teaching the farmers free of charge on
appropriate techniques for harvesting, rubber replanting under agro-forestry model, preserving
rubberwood, charcoal making and logs sawing using multi-ripper machineries. The skills acquired are
probably the most valuable benefit the farmers have gotten from the project as the skills are long
lasting income generating means. The replanted rubbers will be handed over to the farmers owning
the lands shortly after the project completion; the rubber will be producing latex in about two years
time for about two decades to come which is also a great contribution of the project to the farmers.
4.4 Project sustainability
Sustainability of the project after its completion is expected to be growing through the prevailing
situations that had been developed as follows:
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• The information on potential benefits of utilizing rubberwood of old plantations accruable to rubber
farmers, rubber companies and local economies will certainly intensify the attention of
stakeholders to the resource and its utilization (see Technical Reports No. 1 and 2);
• The interest of farmers in practicing agro-forestry system for rubber replanting is now growing due
to its potential for generating income and developing trees; it is very likely that the system is
sustainable;
• The skills acquired by the farmers on tree harvesting and charcoal making are long lasting income
generating means that their use are very likely sustainable;
• The encouraging performance of the multi-ripper sawing machineries is expected to catch the
attention of small to medium scale wood industries as well as farmer groups to invest in and
operate similar machineries; and
• The operation of the publically accessible website of rubberwood is expected to help interested
beneficiaries make decision on business initiatives relating to rubberwood resource utilization.
The arrangements for project sustainability that have been made with the primary beneficiaries
are outlined below:
• The offices of ISWA in Jambi and South Sumatra provinces will continue assisting the primary
beneficiaries in technical matters relating to rubberwood utilization at the latter’s own costs;
• The provincial crop-estate and forestry agencies of Jambi and South Sumatra are planning to
define a mechanism suitable for collection and dissemination of detailed information on harvesting
of old rubber plantations;
• FORDA is committed to doing research works relating to efficient rubberwood processing
technologies; and
• The Crop‐Estate Agency (CEA) of Batanghari district in Jambi province has convincingly
indicated its intention to boost up its efforts on providing incentives for farmers to replace old
rubber plantations in the forms of quality rubber clone, fertilizer, etc.
oooOOooo
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5. ASSESMENT AND ANALYSIS
5.1 Project rationale and identification process
Indonesia’s total production of sawn wood increased from 4.8 million m3 in 1980 to 10.4 million
m3 in 1984 but decreased to only 4.3 million m3 in 2005; likewise, total production of plywood
increased sharply from 1.0 million m3 in 1980 to 9.7 million m3 in 1997 then went down to 4.7 million
m3 in 2005 (FAO, 2006). The trend was obvious, increasing quantity of primary wood products during
the first two decades but decreasing thereafter. The primary cause of the undesirable trends was
insufficient wood raw material due mainly to the dwindling supply of natural timbers, inefficient
operations and low quality of wood products. In light of the shortage of raw materials, the ITTO
Technical Mission in 2001 had recommended the wood industries to utilize raw materials of differing
quality and properties such as timber from non-forest sources including rubberwood, by adopting
appropriate processing technologies.
Completed ITTO-assisted pre-project PPD 80/03 Rev. 2 (I) estimated that 13.5 million m3 of
rubber logs were available for harvest every year on a sustainable basis. Out of this volume, however,
only about 2.96 million m3 or 22 percent that had been utilized by the wood industries, mostly
originating from replanting areas of rubber companies; contrary to the fact that has been touched upon
in the previous section, that around 85 percent of rubber plantations in Indonesia were owned by
farmers.
The key problem addressed by the project “very low rate of utilization of rubberwood” identified
under the completed pre-project was consistent with the raw material supply problem then facing the
wood industries. If the logs available at rubber replanting areas could be tapped fully or at higher rate,
it would be a significant contribution to the wood industries. The key problem was identified involving
main stakeholders, especially the wood industries and concerned government authorities, during the
occasions of the workshops organized under the pre-project.
5.2 The problems addressed, project design and implementation strategy
The key problem addressed was thoroughly analyzed involving main stakeholders; its
consequence and direct causes as well as indirect causes were properly identified, using a problem
tree technique. The problem tree, which summarized the consequences and the causes as well as
sub-causes, was used as the basis for constructing a solution tree, the mirror of the problem tree,
which was then used as the basis for defining the project elements.
