AR MFP_YEAR 2 by Multistakeholder Forestry Programme

Multi-Stakeholder Forestry Programme Phase 3

Annual Report August 2015 â&#x20AC;&#x201C; July 2016

MINISTRY OF ENVIRONMENT AND FORESTRY REPUBLIC OF INDONESIA

www.mfp.or.id

MINISTRY OF ENVIRONMENT AND FORESTRY REPUBLIC OF INDONESIA

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Table Of Content Table of Contents 3 List of Abbreviations 6 Programme Highlight 10 1 Timber Legality 14 1.1 SVLK Acceleration Implemented 14 1.2 SVLK Policy Strengthened 14 1.3 Negotiation of FLEGT VPA 16 1.3.1 The Joint Implementation Committee (JIC) Secretariat 16 1.3.2 Periodic Evaluation 19 1.3.3 International Campaign of SVLK 19 1.4 Independent Forest Monitoring 20 1.5 Integration of Information System Established 24 1.6 Technical Capacity of SVLK Improved 26 2 Output 2: Entrepreneurship Development 27 2.1 CBFE Compliance with SVLK 27 2.2 Strengthened Entrepreneurship Capacity 28 2.2.1 Business Plan Development and Access to Finance 28 2.2.2 Opening Access to Market 31 2.3 Establishment Multi-stakeholder Group Support 34 BOX. Mapping of Furniture Industry Association 34 3 Community Access to Forest 35 3.1 CBFM Strengthened through FMU 35 3.2 Supporting Policy and Legal Reform for Social Forestry 36 3.3 Forest Allocation for CBFM 36 4 Cross-cutting Issues 40 4.1 Research 40 Box. Agrarian Reform and Social Forestry 43 4.2 Social Inclusion 43 4.3 Communication and Knowledge Management 44 4.3.1 SVLK Promotion to Welcome the Full Implementation of FLEGT VPA in Indonesia 44 4.3.2 Domestic Legal Wood Campaign to Promote SVLK 46 4.3.3 Communication Tools and Promotion of Forest Management Unit and Social Forestry 46 4.3.4 Media Coverage 47 4.4 Working through Partners 48 4.4.1 Grants Management 48 4.4.2 Sub contract 48

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

4.5 Monitoring Evaluation and Learning (MEL) 4.5.1 Capacity Building 4.5.2 Monitoring, Review, and Feedback of the Programme 4.5.3 Mid Term Review 4.5.4 MFP Grantees Stories Book

50 50 50 52 54

5 Lessons Learned

Annex 1: List Certified Companies Annex 2: JIC IDN â&#x20AC;&#x201C; EU Annex 3: CBFE Members Annex 4: MAD Module Annex 5: Summary of Impact Monitoring Indicators Annex 6: Result of IFEX Annex 7: Publication and Films Annex 8: List of Partners

63 65 66 67 68 69 70 71

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Programme Highlights

This Annual Report documents some of MFP3â&#x20AC;&#x2122;s most important achievements during the course of the programme. Advancement towards the full implementation of FLEGT License is among the key achievements during this reporting period. In April 2016, President Juncker and President Jokowi has sign the agreement that pave the way for Indonesia to become the first country in the world to obtain the FLEGT license for exported timber products to Europe. MFP used this momentum by carried out a road show in five major cities in Europe that are also the largest importer countries of Indonesian timber products: London, Paris, Hamburg, The Hague, and Brussels. The road show successfully demonstrated that SVLK is a credible certification system developed through multi-stakeholder consultations and has also meet the international standards. In parallel with the roadshow in Europe, MFP also supported the MoEF to host a joint press conference of four relevant ministries to the SVLK: Ministry of Environment and Forestry, Ministry of Trade, Ministry of Foreign Affairs, and Ministry of Industry. The press conference was held in the MoEF office in Manggala Wanabhakti on 12 May 2016 with the main objective is to inform the public on the Indonesiaâ&#x20AC;&#x2122;s achievement as the worldâ&#x20AC;&#x2122;s first FLEGT License recipient. During this press conference, these Ministers expressed their commitment to continuously promote and support Indonesian legal wood and asked all the stakeholders to also join in the efforts so that Indonesian timber can be the champion in global timber trade.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

The government decision for full implementation of FLEGT license has been long awaited by companies that already received SVLK certification. In order to ensure this policy benefiting all companies in the forest sectors, MFP continues it support to accelerate the certification process for small-holder companies. By the end of the project activity, at least 525 SME units (from 86 groups) have passed the audit process to receive SVLK certification. These covers areas across Indonesia such as Banten, West Java, Central Java, East Java, Yogyakarta, North Sumatera, South Sulawesi, and South Kalimantan. MFP had been conducted these acceleration activities through various approaches i.e. workshop, information dissemination, and administrative preparation. Furthermore, after these SMEs received their SVLK certificate, MFP also facilitated these CBFEs to develope their business plan and assisted them to get access to financial institution such as BLU and bank as well as market oportunities. Particularly, MFP identified potential CBFEs within the FMU to take lead in improving the forest management and economic condition in the area. Series of capacity building on entrepreneurship and basic business skills has been given to FMU staffs to equip them with the capacity to identify sustainable business potentials and to formulate the business development within the FMU institution. In order to expand market opportunities for the smallholder furniture companies, MFP had facilitated these companies to participate in the distinguished exhibition events such as IFEX and Bravacasa. In IFEX, more than 2000 visitors had visited MFPâ&#x20AC;&#x2122;s booth and the total on site transaction valued was USD 67,723.

In term of improving the available fund for smallholders, MFP assists BLU to increase the disbursement of revolving fund for farmers and community-based forest enterprises by developing a disbursement system through intermediaryâ&#x20AC;&#x2122;s institutions. The supports range from assessment of potential intermediaries, drafting the schemes of intermediary support, and drafting regulations of Head of Pusat P2H. As the results, the Memorandum of Understanding (MoU) between BLU and selected intermediary financial institutions has been in the process with Bank BNI, Bank Andara, BRI Agro, BPR Central Java, Cooperative of Banten Mandiri, and Cooperative of Syariah Mitratama Fund. MFP plays a significant role in assisting the government to achieve the goal in allocating 12.7 million hectares of state forest through social forestry scheme for the poor communities who live within and around forests areas. MFP facilitated a number of communities in the process of obtaining social forestry licenses and assisted them with business plan, access to finance and market after these licenses were granted. These MFP social forestry supports consisted of hutan kemasyarakatan (community forestry), hutan desa (village forests), hutan tanaman rakyat (community plantation forests), and hutan adat (customary forests), as well as forming partnerships for collaborative forest management between communities and private businesses. Currently, MFP activities to facilitate community groups to obtain social forestry licenses or partnership has reached a total area of 328,145.19 hectares. The MoU has been established for all community groups and FMUs, as well as with Local Government, for the partnership scheme.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

1 Timber Legality 1.1 SVLK Acceleration Implemented MFP has continued to engage with Ministry of Environment and Forestry (MoEF) to work on SVLK acceleration. The audit process had been carried out by PT. Equality, PT. Ayamaru, PT. BRIK, PT Mandiri Quality, PT. Almasentra, PT. PCU Indonesia, and PT. Intishar Sadira Eshan. From all of the enterprisesm 525 SME units (from 86 groups) have passed the audit, 24 units (from 4 groups) were failed, and 5 units (1 group) withdrew from the process. These audit agencies assisted the SVLK certification process for SMEs in Banten, West Java, Central Java, East Java, Yogyakarta, North Sumatera, South Sulawesi, and South Kalimantan. To support the achievement of the above certification processes, MFP supported trainings and technical assistance for government officials, civil society representatives, SMEs owners and staffs that attempt to enhance their knowledge and understanding about SVLK. MFP also supported the refreshers activities for assessor and representative from verification institutions. Moreover, MFP supported training for extension workers and focal point in order to assist the SVLK process for community-based forest institutions. This process is required to establish strong infrastructure in ensuring the acceleration of the SVLK certification process.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Table 3.1. Result of Certification Process

No.

SVLK audit

Total SME Group

Total SME

Certified SME

Note

Batch I (Mar)

1 group (5 SMEs) failed

Batch II (Jun)

All passed

Batch III (Sept)

16**

103**

1 group (9 SMEs) failed 1 group (5 SMEs) withdrew

Batch IV (Oct)

144

134

2 group (10 SMEs) failed All passed

• Facilitated by MFP*

Batch V (Dec)

SUBTOTAL

488

459

All passed

Feb – August 2016

102

On going process

104

656

525

• Facilitated by Ministry of Environment and Forestry*** September – November 2015 Total

Notes: * = Technical and financial support provided by MFP3; ** = 1 group withdrew when audit started; *** = Technical support provided by MFP3 and financial support by KLHK.

1.2 SVLK Policy Strengthened MFP played a key role in influencing the improvement of SVLK regulations. In this period, there was a change of MoEF Regulation No. P.43/2014 jo. MoEF No.P.95/2014 into MoEF No. P.30/2016. The new regulation of SVLK was signed by the Minister of Environment and Forestry on March 2016. The main important changes of this regulation relates to Suppliers’ Declaration of Conformity for private forest, legality verification of raw materials, surveillance for primary industries and improvement of monitoring access for IFM. In term of IFM, it includes the insurance that the independent monitors cannot be liable for criminal or civil suit related for their monitoring activities. Moreover, in the new regulation, the MoEF has open up the opportunities to develop a much secure funding scheme in order ensure the sustainability of the work of independent monitor.

exempted 15 HS Codes from the furniture and handicraft group from the requirement to get SVLK for export. This deregulation has created loophole in the SVLK’s ability to ensure the legality of exported timber products in the downstream part of the industry. Various parties have expressed their concerns towards this new regulation, from the NGOs working to prevent deforestation up to the furniture industries that benefited from the SVLK. MFP supported numbers of meeting, awareness raising events, and media mobilization on the importance of SVLK in improving forest governance and increasing the bargaining power of Indonesia in exporting timber products. Those campaign efforts highlighted the potential adverse impacts that can be caused by this Ministry of Trade deregulation that could hamper SVLK credibility, including damaging the ongoing process of FLEGT VPA negotiation.

