CURRENT STATUS OF :
COMMUNITY FOREST ENTERPRISE PRODUCTS and its correlation to COMMUNITY BASED FOREST MANAGEMENT in INDONESIA 2013 Christine Wulandari and Wisnu Caroko I. INTRODUCTION Government of Indonesia stated the area of Indonesia forest, around 136,943,675.98 hectares. According to a report by General Directorate/Agency of Forest Planology of Ministry of Forestry and Central Bereau of Statistics (2010), forest in Indonesia has been divided to several purposes of production, protection and conservation. Until now, people still assumed that timber forest products as only one of financing source in national development therefore major concentration of national development is on production forests eventhough conservation forest is the largest. On other side, meanwhile the accumulation of forest quality defects due to deforestation of 1.17 million hectares per year in 2003-2006 fell to 0.8 million hectares per year in the years 2007-2009 (FIP, 2012) but in fact in the fields it still create a new crisis either forest degradation, e.g. forest fires and downstream flooding. Repetition of the environmental crisis has indicated that the government has not yet able to its curb the crisis at national and local level. The government incapability to handle the environmental crisis that influenced to the local economic growth. At the large extent, this was also ignite the global economy crisis. On the other hand, both environmental and economic crisis has forced many stakeholders to be aware and empowering the local. Development of CFE should be empowered and supported on each other to CBFM scheme (Arnold, 1992). The reinforcement and empowering of local is highly recommended due to the large number communities and villages living around the forest, see table 1. CBFM concept which is also regarded as Community Forestry (CF) e.g. Sistem Kehutanan Kerakyatan or Community's Forest System and Hutan Kemasyarakatan (HKm), is one of the adaptive solutions to empowering the local, not only based on the local uniqueness and context, but also integrated and distinctive. Hasanu Simon, Professor of the Faculty of Forestry, Gadjah Mada University(1994), stated that “CF is a new approach to manage production forest towards to anticipate the growing social problems surrounding the forest.� It means that CF is one best way to bring the harmony between people and nature relation, also economy and ecological issues. In addition, CF capable to integrate other values, such as democracy, morality, culture, and spirituality within civil communities. The government and national financial institutions were facing financial crisis affects to development program, but CF continuous develop and apply effectively supported by local communities engagement. The lack of financial support from the government and financial institution was also forced by economic liberalisation due to the prolonged economic crisis. At the moment it is known there are several groups of international forestry expert who suggested a global transition in the management of forest resources. This condition was indicated by the high development in policy and local communities in Northern and Southern countries onparticipation mechanisms of natural resources and forest management.