By reading the solution tree presented in the project document, it is very clear that i) the specific
objective was defined correspond to the key problem addressed; ii) the outputs were defined
correspond to the direct causes; iii) the activities were defined correspond to the indirect causes, and
iv) the development objective was defined correspond to the consequence of the key problem
addressed. In this manner, the project interventions defined, the outputs and activities, should be the
Completion Report ‐ July 2013 | 30
relevant ones to solving the problems identified at different levels namely the indirect, direct and key
problems.
The implementation strategy pursued was arguably appropriate. The motivating and convincing
activities played critical role in ensuring successful project operations. Farmers for instance, are
owners of around 85 percent of rubber plantations. These people had to be motivated to utilize the
rubberwood they own by harvesting old trees of poor latex productivity and replanting the harvested-
over areas with young plantations. Motivating the farmers were best accomplished through dialogues
and consultations. To this end, reliable information on potential benefits of utilizing wood of old trees
had to be made available and directly communicated with farmers. Convincing farmers was most
effectively carried out through demonstration or training; presenting only materials and information,
how attractive they might be, is usually insufficient to convince farmers because the farmers mostly
are convinced only after seeing. Therefore, a number of activities were appropriately defined to deal
with motivating and convincing farmers.
The “improving the enabling conditions” element of the strategy was argued as indispensable if
the problems at hand are ever to be resolved. The underlying notions of this element are that to
promote rubberwood utilization, investment is definitely required; that to promote investment, favorable
environment must be prevailing; that favorable environment is, to a larger extent, shaped by
government policies. It is, therefore, essential for the governments at different levels to develop and
implement policies that favor investment. Such policies must take into account efficiency of production
process, features of product markets and competitiveness of investors. Therefore, any policies on
rubberwood utilization effected by the government should encourage investment. Existing policies had
to be reviewed and enhanced in view of promoting investment which had been satisfactorily
accomplished.
The “equipping” element of the strategy referred to procurement and testing of different
appropriate technologies for the utilization of rubberwood. Such technologies should be suitable for
processing of rubberwood endowed with particular such properties as sticky latex element, blue stain
prone, etc. Any technologies had to be introduced through demonstration and training in order to
assess applicability and productivity and convince farmers and wood processors for their adoption.
5.3 Critical differences between planned and actual implementation
A number of variations were incorporated into the original plans due to unforeseen
circumstances, some of them intentionally while others unintentionally, as listed below:
i. Activity 2.4: “To train farmers on efficient techniques for replanting and harvesting of old trees”
Implementation of the training on harvesting techniques was moved from the second and third
years to the first and second years with the prior approval of ITTO solely for reason of efficiency.
Upon close consultation with appointed national consultants on Activity 2.3 “to establish models
plantations with cash-crops inter-planting for demonstration and training”, it would be more
Completion Report ‐ July 2013 | 31
efficient to implement Activities 2.3 and 2.4 simultaneously yet consecutively. The efficient
sequence of works on both activities should be: to identify old rubber plantations to be replaced, to
fell down old tress and train farmers on harvesting techniques at the same time, and to establish
agro-forestry replanting models for demonstration and training. The proposed time rescheduling
for implementation of Activity 2.4 was duly endorsed by the ITTO.
ii. Activity 3.3: “To organize one national workshop on the new policy involving main stakeholders”
This activity was originally planned for implementation in the first year thus was included in the
First YPO. It was considered more fruitful to implement Activity 3.3 after completion of Activity 4.3,
the regional workshops, in order to make use outcomes of the latter activity as inputs to the former
activity noting the generally perceived scopes and objectives of the regional and national
workshops. The postponement of Activity 3.3 to year 2 was duly approved by the ITTO.
iii. Activity 3.5: “To submit the new policy to the government for adoption”
The recommendation of the national workshop held in Jakarta on 20-21 December 2011 on the
need to formulate a Presidential Instruction (Inpres) to accelerate rubberwood utilization had been
followed-up by the project. A draft of Inpres had been prepared and reviewed involving the main
stakeholders. The review meeting strongly recommended to put process of Inpres on pending until
reliable data on growing stock of ruberwood is available to strongly justify formulation of such
Inpres.
iv. Activity 4.3: “To organize two regional workshops on investment in rubber wood resource
utilization and its potential role in economic development”
The planned regional workshops dealt with the same theme: investment and regional economic
development. Combining two workshops to only one was thought more efficient without
jeopardizing achievement of the workshops’ objectives. In addition, a combined workshop would
allow for wider participation from the two provinces thus facilitate more comprehensive
discussions. The PSC and ITTO duly endorsed the proposal to combine two regional workshops
into one event.
v. Activities 5.1 and 5.2 : “To identify alternative technologies and select most promising alternative”
and “To procure, install and pilot test equipment and facilities for sawing, peeling, chipping and
kiln-drying”.