The IFM funding sources might be obtain from ranges of sources either from public fund or fund from other nonbinding sources institutions. Moreover, following up the changes in this regulation, on 29 April 2016, MoEF passed the Regulation of Directorate General Sustainable Production Forest Management (Perdirjen) No. P.14/ PHPL /SET/4/2016 concerning Standard and Guidelines on Assessment of Sustainable Forest Management (SFM) and Timber Legality Verification Performance to detail the above Permenhut. During the term of this MFP program report, a controversial issue had emerged involving the Ministry of Trade. In December 2015, the Ministry of Trade announced the new Regulation of Ministry of Trade (Permendag) P.89/2015 that

Figure 1.1. Focus Group Discussions on Green Procurement Policy

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

At the urging of various parties, in April 2016, the Ministry of Trade finally issued a new regulation No. 25/M-DAG/ PER/4/2016 reversing the previous Permendag No.89/2015 that excluded furniture product from SVLK scope. With the new regulation, all timber products, i.e. all HS Codes, must come under SVLK and the VPA. Therefore, by 24 May 2015 when this regulation was enacted, all timber product exports from Indonesia, including furniture, will require V-legal document. MFP also supported two other trade regulations as the attempt to strengthen SVLK implementation policy. MFP supported the MoEF to set out guideline on the requirement of legality certification of all Forestry Products Import to Indonesia. This import regulation came into effect in January 1, 2016. Regulations on the imports of forestry products have been issued in order to ensure the sources of the wood imported to Indonesia came from legal sources that compatible with Indonesia policy to implement SVLK. Moreover, MFP also engaged with the Agency for Procurement of Government Goods/Service (LKPP) to expand the implementation of the green procurement policy by mainstreaming the use of SVLK certified products in both national and some targeted subnational government administration level. As the government agency in charge to reform the public procurement process in Indonesia, LKPP has the strategic advantage of setting the policy mandating procurement of SLK-certified timber products for all government agencies. For this reason, MFP had conducted series of meeting with LKPP on the prospect of a new policy mandating public procurement of only SLK-certified timber products used. There is a commitment of LKPP to include SLK-certified timber products in their e-catalogue.

Figure 1.2. Focus Group Discussions on Green Procurement Policy

Positive responds of green public procurement policy were already showcased in the number of sub-nationals level. The Head of Klaten District in Central Java has issued the Head of District Regulation No 16/2014 to regulate the green procurement policy in the region. Similarly, the Jombang District, Buleleng District, and Yogyakarta, where the local government are currently preparing similar local regulations. MFP assisted the visit of LKPP representative to Klaten district to gather further information on trade in timber product in local level and potential impact of amending regulation on public procurement to only use SVLK-certified timber products.

1.3 Negotiation of FLEGT VPA The Joint Implementation Committee (JIC) Secretariat have facilitated several meetings and activities related to the FLEGT VPA negotiation between Indonesia and the European Union. During this reporting period, some key meetings were done to ensure the fulfilment of requirements needed for both parties to issue the FLEGT VPA license. The following are some highlights of those meetings:

Figure 1.3. The 3rd Meeting of Join Implementation Committee (JIC)

1.3.1 Impact Monitoring (IM)

As part of the FLEGT VPA negotiation, MFP has developed the Impact Monitoring (IM) System for SVLK Implementation as a Social Safeguard as it was stated in Article 12 VPA. The process of developing the IM involved public consultations at the national and regional level with participation from members of organizations and associations from government, private sectors, civil society, academia, and media at the national and regional levels. The consultation process includes an assessment of vulnerability of various social groups including small and home-based industries, community based forest groups, and women-owned enterprises including those with disabilities. These are the groups that are exposed to high risks of being (negative) affected by SVLK. These risks do not only depend on the exposure but also on the sensitivity of the specific unit exposed (such as households, forest management areas, private management units for districts and provinces) and on their capacity to cope or adapt. Interviews were also conducted with resource persons who are representatives from government, SMEs, civil society groups between June â&#x20AC;&#x201C; October 2015, followed by a series of fieldtesting exercises in October and November 2015. The detailed Impact Monitoring Design and Implementation Strategy can be referred in Annex 1.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

1.3.2 Periodic Evaluation As it is regulated in the Indonesia â&#x20AC;&#x201C; EU FLEGT VPA, Indonesia, in consultation with the European Union, shall engage in the services of Periodic Evaluation to implement some tasks as mentioned in the Annex VI of the Agreement. Periodic Evaluation (PE) is an independent evaluation process conducted by an independent third party. The objective of this evaluation is to provide assurance that the timber legality assurance system (SVLK) is functioning as described, thereby enhancing the credibility of the FLEGT licenses. Periodic evaluation will also monitor the effectiveness and performance in the overall of SVLK. PT. SUCOFINDO was selected in September 2015 based on the open tender. Along the process, a technical team comprising representatives from government, NGO, and business practitioners are established to support the work of the selected evaluator. The design concept of this evaluation was presented on June 2016 through a public consultation. 1.3.3 International Campaign of SVLK

who attended the Illegal Logging Update and Stakeholder Consultation Meeting organized by The Royal Institute of International Affairs Chatham House on 16-17 June 2016. The Indonesian government, represented by the Director General of the Sustainable Forest Management MoEF, Dr. Putera Parthama who in his presentation highlighted the role of independent forest monitor in the SVLK mechanism in order to ensure the transparency of forest management and forestry certification products. Dr. Parthama emphasis the SVLK certification process could guarantee the legality of timber exported from Indonesia and shared the progress of the implementation of SVLK certification process in the country. To promote SVLK as an approach for sustainable landscape management through governance and market reforms, MFP organized side events at the Indonesia Pavilion 21st COP UNFCCC in Paris, in December 2015. In this context, Indonesia would like to set SVLK as a national timber legality assurance system and its contribution to forest governance and a strategy for low carbon growth development in Indonesia. MFP also has supported a gathering for civil society organizations to discuss the improvement of forest governance through independent forest-monitoring scheme as part as SVLK system.

MFP promoted the effectiveness and quality of Indonesia timber legality system or SVLK to wider audience, particularly importers and customers in Europe through series of international events.

Figure 1.5. SVLK Roadshow, Hamburg, Mei 2016

Figure 1.4. Joko Widodo & Juncker on FLEGT VPA Agreement

After the joint statement of President Juncker and President Jokowi in Brussels in April 2016, that pave the way for Indonesia to become the first country to obtain FLEGT license for exported to Europe, MFP carried out a road show trips in the five major cities in Europe that are also the largest importer countries of Indonesian timber products: London, Paris, Hamburg, The Hague, and Brussels. The road show was conducted in collaboration between the Ministry of Environment and Forestry, Ministry of Foreign Affairs, Ministry of Trade, and Ministry of Industry. The road show was successfully demonstrated that SVLK is a credible certification system developed through multi-stakeholder consultations and it meets the international standards.

During the COP 21, Indonesia succeeded in conducted the High Level Dialogue between Indonesia and China government on timber legality system for both countries. The Chinese government expressed their support for SVLK implementation and this was followed up by the Memorandum of Understanding between Indonesia and China during the COP UNFCC meeting in Paris.

Moreover, MFP has raised the awareness of the participants Figure 1.6. Workshop 1. Legal Timber for Sustainable Forest at COP 21, Paris

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

At national level, MFP promoted SVLK through the High Level Market Dialogue in November 2015. The main objectives of HLMD 2015 was to encourage as soon as possible the full implementation of the VPA Indonesia - European Union and improve the legal timber trade in the world to address illegal logging and illegal trade, as well as to support the realization of sustainable forest management. In addition, the objective of this meeting also to urge the EU to recognize the V-Legal Document as FLEGT License as set out in the framework of the VPA, and to eliminate policies that may hinder or delay the recognition of Indonesia FLEGT-VPA by the EU. Currently, Indonesian timbers share is about 15% of the total Global tropical wood trade. Meanwhile, China increases the tropical wood market since 2009. EU decreases the tropical wood market since 2007 but increases slightly from 2013 to 2014. EU imports timber increases in last year, but decreases slightly from tropical wood. Vietnam increases its supply of wood products to EU since September 2013. 9% EU countries imported Indonesian products. However, most of companies urgently want FLEGT licensed timber to be available.

Sumatera (APIKS), Yayasan Cakrawala Hijau Indonesia, Eyes of the Forest, Jaringan Pemantau Independen Kehutanan (JPIK), LSPP/FP JPIK Jateng (Central Java) and PPLH Mangkubumi/FP JPIK Jatim (East Java). A number of strategic meetings have been conducted to promote collaboration among these organizations in developing guidelines, sharing monitoring plans and activities, and sharing expertise, information and training to improve their skills and performance. The successful collaboration between these organizations have also achieved during the process to revise the government regulation on SVLK. LSPP/FP JPIK Jateng (Central Java) and PPLH Mangkubumi/FP JPIK Jatim (East Java). A number of strategic meetings have been conducted to promote collaboration among these organizations in developing guideline, sharing monitoring plans and activities, and sharing expertise, information and training to improve their skills and performance. Successful collaboration between these organizations have also achieve during the process to revise the government regulation on SVLK.

1.4 Independent Forest Monitoring To strengthen the role of independent monitoring in implementing SVLK, MFP supported grants to the independent monitor network/ Independent Forest Monitoring (IFM) which consisted of Auriga, Asosiasi Pemantau Independen Kehutanan

Figure 1.7. Independent Forest Monitoring with Putera Parthama, Director-General, Sustainable Production Forest Management, MoEF

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Institution

LSPP/FP JPIK Central Java

Eyes on the Forest

PPLH Mangkubumi/FP JPIK Jatim

Monitoring Activities

LSPP has completed 12 trainings for community monitors in 6 districts in Central Java. The participants consist of village heads, farmers associations, village youth organizations, village organizations, students and local legal aid organizations. A total of 100 community monitors have been trained, focusing on monitoring Perhutani and local industries.

EoF regularly conducted coordination meeting to prepare the investigation of illegal logging, monitoring primary industry and secondary data collection with focus areas in West Kalimantan and Riau. The design of the database has involved the organizations: ELC, Kontak Rakyat Borneo, Titian Foundation, and WWF. The database will be updated by the public.

PPLH Mangkubumi has performed monitoring of 10 industries (5 low risk and 5 high risk) in East Java with several findings of violations. The result of its monitoring can be found on its website www.jpik-jatim.or.id

JPIK

During this period, JPIK has performed monitoring in Jambi, North Kalimantan, East Kalimantan, Central Java and Central Sulawesi. JPIK has also performed training of monitors in Riau and preparation of joint monitoring with EoF and APIKS.

