ITTO Project PD 459/07 Rev.1 (F) · ITTO Project PD 459/07 Rev.1 (F) ... management in East Nusa...

COMPLETION REPORT

ITTO Project PD 459/07 Rev.1 (F)

Improving the Enabling Conditions for Sustainable Management of

Sandalwood Forest Resources in East Nusa Tenggara Province

Host Government : Indonesia Executing Agency : Directorate General of Forest Utilization Ministry of Forestry Collaborating Agency : Forestry Service of East Nusa

Tenggara Province

Jakarta, March 2013

• Title : “Improving the Enabling Conditions for Sustainable

Management of Sandalwood Forest Resources in

East Nusa Tenggara Province”

• Project number : PD 459/07 Rev.1 (F) • Host Government : Republic of Indonesia

• Executing Agency : Directorate of Forest Utilization and Planning Development

DG of Forestry Utulization (BUK)

Ministry of Forestry Indonesia

• Collaborating Agency : Forestry Service of East Nusa Tenggara Province (NTT)

• Starting date of the Project: 2 November 2009

• Duration of the Project : 37 months

• Project costs (US $) : Source USD

ITTO 593.163

Government of Indonesia 125.000

Total 718.163

Disclaimer: This report is the product of the ITTO, and Ministry of Forestry, Indonesia. Interested parties may reproduce the report in whole or in part provided that it is not sold or put to commercial use and its source is acknowledged.

FOREWORD

Sandalwood (Santalum Album Linn.) is an important tree species in East Nusa Tenggara province because of its economic value and the best endemic tree in the world. Past regulations and policies are identified as the main reasons behind the decrease of Sandalwood population particularly in Timor island. Regulations and policies which excluded communities resulted in the scarcity of Sandalwood. Supported by ITTO (International Tropical Timber Organization) through Project PD 459/07 Rev.1 (F); “Improving the Enabling Conditions for Sustainable Management of Sandalwood Forest Resources in East Nusa Tenggara” , the Ministry of Forestry of Indonesia currently supports Sandalwood conservation in East Nusa Tenggara through strengthening policy frameworks, economic incentive, and local institution for sustainable Sandalwood management. It becomes a priority program to deal with Sandalwood-related issues in East Nusa Tenggara. At the inial stage with a support from ITTO, policy analysis and economic incentive for Sandalwood management in East Nusa Tenggara as the realisation of the Action Plan and the Master Plan of Sandalwood management, have been conducted. From the study, inputs from communities, the elders and NGOs should be considered and applied for sustainable Sandalwood management in East Nusa Tenggara. We thank the Formulation Team and the ITTO PD 459/07 Rev.1 Team who have worked hard to prepare this book. I hope that important information in this book can be shared with all agencies to manage Sandalwood sustainably in East Nusa Tenggara. This report presents concisely the implementation of the project activities and achievements of the project in accordance with existing ITTO Manual. Jakarta, March 2013 Yani septiani Project Coordinator This report presents concisely the implementation of the project activities and achievements of the project in accordance with existing ITTO Manual.

ACKNOWLEDGMENTS

We would like to take this opportunity to acknowledge those individuals and institutions that have actively involved in the project cycle, from its development stage to project completion. First of all, we would like to express our sincere thanks to ITTO and donor countries for financing the project that made its implementation possible; we are particularly indebted to Mr. Emmanuel Ze Meka, the ITTO Executive Director, and Mr. Eduardo Mansur, Dr. Tetra Yanuariadi and Dr. Hwan Ok Ma for their continued support to the project implementation. We also would like to express a very great appreciation to Elizabeth Lukas, Field Coordinator of ITTO project PD 459/07 Rev.1 (F) for her hard work and support during the implementation of the sandalwood project in ENT, Dr. Dede Rochadi, Dr. Retno Mariyani, Dr. Michael Riwu Kaho and Dr. Don Gilmour or their assistance during the consultancy process. And we particularly grateful for the assistance given by Listya Kusumawardhani and Mr. Mintarjo from Ministry of Forest and Ben Polo Maing from Forestry Service ENT province. At last we would like to

LIST OF ABBREVIATIONS AND ACRONYMS AAC : Annual Allowable Cut APBD : Local Government Budget Bappeda : Regional Planning Agency BP2HP : Unit Office of Forest Product Utilization Forest Bupati : Regent in District Level BUK : Directorate General of Forest Utilization BUMN : State owned enterprise CIFOR : Center for International Forest Research CSR : Corporate Social Responsibility DPRD : Legislative Local Government ENT : East Nusa Tenggara FGD : Focused Group Discussion FORDA : Forest Research Development Agency FPC : Forest Product Commission (in Perth Australia) GOI : Government of Indonesia HTI : Hutan Tanaman Industri (Forest Plantation Estate) ITTA : International Tropical Timber Agreement ITTO : International Tropical Timber Organization MoF : Ministry of Forestry NGO : Non Government Organization NTT : Nusa Tenggara Timur (East Nusa Tenggara) PMU : Project Management Unit Proglada : Program Legislatif Daerah- District Legislation Program PSC : Project Steering Committee RADJA : King/Traditional Head of a Region RAN PERDA : Draft of Local Government Regulation SCBFWM : Strengthening Communities Based Forest Watershed Management TTS : Timor Tengah Selatan (South Central Timor) UGM : University of Gajah Mada

TABLE OF CONTENTS

FOREWORD ACKNOWLEDGEMENTS LIST OF ABBREVIATIONS AND ACRONYMS TABLE OF CONTENTS EXECUTIVE SUMMARY 1. Project Identification ………………………………………………………………………………………………8

1.1. Context………………………………………………………………………………………………………….8 1.2. Origin and problems addressed……………………………………………………………………………...9

2. Project Objectives and Implementation Strategy…………………………………………………………... 15 2.1. Project rationale……………………………………………………………………………………………. . 15 2.2. Project objectives and implementation strategy ………………………………………………………….16 2.3 Assumption and risks………………………………………………………………………………………...16

3. Project Performance ……………………………………………………………………………………………..18

3.1. Planned vs realized project elements………………………………………………………………………18 3.2. Project duration……………………………………………………………………………………………….21 3.3. Project budget………………………………………………………………………………………………...21

4. Project outcome and Target Beneficiaries Involvement……………………………………………………22 4.1. The specific objective achieved…………………………………………………………………………….22 4.2. Existing situation at project completion vs pre-project situation…………………………………………24 4.3. Involvement of project beneficiaries………………………………………………………………………..25 4.4. Project sustainability…………………………………………………………………………………………26

5. Assessment and Analysis……………………………………………………………………………………….25

5.1. Project rationale and identification process………………………………………………………………..25 5.2. Problem addressed, objectives and implementation strategy…………………………………………...25 5.3. Critical differences between planned and actual project implementation………………………………29 5.4. Adequacy of time and project inputs……………………………………………………………………….30 5.5. External influences…………………………………………………………………………………………...30 5.6. Project beneficiaries………………………………………………………………………………………….31 5.7. Sustainability…………………………………………………………………………………………………..31 5.8. The institutions involved……………………………………………………………………………………...32

6. Lessons Learned ………………………………………………………………………………………………….33

6.1. Project identification and design……………………………………………………………………………33 6.2. Operational matters…………………………………………………………………………………………..34

7. Conclusions and Recommendations…………………………………………………………………………..35

7.1. Conclusions…………………………………………………………………………………………………...35 7.2. Recommendations…………………………………………………………………………………………...36

Annex 1. Project financial statement Annex 2. Project cash flow statement Annex 3. Documentation

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2009-2012 Completion Report ITTO PD 459/07 Rev.1 (F)

EXECUTIVE SUMMARY Sandalwood (Santalum album L.) is a fancy extinct endemic species from East Nusa Tenggara (ENT) Province Indonesia. Sandalwood is harvested mainly from natural stands and the wood is used for the production of handicrafts, joss sticks and, the main sandalwood product from the region, sandalwood oil, which is exported to be used in perfume and in the cosmetics industries all over the world. However, the resources are being rapidly depleted due to unsustainable harvesting and ineffective policy framework. Beside that the economic framework of this commodity is unclear as well, leading to the significant loss for local farmers whom their livelihood is mainly dependent on sandalwood commodity. Also low capacity of local stakeholders in maintaining natural regeneration of sandalwood utilization has led to the condition where that commodity has nearly becoming extinct. In light of the importance of tackling the issues above, the project will support the sustainable management of Sandalwood Resources to be well performed. As a top priority, the proposed project will focus on to strengthen the policy, economic incentive and local institutional framework for sustainable management of Sandalwood resource. These would be important first steps to address many issues of the sandalwood resource which is in line with ITTO Guidelines for the criteria and indicators for the sustainable management of tropical forest (ITTO Policy Development Series No 15). The project intends to contribute to the sustainable management of Sandalwood Resources in East Nusa Tenggara (NTT) Province. These forest resources have been seriously depleted due to high demand of sandalwood has stimulated over exploitation by illegal illegal logging activities. In addition, local government policy tend to neglect local people’s right to the benefits of the valuable sandalwood and thus discourage them from participating in the maintenance of sandalwood natural regeneration. the weakness of enabling conditions for sustain-able management of its resource. That is mainly derived from: (1) in policy and commitment in local level for managing the resources; (2) Weak of economic incentive framework to support sustainable sandalwood resource; (3) institutional capacity for sustainable management of sandalwood resource; (4)Low public awareness on sustainable sandalwood management The project specific objective is to strengthen the policy, economic incentive and local institutional framework for sustainable management of sandalwood resource. Correspond to the main causes of the key problem addressed, three outputs had been defined, namely; (1) New effective policies at district level for managing the resources formulated and endorsed by the local government and being implemented by the executive agencies concerned; (2) Suitable economic incentive framework to support sustainable sandalwood resources developed; (3) Capacity of forestry staff and communities leader improved for planning, managing and sustainable utilizing sandalwood resources; (4) Community awareness on sustainable management of sandalwood resources raised. The strategy pursued in implementing the project was collaborative in nature with the following main elements: Reviewing and Analyzing Sandalwood regulations , Selecting for districts as pilot areas, , Intensive communication with local government and also local communities to formulate/revise “PERDA” Conduct stakeholder consultation/dialogue and participatory discussions with local communities, local government and other relevant stakeholders (private sector, researchers etc.), Improving the capacity of forestry staffs in four target districts and communities in selected villages, Improving community awareness through comparative study, extension and socialization of new regulation related to sandalwood management, Supporting standing stock data and information system of sandalwood in East Nusa Tenggara province for purpose of assessing sandalwood market and trade. The project had been succesfully implemented and completed, without any critical difference between planned and realized project elements, within the sanctioned projects budget. However, some activities had been added/changed to the original ones which the PSC opined would enrich the project outcomes. The sucessful implementation of the project was attributable to the hardworking project management, competent PSC, participatory implementation pursued, supportive primary beneficiaries mainly local government in provincial and district level as well as Ministry of Forestry as Executing Agency, partners, and cooperative ITTO Secretariat.All defined outputs had been fully delivered to