It was initially planned to hire an international consultant to assist in implementation of these
activities. Upon consultation with competent experts and the wood industry practitioners it was
found that these activities could be well accomplished by national experts available with FORDA.
Inputs of an international consultant could then be significantly reduced. The proposal on
increasing inputs of national experts and reducing inputs of an international consultant was duly
endorsed by the ITTO.
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vi. Activity 5.2 : “To procure, install and pilot test equipment and facilities for sawing, peeling, chipping
and kiln-drying”
It was initially planned to include mobile wood chipper and peeler as well as dry-kiln chamber in
the procurement of processing machineries and facilities. In the absence of access roads to most
farmers’ plantations sites and limited project funds, the Project Coordinator proposed to the PSC
during its second meeting to cancel this procurement. The PSC approved the proposal and
proposed to use balance of funds to finance capacity building of farmers on charcoal making. The
proposal was also duly endorsed by the ITTO.
vii. To follow up the recommendation of the PSC on farmers capacity building, the project had
implemented two additional, unplanned activities, namely training on charcoal making and on
rubberwood preservation techniques using simple and inexpensive methods
viii. Budget revision
With the escalating domestic travel costs in terms of US dollar and significant reduction in inputs
of international consultant, the Project Coordinator had proposed to make budget reallocation. The
amount of US $ 23,750 sourced from budget item 15 was proposed to be put into budget items 21,
35 and 51; this proposal was dully endorsed by the ITTO.
Above listed adjustments to activities and budget did not compromise project operations in any
respects; instead, the adjustments had facilitated the smooth implementation of the project.
5.4 Adequacy of project inputs
In terms of manpower, project inputs can be judged as adequate. Appointed project key
personnel and the national expert had been able to properly handle the overall operational
management of the project. The national consultants hired were generally able to accomplish the
assigned tasks satisfactorily within the sanctioned time and financial budget. It is worth mentioning the
support accorded by the wood industries, particularly Mr. Jimmy Chandra and his technicians at PT
Jaya Cemerlang Industry to the national consultants in the execution of such activities relating to
output 5 as selection, procurement, installation and operational testing of the machineries. The
practical experience of these people in dealing with wood processing technologies greatly helped the
national consultants in accomplishing their tasks.
In terms of funds, the sanctioned budget was sufficient to fully finance the project operations. No
problem had occurred with respect to financing of activities or purchasing of capital items as well as
other needed materials. The project funds were disbursed timely to ISWA on behalf of the executing
agency in four installments. The planned GOI’s contribution was somewhat under-spent; the amount
of unspent funds at the end of the project would be around US $ 65,365 due mainly to reduced
expenses on vehicle and equipment & facilities items.
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Disbursed funds had been used in accordance with the provisions of the project agreement.
Appropriateness of expenditures had been audited by an independent, registered accountant and
yearly reported to ITTO. Indeed, proper use of previously disbursed funds was the prerequisite to
realizing the next disbursement by ITTO.
5.5 External influences
The assumptions made with regard to the implementation of the project were generally valid
throughout the project duration. Rubber farmers were cooperative and enthusiastically participated in
the dialogues and training programs organized under the project. The cooperative attitude of the
farmers was closely related to the nature of project activities which were useful for the farmers in
augmenting their income. In fact, the farmers had indicated interest in practicing the agro-forestry and
charcoal making techniques they learned from the project. The government authorities had also
demonstrated political support to the project through their active participation in the discussion
meetings and workshops organized under the project. In fact, the crop-estate agencies of Ogan Ilir
and Banyuasin districts had indicated their intention to step up efforts for introducing the appropriate
incentives identified under the project.
The wood industries had been supportive throughout the project implementation process; they
had been actively involved in the group discussions and workshops, even acted as the presenters of
professional papers as requested by the workshop organizers. The wood industries also helped the
procurement, installment and operational testing of the multi-ripper sawing machineries and selected
processors sent their technicians to attend the trainings on rubberwood processing techniques.
Transfer and adoption of the technologies went on smoothly due mainly to the strong interest of
farmers in the technologies introduced by the project. The exception noted was the attitude of the
rubber companies which was less cooperative particularly with respect to making adjustment to
replanting schedule and investment in rubberwood utilization for the reasons elaborated in the
Technical Report No. 1. Overall, the mitigating measures were effective in minimizing occurrence of
the potential risks that had been identified during the project formulation stage.