APIKS

APIKS has performed refresher training for current members in Riau (12 monitors) and in North Sumatra (12 members). For monitoring work in Sumatra, APIKS will perform joint monitoring with JPIK, EoF and Auriga with a focus in Riau. The joint monitoring will also involve collaboration on monitoring method, joint trainings, and sharing of data across the organisations such as permits, harvest plans (RPBBI), forest fire data and social conflicts.

YCHI

YCHI held a workshop on investigation of supply chain in Kalimantan, in collaboration with JPIK in South Kalimantan. The workshop was attended by several NGOs in Kalimantan such as: Sumpit, LPM Kalsel, LINK AR Borneo Kalbar, and Stabil Kaltim. YCHI is also developing web data as a central data base for monitoring in Kalimantan.

AURIGA

Auriga has initiated monitoring work in North Kalimantan. Monitoring work in Papua, Jambi and Central Kalimantan Auriga has established legal defense team for i.ndependent monitoring and framework for security protection of IMs. Auriga will perform joint monitoring with EoF, JPIK dan APIKS in Sumatra and with EoF and YCHI in Kalimantan.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Members of Independent Forest Monitoring from NGOs as well individual from community as follows:

Partners

Organization Independent Monitoring

Individual Independent Monitoring

JPIK

120

APIKS

EoF

AURIGA

PPLH Mangkubumi

LSPP

270

YCHI

TOTAL

147

500

1.5

As of ….. July 2016, ….. V-legal document were issued for …… destination countries for a value of nearly USD ……. MFP has played an important role in contributing to the increase in export value.

Social Forestry & Timber Information System MFP developed Sistem Informasi Kayu Rakyat (Social Forestry Timber Information System) to identify and to map the large potential of social forestry within the local government in the Buleleng district. The system can be assessed from www.kayurakyatbuleleng.com. This information include information on the timber owners, GPS coordinate for exact location, type of timbers, type of products, and source of timber for the SMEs. This website is expected to set a good example for other location with high potentials of social forestry program scheme and can be used to strengthen the forest governance, to develop communitybased forest entrepreneurship, and for SMEs to apply the SVLK certification process.

Integration of Information System Established

1.5.1. License Information Unit MFP supports the maintenance of the Licensing Information Unit (Sistem Informasi Legalitas Kayu/SILK). The SILK was specifically designed in order to improve objectivity and transparency and accountability of the V-Legal documents as well as to provide optimum data and information related to timber legality verification. The SILK is managed by Sub Directorate of Information Timber Legality Verification, Directorate General for Sustainable Forest Management and Production.

Figure 1.8. SILK Website

Figure 1.9. www.kayurakyatbuleleng.com.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Figure 2.0. SIKR Website

SIPHPL+

1.6 Technical Capacity of SVLK Improved

During this period, MFP is supporting MoEF in developing an integrated online database for Sustainable Production Forest Management or SI-PHPL+. The objective of this integrated database is to provide a coherent and inter-linkage data from upstream to downstream up to exports. Currently, the MoEF has several databases for upstream (SIPUHH, RPBBI, SIPHAO) and downstream (SILK) but these data-bases are not yet connected to provide a complete picture of chain of custody from upstream to downstream.

MFP3 provided a number of training and capacity building activities that instrumental in supporting SVLK implementation.

For the purpose of data integration system, MFP3 assisted MoEF to develop SIPHPL+. SIPHPL+ is intended to keep the reconciled data being able to support the policy and decision-making in forest management, timber processing and marketing. This system is expected to present the data of timber production and timber products from upstream to downstream. SIPHPL+ development has currently reached the synchronization stage of master reference and database of all information systems that already available in the DG of SFM: RPBBI, SIPUHH, and SIPHAO. The entire information systems will use same master data reference so that the integration process can be done more easily. The legal basis for Integration of SIPHPL+ Information System has been set in the Regulation of Minister of Environment and Forestry No. P.45/Menlhk-Setjen/2015; and the detailed guideline of the system are finalized.

Training and Technical Assistance of SVLK MFP3 supported trainings and technical assistance for government officials, civil society representatives, SMEs owners and staffs that attempt to enhance their knowledge and understanding about SVLK. In particularly these activities have been conducted in the 12 provinces, which were the target for SVLK acceleration activities. MFP also supported the refreshers activities for assessor and representative from verification institutions. Moreover, MFP supported training for extension workers and focal point staffs in order to assist the SVLK process for community-based forest institutions. Curriculum Development at Universities MFP collaborated with high level education institutions that are committed in introducing the SVLK subject into the undergraduate level curriculum. These institutions are University of Nusa Bangsa (UNB) in Bogor, University of North Sumatra (USU) in Medan, and University of Mulawarman (UNMUL) in Samarinda, and Agriculture Polytechnic School in Samarinda. These four institutions apply a different approach in way the SVLK subject will be incorporated in their curriculum. The curriculum, syllabus and course module have been piloted and tested in classroom as well as practicum. The objective of SVLK course is to provide knowledge about the SVLK regulation and a basic skills that has the qualify level as a first level of SVLKâ&#x20AC;&#x2122;s auditor.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Entrepreneurship Development

2.1 CBFE Compliance with SVLK During this reporting period, MFP have worked with numbers of partners to increase SVLK compliance of timber produced by farmers and community-based forest management in Java and outside of Java. In total, there are 96 community groups MFP3 had assisted so far. MFP has recruited and trained 21 focal points to facilitate certification process for small industries in Java and out-of-Java provinces. With the completion of the SVLK acceleration programme, these focal points have now become a private extension worker who can independently provide services to local governments or industries on SVLK certification. In Java, MFP supported the preparation of Community-based Forest Entrepreneurship (CBFE) to comply with SVLK regulations. Supports were given through several approaches including: provision of workshop on legal timber networking from upstream to downstream, information dissemination on SVLK through community radio, and preparing administration as required for SVLK audit. In this region, we work with our partners i.e. ARUPA, LESEHAN, JAVLEC, and Trees4Trees. The following are the details beneficiaries of the programme.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

The following are details beneficiaries of the programme. Table 4.1. Details Beneficiaries of the CBFE Preparation Partners

Location

Total Forest Farmers Groups

Total members (farmers)

Total forest coverage (Ha)

ARUPA

Central Java & Yogyakarta

2,301

3,396

3 home industries

38 crafters

21 registered log yard

112 IPKR

112

East Java

1,981

1,000

JAVLEC

Yogyakarta

4,649

1840

Tress 4 Trees

Central Java

1,044

516

Total

48 groups

9,975 farmers

6,519

LESEHAN

In Sumatera, MFP supported the strengthening of these groups by focusing on four areas: •

AID-ASPEKJA, Aceh

MFP facilitated the development of Jabon Tree Farmers Association (ASPEKJA) in Aceh Province to develop a work plan in establishing groups to process SVLK certification. During this reporting period, two groups were established with the detail information can be viewed in the following table

Table 4.2. Detailed Information of Tree Farmers Associations in Aceh Name of District

Aceh Besar

Pidie

Number of Farmers

Area (hectares)

268.4

105.45

Number of Jabon Trees

185,105

85,850

Average Age of the Trees

3-5 Years

2-3 Years

Estimation Time for Harvesting

2-3 Years

in 4-5 Years

•

In Lampung, WATALA organized potential farmer groups in two villages which falls in the two districts i.e. East Lampung and South Lampung. Currently, 4-6 people in the farmers group have been trained for trees inventory mapping. Some of the farmers already have basic understanding on SVLK as something that could

potentially improve their business scheme, although marketing remains the number one of their main challenges. •

YLP2S, North Sulawesi. YLP2S has facilitated 31 industries (4 groups) of wooden home industry and 8 furniture industries (one group) in their business management that can be categorized as SME. Wooden houses manufacture industry is the main business character of SME in North Sulawesi. These wooden houses enterprises have been successful in exported their product to a number of countries in the world. The total 29 groups in North Sulawesi have been facilitated to obtain the SVLK certificate.

Figure 2.1. Tomohon Traditional House

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

2.2 Strengthened Entrepreneurship Capacity 2.2.1 Business Plan Development and Access to Finance MFP works with ABDSI (Association of Business Development Services Indonesia), FOKUS Foundation and SNV to take prominent role in the provision and development of capacity building of MFP grantees and FMUs on the forest-based entrepreneurship. In Sumatra, MFP supported PUNDI, Jambi and West Sumatra. PUNDI worked with 8 LPHDs (Village Forest Management Council/Lembaga Pengelola Hutan Desa). ABDSI supported PUNDI in development of business in these LPHDs and have conducted commodity assessment on each LPHD for further development. From these assessments, three main potential commodity products were identified: rubber, coffee, and cinnamon. PUNDI and LPHD continue to collaborate in developing business plan for the development of these commodities, where LPHD focuses in the product development and PUNDI focuses in marketing and distribution aspects. This collaboration is designed to ensure the sustainability of activities after the phasing out of the MFP3 supported project.

The next step of this training is to formulate business plan based on the priority of business opportunities as identified in each of the FMU target, where this can be materialized within one year. Some short-term opportunities in these both respected FMUs include the use of timber, a sustainable rattan processing, palm sugar, coffee, horticulture plants, and patchouli oil. •

MFP supported SNV to train the key drivers of CBFE in 4 priority FMUs: Alor Pantar in NTT, Benakat Bukit Cogong in South Sumatra and Banjar in South Kalimantan. The training used Market Analysis and Development (MAD) training modules that were developed in collaboration with RECOFTC and the Forest Education Centre of MoEF. There are four phases of this MAD training:

- Phase 1: Assessing the existing situation. - Phase 2: Carrying out surveys in order to select products and identify enterprise ideas. - Phase 3: Preparing an enterprise development plan. - Phase 4: Supporting the start-up phase of enterprises.

Empowering CBFM within FMU is important considering that most CBFM are located with the FMU zone area. MFP identified a number of potential CBFM within the FMU to take the lead in improving forest management and economic condition within its area. The FMU staffs, especially the FMU’s Managers, need to understand the know-how strategy to support the CBFM business development within their management boundary.