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fully achieve the specific objective of the project. The achievement has been assessed using the logical framework presented in the project document. After project completion , local communities in the province of ENT in general have a positive perception of sandalwood cultivation. The people have a long, historical relationship with sandalwood, and that serves as important capital to sustain it. The participation of local people will easily be encouraged if there are economic incentives to conserve sandalwood. High demand from the market for a variety of sandalwood products and high market prices both domestically and globally may be used as supporting factors. Nevertheless, this economic situation must be supported by regulations that eliminate high transaction costs. The project is also putting forward efforts to facilitate the improvement of local government regulations, such as (PERDA) of TTS district No. 25/2001 and PERDA No. 19/2000 in East Sumba District, by submitting a final draft of these regulations to the legislative body (DPRD) of TTS and East Sumba District. Prior to commencing with project operations, the implementation strategy to be pursued was re-examined by the project management team involving persons knowledgeable on actual project environment to ensure that the strategy implemented is workable on the ground. It was found that the strategy which developed did work well on the ground with only minor difficulties in achieving the specific objective of the project.

To ensure project sustainability after project completion, a post-project strategy has been designed which include selection of critical activities to be implemented, appointment of the institutions involved including the leading one, and identification of resources needed including their sources. This post-strategy has been developed adequately through formal consultation, FGD (focus group discussion) and workshop with the primary beneficiaries of the project, namely the local communities, local government and concerned institutions, i.e. Directorate General of Forest Utilization and its regional offices, Unit of Forestry Education & Training of the Ministry of Forestry, forestry Research Institute Kupang, Universities, half-owned state companies (BUMN Perhutani and Angkasa Pura), private sector , NGO’s and other agencies. Financing of selected activities is through state budget appropriation following existing cycle of state budgeting process. Among the important lessons learned from the project implementation are:

• The sound project design that was developed based on an adequate problem analysis involving the main stakeholders has contributed significantly to the smooth implementation of the project and to the achievement of project objectives;

• The project strategy pursued, re-examined involving knowledgable resource persons prior to implementing the project, was in conformity to the actual project environment and facilitated the smooth project operations;

• The sucessful completion of the project is attributable to the hardworking project management team, competent PSC, appropriate implementation strategy, cooperative primary beneficiaries as well as stakeholders and supportive ITTO Secretariat; these key success factors have to be taken into account in implementation of similar future projects;

• Roles and responsibilities of any parties involved in project implementation particularly role of MoF as Executing Agency and Forestry service in province level is Implementing Agencyhave been made clear from the onset of project operations in order to avoid confusion among the parties involved and inefficient project operations; and The project structure in this project is used a model applied for an ITTO project in Indonesia

• The mitigating measures for potential risks that were adequately identified and properly implemented has greatly contributed to the successful completion of the project within the sanctioned budget with only minor extension in time duration of the project.

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1. PROJECT IDENTIFICATION

1.1. Context Santalum album, a native plant species of Indonesia, is a most valuable plant, with the wood containing about 7% essential oil. It is harvested mainly from natural forest stands in this country, one of the locations is in East Nusa Tenggara (ENT or NTT) Province. Sought after for its pleasant odor, the wood is used for handicrafts production, joss sticks and sandalwood oil as the main sandalwood product from the region. The produce is exported to be used in perfume and cosmetics industries all over the world. Unfortunately the resource is being rapidly depleted due to unsustainable harvesting and ineffective policy framework. Besides, the economic framework of this commodity is unclear, leading to the significant loss of income for local farmers whose livelihood depends mainly on sandalwood as a commodity. Low local stake-holders’ participation in maintaining natural regeneration of sandalwood has led to the condition where the species is nearing extinction. Government regulation of sandalwood commodity had discouraged local people to get involved in improving and implementing sustainable sandalwood forest management system. In the past sandalwood has been controlled by the State. Economic benefits from the sale of the wood received by the local government have been significant. The regulations, however, tend to marginalize community rights to the resource. Because of low incentives for the local people, little effort has been put into sustaining the sandalwood resource. In some cases local people have purposely killed the seedling so as not to be obliged to maintain the trees in their fields – a striking consequence of the lack of involvement of local people. It is caused by the unclear economic and institutional framework of this commodity, leading to the significant loss of income for local farmers whose livelihood mainly depends on sandalwood commodity. The market access is not well established and socialized. Trading activity of sandalwood commodity happened through middlemen due to lack of information for both local farmers and buyers. Furthermore there is no accurate data available for sandalwood commodity in ENT. The last inventory result available in the ENT Province Forestry Service is for the year of 1998. The spatial information that is available is of poor quality. Although the accuracy of data resulting from the census is questionable, it is obvious that there has been a sharp decline in numbers over the last 10 years. Many studies in Indonesia on sandalwood commodities have been carried out with different levels of success. Most studies concern only with silvicultural aspect of sandalwood. Some studies carried out on the topic of policy and economic aspect. However those studies were not followed up with the improvement of the policy on sandalwood management. Although regulations and mode of exploitation have changed from time to time, what has remained unchanged is that the people's right to the resource is still marginalized. Local people receive little in the way of benefits from sandalwood under the existing system, which has consequently resulted in the local people's low level of participation in maintaining sandalwood resources. The sandalwood case is an interesting example of ineffective government intervention in resource management. In light of the importance in tackling the issues, the project has supported the sustainable management of sandalwood resources in ENT Province. As a top priority, the project is focused on strengthening the enabling conditions for sustainable sandalwood resource and improving the local capacity to ensure the resources are managed with best management practices involving all stakeholders in particular local communities who are dependent on the sandalwood forests. This is in line with ITTO Guidelines for the criteria and indicators for the sustainable management of tropical forest (ITTO Policy Development Series No 15).

The project was put into priority by Ministry of Forestry (MoF) because it is in line with the political commitment of the Indonesian Government in sustainable resource management and national macro policy in forestry sector; which has been set up in 5 (five) priorities program among others, Rehabilitation and improving on watershed management; Empowerment of community’s economic condition. Furthermore, in MoF strategic planning 2009-2014, one of the priority species in developing forest plantation in ENT is sandalwood.

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Project location Project activies located in East Nusa Tenggara province, and four target Districts to be included in the project activities, namely Districts of Timor Tengah Selatan – TTS or South Central Timor (representing Timor island), East Sumba (representing Sumba island), Alor (representing Alor Island) and East Flores (representing Flores island). The selection of the four districts is based on the following consideration (i) the sandalwood natural distribution was still found in Timor, Sumba , Flores and Alor islands, (ii) ineffective local government policy in the past has resulted in socio-psychological impact particularly for the communities in Timor and Sumba island. (iii) Districts of Alor and East Flores have developed sandalwood planting activities together with the local communities. Picture 1. Map of Indonesia

ENT province Picture 2. Map of ENT province

1.2 Origin and problems addressed Based on consultation process to refer the opinions and input from representatives of the various stakeholders during the development of this project proposal in 2006-2007, it was found that the key problems encountered in sustainable management of Sandalwood Resources in East Nusa

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Tenggara is the weakness of enabling conditions for sustain-able management of its resource. That is mainly derived from: 1. Weakness in policy and commitment in local level for managing the resources. Sandalwood exploitation has long been practised and used to be controlled by local rulers. As reported by Widiyatmika (1986), historically all sandalwood was owned by a king (radja) who would appoint a ‘landlord’ (fetor or uis pah) to control the sandalwood production in the region. The landlord then appointed and adat (traditional) chief to maintain and secure the trees, as well as to conduct ritual ceremonies whenever harvesting took place. The benefits from harvested Sandalwood trees were shared as follows: the roots belonged to the Radja, the stem went to the fetor, and the landowner received the branches (Ormeling 1955). A wage system for sandalwood exploitation was introduced during the Dutch colonial era. Using the local ruler's power, the colonial government provided a certain amount of compensation for harvesting the sandalwood. It is unclear how much compensation the colonial government gave to the local ruler for the harvested wood or how much compensation the local ruler gave to the people who actually collected the wood. It seems, however, that the price was on a downwards spiral, which caused local people to protest and finally to refuse to collect sandalwood. In 1751 the system of compensation was replaced by a tax system. At that time one third of all harvested sandalwood had to be handed over to the local government ('Swapradja'). In a way this was just another type of monopoly as the government controlled the trade system and the huge price margin between local farm gate and the destination of trade. After independence, the regional government assumed control of the wood through a series of regulations that controlled all aspects of its management. These regulations controlled Sandalwood property rights, resource, maintenance, harvesting, marketing and wood allocation. The main points of these regulations are as follows (Rohadi et al. 2000): a) All naturally regenerated sandalwood (live trees, dead trees and wood) belong to the regional

government. Any parties could plant sandalwood trees on their own land, but their income share from the harvested wood was only 15%1 (Regional Government Regulation or “Perda” No. 16/1986 and the Ministry of Home Affairs Decree No. 522.63-433/1988). The landowners need to prove their land certificate to claim their income from their cultivated sandalwood (Governor decree No. 7/1993).

b) The Regional Forestry Office conducts resource inventory every 5 years and determines the annual allowable cut (AAC) for the following five years2 (Perda No. 16/1986 and Governor decree No. 7/1993).

c) The local government conducts the harvesting activities, determines the harvesting cost3 and provide/prepare the documents required for harvesting and transporting the wood (Governor decree No. 7 and No. 8/1993).

d) The local government determines the wood price4 and allocates the wood to selected companies5 (Governor decree No. 7/1993).

e) All communities should care for and maintain the sustainability of the resource. Illegal cutting, stockpiling or transporting sandalwood, as well as intentional acts to damage the trees will be prosecuted. Coordinating boards, comprised of several government institutions including the head of the regency or bupati , head of sub district office or camat, head of village or lurah , the armed forces or ABRI as well as some local community leaders were established by the Governor (Governor decree No. 53/1992).

f) In implementing the Regional Government Regulation or “Perda” No. 16/1986, however, this regulation seems ineffective to the current condition in that province. Regulation is not properly developed in accordance with the fair sharing benefit with community which is still the failure of the regulation and it should be adjusted.