5.6 Project beneficiaries
The primary beneficiaries have gained benefits from the project in one way or another. The
rubber farmers are now aware of the potential benefits of utilizing their rubberwood; they have been
equipped with the skills needed for the utilization of the rubberwood they own, the skills which are
long-lasting in nature and applicable for earning income in other such jobs not directly related to
rubberwood as land clearing and charcoal making. The wood industries have gained useful
information on feasibility of investment in rubberwood utilization, on the operation of multi-ripper
sawing machineries and on the potential of rubber logs in the provinces of North Sumatra, Jambi and
South Sumatra. The rubber companies have obtained information on the potential benefits of utilizing
rubberwood from their replanting areas which may affect their future business policy and attitude
Completion Report ‐ July 2013 | 34
towards implementation of replanting program in a more efficient manner through competitive bidding.
The other beneficiary, the government authorities, has been exposed to the potential of rubber logs in
the supply of raw material to the wood industries; more importantly, the authorities are now also aware
of the institutional and technical problems that must be overcome if the potential of rubber logs is ever
to be actually made available for the wood industries.
Indeed the primary beneficiaries will continue gaining benefits from the project outputs: the
farmers by applying the skills they learned from the project; the rubber companies by utilizing the
information on potential revenues from rubber wood utilization and by employing trained farmers in
harvesting of old trees and clearing of the lands for replanting, and; the wood processors will be in a
better position to make business decision by making use of relevant information available with the
rubberwood website. In addition, the government authorities will be able to develop more realistic
policies on efficient rubberwood utilization.
5.7 Project sustainability
This project generated great interest in the utilization of rubberwood from sustainable sources,
i.e. from replanting areas, that the prospects for its sustainability are excellent as highlighted below:
• Rubber farmers were supportive of the project and enthusiastically involved in implementation of
the project activities affecting their livelihood.
• The skills the farmers have learned are long-lasting in nature and applicable to generate income;
this is particularly true with the skills on tree harvesting, agro-forestry model development and
charcoal making.
• The provincial and local governments have indicated their intention to provide appropriate
incentives for farmers to replace old rubber plantations and utilize the rubberwood thereof.
It is worth emphasizing that farmers are the owners of around 85 percent of rubber plantations
and many project activities were devoted to dealing with rubber farmers. Consequently, project
sustainability is, to a larger extent, dependent on farmers’ attitude towards the project and interest in
using the skills and technologies transferred by the project.
5.8 The institutions involved in project implementation
The Directorate General of BUK, Directorate of Forest Products Processing and Marketing in
particular, had been involved in the project implementation by chairing the PSC and exercising close
monitoring of project operations through its staffs appointed as the counterparts. The DG of BUK had
also addressed and attended the workshops organized under the project. FORDA of MOF had
involved in the project implementation by temporarily assigning two of its experts to assist in the
implementation of selected activities.
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The universities, particularly the Bogor Agricultural University (IPB) and University of Gajah
Mada (UGM) had participated in the workshops and focused group discussions organized under the
project. The Directorate General of Crop-estates of the Ministry of Agriculture had involved by
addressing the workshops in Medan and Jakarta and by taking part in the consultative meeting in
Jakarta. In addition, the Rubber Research Centers of Sei Putih, Medan and Sembawa, Palembang,
had contributed to the project by presenting invaluable information on rubberwood resource status and
utilization to the workshops organized by the project.
The Provincial Forestry Agency (PFA) of Jambi had been appointed as the organizer of the
regional workshop held in the City of Jambi while the Forestry Agencies of four district governments
had involved in the implementation of activities relating to government policies and identification of
incentives for farmers. The crop-estates agencies at the provincial and local levels had provided
information on existing rubber plantations and assisted in organizing the dialgoues with rubber
farmers. Indeed, the ITTO had greatly contributed to the successful completion of the project by
closely monitoring progress in implementation through its participation in the meetings of PSC,
addressing the workshops, responding quickly to any requests or proposals made by the Project
Coordinator, maintaining effective communication and timely disbursing project funds.