•

• ABDSI provided entrepreneurship and basic business skills trainings at 2 FMUs in Central Sulawesi i.e. Dolagu Tanggunung and Dampelas Tinombo. Training for FMU staffs aim to develop the entrepreneurial mind set within FMU staffs, in particularly for the staff responsible for CBFM development. It is expected that the FMU staffs will be able to identify potential, to establish a sustainable business scheme, and the ability to formulate the implementation strategy of CBFM business development.

Figure 2.2. MAD Training at Alor Pantar

The total training in Central Sulawesi can be seen in the following table: Size of the Forest Area

Participants

Dolago Tanggunung

144,349 ha

30 staff

Dampelas Tinombo

112,664 ha

Name of the FMU

15 staff

Figure 2.3. MAD Training at Benakat Bukit Cogong

In total, 12 community-groups in these four FMUs have been managed to develop their business plan. Some of the commodities are rubber, turmeric, candlenut, palm sugar, red ginger, coconut oil, and sawn timber.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

The MAD module formally has been adopted by the Centre of Forestry Education and Training (Pusdiklat) as an official curriculum entrepreneurship development on forestry throughout Indonesia under the Decree of Head Pusdiklat MoEF.

In summary, MFP employed three strategies to strengthen the business performance of the SMEs. â&#x20AC;˘

First, to assist a number SMEs to develop business and investment plan.

MFP supported FOKUS Foundation to assist 124 community-based forest enterprises (CBFE), which consisted of 74 CBFEs located in Java and the rest are from outside Java. FOKUS has also carried out training on business plan writing for furniture SMEs in Mataram, Makassar, and Palangkaraya. The training has identified available financial institutions in their respected area: Bank Sulselbar and Bank BRI for Makassar; Bank NTB and Bank BRI for Mataram; and Bank BRI and Bank Kalteng for Palangkaraya. Local banks are prioritized for access to finance considering the ease of access and flexibility, leading to greater potential for accessing the fund.

â&#x20AC;˘

Second, provide assistance to these SMEs in accessing investment funds.

Of these total 124 CBFEs that have business plans, 40 CBFEs (or 32.26%) were able to get financial support from various institutions (Public Financial Service Agency/BLU, banks, and donors).

â&#x20AC;˘

Third, improve the performance of institutions providing financial assistance to CBFE.

BLU P2H (Badan Layanan Umum - Pusat Pembiayaan Pembangunan Hutan/ Public Service Agency - Forest Development Funding Center) is an institution within MoEF with responsibility to manage the disbursement of the reforestation fund collected from industrial logging concessions across Indonesia. Of the overall reforestation fund, 40% of the fund is given to the local government where the funds are from, while the remaining 60% is managed as revolving fund.

Figure 2.4. Providing financial assistance to CBFE.

Until 2015, BLU P2H only managed to disburse less than 10% of the total funds. One of the main reasons is the limited human resources of BLU to reach out the extensive size of Indonesia because BLU P2H cannot have branch office in the regional levels. Therefore, all disbursement process must be handled directly by the team at Jakarta office. To address this limitation the Ministry of Finance has passed the regulation No.112 of 2015, allowing BLU P2H in MoEF to channel revolving funds through intermediaries institutions. These intermediaries institutions can be a Bank and Non-Bank financial institution, including Micro Finance Institutions and saving and loan cooperatives.

Figure 2.5. Business Investment Forum, Agustus 2015

MFP assists BLU to increase the disbursement of the revolving fund for farmers and community-based forest enterprises by developing a disbursement system through intermediaries institutions. The MFP3 supports to BLU range from conducted the assessment activity to identify the potential intermediaries, developed the drafting schemes of collaboration between BLU and the intermediary institution, and included the drafting of regulations of the Head of Pusat P2H to provide legal basis for collaboration and disbursements of the fund through the intermediary institutions. As the results, Memorandum of Understanding (MoU) between BLU and selected intermediary financial institutions has been in the process with Bank BNI, Bank Andara, BRI Agro, BPR Central Java, Cooperative of Banten Mandiri, and Cooperative of Syariah Mitratama Fund.

Figure 2.6. Providing financial assistance to CBFE.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Public Services Agency – Center for Forest Development Financing BLU – P2H KemenLHK or Badan Layanan Umum – Pusat Pembangunan Hutan is a second tier level unit in Ministry of Environment and Forestry who manages revolving fund for forestry activities. This unit was established in 2010 based on Ministry of Finance Decree No.105KMK.05/2010 about Centre for Forest Development Financing and Joint Regulation between Menkeu & Menhut No.04/PMK.02/2012 & PB.1/Menhut-II/2011 about management of reforestation fund. BLU – P2H has the task to manage the utilization of reforestation fund (DR) through revolving fund mechanism with low rate and long period time. The rate of fund is 8% per year with maximum 8 years’ time period. It is a big opportunity for entrepreneurs to realize their forestry businesses with attractive financing support. The fund should be used for the purpose of land and forest rehabilitation activities with feasibility aspect as main criteria to ensure repayment of the fund. BLU – P2H managed IDR 2 trillion fund or US$ 150 million. BLU disbursements to date have not been effective so that only 5% of the total funds have been disbursed. MFP is facilitating BLU to increase disbursement of the revolving funds for the people by building a disbursement system through intermediary institutions, either banks or financial institution non-banks. The focus group discussion was conducted to have input from micro financial institution bank and non-bank regarding the intermediary institutions.

2.2.2 Providing and Enhancing Access to Market MFP sponsored smallholder furniture companies to participate in a number of the furniture and craft exhibitions as a strategy to enhance access to (international) market. IFEX (Indonesia International Furniture Expo) IFEX is Indonesia’s flagship event and international showroom for the furniture industry. It is strongly supported by the industry and government of Indonesia and recognised as one of the leading furniture exhibition in Asia. It attracts thousand of professional buyers from Indonesia, Asia and the world.

Figure 2.8. TOM HOUSE at CASA

CASA by Bravacasa MFP exhibited the SLK-certified products in CASA. CASA is a furniture and interior products exhibition organized by BRAVACASA, a lifestyle magazine, as a way to attract the highend domestic market. The purpose of our participation is to promote legal wood as a brand in the upper middle class of domestic customers in Indonesia, as well as to widen market access for SME products.

Figure 2.7. IFEX 2016

MFP supported 26 SMEs consisted of 19 furniture companies, 2 wood house sellers, and 5 small-scale and communitybusinesses produced timber to participate in the IFEX 2015 and 2016. The total on site transaction during IFEX event is valued at USD 67,723. Within exhibition, more than 2000 visitors visited MFP stand in IFEX.

MFP also facilitated designer gathering attempt to raise the awareness of the product designer about the importance of certifying their products using SVLK as well as to encourage them to use SVLK certified timber. In second exhibition on March 2016, MFP exhibited the SLK-certified Tomohon wooden house from North Sulawesi in the CASA event.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Figure 2.9. Wooden house installation and the team

During the exhibition, a survey was carried out to see the level of awareness on the importance of legal sources of products. From the survey being conducted on 100 visitors, the important information obtained is: Awareness of upper class consumers is already good

90.2%

perceives legal timber is important

Information of legal wood is still limited

62.7%

have heard the term of legal timber

Indonesia Legal Wood brand is still not popular

25.5% is familiar

2.3 Establishment Multi-stakeholder Group Support MFP3 supported the establishment of a number of multi-stakeholders forums to support SVLK implementation. These multi stakeholders forums were establish based on the priority issues related to forestry industry that concerned the stakeholders in the target area. This multistakeholders forum also act as a group that facilitate business-to-business activities among the participants who involved in the forum. Multi stakeholder group can also support the issuance of policies and programs related to SVLK, CBFM, and forest management by FMUs and government. MFP have successfully established SVLK Working Group and advocated for policies related to forestry sector in Trenggalek, Magetan, Buleleng, Klaten, Jombang, Jogjakarta, and Tomohon.

Mapping of Furniture Industry Association The presence of Minister of Trade Regulation No. 89/2015 on the requirements of timber export, which has revoked SVLK for 15 downstream industries products, including furniture industry, surely affects the implementation of SVLK. SVLK was originally going to be applied thoroughly on January 1, 2016. To understand the map of downstream industry, especially furniture, MFP has made a rapid assessment of institutional existence of furniture industry associations and the influence toward current SVLK policy. This assessment was conducted from November to mid-December 2015. Jepara as the centre of the furniture industry was selected as the assessment site. Based on a SVLK of Jepara timber industry published by CIRAD and CIFOR in 2007, 15,271 units of production have been identified in Jepara. Therefore the development of furniture and handicraft industry in Jepara is widely influential in Indonesia economic performance. In Jepara, MFP identified five influential associations to the development of furniture industry in Jepara, namely the Association of Wood Entrepreneurs Jepara (HPKJ), the Indonesia Furniture & Handicraft Industry Association (ASMINDO), the Indonesia Furniture and Craft Association (AMKRI), the Association of Exporters and Producers of Handicraft of Indonesia (ASEPHI), and the Small Craftsmen Association of Jepara (APKJ).

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Community Access to Forest 3.1 CBFM Strengthened through FMU

MFP has a strong strategy to strengthen community based forest management through Forest Management Unit (FMU). The FMU aims to improve forest governance and management at site level and is expected to liaise with multiple stakeholders including local government, communities, NGOs, investors and the private sector. Particularly in promoting social forestry and engaging with local and indigenous community, MFP has been working with 15 FMUs through support the work of the FMUs, such as:

- Improve knowledge and skills of FMU managers on social issues within the FMU area -

Enhancing stakeholder awareness about the roles of the FMUs

Supporting creation of Long Term Forest Management Plan, including ensuring community access to forest area and partnership with FMU

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

To strengthen capacity on business development at FMUs, MFP supported SNV to train the key drivers of community based forestry enterprises for FMU staff and community groups. MFP succeeded to bring a strategic partnership between community groups and FMUs: • Memorandum of understanding between community groups and local government, particularly with Forestry Agency of Bengkulu Province, Muko-muko FMU, and Mining Agency of Bengkulu Province. • Memorandum of Understanding on Strategic Partnership between multiple stakeholders in Sorong, West Papua. • Memorandum of Understanding on Strategic Partnership between multiple stakeholders in Yapen, Papua Province. Figure 3.1. FMU Participatory mapping training

MFP provided trainings for FMU staff to understand regulation related to social forestry schemes, to conduct land tenure assessment, and understand the conflict resolution method and participatory mapping process. MFP assisted FMU staffs to formulate the Long-term Forest Management Plan (RPHJP). From the total 15 FMUs of MFP3 targeted participants, there are 13 FMUs that already have RPHJPs, while 2 FMUs are still in the process to develop the plan, and currently MFP was providing technical assistance to finalize their RPHJPs. MFP actively supports the socialization of MoEF Regulation No.32/2015 on Private Forest. This meeting was conducted particularly in Sorong, West Papua, which attended by the Director General for Social Forestry and Environmental Partnership, Vice Bupati of Sorong, and the Head of Customary Law Sorong. During the event, the representative from the customary law community presented the map for Mooi tribe and expressed their concerns over the cases of illegal logging activities which often misusing the name of customary law communities and demanded that local government play a more active role in combatting illegal logging. MFP3 also provided technical experts to support FMU managers and local government to establish village/ adat forest policy.