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g) The current condition on sandalwood showed that the threat to the sustainability of the resource can’t be neglected. The future of the resource depends on how much effort will be put to increase sandalwood population in the region. The efforts undoubtedly require local community participation in maintaining the natural regeneration of sandalwood trees as well as government or private companies’ investments in new plantation developments to meet the increasing demand. The local government has taken one positive step by issuing the new Local regulation or Perda, i. e. Perda no. 2/1999 that abolished the Perda No. 16/1986. In the spirit of decentralization, the authority of sandalwood management was transferred from the provincial government to the district government. Debate is ongoing to change the previous arrangement of benefit sharing from 60%: 40% between the government and community to a new proportion of 20 %: 80% respectively, to encourage people's participation on sustaining sandalwood. However dissemination of adjusted regulation has not being done optimally as yet. Only four districts in the East Nusa Tenggara province have adopted the regulation.

h) Because of the alarming rate of decline in sandalwood, the provincial government ordered a moratorium on the harvest of sandalwood from 1998 up to 2002. This regulation eliminated income contributions the PAD receives from the sale of sandalwood. Similarly, the ban on sandal wood utilization has diminished export contributions from sandalwood products. One year prior to the ban, the Governor launched a sweeping operation to collect illegally cut wood being stored by the local people. Almost 2000 tones of “illegal” wood was collected during the operation and was earmarked for allocation to local industries to maintain their operation up to the year 2003. However, local reports indicate that the wood collected also included an amount of freshly cut wood. The regulations, designed to sustain the resource, as well as to maintain local government income, in reality had the opposite effect. Local people are not interested to maintain naturally regenerated trees. They are even more unlikely to cultivate sandalwood trees because the benefits are so low, and the risk of losing it all to another sweeping operation.

That above explanation indicated that there still exists a weakness in the legal framework policy. Ineffective local government policy for managing the resource is caused by the tendency to neglect public/community rights and thus discourage them from participating in the maintenance of sandalwood resource. 2. Weak economic incentive framework to support sustainable sandalwood resource One of the most important requirements for the sustainable resource management to succeed is the availability of financial resources as well as the provision of incentives and appropriate economic instrument that promote the resource. At that moment policy package which manages the suitable economic incentive framework to support sustainable sandal-wood resources has not been developed. Because of low incentive for the local people, little effort has been put into sustaining the sandalwood resource. This condition was worsened by social economic problems of the communities living near the forest who are poor that has led to the incapability of maintaining sandalwood resources. In some cases local people tend to kill the young trees to avoid any obligation to maintain the trees once they have been inventoried (Leki 1996; field notes). Local communities have no direct access to the market. They will get a very low price as a substitute of providing sandalwood to their contacts. They do not know the real price of their sandalwood (which is the best sandalwood in the world) in the international market. Yet, most of the international buyers have no information on sandalwood commodity from ENT Province. They conduct the trading through intermediary organization/individual who have the information regarding that commodity. Local government should stimulate local community participation in maintaining sandalwood resources by offering more rational benefits to local communities to attract them in the cultivation and sustainable harvesting of sandalwood. Some policies have been issued by local government to manage economic aspect of this commodity, such as Local Government Regulation No 16 Year 1986 regarding Sandalwood Commodity and Local Government Regulation No 7 Year 1993 regarding Sandalwood Business Administration Arrangement. However those regulations (PERDA) has not accommodated fair benefit for local communities. It has led to the less interest of local communities and other key stakeholders to develop sandalwood resource. New government policies should provide proper incentives to support sandalwood production as raw material, policies that are more focused on investment in sandalwood plantations.

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3. Inadequate local institutional capacity framework for sustainable management of sandalwood resource The sandalwood production in East Nusa Tenggara province was threatened by an alarming rate of decline in the sandalwood population. Overcapacity of the sandalwood processing industries has stimulated overexploitation by illegal logging activities. In addition, some harvesting methods (e.g., digging up roots because of their oil content) and agricultural expansion have increased the pressure on the resource. There have been limited efforts to develop sandalwood plantations.

Adequate planning, the use of proper technologies and effective monitoring and control are essential for achieving sustainable sandalwood management. However, capacity and mechanism for planning, application of proper silviculture technique, and utilization of sustainable resource management in East Nusa Tenggara is still limited and ineffective, especially in the district level. Beside that there are still inadequate institution and personnel capacities to insure the resource is managed in accordance with scientific and technical knowledge.

Therefore improving capacities of forestry staffs and community leaders in planning, silvi-culture and utilization of sustainable sandalwood resource is needed as a priority. In framework planning, more benefit to local communities should be offered to attract them to cultivation and sustainable harvesting of sandalwood

4. Low public/community awareness and support Based on field findings in 2006-2007, local community stakeholders has never been involved in formulating changes in regulation on sandalwood commodity which has consequently resulted in low support from communities. This condition has to be changed in order to improve local public/communities’ support and awareness of sandalwood resource development.

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Problem Tree

The sustainable management of Sandalwood Resource in East

Nusa Tenggara Province is not well performed

Weak policy, economic and institutional framework for sustainable management of sandalwood resource

Weak policy in district level for managing the resource

Weak economic incentive to support sustainable sandalwood resource

Inadequate institutional capacity for sustainable management of sandalwood resource

Low public awareness on sustainable sandalwood management

Employment opportunity for local people in the sandalwood industries decreased

PAD (local gov’nt source of income) from sandalwood resource lessened

High demand market for sandalwood product caused illegal cutting of sandalwood

resources

Decline of sandalwood population/pressure of the sandalwood resource

E F F E C T

C A U S E S

Key problem

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The Objectives-Tree below, describing the situation when the problems have been solved through project intervention

Objective Tree

The sustainable management of Sandalwood Resource in East Nusa Tenggara Province is well performed

Enabling condition for sustainable management of sandalwood resource is strengthened

New effective legal policies in district level for managing the resource formulated and effected

Suitable economic incentive framework to support sustainable sandalwood resource

Capacity of forestry staffs and community leaders in planning, silviculture and utilization of sustainable sandalwood resource improved

Raised public awareness on sustainable management of sandalwood resource

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2. PROJECT OBJECTIVES AND IMPLEMENTATION STRATEGY

2.1. Project rationale Sandalwood plays an important role as one of the main source of income for local government for a long time. From 1986/1987 to 1991/1992, sandalwood contributed about 2.5 billion IDR annually or about 40% of the total local government revenue (1991/1992 to 1997/1998 contributed 12-37 %). After this period the contribution declined. The resource was being rapidly depleted due mainly to weak policy, weak economic and local institutional framework for sustainable management of sandalwood resource. However, sandalwood is still considered an important asset by the local government. Unsustainable wood harvesting (over cutting), uncontrolled grazing and land conversion to support agriculture activities has caused sandalwood population in ENT province continuously decreasing. Efforts on sandalwood plantations are limited. In the meantime, demand on sandalwood oil industries’ products remains high to fulfill both domestic and export markets. These conditions have been continuing since a long time and may lead to sandalwood extinction in the region. Previous studies have identified the root problems of unsustainable sandalwood manage-ment. The studies concluded that:

o Low participation of local people on sustaining or cultivating sandalwood resource was caused by previous ineffective local government policies that neglect rights of local people.

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

o Inadequate local institutional capacity for sustainable management of sandalwood resource has led to the condition where sandalwood as a commodity has nearly becoming extinct.

o Low public support and awarennes on sustainable sandalwood development This situation has increased the stakeholders’ concerns of the future sustainability of sandalwood. The Ministry of Forestry, in collaboration with the Government of ENT province, and with the support of the International Tropical Timber Organization implemented project PD 459/07 Rev.1: “Improving the enabling conditions for sustainable manageent of sandalwood forest resources in East Nusa Tenggara province, Indonesia” .

The project was aimed at strengthening the policy, economic incentive and local institutional framework for sustainable management of sandalwood resource. Corresponding to the main causes of the key problems, the expected outputs of the project were : Outputs 1.1 : New effective policies in district level for managing the

resources formulated and endorsed by executive Outputs 1.2 : Appropriate economic incentive framework to support

sustainable sandalwood resource developed Outputs 1.3 : Capacity of forestry staffs and community leaders in planning silviculture and utilization of sustainable sandalwood resource improved Outputs 1.4 : Raised public awareness on sustainable sandalwood management 2.2. Project objectives and implementation strategy

As described in the ITTO project document PD 459/07 Rev.1, the project has one development and specific objective. The development objective is to support the sustainable management of Sandalwood Resources in East Nusa Tenggara Province. Its specific objective was to strengthen the policy, economic incentive and local institutional framework for sustainable management of sandalwood resource.