It is worth mentioning that the Embassies of the Republics of Japan and Korea in Jakarta had
participated in the PSC meetings by sending their representatives whom had provided comments and
insights fruitful for improving the project implementation operations. Last but not least, the wood
industries and rubber companies were also involved in the project implementation by consistently
attending the workshops and discussions organized under the project and assisting in implementation
of selected activities.
oooOOooo
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6. LESSONS LEARNED
6.1 Project identification and design
• The key problem addressed by the project was identified under the completed pre-project
and adequately analyzed involving the main stakeholders; the problem analysis identified
direct and indirect causes as well as consequences of the key problem that the cause-effect
relationship was definitely clear and easy to digest.
• The clear cause-effect relationship had facilitated construction of a sound project design
having strong vertical logic, relevant elements and well defined interventions.
• The sound project design had eased the operational planning and facilitated the smooth
project implementation with only minor adjustments to planned activities.
• The implementation strategy adopted that comprised elements of motivating and convincing
of rubber plantations owners, improvement of enabling conditions and introduction of
appropriate technologies was proved applicable and effective in achieving the specific
objective.
• The variations between planned and actual implementation had occured due mainly to the
lack of information on specific matters and the Project Coordinator’s concern over
operational efficiency; the variations could have been avoided by conducting an ex-ante
evaluation prior to commencing with the project operations.
• The critical determining factors of project sustainability include applicability of the
technologies and skills learned by farmers from the project, continued political support by
the governments at different levels and enhanced cooperation between rubber and wood
processing companies in the utilization of rubberwood from replanting areas.
6.2 Project implementation
• The Executing Agency of the project was the Directorate General of BUK that had
mandated ISWA to fully implement the project based on a Memorandum of Understanding
signed by both parties establishing roles and responsibilities of each in a clear manner
which had avoided any confusion during the course of project implementation.
• To implement the project, ISWA had established a small Project Management Team (PMT)
comprising four project key personnel, one national expert and two DG BUK counterparts;
the small PMT proved able to adequately perform project management tasks in an efficient
manner.
• The monitoring and evaluation of progress in implementation had been performed through
two PTC meetings, four PSC meetings and monthly technical meetings of the PMT; such
meetings had greatly contributed to the smooth project operations.
• The strategy pursued in implementing the project was defined during the project formulation
stage consistent with the project elements specified and operationalized in a collaborative
Completion Report ‐ July 2013 | 37
manner by working closely with the primary beneficiaries, relevant institutions and national
consultants; the strategy proved effective in achieving the specific objectives.
• The project was managed in full compliance with existing ITTO rules and procedures; all the
documents required by ITTO including YPOs, bi-annual progress reports, financial audit
reports and documents of particular had been timely submitted to ITTO and facilitated
immediate issuance of any approvals requested by ISWA.
• The roles and responsibilities of ISWA and the national consultants were well elaborated in
the respective terms of reference which had facilitated accomplishment of assigned tasks in
an effective fashion.
• The project had been successfuly completed within the sanctioned financial and time budget
due mainly to the adequate project design, supportive primary beneficiaries and partners,
strong coordination with ITTO and DG of BUK as well as the cooperative and competent
national consultants.
• The active participation of rubber farmers in the implementation of relevant activities was
realized without any major difficulties because the farmers were convinced that the activities
would greatly contribute to their livelihood.
• The original indicators of achievement defined in the Logical Framework Matrix (LFM) was
exclusively based on the project design constructed during the formulation stage;
appropriateness of the indicators as a tool for measuring achievement was evaluated
regularly at the beginnings of current years of operation and adjusments made as necessary
based on actual progress in implementation.
oooOOooo
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7. CONCLUSIONS AND RECOMMENDATIONS
7.1 Conclusions
i. The key problem addressed by the project “very low rate of utilization of rubberwood from
sustainable sources” was identified under the completed ITTO-assisted pre-project involving the
main stakeholders based on the preliminary estimate of existing rubberwood growing stock and
its state of utilization; successful removal of the key problem would greatly contribute to
lessening the wood supply problem facing the national wood industry.
ii. The key problem was adequately analyzed, its causes and sub-causes as well as consequence
were clearly specified; the project design was constructed based on a clear and logical cause-
effect relationship that its vertical logic was strong and its elements were consistent with the
problems to be resolved.
iii. The project was implemented by ISWA on behalf of Directorate General of Forestry Enterprise
Development (BUK) with close supervision by the Directorate of Forest Product Processing and
Marketing (BPPHH) of BUK without any major administrative or operational difficulties.