• Partnership on Forest Honey and Community Rubber Management in Benakat Bukit Cogong FMU. • Partnership between FMU and local communities.on Forest Honey Management in Batulanteh, NTB Province • Partnership between FMU and local communities on Resin Management in South Sorong, West Papua Province • Partnership between multi-stakeholders on natural resource management in Yapen, Papua Province Several trainings had been conducted involving FMU’s staffs and community groups such as training on market access development, business plan and business management. MFP improved the database and information system of FMUs by developing FMU Directory (in 15 FMUs), FMU website and newsletter for three FMUs at Sorong, Sorong Selatan and Yapen, and FMU profile through short film at seven FMUs. By improving the adequate databases and information systems, it is expected that the 15 FMUs will be the centre of excellence for other FMUs across the countries.

3.2 Supporting Policy and Legal Reform for Social Forestry MFP took an active role in assisting the Director General on Social Forestry and Environment Partnership (SFEP) to revise and reform the existing regulation and program on social forestry schemes. In this regards, MFP focuses on the legal reform for forest and land tenure issues, community-based management policies, and conflict resolutions process.

Figure 3.2. DG for Social Forestry and Environmental Partnership, during socialization of MoEF Regulation No.32/2015 on Private Forest

MFP supported Indonesia Centre for Environmental Law (ICEL) in assisting SFEP to improve the social forestry policies and to accelerate the achievement of 12.7 million hectares of forest access for communities. Social forestry is a set provisions on community forest, village forest, community plantation forest, customary/Adat forest, private forest, and partnership. ICEL provided a policy paper related to permits simplification of

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

community forest (HKM), village forest (HD), and community plantation forest (HTR). MFP involved and influenced the discussion related to social forestry policies such as regulation on Partnership scheme related to Forest Products Utilization in the Area of Production within FMU management boundary and the Forest and Environment regulation on Mediation and Conflict Resolution process. MFP also succeeds to promote gender perspective in the revision of Social Forestry Regulation that passed in 2016. Another important policy issue is the Law No. 23 /2014 on Regional Government Regulation, which officially came into force in January 2016. This regulation changes the responsible of forestry authority in Indonesia from district to province levels. This has a significant implications for the work at the FMUs, especially those in the district level. MFP conducted public consultations at the national and FMU levels to finalize policy paper on Mapping of Forestry Institutional post the issuance of the Law No. 23 /2014.

Social Forestry Scheme

Area

Forest Right (Hutan Hak)

Remarks

23,511

Community Forest (Hutan Kemasyarakatan)

36,632.83

Village Forest (Hutan Desa)

73,930.89

Community Forest Plantation (Hutan Tanaman Rakyat)

23,335.73

89,027.74

MoU between community groups and FMU, Local Government

Adat Forest

81,707

Adat Forest Proposal to be submitted to MoEF

Total Area

328,145.19

Partnership (Kemitraan)

The main issues raised in the policy paper concerning: • Lack of commitment and political will of provincial government to establish and operationalize the FMUs.

• Human resources issues at FMU level. Particularly in term of the lack of knowledge and technical capacity of FMU staff to implement the management plan.

Forest areas that have been granted for CBFM

• The issue of uncertainty of the budget allocation for FMU

Participatory Mapping

• The weak coordination between FMU and the Forestry Agency at the Province level as well as with the technical management units of MoEF in the regional levels.

Participatory mapping is aimed at strengthening capacity of community in mapping the forest areas under their management. The map is part of the requirements to obtain CBFM permits, either through community, or village or plantation forests. The document is also utilized as a reference in settling tenurial conflicts. During this period, MFP3 partners support participatory mapping activities in Muko Muko, South Bengkulu (Bengkulu Province), West Sumatera, Papua, and West Papua.

• The issues related to FMU institutions and structures

3.3 Forest Allocation for CBFM MFP contributed in supporting the achievement of 12.7 million ha target allocation of social forestry for the poor who live in and around forests by facilitating the process of obtaining social forestry license and post license-granted. MFP massively distributed information related to social forestry, including access to forest rights and Adat rights. Currently, community groups were facilitated to develop CBFM to obtain license or partnership has reached the area of 328,145.19 ha with detail as follows:

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

CBFM Development Process Despite the fact that the on-going process to reform the regulations on various community-based social forestry schemes, MFP continues to facilitate a number of MFP’s NGO partners that assisted the local communities to obtain the social forestry permits. These NGO partners are: Warsi (West Sumatra and Jambi), Genesis (Bengkulu), Jerat (Papua and West Papua), ICEL-Sandiflorata (Alor, NTT) and Bali Lite-Satin (Bali). The facilitation process carried out by MFP partners aims to provide information to the local community, both men and women, about the opportunities to secure their rights to access the state forest resources based on the policies and procedures available through various social forestry schemes. Moreover, the facilitation also aims to build a common understanding at the level of community, village governments and local governments about the Some Activities of CBFM Development as follows: management and utilization ofProcess state forests through social forestry schemes. Another objective of this NGO activity was also to enhance people’s understanding about the importance to balance the ecological, economic and socio-cultural values in managing the forest, as well as to seek the agreement that the social forestry scheme is a form and the mechanisms of multi-stakeholder forests management and utilization. Some Activities of CBFM Development Process as follows: Partners Warsi

Location

Achievement

West Sumatera

• The establishment of Farmers’ Group (Gapoktan) Sungai Gelampeh HTR;

and Jambi

• Community meeting for the agreement of the proposed CBFM document in Banai Nagari, Sigutua Tuo Nagari, Koto Rantang Nagari, Jorong Sitangkai, Gunung Basil Nagari; • Meeting in three Nagari (Sumpur Kudus Nagari, Sumpur Kudus Selatan Nagari and Ungga Nagari) for the dissemination of information about the social forestry schemes; • Meeting in Sungai Langsek Sijunjung Nagari and Padang Laweih Nagari for CBFM proposals; • The establishment of village forest management institution at Buluah Kasok, Sijunjung District; • Meeting with the elders (Niniek Mamak) of Padang Laweh Nagari; • Meeting to discuss FMU Nagari formation in Padang Laweh; • Meeting in Banai Nagari and Suguntua Tuo Nagari.

Genesis

Bengkulu

• Institutional strengthening of KTH (Forest Farmers Group) in the SP4 village; • Meeting to mobilize support in promoting the establishment of cooperation between FMU Production Mukomuko with Community Group of Bukit Makmur and Lubuk Silandak villages, Muko District; • Identification of timber and non-timber forest products potential in the area of proposed social forestry • Community participatory mapping and conflict resolution

ICEL – Sandiflorata

Alor, NTT

• Coordination meeting with 10 villages and two municipalities for HKm facilitation and partnership forest within the FMU Alor; • Workshop of dissemination of social forestry and partnerships, that were carried out in 9 villages and two municipalities

Bali Lite – Satin

Bali

• Launch village forest data in 7 village forests (Forest Village of Selat, Wanagiri, Sudaji, Lemukih, Galungan, Telaga and Tejakula) with a total area of 3,117 hectares. All of them have gained PAK-HD (Designation of working area, Village-forest);

Meanwhile, MFP encourages 15 FMUs to allocate area for CBFM as well assist the community group to obtain allocated areas for all forms of CBFM as follows:

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

4 Cross-cutting Issues 4.1 Research MFP carried out a number of studies to gather information and conduct the analysis that could be used as a basis for developing the strategy to fulfil the objective of MFPâ&#x20AC;&#x2122;s various project outputs. In total, there are twelve studies that MFP has been conducted throughout the second year of the project. The complete list of these studies are presented in the following table.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Table 6.1. List of Studies in Year 2

No 1

Aim To provide a background data or information for MFP and the government

To provide lessons learned from activities

To contribute in shaping policy and legal reforms

Title

Output

Brief review to compare SVLK and Forest Stewardship Council (FSC) schemes

Output 1

Study on the market for fast growing tree plantations outside Java: North Sumatra case study

Output 2

The study review on the progress of Forest Management Unit (FMU)

Output 3

Study to analyse timber product exports using National Data Statistic and LIU (Licensing Information Unit)

Output 1

Report on supply chain of timber from small-holder forest management to processing industries

Output 2

Lesson learnt on the effort to introduce SVLK to university curriculum

Output 1

Study on the feasibility to invest in the downstream forest-based industries with special intention to support communitybased forest industries

Output 2

Road map on the effort to expand the allocation area for CBFMs

Output 3

Gender analysis on the timber legality implementation of SMEs/secondary processing industries

Output 1

White policy paper to support the green government procurement policy;

Output 1

Road Map to improve the SVLK policy in the near future

Output 1

Study on the analysis of the performance of Public Service Agency at the Ministry of Environment and Forestry (BLU)

Output 2

The following are highlights of the above studies: â&#x20AC;˘

Gender analysis on the timber legality implementation of SMEs/secondary processing industries

This study was conducted to meet three objectives: (i) to find out the gender dimension related to the implementation of SVLK in secondary wood processing SMEs; (ii) to understand the differences in opportunities and challenges caused by SVLK to women and men owning the secondary wood processing SMEs; and for women managers and workers involved in SMEs; and

(iii) to provide recommendations to MFP on the strategies to promote gender equality among SMEs in Indonesia. The methodology use in this study comprises of desk review of internal reports, short qualitative surveys, Focused Group Discussion (FGD), individual interviews, and consultations on the preliminary report. This case study was focused in Jepara District due to its long history as the centre of production for furniture and woodcarving. The study identified significant differences in male and female roles within the SMEs. Men are usually involved in the design and production, while women are responsible for bookkeeping and administrative records, including legal documents, and quality control. Among workers, women often have a

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

marginal role as sandpaper worker, with wages generally only half of the men who played a role in the process of production and transport. It was found from the desk review exercise that women SME’s access to government and donor programs is more limited than men SMEs. Most government programs (and donor) often recruit more men than women SME’s owner to attend SVLK socialization meetings and SMEs education programs related SMEs SVLK (exhibition). The following are issues raised during the FGD as recommendations for the government: •

Governments, donors, and NGOs need to enhance their understanding regarding the political and economic context of the furniture industry and handicrafts in Jepara, including its social and gender dimension that shaped the sector;

•

Due to the less interested young generation involvement in this sector, there is a risk of declining activities within this sector in the near future. This risk needs to be well anticipated considering the important contribution of this industry to the economy of the people in Jepara. Therefore, some government incentives is needed to encourage young entrepreneurs in Jepara to be involved in these businesses.