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The approach taken by the project team to improve the sustainable management of sandalwood resource is: (1) to establish the conditions that enable sustainable management of sandalwood resource in East Nusa Tenggara Province and (2) to improve the capacity of local institutions. The implementation strategy pursued can be outlined as follows :

i. Analyze the existence and improve regulations of sandalwood management in term of property rights, resource conservation, harvesting, marketing and wood administration. Then consult the district leaders, community leaders, the private sector, the local House of Representative (legislatives), national experts, and other relevant stakeholders. The result of consultation will be used as a guideline to continue to step 2.

ii. Select four districts as pilot areas. In the spirit of decentralization, the authority of sandalwood management was transferred from the provincial government to the district government. The four districts (Alor, East Flores, South Central Timor, and East Sumba) were selected based on their demographics and historical sandalwood management practices so as to accurately represent the conditions within ENT province.

iii. Establish intensive communication with the local government and the local House of Representative (legislatives in province and districts level) to support the decision making process in improving regulation at the district level. This involves local communities and other stakeholders in formulating the economic means to mobilize financial support and build economic incentives that promote sandalwood resource.

iv. Faciliate the formulation process of Master Plan and Action Plan for Sandalwood Development in the NTT Province, covering management of sandalwood in ENT province over the next 20 years.

v. Improve the capacity of the institutions responsible for sandalwood resource, mainly in the pilot districts. The local communities group will be trained in resource cultivation, intensive plantation, and sustainable harvesting.

vi. Support the availability of a standing stock data and information system through inventory of sandalwood in target districts.

vii. Improve public awareness on sustainable sandalwood management The national government has committed itself to work towards the sustainable management of the country’s forest resources. At the provincial level, national policies are interpreted through provincial regulations (Perdas) and other legal instruments to give direction to the districts for policy implementation. The Ministry of Forestry facilitates the ENT provincial government (through the ITTO project) in establishing a master plan for the development of sandalwood over the next 20 years. The ENT provincial government has stated that the establishment of sandalwood plantations is a priority that requires immediate action from all district governments and related stakeholders. Each district government is required to allocate part of its local budget to maintain sandalwood nurseries and plantations. By 2009, five districts in the province have even enacted their own District PERDAs (e.g. TTS and East Sumba), while others have not (e.g. Alor and East Flores). 2.3. Assumption and risks Anticipated potential risks that will affect its implementation include mitigating measures are:

Tbel 1. Internal Risk

No Potential Risk

Mitigating measures/anticipated by

1. Organizational structure and decison makers (counterparts) in Executing and Implementing Agency changed

- The project structure in this project is the first model applied for an ITTO project. A sharing of responsibility is developed by involving counterpart from the

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central and local government (provincial and district levels)

- Intensive coordination between Executing and Implementing Agencies, using the proper technical approach by considering local culture

2. Data and information on sandalwood management is still spread in the province and districts, needing intensive access especially to districts to acquire it

- Synergized program activities with other international cooperation related to sandalwood in the ENT province such as the GEF and CSIRO projects

- Implement intensive coordination with local governments, provincial as well as target districts, always involving local experts

2. Lack of knowledge and skill of the procedure for

project administration, project report, project monitoring and evaluation based on new regulation of Ministry of Finance

(a) Improve coordination between Executing and Implementing Agency of the Project (b) Develop internal meeting to explain/describe new regulation related to international cooperation project administration and monitoring

Tabel 2. External Risk

No Potential Risk

Mitigating measures/anticipated by

1. Political and policy changes in the institutional system;

• Low commitment from Local Legislative (DPRD) to manage forest resources in a sustainable manner.

• Not all stakeholders accept the decision making process.

• Local communities, NGOs and related interested parties prevented the future changes on the formulated policy and economic mechanism that does not give fair benefit to local communities

• Special approach for them through consultation and participatory way.

2. Local government of target districts and

communities are not committed in supporting sustainable management of sandalwood in ENT

• Include the Head of Forestry Service in four target districts as members of project steering committee and appoint reliable key persons in districts with available time to be involved in project activities in the field

• Using the proper technical approach by considering local culture to regain the community motivation to plant sandalwood. Each district in ENT has a different local community character

3. Sandalwood resources development is disturbed by

ecological condition such as forest and land fire, climate changes, and pest and disease attacking the natural nursery.

Control improved, planting will be located in the appropriate areas. Prevention of pest and diseases as well as fire should be done properly. The project should provide extension programs to the local community regarding these matters. And the project worked together with Forestry Research Institute in Kupang

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3. PROJECT PERFORMANCE

3.1. Planned vs realized project elements Table 3. shows planned and realized project elements; several activities have been adjusted or added to during the project implementation. The table indicates that there is no critical difference between planned and realized project elements except for the additional activities that were proposed by the PSC. Table 3. Planned vs realized project elements

Planned Elements Realized Elements Remarks

Specific Objective: To strengthen the policy, economic incentive and local institutional framework for sustainable management of sandalwood resource

100%

No change had been made to the specific objective and outcome indicators

Output 1, :

New effective policies in district level for managing the resources formulated and endorsed by executive

100%

No difference between planned and realized outputs

Activity 1.1 Development of study and analysis in policy framework of management of sandalwood resources in province and district level

100%

No change was made to the activity

Activity 1.2 Development of public dialogue to review draft of local Government regulation (PERDA) with executive and legislative at provincial and district level

100%


Activity 1.3. Development of consultation process with the importance and objective of local government regulation adopted in districts level

100%


Activity 1.4 Comparative study for decision maker to Papua New Guinea

100%

Based on second PSC meeting , The Committee requested the EA to organize the study tour to Australia as per recommended documentation provided by the International Consultant, and to include participants from local communities and district forest officers , as they may act as multipliers for better sandalwood plantation practices in their districts

Additional Activities Activity 1.5 : Inventory and documentation of sandalwood trees in TTS district.

100%

At the first PSC meeting in November 2009, the commitee sugested to support improvement of regulation about the need to carry out inventory of sandalwood

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plus trees in South Central Timor (TTS) District

Additional Activities Activity 1.6 Assessment of sandalwood ecology in TTS district

100%

At the second PSC meeting on 18 January 2011 the committee suggested additional activity to support the effectiveness of policy process and implementa-tion through ecological study of sandalwood

Output 2 : Appropriate economic incentive framework to support sustainable sandalwood resources developed

100%


Activity 2.1. Development of study and analysis in economic incentive framework of sandalwood resources management in province and district level

100%


Activity 2.2. Formulation of economic instruments to support sustainable sandalwood resource

100%


Activity 2.3. Development of training for institution and personnel to undertake economic incentive framework 100%

The activity was modified in compliance with the need of local government : “Development of training for institutional and forestry staffs in planning and non timber development program”.

Output 3: Capacity of forestry staffs and community leaders in planning , silviculture and utilization of sustainable sandalwood resource improved

100%


Activity 3.1 Analysis need for assessment for improving human resource capacity in managing sandalwood resource planning, silviculture and utilization

100%


Activity 3.2. Formulation of training modules of sandalwood resource planning, silviculture and utilization

100%


Activity 3.3. Development of serial training of sandalwood management for relevant stakeholders

100%

Based on second PSC meeting, the committee has recommended that the training issues should be addressed such as silvicultural improvement of sandalwood for

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community leaders/group, to improve the quality of plantations. The activity was modified to become: “Conducting training of sandalwood planning, silviculture and utilization for community groups”

Output 4: Raised public awareness on sustainable sandalwood management

100%


Activity 4.1 Development of MIS of sandalwood resource

Has been changed

Activity 4.2. Analysis and development of communication strategy to disseminate new local regulation (PERDA) and relevant information in Sandalwood management practice for local communities

Has been changed

Activity 4.3. Socializing new local regulation (PERDA) and dissemination of relevant information in sandalwood management for public – mainly local communities – based on this strategy

Has been changed

Based on one of result of third PSC meeting in Waingapu, Sumba Timur NTT on Januari 2012, Executing Agency proposed to modify activity for output 4 that should be more focused in strengthening community group in developing sandalwood resource. Local organization (kelompok) of farmers who participated in study tour to Australia will be chosen as a local institutions model/pilot in developing sandalwood resource. The Committee proposed to change the activities within Output 4 “Raised public awareness on sustainable sandalwood management” as follows : Activity 4.1. Improvement of sandalwood regulation to synchronize policies at central and provincial level

100%

Whether sandalwood is classified as Non-Wood Forest Produce or Wood Forest Product – there is a need for a formal letter from Director General of Forest Utilization to local government in Provinces and Districts level to confirm the matter as well as a means of socialization and briefing to relevant members of local apparatus in the field because it relates to the administration of wood product from community forest. And also it need to synchronize

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central government regulation related to wood administration

Activity 4.2. Facilitating local institutions for sandalwood development.

100%

Facilitating local institutions for sandalwood development was needed to build up a model for facilitating farmer’s group in four target districts through development of sandalwood farmers group in a village / district. The said farmer’s group institution will further on to be developed to become a Sandalwood Information Center in district level. .

Activity 4.3. Conduct series FGD for mapping of stakeholder’s role in developing sandalwood strategy

100%

Stakeholder’s mapping involved Bappeda (Regional Planning Agency), needed in order to sustain funding to develop sandalwood at the target districts

3.2. Project Duration The Project commenced in November 2009 and is planned for 36 months. A one-month extension without additional funds was granted by ITTO on third PSC meeting January 2012. With the extension, all project activities have been fully completed by end of December 2012. Starting date of the Project : 2 November 2010

Duration of the Project (month) : 37 months

3.3. Project Budget

The total amount of budget was US $ 718.163 comprising ITTO’s and GOI contributions in the amount of US$ 593.163 and US$ 125.000, respectively. The total amount of ITTO’s contribution, disbursed to GOI through Project Management Unit in six installments, was US$ 516,225.00 The funds were to pay for project personnel (37.85%), sub-contract (0%), duty travel (28.52%), capital items (7.03%), consumable items (10.97%) and miscellaneous expenditures (15.53%). The most expenditure budget was for Project Personnel and duty travel component. The financial auditing was commenced in mid January 2013 and the Final Audit Report for submission to ITTO was in February 2013 (final PSC meeting was implemented at the middle of February 2013). The final audit report disclosed the actual amount of project expenditures at the project closing date. 4. Project Outcome and Target Beneficiaries Involvement 4.1. Specific objective achieved

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Planned activities pertaining to individual outputs, in their original and modified forms as well as approval of additional activities, were all implemented and completed to fully deliver Outputs 1, 2, 3 and 4

Achievement of the specific objective has been assessed using the outcome indicators presented in the project document as follows: Outcome indicator :

1. New effective Policies in two target districts (South Central Timor and East Sumba) for

managing the resources formulated and endorsed by executive (local government of district level)

2. Appropriate economic incentive framework to support sustainable sandalwood resources developed and adopted in two target districts

3. Capacity of forestry staffs and communities leader in planning , silviculture and utilization of sustainable sandalwood resource in four target districts (South Central Timor, East Sumba, Alor and Flores) increased.