iv. The project had been smoothly implemented and successfully completed to achieve its defined
specific objective; the smooth implementation and successful completion of the project were
made possible by, among others:
The sound project design that eased operational planning;
The effectiveness and appropriateness of the implementation strategy;
The adequate resources in terms of manpower, funds and time;
The generally strong support of the primary beneficiaries and partners; and
The able project management team.
v. The project operations were managed by a small management team comprising the project
coordinator, a secretary, a finance staff, a technician, a national expert and two BUK counterparts
that was able to complete the project within the sanctioned financial and time budget.
vi. The specific objective defined was nearly achieved through the full execution of twenty-two
planned as well as two additional activities pertaining to five outputs and delivery of the outputs
noting that three outputs were fully achieved and two outputs were slightly short of targets.
vii. The assumptions made were valid throughout the project duration and the mitigating measures
defined were effective in preventing the potential risks from happening.
viii. The indicators of achievement originally defined had been revisited at the beginnings of current
years of operations and necessary adjustments made based on progress in implementation to
ensure applicability and appropriateness of the indicators as the tool for measuring project
achievements.
ix. The primary beneficiaries of the project had demonstrated their cooperative and supportive
attitude towards the project implementation noting that the rubber companies were less
cooperative for business policy, technical and administrative reasons.
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7.2 Recommendations
i. It is strongly recommended that any ITTO project proponent to perform an adequate analysis of
the problem to be addressed in accordance with existing ITTO manual on project formulation to
ensure clarity of cause-effect relationship.
ii. To be sound, a project design must be constructed based on a clear cause-effect relationship to
ensure relevance and effectiveness of project interventions to solving the problems at hand.
iii. Any collaboration in project implementation should be based on a memorandum of
understanding that clearly defines roles and responsibilities of the parties involved in order to
avoid unnecessary confusion and disharmony of institutional relation during the project
implementation.
iv. To ensure a smooth implementation and successful completion of a project, appropriateness of
strategy for implementation, adequacy of inputs as well as support of primary beneficiaries and
partners are among the enabling conditions that are required to prevail.
v. It is best to employ a small but able project management team in order to minimize cost of
personnel, ensure effectiveness of coordination and increase adaptability to changing project
environment.
vi. Achievements of a project must be assessed using the pre-specified indicators; to be realistic as
a tool for measuring achievements, such indicators need to be occasionally revisited and
adjusted as necessary based on progress in implementation.
vii. The potential risks associated with the project implementation should be defined correspond to
the assumptions made; relevant mitigating measures identified during the project formulation
stage must be exercised and modified as necessary during the course of project
implementation.
viii. It is strongly recommended for BUK and ISWA to continue exploring the possibility of
establishing cooperation between the rubber companies with wood industries in rubber logs
supply through organized dialogues between high-rank officials of the Ministries of Forestry,
Agriculture and State-owned Companies, in view of increasing value-added of the rubberwood
harvested from replanting areas.
Responsible for the Report
Project Coordinator Project National Expert Mr. Jimmy Chandra Dr. Hiras P. Sidabutar
Date: July 2013
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Selected references
FAO. 2006. FAOSTAT Database home page (http://www.fao.org/). Food and Agriculture Organization of the United Nations, Rome.
ITTO Pre-project PPD 80/03 Rev. 2 (I). 2005: Promoting the utilization of rubberwood from sustainable
sources in Indonesia. Completion Report, prepared by PHJ. Nainggolan, Published by ITTO and ISWA, Jakarta.
Sidabutar, Hiras and Chandra, Jimmy. 2013: Strengthening the Interest of Rubber Companies in the
Utilization of Rubberwood on Replanting Areas in North Sumatra. Technical Report No. 1 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.
Sidabutar, Hiras and Chandra, Jimmy. 2013: Improving the Incentives and Capacity for the Utilization
of Farmers’ Rubberwood on Replanting Areas in Jambi and South Sumatra Provinces. Technical Report No. 2 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.
Sidabutar, Hiras and Chandra, Jimmy. 2013: Enhancing Government Policy on the Utilization of
Farmers’ Rubberwood on Unproductive Rubber Plantations in Jambi and South Sumatra Provinces. Technical Report No. 3 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.
Sidabutar, Hiras and Chandra, Jimmy. 2013: Promoting Investment for the Utilization of Rubberwood
on Unproductive Rubber Plantations. Technical Report No. 4 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.
Sidabutar, Hiras and Chandra, Jimmy. 2013: Developing Appropriate Technologies for the Utilization
of Farmers’ Rubberwood in Jambi and South Sumatra Provinces. Technical Report No. 5 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.
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