•

There is difference in gender roles in the furniture and handicrafts SMEs. Therefore, the government needs to take the gender aspect into account when bringing new investments to Jepara

Shaping policy and legal reforms • White policy paper on green government procurement policy The government of Indonesia has conducted extensive efforts to persuade the forest-based companies to obtain VLK certification as requirement for export. In the contrarily, there is minimum efforts from the government to promote the utilization of certificate timber and its product for domestic consumption. In this regards, MFP commencement a study aims to encourage Indonesian government to develop a green public procurement policy, i.e. requiring central and local government institutions to only use VLK certified timber and its related timber products. This requirement is deemed significant to strengthen national policy on SVLK considering that the state budget for procurement is relatively high, about 30% of the total national budget. The study recommends the importance to strengthening the legal basis for synergy between SVLK and government goods/services procurement policies through revision of the Presidential Decree No. 54/2010, and drafting a Presidential Instruction and a Head of Agency for Procurement of Government Goods/Services (LKPP) Regulation on Guidelines for Conducting Green Procurement. The study also proposes that the Coordinating Minister of Economic Affairs, the Minister

of Environment and Forestry as well as LKPP shall lead the process to establish the coordination effort and synergy action plan between the policy on SVLK and the government goods/ services procurement policies. An additional recommendation is to conduct public dialogue as part of a measurement to gain support from a number of key government institutions. •

Study on the analysis of the performance of BLU

BLU is an institution within the Ministry of Environment and Forestry with the task to disburse credit for reforestation related activities through various schemes, including community-based industrial timber plantations, village forests, and other social forestry related activities including ecosystem restoration activities. The source of the funds that was managed by BLU is originated from the Reforestation Fund (Dana Reboisasi), collected by the government from the forest concession holders. BLU had to disburse more than two trillion Rupiah (approx. US$136,000,000) by 2015, but only a small percentage of this money (approx. 4.5 percent) can be actually disbursed to eligible clients. Among other reasons, the low quality of proposals submitted to BLU was one of the problems. Up until June 2015, after conducting ground check verification of the total 2007 proposals that BLU received, only approximately 12 per cent of the proposal applications were actually eligible to receive a loan from BLU. In this regards, MFP conducted a study that aims to assist BLU in improving their distribution performance of their forest revolving fund for communities. The study was conducted by exploring potential intermediary institutions (MFIs), assessing existing mechanisms on revolving funds assessment system, and providing recommendation to improve the disbursement mechanisms. The study assessed the underlying regulations and existing procedures for disbursement of loans to individual farmers and groups including different types of intermediary institutions that could serve as potential partners for the BLU. The recommendation includes suggestions for some technical improvements in the verification process and other aspects related to the loan management. MFP also facilitated partners to submit proposals to get access to the BLU finding scheme in order to understand the actual challenges in implementing the recommendations. •

Road Map SVLK

MFP and its partner KARSA have been supporting the National Forestry Council (DKN) to conduct a study to develop a road map as a way to strengthen the policy on SVLK (Indonesia’s Timber Legality Assurance System) and sustainable forest management in the near future. DKN is the only formal multi-stakeholders institution, which was created base on the Forestry Law 41/1999. The member of this institution comprises of representatives from government, private sector, indigenous people/local communities, civil society groups, and scholars/researchers.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

The initial findings of the results include: • The current emphasis of SVLK as an export instrument – the challenge is to strengthen SVLK as an instrument to improve the forest governance for sustainable use and social justice • SVLK policy and its legal basis - the road map needs to address options to strengthen SVLK legality basis to set the mandatory level for other government sector beyond the MoEF to follow SVLK. The policy also needs to be comprehensive so that it can address the challenge in implementing the SVLK policy in the medium and small scales timber industries. The policy should also address problems of high transaction costs, corruption practices, and conflicts. • Sustainable forest governance – SVLK should address the actual problems that currently challenges the sustainable forest governance practices and its related social justice issues in Indonesia

Agrarian Reform and Social Forestry In June 2016, the Office of Presidential Staff (KSP) has issued the National Strategy for the Implementation of Agrarian Reform from 2016 to 2019 in responding to the long lasting agrarian problems in particular the land tenure conflicts and inequality of land ownership. In this context, the issue of agrarian reform is closely related to the MFP program objectives, particularly Output 3 that aims to increase people’s access to forest areas. Currently the agrarian reform program has been incorporated into the Government Work Plan in term of the priority of the president pursuant to Presidential Decree No. 45/2016. The priority of pilot areas for Agrarian Reform and Social Forestry has been selected in West Sumatra, Jambi, Central Sulawesi, West Kalimantan, East Nusa Tenggara, Papua and West Papua. MFP proposed East Nusa Tenggara, Papua and West Papua, areas where MFP has worked with partners to promote community access to forests in social forestry scheme.

4.2 Social Inclusion MFP produced the social inclusion policy, a guideline on social inclusion was developed in order to ensure the MFP staff members, output leaders, and partner NGOs receiving grants from MFP understand how to implement the social inclusion perspective in their work. The guideline also indicates five groups of priority need to be considered in order to ensure their inclusion within MFP activities. Those are: women, people with disabilities, landless poor, marginalised indigenous

and minority population, and the poorest group within the communities. The guideline provides a ‘step-by-step’ process to integrate Social Inclusion perspective into planning processes, that includes: (i) become familiar with the forms and signs of social exclusion; (ii) identify interventions, efforts, and steps to develop inclusive activities in MFP; (iii) integrate social inclusion in planning processes, tools and in MEL; (iv) develop the capacity of MFP partners by supporting them to integrate social inclusion strategies in activities that will be/are funded by MFP. Training has been organized in order to ensure MFP staff and grantees understand how they could integrate the social inclusion strategy in the project. Significant efforts have been identified from partners to improve the representation of women and marginalized groups. Based on the desk review of the 17 MFP’s partners, one partner managed to achieve the target of gender equality (50% representation of women in almost all sub-activities) and reported the representation of marginalized groups. Meanwhile, six partners were able to engage around 30-49% of women in their activities, another six partners engage less than 30% of women in their activities, and the other four partners reported fewer 10% women were engaged in their activities. Social inclusion strategy has also been integrated in the design of the Impact Monitoring System (SMD), which is part of the principles for formulating the impact monitoring system in the scope, in the safeguard formulation, monitoring plan, data collection strategy, and institutional requirement. As a principle in SMD development, social inclusion and gender equity assures that SMD development accommodate interests and priorities of different parties affected by SVLK, particularly those who are vulnerable to the changes due to the implementation of the system and policy. The SMD document mandated social inclusion strategy to be conducted through stakeholders’ analysis, vulnerability assessment, and safeguard identification. With such principles, it is expected that the State and relevant stakeholders protect the rights of women and vulnerable groups. In multistakeholders analysis, identification of females and males stakeholders affected by SVLK implementations are carried out so that necessary interventions can be done to promote positive impacts and to anticipate and reduce negative impacts of SVLK implementation. Implementation of gender /social inclusion is mandatory in the formulation and implementation of SMD. In the formulation of the SMD, for example, gender and social inclusion was integrated in the Standard and Procedures. Participation of both women and vulnerable groups in the forestry and timber industries is promoted, while their rights are protected.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

4.3 Communication and Knowledge Management

SVLK Road show: Promoting SVLK to Strategic Importing Countries in Europe

MFP applies robust communication and knowledge management strategy to ensure that objectives and information developed by its work streams are well disseminated to strategic stakeholders and public in general. This approach entails public relation activities, development of innovative communication products and activities, and coordinates knowledge and learning systems to ensure that the lessons learnt are fed back to improve the programme implementation. These include targeted outreach strategy to facilitate information sharing across stakeholders through numbers of communication tools and popular channels. 4.3.1 SVLK Promotion to Welcome the Full Implementation of FLEGT VPA in Indonesia UNFCCC COP 21 MFP provided strong support to ensure the awarding of FLEGT license to Indonesia by promoting SVLK to wider audiences through providing technical assistance for the MoEF in conducting strategic promotion and information dissemination. MFP promoted SVLK to international community by taking part at the Indonesian Pavilion of UNFCCC COP 21 held in Paris, France from 30 November to 11 December 2015.

Figure 4.2. SVLK Roadshow Den-Haag

MFP supported Indonesia Government to promote SVLK to strategic importing countries in Europe: London, Paris, Hamburg, Den Haag and Brussels. The aims of this activity are to show European importers and consumers of SVLK as a credible timber legality assurance system from Indonesia, to communicate Indonesiaâ&#x20AC;&#x2122;s readiness to implement SVLK and FLEGT VPA, and to introduce Indonesian timber product exporters with SVLK certification to European customers. MFP facilitated MoEF for this promotion in five main cities of the biggest export destinations of Indonesian timber in Europe: London, Paris, Hamburg, Den Haag, and Brussels. Media mobilizations, for both international and national media, were also conducted to ensure a comprehensive coverage of this issue. Communication of Joint Implementation Committee

Figure 4.1. Workshop 2. Supporting the Forest Governance Improvement by the Civil Society Organizations at UNFCCC COP 21 Paris

The primary objective of this participation was to raise the profile of Indonesia as the first country to receive FLEGT license status from EU as well as to promote global awareness of SVLK as a national timber legality assurance system and its contribution to forest governance and low carbon growth in Indonesia. In addition, the objectives were also to support diplomatic and negotiation efforts between Indonesia and the EU, targeted to accelerate the decision to grant the FLEGT license status by the EU; as well as to foster coordination, exchanges of information and lessons learnt across global stakeholders of FLEGT VPA including potential signatoriesâ&#x20AC;&#x2122; countries, civil society organisations, media and industries.