4. Raised public awareness on sustainable sandalwood management in four target districts (South Central Timor, East Sumba, Alor and Flores)

Achievement of the outputs has been assessed using the output indicators as follows: Output indicators 1.

− One preparatory meeting and workshop has been executed to acquire information of the current condition related to the policy of sandalwood management at the ENT Provincial and District levels

− Study and analysis in policy framework of management of sandalwood resources in ENT province and four target districts has been conducted by three national consultants and one international consultant

− At least three internal meeting has been carried out by working group in provincial level, led by Head of Bureau of Legal Affairs of ENT Provincial Government at Kupang for improving the PERDA (local government regulation) No. 25/2001 and PERDA No 19/2000

− Two public dialogues have been executed in TTS and East Sumba districts to review draft of local Government regulation (PERDA) with executives

− Consultation process with legislative members has been implemented to improve PERDA. Legislatives (DPRD) of TTS has continued adoption process for the improvement of PERDA according to existing regulation

− Comparative study has been executed to Western Australia participated by 13 persons consisting of: decision makers of Ministry of Forestry , ENT Province and decision makers of four target districts (Alor, East Flores, TTS and East Sumba) and four farmers from four target districts.

Outcome indicator 2 - Study and analysis in economic incentive framework of management sandalwood resources

has been carried out in district TTS by international consultant - Economic instruments to support sustainable sandalwood resources has been developed and

recommended to be included in PERDA of sandalwood management - Training for forestry staffs in planning and non timber produce development has been carried

out in the Jogyakarta Forest Research and Development Center which has succeeded in developing vegetative sandalwood culture from tissue culture and Gunung Kidul district, the location where sandalwood is planted by FORDA (Forest Research Development Agency) and Gajah Mada University. Participants of the training are forestry staffs from the four Target Districts, Provincial Forestry Office and from the Directorate General of Forest Utilization . Facilitators are from FORDA, Unit office of utilization of production forest in Aceh province (BP2HP), and University of Gajah Mada (UGM).

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Outcome indicator 3 - Analysis need assessment in provincial and four target districs has been carried out to identify

and analyze the need of capacity building and strengthening the organization of related institutions in forest management and sandalwood development especially related to aspects of planning, silviculture and utilization.

- Training modules of sandalwood resources planning, silviculture and utilization has been developed in cooperation with the team from the Forestry Training and Education unit at Kupang (BPLK Kupang). This module will be used by related institutions in the district or technical implementing units of MoF in implementing training of management and planting of sandalwood.

- A series of training for sandalwood farmers and community leaders has been executed in four target districts. The aim of training activities are for (a) to acquire technical knowledge and skill in sandalwood cultivation. (b) to motivate communities to plant in their land. Training method is in the form of instruction of theory and practice.

Outcome indicator 4 - Improvement sandalwood regulation to synchronize policies in central and provincial level;

Ministry of Forestry currently improving the regulation related to Non Timber Forest Product (including sandalwood) and regulation regarding wood legality from community forest (Penata usahaan hasil hutan kayu dari hutan hak/hutan rakyat) namely P. 51/2006 and P. 33/2007. This is also a concern of stakeholders in ENT, because the regulation will be a reference in improving PERDA regarding sandalwood in ENT province. The project has facilitated a series of internal meeting and consultation/dialogue to synchronize regulation in provincial and national level. One of issue which has been discussed is “ownership“ that sandalwood grown on private lands is owned by the land owners as mentioned in MoF regulation. The project also supported a discussion which was organized by provincial government of ENT regarding timber legality of sandalwood (Tata Usaha kayu cendana dari NTT) on June 15, 2012 in Kupang. Local government of ENT has already send the Recommendation to DG of Forest Utilization, Ministry of Forestry for improving P.51/2006. The new regulation P. 30/Menhut-II/2012 has been signed by The Minister of Forestry on July 17, 2012.

- Dissemination of the improvement of PERDA on sandalwood management has been carried out in four target District (Alor, TTS, East Sumba and East Flores) and socialization of strategy on sandalwood development to community groups as well as religious leaders in the village level

- Facilitating local institutions for sandalwood development has been carried out in four target districts to strengthen local institution/farmers group on the ground, through:

o Development of simple handbook of sandalwood cultivation techniques for communities/farmers group in Bahasa Indonesia

o A series of extension and mobile training (theory and practice) on sandalwood cultivation for farmers in four target districts (Alor, TTS, East Sumba and East Flores districts)

o Establishing permanent nursery for communities in four target districts - A series of FGD and one national workshop for mapping of stakeholder’s role in developing

sandalwood strategy has been conducted by involving related stakeholders in ENT province including Bappeda (Regional Planning Agency) in order to sustain funding for sandalwood development. Documenting the process of mapping stakeholders has been implemented by a consultant.

Above assessment indicates that the pre-specified outcome indicators as presented in the project document have been fully satisfied through delivery of four outputs.

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4.2. Existing situation at project completion vs pre-project situation a. Tangible outputs of the project

General overview obtained from information provided by various sources including direct field observations indicated that at pre-project situation local people at the ENT region is left with a deep traumatic story in their institutional history. Many people perceive that management of sandalwood in the past were mainly benefitting needs of the elites and not for the local people in general. That mainly apply for the islands where heavy exploitation were conducted before, such as Sumba and Timor islands. In fact, these unhappy memories create anecdotes for local people. These include among others, that sandalwood plants is identical with a problematic plant which in the local language is known as “hau lasi”, the plant that belongs to authority or “hau plenat”, and even sometime it is called as a devil plant or “hau nitu” .It is understandable therefore that planting and conserving sandalwood is not favourable for local people in the past. The preliminery study has reported results of the interview from four districts underlining majority of people perception on promising perspective toward sandal-wood plantation. Local people will participate actively on conservation and cultivation of sandalwood under the condition of an improved legal system in recognizing the rights of local people.

On the technical aspects, villagers have limited knowledge and skill on how to cultivate sandalwood. Seedling mortality of sandalwood plantations has been very high, due to low maintenance during the adaptation phase from the nursery into the field. Given that sandalwood is native for ENT region, naturally the plant should have adapted to local condition. The problem comes from farming activities, including land preparation for agricultural activities and cattle grazing that reduced the ability of sandalwood to survive. When intensive cultivation was introduced, many of management aspects in sandalwood cultivation have not been fully understood. These aspects among others are on the nursery management (including in using host plants) and in maintaining survival of the plants from drought, pests and diseases.

After project completion, PERDA No. 25/2001 in TTS district and PERDA No. 19/2001 in East Sumba district. PERDA in Sumba timur has been improved and well adopted by executives as Perda No.6/2012 regarding Sandalwood Management and in TTS district, new PERDA will be finalized in a process by legislatives in district level. Economic incentive framework to support sustainable sandalwood resource has ben developed and adopted in the regulation of two target districts. The owner of sandalwood mother trees will get intensive training from the local government to conserve and maintain the trees. The local government stimulate local participation in maintaining sandalwood resource by offering more rational benefits to local communities. It has encouraged and motivate local communities to plant sandalwood in their land to improve short and long-term benefits for income generation, which may act as a driving force for the development of both district and provincial economies after completion of the project.

Capacity of local staffs on planning , silviculture and utilization of sustainable sandalwood resource have increased. Local government becomes more active in motivating community to encourage sandalwood plantation and sustainable harvesting. Capacity of communities in cultivation and sustainable harvesting improved. Communities in target districts has scaled up activity by establishing more permanent sandalwood nursery from good quality seedling. Enhanching local capacities of communities has improved the livelihood of sandalwood farmers to get a better future.

The participation of local communities in managing the resources is strengthened. This condition lead to the improvement of public/community support and awareness on sustainable management of sandalwood resource in provincial and district level. The communities’ sense of ownership in the development of sandalwood resource have been proved on the ground. This could be observed during the field visit to the village of Makamengit at East Sumba during third PSC at Januari 30, 2012. The existence of the ITTO Project PD 459/07 has created a significant change in the ENT Province regarding the development of sandalwood. It showed that the project activities become a stimulus for movement of sandalwood planting by communities in ENT. The situation is considerably different at pre-project situation and at project completion as highlighted above. The story of change as result and outputs of the project activities are presented in short film (in you tube) for interested individuals or parties.

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b. Sector policies and programs The local Government at provincial level (PEMDA) has showed its strong commitment to increase local community livelihood trough planting sandalwood that require immediate actions by all district governments and related stakeholders in ENT Province. This commitment has been reflected through the allocation of budget within APBD for seed preparation, procurement and the establishment of nurseries. This program has been growing through the involvement of community leaders, in particular religious leaders. the Master Plan for Sandalwood Development in East Nusa Tenggara Province, which was made with the support of the ITTO project team is used as guidance for coordinated actions in order to return East Nusa Tenggara as a sandalwood province by 2030. ITTO is one of the partners highlithed in the Master Plan.

As mention in previous chapter, the revised PERDAs have been submitted to the legislative body of TTS and umba District to be further processed. And PERDA in Sumba timur district has been improved and adopted by legislative to be PERDA No 6/2012 regarding Sandalwood management. The process of endorsing a Provincial/District Regulation is part of the duty of the Regional/Local House of Representative (DPRD) in this case the DPRD of the District of TTS and East Sumba. In every process of consultation/dialogue on improvement/revision of Perda facilitated by ITTO, key persons from the four target Districts (Alor, East Sumba and East Flores) have always been involved in order that the multistakeholder process could be replicated by other districts in compiling or revising the sandalwood PERDA.In the meantime, provincial government also has already included of reviewing policy/regulation is the part of provincial programme strategy. These efforts show the very strong commitment of national and local governments to ensure the continuation of sustainable resource management of sandalwood. c. The physical environment This project has provided positive benefit to the district, provincial and national levels environmentally. This reduceed the degraded area of forestland and private land in ENT by sandalwood planting. It also increased biodiversity conservation and promote a long-term flow of sandalwood for industry. The role of local communities in project implementation has contributed positively to the social aspects. The core activities were directed to empower local communities on resources development activities in such way that the activities of the project improved the social welfare for the local people in the project area and its surroundings. On the other hand, the most important thing caused by the successful implementation of the project was that it will generate awareness of local people to participate in protecting forest land. In Sumba Timur, decision makers in district level has become a pioneer in Sandalwood plantation movement. Ministry of Forestry planned to provide an appreciation (award) to Bupati (Regent) and Head of local Legislative at 2013. 4.3. Involvement of project beneficiaries The primary beneficiaries of the project were: owners and managers of community forests, small/medium forest industries and local government units. Involvement of these beneficiaries in project implementation can be summarized as follows:

Direct beneficiaries of this project are:

a. East Nusa Tenggara Province Forestry Service

Through this project the capacity of Forestry Service in provincial and district level in managing the sandalwood resource in accordance with best management practice have been improved. The Forestry Service has played a big role in strengthening the policy and economic framework for that commodity.

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b. Local communities They had more chance to participate in managing the resources and local people received fair benefits from sandalwood under the new system. Their capacity in cultivation, intensive plantation and sustainable harvesting as well as local income have been improved.

c. Local Government (Districts level ) of East Nusa Tenggara Province

This project has provided better knowledge of applied appropriate sandalwood management particularly in economic framework as well as the provision of incentives and economic instrument.

d. Ministry of Forestry Republic of Indonesia

The Ministry of Forestry obtained data/ information in management plan of Non timber forest product including sandalwood resources.

f. Local NGOs and other relevant agencies (universities etc)

They had an opportunity in involving in decision making process in managing the resources. This will allow them to interact in the exchange of information and experiences

Indirect beneficiaries of this project, mainly from the data and information prepared from the project are:

g. ITTO related programs and projects

Through this project the ITTO related programs and projects could benefit the data and information available in ENT province

h. Commercial Organizations

Through this project, commercial organizations interested in sandalwood commodity could easily and accurately get the data and information against commercial subscription fees.

i. Local NGOs and other relevant agencies (universities etc)

Interested local NGOs can use and obtain the data and information from the Centre against fairly small subscription fees.

4.4. Project sustainability Sustainability of the project rests primarily on the follow-up actions of the primary beneficiaries. The evaluation meeting carried out towards the end of the project indicated that impacts of the project intervention are sustainable as evident by the facts summarized below:

- The Directorate General of Forest Production Utilization as Executing Agency of the Ministry of Forestry is planning to continue allocating sufficient funds to finance activities on continued dissemination of information and trainings on forest product administration of sandalwood (Tata Usaha kayu cendana dari NTT) for Head of villages based on the new regulation P. 30/Menhut-II/2012 (signed by the Minister of Forestry at July 17, 2012).

- The Directorate General of Watershed Management and Forest Land Rehabilitation, Ministry of Forestry, is also financing programs largely focused on the technical aspects of nursery and planting sandalwood for communities (Kebun Bibit Rakyat) and program in Community Forest (Hutan Kemasyarakatan)

- Final draft PERDA of sandalwood in TTS and East Sumba districts have already been reviewed by provincial government for final process with legislative in district level and they are also committed to allocate the local budget (APBD) for the final process in legislative and development of sandalwood including community empowerment in the districts.

- The Local Government of East Nusa Tenggara has committed funding to distribute seedling and maintain the sandalwood plantation in forest land and private/ communities land from the local budget (APBD) because the plantation and conservation of sandalwood as a

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commodity is a priority program for East Nusa Tenggara to be a province of sandalwood by 2030

- Target districts such as Alor, East Sumba and TTS developed sandalwood plantation program to motivate community to plant sandalwood in their land, funded by local budget (APBD) in district level.

- Continuous monitoring and measurement to get actual data for updating standing stock resource by districts in East Nusa Tenggara forestry service in collaboration with University of Nusa Cendana Kupang will continually be done.

- Perhutani and Angkasa Pura (BUMN- state-owned enterprises) have indicated their readiness to financially support the activities through CSR funding for sandalwood plantation/nursery establishment for communities in East Nusa Tenggara province.

- Watershed Management Forum has already incuded Sandalwood Plantation programm as a priority program to reduce degraded land in ENT province.

- PSC meeting on February 2013 recommended to prepare a follow-up project proposal for ITTO consideration to further expand the achievements of the current project in East Nusa Tenggara Province. Emphasis of the follow-up proposal can be placed on the improvement of reporting of Sandalwood production by Head of villages; establishment of a learning center for Sandalwood plantation, management and utilization with the involvement of 8 village groups in the four districts; traditional knowledge management in the plantation, management and utilization of Sandalwood in the four districts.

5. Assessment and Analysis 5.1. The project rationale and identification process Santalum album, native of Indonesia, is a most valuable species, with the wood containing about 7% essential oil. It is harvested mainly from natural forest stands in this country, which one of the locations is in ENT Province.. Sought after for its pleasant odor, the wood is used for handicrafts production, joss sticks and – the main sandalwood product from the region – sandalwood oil, which is exported to be used in perfume and cosmetics industries all over the world. Unfortunately the resource is being rapidly depleted due to unsustainable harvesting and ineffective policy framework. Beside that the economic framework of this commodity is unclear as well, leading to the significant loss for local farmers whose livelihood mainly depends on sandalwood as a commodity. Low local stakeholders’ participation in maintaining sandalwood resource has led to the condition where the species is nearing extinction. Government regulation on sandalwood commodity had discouraged local people to get involved in improving and implementing sustainable sandalwood forest management system. In the past sandalwood has been controlled by the State. Economic benefits from the sale of the wood received by the local government have been significant. The regulations, however, tend to marginalize community rights to the resource. Because of low incentives for the local people, little effort has been put into sustaining the sandalwood resource. In some cases local people have purposely killed the seedling so as not to be obliged to maintain the trees in their fields – a striking consequence of the lack of involvement of local people. It is caused by the unclear economic and institutional framework of this commodity, leading to the significant loss for local farmers whose livelihood mainly depends on sandalwood commodity. The market access is not well established and socialized. Some studies conducted by ICRAF and CIFOR concluded that low participation of local people on sustaining or cultivating sandalwood resources was caused by previous ineffective local government policies that neglects local people’s rights and low economical benefits and unclear rights on sandalwood management have constrained local people participation in sandalwood cultivation activities. This situation has risen the stakeholders’ concerns of the future sustainability of sandalwood. The Ministry of Forestry, in collaboration with the Government of ENT province, proposed a project to the International Tropical Timber Organization (ITTO). The proposed project is in line with Vision and Mision of Local Government of ENT Project focus isi on strengthening the enabling conditions for sustainable sandalwood resource and improving the local ability to ensure the resources are managed with best management practices involving all stakeholders. In line with ITTO Guidelines for the criteria and indicators for the sustainable management of tropical forest (ITTO Policy Development Series No 15. The project is put into priority by Ministry of Forestry (MOF) which has been set up in 5 (five) priorities program among

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others, rehabilitation and conservation of the forest resources and empowerment of community’s economic condition (MOF strategic planning 2005-2009) Scope of the project was also confined to improve capacity of community in planting sandalwood. Activities related to technical assistance to communities have in fact been done through training of sandalwood cultivation for community groups in four target districts. The training covered theory and practices of seed treatment/production and planting. At the end of ecah training courses, each participant was given five sandalwood seedlings to be planted in their own private land. There are points that need to be consistantly upheld by the Project, namely: the main focus of the project is to improve policies so that people get the economic rights; and the need to strengthen local institution. Confining the scope was necessary considering limitation of project resource. In the process of project identification, four target district were selected by considering the fact that : • Sandalwood natural distribution was still found in Timor, Sumba , Flores and Alor Islands. • Ineffective local government policy in the past has resulted in socio-physiological impact

particularly for the communities in Timor and Sumba Islands. • Sandalwood plantation by communities grow well in Alor island

It should be clear at this stage that identification of the project was a long process and involved different stakeholders in central, provincial and district level. Therefore, understand-ing on the issues to be tackled by the project was particularly strong while the issues addressed were unquestionably relevant and consistent to the need of the forestry sector. 5.2. Problems addressed, objectives and implementation strategy Based on consultation process to refer the opinions and input from representatives of the various stakeholders during the development of this project proposal, It was found that the key problem addressed by the project was ” the sustainable management of Sandalwood Resources in East Nusa Tenggara Province is not well performed“. Accordingly, the specific objective of the project was “to strengthen the policy, economic incentive and local institutional framework for sustainable management of sandalwood resource”. Its develop-ment objective was to support enabling condition for sustainable management of sandalwood resources. The strategy pursued in implementing the project was collaborative in nature with the following main elements:

Reviewing and Analyzing Sandalwood regulations Selecting for districts as pilot areas, Intensive communication with local government and also local communities to

formulate/revise “PERDA” Conduct stakeholder consultation/dialogue and participatory discussions with local

communities, local government and other relevant stakeholders (private sector, researchers etc.)

Improving the capacity of forestry staffs in four target districts and communities in selected villages

Improving community awareness through comparative study, extension and socialization of new regulation related to sandalwood management.

Supporting standing stock data and information system of sandalwood in East Nusa Tenggara province for purpose of assessing sandalwood market and trade.

5.3. Critical differences between planned and actual project implementation As has been highlighted in Section 3.1, some modification of activities has been made primarily for reason of practicality and efficiency in operations. The modifications made are:

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- Activity 1.4 Comparative study for decision maker to Papua New Guinea modified to be “Comparative study for decision maker to Australia “. Based on second PSC meeting , The Committee requested the EA to organize the study tour to Australia as per recommended documentation provided by the International Consultant, and to include participants from local communities and district forest officers in the study tour, as they may act as multipliers of better sandalwood plantation practices in their districts

- Activity 3.3 was modified to be “Conducting Training of sandalwood planning, silviculture and

utilization for community groups”

- Activity 3.3. “Development of serial training of sandalwood management for relevant stakeholders” was modified to be “Conducting Training of sandalwood planning, silviculture and utilization for community groups”. Upon recommendation of the second PSC meeting, the committee has recommended that the training issues should address silvicultural improvement of sandalwood, including training of community leaders and forest staffs, to improve the quality of plantations.