Figure 4.3. The 4th JIC Brussels

The Fourth Joint Implementation Committee Meeting was conducted in Brussels on 18 May 2016. During the meeting, the EU FLEGT facility presented on the draft strategy for FLEGT licencing, which includes plans for a market communication initiative to prepare the market for FLEGT licensed timber when the FLEGT licence is a reality. Both parties appreciated the quality of the plan and called for detailed planning and execution. In this regards, both sides agreed to develop working group from each side to do the detailed planning and implementation.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Immediate actions to follow up this strategy includes the release of friendly email to wider FLEGT VPA stakeholders and conducting press conference in Indonesia to inform this particularly decision to the Indonesian stakeholders. The panel comprised of representatives from the European Union and Indonesia. MFP supported the JIC Secretariat to finalize the summary updates for the implementation of Indonesia – EU VPA covering the period of April 2015 to May 2016, focusing on the update for national roll-out of SVLK. This progress update is a complementary report to the first Annual Report covering period of April 2014 – March 2015.

Figure 4.5. Giving SVLK certificates to 200 FMU

Media Mobilisation on SVLK Series of events and publications have been issued as part of the media mobilization strategy to constantly repeat the message on the importance of SVLK and how its implementation has proven to be beneficial. • MFP supported the MoEF to host the joint press conferences of four relevant ministries to the SVLK: Ministry of Environment and Forestry, Ministry of Trade, Ministry of Foreign Affairs, and Ministry of Industry.

SMEs and Community Forests. The event received a positive response from the media. The show was then covered by national TV (talkhsoow), 10 online media and 10 printed media. This was also strengthened by a print-ad on the importance of SVLK printed in two of the largest newspapers in Central Java. • Series of media events and publications to highlight the importance of SVLK, such as: joint press conference IFM and associations, radio talk show in national radio, published an Op-Ed in national newspaper and magazine. 4.3.2 Domestic Legal Wood Campaign to Promote SVLK

Part of our targeted audience for communication strategy is the domestic customers. We aim to raise the awareness of the importance in timber legality for both domestic customers and designers; and to encourage them to use SVLK certified timber products as part of the efforts to ensure forest and environmental sustainability.

Figure 4.4. Press conferences of four relevant ministries to the SVLK

The main objective to inform the public on Indonesia’s achievement as the world’s first FLEGT License recipient. Joint press conference is a commitment to continuously promote and support Indonesian legal wood so that Indonesian timber can be the champion in global timber trade.

To achieve the aim, MFP3 took part in some prestigious furniture exhibitions as follows. • MFP participated in the Homedec exhibition is well known to be the meeting point for numbers of relevant stakeholders in furniture industry such as interior designer, furniture provider, infrastructure and technology vendors for home, as well as the customers.

• MFP conducted the Business Investment Forum for Furniture and Community Forest SMEs to provide information on relevant financial schemes required for forest industry development. MFP also mobilised the media to attend the forum as part of disseminating information on these possible collaborations to a wider audience. The media responded well to this opportunity and 9 news items were published for this forum. • MFP conducted the ceremony event to give SVLK certificates to 200 Management Units comprising of

Figure 4.6. Indonesian Legal Wood Booth at Homedec 2016

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

• MFP took part in the Ubud Writers and Readers Festival, is the largest and the most renowned cultural and literary festival in Southeast Asia.

In the exhibition, MFP showcased a Tom House, a traditional unique wooden house made from Nyatoh, an endemic wood from North Sulawesi. Tom House uses legal timber wood and has a modern and effective design to ensure minimum use of energy.

4.3.3 Communication Tools and Promotion of Forest Management Unit and Social Forestry

Figure 4.7. MFP & Putera Parthama at UWRF

MFP used the forum to communicate the achievement and lessons learned from best practices of the programme to be presented to local and international audiences. MFP also launched the tree adoption programme. This programme has positive respond because almost 200 trees were registered to be adopted by the audience.

• MFP in collaboration with BRAVACASA magazine supported a designer gathering to follow up the ideas in raising awareness from the product designer in the importance of certifying their products using SVLK.

Figure 4.8. Designer’s Gathering

• MFP took part in CASA exhibition, interior design exhibition showcasing high-end furniture and interior settings from local interior and product designers.

Figure 4.9. TOM House @CASA by Bravacasa

MFP has performed the assessment on developing the KPH target as the Centre of Excellence in KPHL Alor Pantar, KPHP Banjar, KPHP Benakat Bukit Cogong, and KPHP Poigar. The assessment was done in relation to the office infrastructure, information tools, information and knowledge sharing, and courtesy visit to relevant stakeholders of KPH. MFP supported the development of information and communication kit for this KPH as the basic tool to promote their work. This kit includes short film on basic information of the KPH such as location, size of the area, and potential natural resources. Other than the film, the communication team have also facilitated the development of branding for each KPH to display their unique characteristics. This includes developing logo and uniform for the KPH. These communication materials have been disseminated and used by the KPH team.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

4.3.4 Media Coverage

Events

Online News

Local Newspaper

National Newspaper

Respond to the Ministry of Tradeâ&#x20AC;&#x2122;s new regulation to exclude SVLK in the system

81 articles

26 articles

FLEGT VPA Public Consultation

2 articles

5 articles

1 articles

Press conference of IFM and associations

5 articles

3 articles

SVLK as one of the solutions in dealing with climate change

10 articles

5 articles

Seminar on Legal Timber for Better Environment (as part of the UNFCCC COP21)

17 articles

8 articles

UK Ambassador Visit to SVLK-certified industry in Jepara, Central Java

18 articles

10 Articles

22 Articles

Forum Discussion on SVLK benefits: sustainable forest and export competitiveness of Indonesia timber products

24 articles

3 articles

9 articles

SVLK on High Level Market Dialogue

27 articles

7 articles

Indonesia International Furniture Expo

45 articles

8 Articles

President of the Republic of Indonesia visit to the EUâ&#x20AC;&#x2122;s institutions

25 articles

15 articles

Four Ministers Joint Press Conference: SVLK Helps Indonesia Achieve The First Ever FLEGT License

40 articles

10 Articles

China Academy visit to Ministry of Environment and Forestry Republic of Indonesia

4 articles

Seminar on Indigenous People, Social Forestry, and Climate Change (as part of the UNFCCC COP 21)

2 articles

Public Consultation on Forest Product Utilization

2 articles

Social forestry issues, including Tempo (Eng)

12 articles

9 articles

Launching of Social Forestry Data Base in Bali

6 articles

320 articles

18 articles

130 articles

Op-Ed on SVLK as a compliance system for timber business industries

Forest Management Unit

TOTAL

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

4.4 Working through Partners

The purchase of goods and service without considering at least three quotations from different companies would pose a risk of audit on the programme. Although â&#x20AC;&#x153;direct appointmentâ&#x20AC;? can be used as an option, it would require strong justification.

4.4.1 Grants Management Following the signing of the grant agreements, coordination with new grantees was carried out in one on one meeting. MFP usually provides the grantee with rules and regulations of the MFP finance system, as well as the template for financial report and narrative report (monthly, quarterly, end project). In December 2015, MFP conducted the coordination meeting between grantees and MFP team including output leaders, MEL and research. The main agenda were to discuss program implementation, to explain administrative management of grants and to provide monitoring and evaluation system in support of the project objective.

As of March 2016 below is the status of the grants funding: MFP Grant commitment

IDR. 44,512,901,119

MFP Grant disbursement

IDR. 31,530,489,512

MFP Grant remaining for Year 3

IDR. 12,982,411,607

As of June 2016, MFP is implementing 20 on-going grants and 16 grantees have reached the end of the project duration and soon to be closed (See appendix 6. List of Grantees). During August 2015 to July 2016, MFP 3 has held 4 (four) PAC meetings. There are as follow: a. 10 August 2015 b. 16 September 2015 c. 19 October 2015 d. 30 March 2016

4.4.2 Sub contract MFP 3 is using a competitive price quotation in all its procurement process. All contracts for equipment and materials must go through a competitive process. This is one of the most effective mechanisms to ensure cost efficiency and obtain maximum potential benefits. Clear procedures and mechanism details were set up in order to achieve the above objective under sufficient internal control. MFP use a subcontract method in the procurement process. This is a form of technical procurement through a contractual agreement between MFP and vendors or contractors, either of which are consultants, companies or other service providers to conduct MFP activities with the stated result, targets, deadline and contract value.

MFP has 10 active contracts with vendors/service provider during the August 2015 to July 2016. An IDR 6.6 billion or around GBP 350,565.00 has been disbursed in that period as payment for the vendors through subcontracts. As of 31 July 2016, the status of overall subcontract under MFP 3 is as follow:

Total Sub-contract Commitment

IDR 21,677,066,519

Total Sub-contract Disbursement

IDR 20,450,822,082

Total Sub-contract remaining

IDR 1,226,244,439

Total of forty-two (42) sub-contracts has been made by the end of July 2016. Three (3) of them were through international bidding process.