Additional activities : In order to support the process of regulation improvement related to Sandalwood, the First and Second PSC meetings recommended to add ativities as follow :

- Activity 1.5 : Inventory and documentation of sandalwood trees in TTS district. - Activity 1.6 : Assessment of sandalwood ecology in TTS district

The Third PSC meeting in Waingapu, East Sumba, NTT on January 2012 as the result of evaluation meeting on September 2011 in Jakarta, proposed a recommendation to modify activities to the original ones, to achieve Output 4 “Raised community awareness on sustainable management of sandalwood resource” namely :

- Activitiy 1.4.1 Improvement/Revision of related sandalwood regulation to synchronize the policy in central and provincial level. The project has continued to implement consultation process for improving sandalwood management to clarify the status of sandalwood as NTFP commodity in national and local level. Based on the existing regulation sandalwood is categorized as non timber forest product but still need socialization or dissemination of information/regulation to related relevant stakeholders to avoid problem in transportation and wood product administration. Currently, there are regulations on Utilization Permit of wood product (IUPHHK) and for wood transportation/administration documents also for NTFPs on Forests and private Land. All of which need to be discussed due to lack of synchronization with each other. Improvement of regulation at national level should be proposed by local government

- Activity 1.4.2 Facilitate strengthening of local institutions and disseminating new sandalwood regulation to religion leaders and other communities group. It is needed to carry out socialization/extension to farmer’s group in four target districts (prioritized to the farmer group who participated to the study tour to Australia in 2011). The said farmer’s group institution will further to become “change agents” at Sandalwood management in ENT. The sub-activities included socialization of new regulation , extensions and seedling distribution for farmers group in selected villages to improve awareness in supporting sustainable management of Sandalwood and these has been implemented in cooperation with forestry service in 4 target districts.

- Activity 1.4.3 Conduct series of FGD for mapping of stakeholders’ role in developing sandalwood strategy. The activity was conducted in cooperation with relevant stakeholders in ENT province involving key stakeholder such as Bappeda (Regional Planning Agency) in order to sustain funding for sandalwood development and preparation for the second phase of the project

In conclusion, the difference between planned and actual project implementation is not significant. In fact, the changes made have increased effectiveness of project operation and enriched outcome of the project.

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5.4 Adequacy of time and project inputs The project duration was initially planned for 36 months. A one month extension in time without additional funding was granted by ITTO to complete planned and additional activities in order to fully achieve planned outputs and objectives of the project. The extension was needed to:

• Complete the rest of activities such as seedling distribution for communities in selected villages and

• Arrange field visit to TTS district and final PSC meeting on February 2013 in Jakarta • Finalize the completion report.

The financial contribution of ITTO disbursed to the Executing Agency, US $ 516,225.00 in amount, was sufficient to implement planned/modified as well as additional activities. Disbursement of funds was made timely in sixth installments at the request of the Project Coordinator on behalf of the Executing Agency. Contribution of the Executing Agency in the amount of US $ 125,000 was fully realized timely as planned. 5.5. External influences The assumptions made as regard implementation of the project were valid during the project duration. National policy support sustainable sandalwood management in this Province. The Ministry of Forestry consistently supported the implementation of sustainable sandalwood management through improving regulations and capacities of local intuitions. In fact, the MoF has initiated to formulate Master Plan of sandalwood because together with the Action Plan of sandalwood management they will be used as a guideline and policy direction in developing sustainable management of sandalwood in NTT. Local governments including executive and legislative in district level provide strong support in developing incentive framework on sandalwood. There is strong commitment from the Executing and Collaborating Agencies as well as target districts involved in the implementation of activities of sandalwood development. It is commensurate with the commitment of the ENT Governor to return sandalwood as the icon of the ENT Province. The communities actually were enthusiastic to attend the trainings sessions and dialogue regarding sandalwood management. They were eager to get the information on the purpose and benefits of planting sandalwood. Since 2009, the Ministry of Forestry is cooperating with two other international institutions in NTT which are; (1) cooperation between the Directorate General of Watershed Management and Social Forestry (Ditjen RLPS) with GEF through UNDP called the “Strengthening Community-Based Forest and Watershed Management“ (SCBFWM); the purpose of the cooperation is to strengthen government program in community based Forest and Watershed (DAS) Management. One of the activity component is the making of a CBFWM demonstration plot at the Sub DAS Besian in the District of TTS and the supply of seeds (one of which is sandalwood seeds) to communities through Community Based Organization or CBO. (2) Cooperation between Forest Research and Development with CSIRO of Australia with the purpose of developing genetic conservation of sandalwood species and the making of nurseries together with the communities from sandalwood seeds taken from the result of research at the District of TTS. PMU of ITTO project has initiated in holding several meetings with both GEF and CSIRO project in order to synergize activities and program and also to share information of the project result.

5.6. Project beneficiaries The primary beneficiaries of the project were local communities owning or managing sandalwood plantation in private land, local government in provincial and district level and central as well as local government institutions. Each of the beneficiaries had been actively involved in project

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implementation. The local communities were involved in the training, extension and establishing sandalwood nursery. The local government had also been strongly engaged in process of policy improvement through meetings and discussions/dialogues on sandalwood management as well as in training/extension activities. The local government had provided fruitful inputs to the process of the improvement of regulation. Concerned government institutions at the central and local levels (provincial and district) had been actively participating in project implementation by attending the workshops, discussions and meetings and by facilitating administrative arrangements that eased coordination of stakeholders and technical arrangements for implementation of individual activities. It is worth emphasizing that the active participation of the primary beneficiaries was induced by the facts that sandalwood plantation is beneficial to improve their livelihood. Another beneficiaries of the project were NGOs, academicians and forestry professionals who had taken part in project implementation through their direct involvement in carrying out individual activities as appropriate, as instructors of training on technical skills, resource persons of the workshops and discussions or as experts, in formulation of monitoring guidelines and code of conduct of timber certification process and in evaluation of training implementation. 5.7. Sustainability Among the critical project activities to be implemented continuously after project completion include: • continue the process of legalizing PERDA in district level. It should be replicated in other district

(up to now five districts in ENT province has issued sandalwood PERDA), • conduct training of the primary beneficiaries, i.e. community groups/religious leaders and local

government staffs on technical skills for sandalwood plantation and planning, • provide technical assistance on marketing of the product to Head of Villages, • monitor community forest program which used sandalwood species in ENT, • occasionally organize regional workshops for exchanging information on experience amongst the

main stakeholders in district level, • regularly conduct stakeholder discussions involving not only the primary but also secondary

stakeholder groups, e.g. custom service, police, judicial service, universities, NGOs for purpose of sharing information on sandalwood management..

The institutions that are responsible for implementing above critical activities are: the provincial and district government units through their respective forestry agencies and also the Ministry of Forestry through its technical regional offices (BP2HH) and Center for Forestry Education & Training. These institutions are respectively required to assign sufficient number of staffs to implement the activities. The funds needed for financing implementation of selected activities are to be sourced regularly from state budget appropriated through central, provincial and local treasures. To ensure adequacy and timely availability of funds, each responsible party must develop yearly budget plan and timely submit it to the Ministry of Finance in accordance with existing state budget allocation cycle. During the last few stakeholder meetings, the issue on sustainability of sandalwood management had been also raised and discussed. The Ministry of Forestry, provincial and local government units had indicated their readiness to continue implementing activities on sandalwood plantation. Sustainability of the project is basically dependent on follow-up actions of the primary beneficiaries. 5.8. The institutions involved The success of the developed project much depends on the active participation of all relevant stakeholders. In the operational activities, Executing Agency will keep to make coordination with relevant institution both in national level and also in provincial level to be involved in the operational activities .

Involved organization in national level is FORDA and DG of Watershed Management & Social Forestry, and in East Nusa Tenggara, it is the Forest Research Institute of Kupang, Watershed

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Management Unit Kupang, universities and communities leader and districts government. Influential local community group and local NGO will be involved mainly in the process of improving PERDA in province and district level. Nusa Cendana University has started to be involved mainly to provide scientifict information to be accomodated in revised PERDA and academic draft of sandalwood. The institutions involved in project implementation were: List of Stakeholder involved in project implementation NO Stakeholders Involved in project implementation Frequency of communication 1. Forest Research Institute of

Kupang Initiative to formulate Master Plan of sandalwood in East Nusa Tenggara In line with activities to achieve output 1. It is expected as guidelines in improving/formulating local government (PERDA) regarding sandalwood management

Intensive discussion mainly during consultation process of Master Plan in provincial and district level

2. Alor, South Central Timor, East Flores and East Sumba Districts

• Involved in operational activities of the project

• District t TTS and East Sumba are the target ditricts for improving sandalwood PERDA

• Target ditrsicts for training activities • Facilitate data and information including

existing policy and regulation in districts level related to management of protection forest

Intensive meeting and discussion mainly to TTS district

3. Unit of Kupang Forestry Training and Education

• Involvement in formulating module and training activities as well as extensions

Intensive consultation as needed

3. Agency of Natural Resource and Forest Conservation (BKSDA)

• Involvement in public dialogue and reviewing of PERDA


3. Unit of Watershed Management

• Involvement in public dialogue and reviewing PERDA


4. Community groups in target villages

• Local communities will directly involve in the many project activities to achieve particularly project output 2. output 3 and output 4 :

• Involvement in training activities and extensions

• Participated in the process of improvement local government regulation (PERDA) such as formulating economic incentive in managing sandalwood


6. Lessons Learned 6.1. Project identification and design Sandalwood (Santalum album L.) is a fancy endemic species which is almost extinct from East Nusa Tenggara (ENT) Province, Indonesia. The history of Sandalwood (Santalum album L. with the local name Cendana) in East Nusa Tenggara province closely parallels with the history of the province itself. Sandalwood plays an important role in the livelihood of people in ENT province both

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economically and culturally and it plays an important role as one of the main sources of local government income for a long time. Unfortunately the resource is being rapidly depleted due to unsustainable harvesting and ineffective policy framework. This situation has caused the stakeholders’ – including the Ministry of Forestry – concerns of the future sustainability of sandalwood. This project was a prompt response to this situation. The process of project identification and design was done by a lengthy process involving stakeholders from central and local governments. Intensive communication with the local government as well as the local community is the key to expedite the process of identification and project design. Collecting data and information other than through desk study to review existing documents (studies, research and regulation) and field visit was also conducted by interviewing key persons in government and communities in East Nusa Tenggara. During the design process of the project, a series discussion and brainstorming was developed through a communication and consultation process involving stakeholders in a number in ENT province (January-March 2006) to elaborate a clear and comprehensive problem analysis based on the key issue in sandalwood management. Therefore the proposal was elaborated after long process of consultation and to get consensus with relevant stakeholder both at provincial and district level as well as national level. A broad stakeholder has shared in problem tackled through the project intervention. This is an important step and show the designed project will be accepted and supported by all parties concerned in sustainable sandalwood resources. To know the perception as well as interest and opinion of the above problem, stakeholders analysis has been conducted. Based on consultation process to refer the opinions and input from representatives of the various stakeholders during the development of this project proposal, it is found that the key problems encountered in sustainable management of Sandalwood Resources in East Nusa Tenggara is “the weakness of enabling conditions for sustainable management of the resource”. That is mainly derived from “weakness of policy and commitment in local level for managing the resource” and the need for capacity building of local instution if sustainable on sandalwood management in ENT is to be properly implemented on the ground. Therefore, the key problem addressed by the project was identified through an adequate and legitimate process and was relevant to the issues on sandalwood management/policy that requires intervention. Key problem to be addressed was thoroughly analyzed involving the main stakeholders. Main causes as well sub-causes of the key problem were adequately identified and then used as the basis for defining the project intervention. By adequately and correctly identifying causes of the key problem, vertical logic of project elements was strong. Therefore, the project design was sound for the following reasons: i) project activities were defined corresponding to the sub-causes identified; ii) project outputs were defined corresponding to the main-causes identified; and iii) the specific objective was defined corresponding to the key problems identified. Indeed, the project design was sound due to the strong relevance as well as sufficiency of the project intervention to resolve the problems at hand. The project PD 459/07 Rev. 1 supports concrete action for the sustainable management of sandalwood resources in ENT. As its top priorities, the project focused on strengthening government policy, economic incentives, and local institutional capacity. These are important first steps in addressing many of the issues at stake in the management of sandalwood. Local communities in the province of ENT in general have a positive perception of sandalwood cultivation. The people have a long, historical relationship with sandalwood, and that serves as important capital to sustain it. The participation of local people will easily be encouraged if there are economic incentives to conserve sandalwood. High demand from the market for a variety of sandalwood products and high market prices both domestically and globally may be used as supporting factors. Nevertheless, this economic situation must be supported by regulations that eliminate high transaction costs. The project is also putting forward efforts to facilitate the improvement of local government regulations, such as (PERDA) of TTS district No. 25/2001 and PERDA No. 19/2000 in East Sumba District, by submitting a final draft of these regulations to the legislative body (DPRD) of TTS and East Sumba District. Prior to commencing with project operations, the implementation strategy to be pursued was re-examined by the project management team involving persons knowledgeable on actual project environment to ensure that the strategy implemented is workable on the ground. It was found that the strategy which developed did work well on the ground with only minor difficulties in achieving the specific objective of the project.

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As has been touched upon elsewhere, critical difference between planned and realized project elements did not exist. Indeed, this situation is attributable mainly to the soundness of project design and appropriateness of the implementation strategy. To ensure project sustainability after project completion, a post-project strategy has been designed which include selection of critical activities to be implemented, appointment of the institutions involved including the leading one, and identification of resources needed including their sources. This post-strategy has been developed adequately through formal consultation, FGD (focus group discussion) and workshop with the primary beneficiaries of the project, namely the local communities, local government and concerned institutions, i.e. Directorate General of Forest Utilization and its regional offices, Unit of Forestry Education & Training of the Ministry of Forestry, forestry Research Institute Kupang, Universities, half-owned state companies (BUMN Perhutani and Angkasa Pura), private sector , NGO’s and other agencies. Financing of selected activities is through state budget appropriation following existing cycle of state budgeting process. 6.2. Operational matters Prior to commencing with project operations, Directorate General of Forest Production Development of the Ministry of Forestry carried out a consultative meeting. The purpose of the meeting was to discuss preparatory stage to implement activities of the ITTO project PD 459/07 Rev.1 (F). For the successful implementation of the project, both central and provincial governments need to closely cooperate, and it is decided that the Directorate of Forest Utilization, Directorate General of Forest Production Management as Executing Agency and Forest Service of ENT as the Collborating Agency taking into consideration that while the ENT Forest Service will play a very important role in the field, the MOF could offer key national policy, regulatory as well as research and development support, as well as liaising with the ITTO from the start until post project period. Other collaborators included e.g. local government in four traget districts, University of Nusa Cendana, SANLIMA (local NGO), Unit for Forestry Training and Education Kupang and Forest Research Institute Kupang and local communit groups in four target districts. The active participation of those collaborating institutions had eased arrangement and implementation of the project activities especially in the completion of administrative or bureaucratic processes, coordination as well as motivation of stakeholders to cooperate and support. The collaborative manner of project implementation had considerably contributed to the smooth operations without any major difficulties. The smooth project implementation was also attributable to the hardworking project management team that was led by an experienced Project Coordinator and competent PSC in providing the relevant directives and fruitful advices. The inputs to project activities had been provided sufficiently in terms of quantity, quality and timing due to the full support of the ITTO Secretariat and timely submission of yearly plans of operations consistent with the existing ITTO guidelines. Project funds had been transferred by ITTO in four installments upon the requests made by the Executing Agency. Roles and responsibilities of the parties involved were made clear prior to commencing with execution of individual activities; they were clearly defined and adequately elaborated in the respective relevant terms of reference. In this way, confusion of the parties during operational stage was avoided as regards their roles and responsibilities. Project documentation was adequately performed and facilitated the sharing of information in an effective manner. Technical reports on individual activities, eleven reports in total, had been published and widely disseminated to relevant stakeholders. Monitoring and evaluation of project operations had been accomplished satisfactorily by the PSC chaired by the Director General of Forest Production Development himself and by the Project Coordinator herself. The PSC met twice during the project duration and provided valuable directives and technical advices while the PC also paid visits to several project sites to gather first hand information on project operations.

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The external factors that might adversely affect project implementation were anticipated through the risk analysis during the project formulation stage. The assumptions made were valid during the project duration: the Ministry of Forestry has consistently pursued its policy and strategy to support sustainable sandalwood management in the ENT Province, and strong political will from local government to improve policy related to sandalwood management. Local communities had been supportive in realizing the mplementation of sustainable sandalwood managment. Other external factor is ecological condition such as forest and land fire, climate changes, and pest and disease attacking the community owned nursery were controled. 7. Conclusions and recommendations 7.1 Conclusions

• Identification of the problem to be addressed by the project was accomplished through an adequate process involving the main stakeholders in national and provincial level and the key problem addressed was consistent with the issues on strengthening the policy, economic incentive and local institutional framework for sustainable management of sandalwood resource management in Indonesia; and improving the local ability to ensure the resources are managed with best management practices involving all stakeholders in particular local communities who are dependent on the sandalwood forests. This is in line with ITTO Guidelines for the criteria and indicators for the sustainable management of tropical forest (ITTO Policy Development Series No 15).

• The project design was sound because it was derived from a clear and compre-hensive problem analisys through a series of discussion, brainstorming and consultation process involving stakeholders in national (Jakarta) and provincial level (Kupang). The project intervention was relevant for solving the key problem addressed because it corresponded to the main causes and sub-causes of the key problem;

• The project was smoothly implemented due mainly to the collaborative strategy pursued, cooperative primary beneficiaries and partners, hardworking project management team particalrly field coordinator, competent PSC and supportive ITTO Secretariat; Project Management Unit has strong support from Executing and Collaborating Agency. Committment from the Executing and Collaborating Agencies as well as target districts involved in the implementation of activities of sandalwood development is amply intensive, commensurate with the commitment of the ENT Governor to return sandalwood plantations as the icon of the ENT Province.

• The project was managed in full compliance with existing ITTO rules and procedures. Employement of project personnel, national and international consultants and sub-contractors as well as procurement of capital items had been made with the prior expressed approval of ITTO;

• The specific objective of the project has been fully achieved through delivery of all planned outputs and execution of the activities pertaining to individual outputs; and

• The project results have been disseminated through the national/provincial/district level workshops and seminars, meetings, yiutube, MoF website, newspaper/ magazine. Technical reports have already been distributed to relevant stakeholders particularly in provincial and district level.

7.2 Recommendations

• To facilitate a smooth and successful implementation of a project, a well dedicated project management team is required, timely availability of inputs in terms of funds and professionals must be ensured and established PSC has to be able to provide fruitful advices to project management team

• Any project is best to be implemented in a participatory manner; involvement of the main stakeholders particularly local communities and partners in the ground will create ownership and increase support to the project during its implementation and after completion as well;

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• A number of assesment or study analysis supported by this project are very beneficial, the result of which become a valuable input and information in the process of improving regulation of sandalwood management.

• An exit strategy needs to be defined during the course of project implementation and towards its completion etablishing the activities to be implemented after project completion as this project has done; such a strategy would help guide future ownership and management of the project.

Responsible for the report Name : Yani Septiani Position held : Project Coordinator Date : March 2013 Signature

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Documentation

Courtesy call with decision makers in provincial and district level (with Governor of ENT and Bupati of Sumba timur district)

Coordination meeting with Executing Agency and with other related project (GEF project)

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Training of Sandalwood cultivation for community group in Alor and TTS districts

Training of Sandalwood Cultivation in Sumba Timur and Flores Timur district

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Facilitation of PERDA improvement in TTS and Sumba Timur district

Communities nursery in target districts

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Comparative study to Western Australia participated by local communities leaders and decison makers in target districs

Project Publications

Traditional ceremony of Sandalwood plantation in Village Neke Sub , district Oenino, TTS district.

ITTO Project PD 459/07 Rev.1 (F) · ITTO Project PD 459/07 Rev.1 (F) ... management in East Nusa...

Documents

Transcript of ITTO Project PD 459/07 Rev.1 (F) · ITTO Project PD 459/07 Rev.1 (F) ... management in East Nusa...