4.5 Monitoring Evaluation and Learning (MEL) 4.5.1 Capacity Building IIn August 2015, MEL training was provided for seven MEL Regional Consultants and 16 MFP Partners. The training was aimed to improve capacity of MFP partners to monitor and evaluate their own projects, to strengthen their institutional capacity by implementing better projects, and to understand the importance of MEL. The training includes session on monitoring, evaluation and learning; the theory of change and logic model; most significant changes; tools: dart diagrams, Venn diagrams and ranking; knowledge management; social inclusion; relevance, effectiveness, efficiency, and value for money; soft skills for evaluators; MEL framework and planning; developing monitoring questions; data collection; and reporting. The training also involved field visit where the participants directly met timber industries owners and community members to practice their learning

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

4.5.2 Monitoring, Review, and Feedback of the Programme Until March 2016, MFP had hired five?? regional MEL consultants to conduct the monitoring, evaluation and learning process and three mentors that supervise the regional consultants. The role of regional consultants were to conduct review of all grantees reports. Then, these regional consultants reports will then be reviewed by three MEL mentors. The final reports were given back to the MFP grantee partners with some feedbacks how to improve the project activities performance. From these exercises and feedback, partners understand the importance of conducting MEL to improve the quality of their intervention. On the other hand, the exercise also enables MFP to track down progress, lessons, and achievements. At this period of the report the MEL regional consultants have reviewed around ten grantees reports and provided comments and questions address suggestions to Output leaders and managers. MFP’s MEL coordinator also organized training for grantees and MELregional consultants, as well as for FMU and NGO staffs in Alor Pantar. Other training that MFP provided was based on the request from FMU Staff in South Sorong which asked MFP to facilitate the conflict transformation training. Besides conducting a desk review and training, MFP’s MEL regional consultants conducted several field visits to a number of grantee project activities. The field visits include visit to Lampung, South Kalimantan, Alor North Sulawesi, Papua, Yogyakarta, Surabaya, and Jepara.. Below are the main findings of the field visits: The highlight from the field visit to Watala, Lampung: Watala is an organisation that had long experienced in community organising. They have the skill to organise farmers effectively for community forestry activities and it has a good progress in strengthening the community organization effort. , However they need an assistance to improve their on how to develop and implement business plans as well as knowledge on commodity marketing strategy. The MEL recommendation, therefore, is to assist Watala to find other institution that can assist them and the community members the capacity to develop and implement a business plan and marketing strategy. These findings had been discussed with Watala staff in Lampung in order to gain clarification and understanding about the recommendation that were proposed by MFP’s MEL team. In South Kalimantan, a MEL regional consultant reviewed the three MFP’s grantees project activities in collaboration with FMUs. The project involved a number of trainings for community groups and the KPH management staff. From these field visits it was found a good training result. The majority of the attendees said they enjoyed to participate in the trainings . The key success was due to the use of a participatory approach and it was quite practical since the organizers facilitated a field trip to business institution such as bank, market and retail groups. From MPF perspectives, the challenge is on how to replicate such training from only two or three villages involved as participants to all villages in the FMUs also on the way to

ensure the sustainability of the activity which required the synergy with the local government sectors, NGOs and other institution including private sector. In Alor, the MEL team assess the trainings activities conducted for FMU staff and Sandiflorata staff NGO. The objective of this training was to find strategies to achieve program sustainability. In the future, MFP hope that both institutions, FMU and Sandiflorata NGO, are able to conduct their own Monitoring and Evaluation process. Sandiflorata NGO, the FMU staff and MFP MREL advisor presented their own MEL findings. These findings highlighted what are the good practices in the project activities conducted by HUMA, WGT and SNV related to their activities in Alor. HUMA has selected a field staff who was coordinated HUMA activity in Alor. This decision has made HUMA could be able to be present and effectively conduct their activities in Alor. Although the training carried out by WGT tenure has improved knowledge of FMU staff on FMU polices and practice, WGT needs to improve their training method so it can be more using a participatory approach and using an adult learning method.. In relation to SNV, local participants in Alor suggested that the training vanue should be better held can in the village and not in the hotel at the capital district of Kalabahi.. Participants also suggested to extend the time allocation need for the training from previously …days to be a longer time. ??? Moreover, in a the MEL review one of the workshops organized in the process to design the Impact Monitoring System of SVLK carried out by Hatfield company in Surabaya, the capital of East Java province. Based on the MEL team finding this workshop was conducted quite well, since multi-stakeholders were involved as the participants (NGOs, business actors, forest farmers, government, and media/journalists). Moreover, the workshop materials were relatively well prepared, the information was cleared and easy to be followed by the workshop participants, particularly on the information regarding the SVLK implementation. However, MEL team recommended PT Hatfield to make a number of improvements such as in term of the time management of the workshop to ensure its effectiveness; the basic requirement of the person who served as a facilitator with a good skill to facilitate the participatory discussions during the workshop; the better quality when selected the local resource persons to be invited in the workshop; and the clarity on the division of tasks among the Hatfield team member. Based on this input, PT Hatfield was able to improve their performance and deliver a much better report result. In Papua, MEL coordinator went to visit FMU in Sorong and South Sorong as well as interviewed Jerat staff in Jayapura. MEL of the activities conducted by Jerat has found the following conclusions. Jerat village level workshop that invited the Director General of Social Forestry of the MoEF went very well.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

People quite satisfied because they could express their concerned directly to the high level officer who attended the workshop. MEL team also found a good progress of Jerat training of communities’ facilitators in these three FMUs, Sorong, South Sorong and ???, in regard to participatory mapping using a drown technique.. Including MEL team found a good result of Jerat activity that has sent FMU staff to Kalimantan to get further training on community mapping. However, the project activity that has long behind the schedule was the local government regulation that need to be enacted by the local parliament first before the Ministry of Environment and Forestry could grant a recognition of Adat forest.. At this period, Jerat staff is still in the process to collect villagers’ point of views before Jerat could contribute to the academic paper prepared for the establishment of Sorong Perda. The last issue that MEL have found from the field visit to the organization was concerning the financial matter in Jerat system is not compatible with MFP3 system need to be sorted out and documents to complete. Moreover, in South Sorong the MEL advisor has provided trainings to FMU staff in Sorong on two issues, conflict transformation and community organisation. Meanwhile, in South Sorong FMU has collaborated with the UNIPA Manokwari to conduct training on how to count carbon emissions in the FMU areas. MEL team found that this is a good initiative. In regard to the result of the field visit of the MEL regional consultant to the grantee projects in North Sumatra are the following. In North Sulawesi, a MEL regional consultant went to observe SNV training. In general, the participants like the methods and the facilitators. However, SNV needs to emphasis the follow up after the workshop and how to monitor the result of the training. In addition, it is necessary to clarify each party role (WHO?) in each village implemented in order to avoid confusion. Since the MEL regional consultant who went to the workshop also has a good knowledge on forestry business development, he could also share his experience with a teak cooperative, FSC certificate, carried out export but then went bankrupt, he could share a good lessons to tell.

Involving women in participatory mapping activities in Alor: A good practice Huma has organised a participatory mapping training to FMU Alor Pantar staff, NGO and villagers. Women has also involved in this training, and they did field practice to emasure their forest village. Two women were interviewed, The first woman said: “I like this [community participatory training) activity, in the past I think I can only do cooking and shopping. But with this activity, I can read map, able to operate GPS. I know more skills and makes my life is not boring. The second women said: “I went climb and go down and up to the hills and measure the length of the areas. This is my ancestor land. With this activity I know more about my own land and the men can discuss with me about the land issues. Involving women in the participatory mapping activities have resulted women more confidence about their other skills, more knowledgeable about their clan forest areas and gained appreciation from their male villagers.

4.5.3 Mid Term Review DFID in consultation with the Ministry of Environment and Forestry has commissioning a Mid-Term Review (MTR) of the MFP3 programme. The purpose of the MTR was to take stock of progress after twenty (20) months of implementation to set out recommendations for improvements to achieve the expected outputs.

Figure 4.10. Kick Off Mid Term Review

The MTR had provided overview of MFP3’s key achievements against its planned targets as set out in the Logical Framework. It also undertaken lessons learned on enabling and inhibiting factors that will influence the effectiveness and efficiency of the future programming approached and recommended strategies to be applied in the remaining implementation period.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

The overall achievements as identified by the MTR are as follow: • It has been succeeded in developing linkages between SVLK, FMUs, community forestry and SMEs • It has shown significant progress towards making legal, viable, secure SMEs with secure tenure and access to forest products • It has created access to communities for forest-land • It has established VPA/FLEGT building blocks and increased its functions (LIU, IFM, audits) • It has increasing awareness of stakeholder on the importance of timber legality The MTR also recognized MFP’s high quality guidelines and guidance on gender and social inclusion, its strong emphasis within the grant scheme, excellent monitoring and evaluation strategy, high level of accountability and its result based management. The MTR has recommended a longer-term support to MFP3 in delivering their targets in the complex and changing governance. Recommended activities to be implemented as focus are included: securing sustainability of FLEGT including processes, financing, multi-stakeholder approach; increase focus on domestic markets; helping with compliance moving beyond Java; explicit focus on cross-ministerial linkages; unlocking sustainable financing (BLU), strengthening multistakeholder engagement down to sub-national levels, and increase focus on community access to forest land.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

5 Lesson Learned Mainstreaming the principle of social inclusion is important to embrace marginalized groups into the ‘male’ and ‘java’ dominated timber industries. MFP’s partners have applied this principle where they always ensure the participation of woman in the intervention as outlined in their gender and social inclusion strategy. In some of the relevant areas such as Warsi, Genesis, Jerat, partners also ensure the participation of indigenous people group as the beneficiaries of the programme. These are measured by the information on disaggregated gender presence on every activity as part of our Monitoring and Evaluation framework. By having this information, action can be timely taken to ensure the well participation of socially excluded group. During the design of the Impact Monitoring System (SMD) of SVLK implementation, it is imperative to gain a high level of understanding on socio-economic and gender differences. By integrating social inclusion and gender equity into the major process of SMD design, the system will protect the disadvantaged group such as women, landless groups, indigenous groups, and small and home-based industries.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

This process has also enabled the programme in recognizing different views between male and female farmers in developing the business plan for community forestry. For example in East Java, it was identified that male farmers tend to aim on how to optimise results instead of expanding the varieties of trees and plants. They tend to select plants and trees that low cost in managing and maintaining the trees growth. On the contrary female farmers think more comprehensively that land need to be cultivated in order to get daily, annually, and long term income. They also believe that different usage of trees types such as for feeding their livestock and to function as fence. Acknowledging and understanding this difference is key in developing the relevant business plan.

accelerating the process to achieve our programme’s objective. MFP also learns the importance to maintain cooperation and communication between different stakeholders in both institutional and personal term.

Our key approach in implementing the programme is to ensure the multistakeholder involvement in all of our activities, as well as to facilitate the effective process of this participation. Some of the examples are: • MFP established multistakeholder forums in seven areas comprising of local government, district offices, civil society, and private sector as the strategy to set up legal and organizational support to implement SVLK. Among others, the multistakeholder forum in Buleleng and Trenggalek have managed to develop a draft of District Head Regulations (Raperbup) as their commitment to promote SVLK. Due to the strong leadership and political will, this forum has then able to accelerate the certification process in those areas. • MFP has facilitated the establishment of Joint Implementation Committee (JIC) Secretariat as the caretaker for FLEGT VPA negotiation, where it comprises of various stakeholders relevant to the negotiation. JIC Secretariat takes the role to ensure that all stakeholders are well represented in the relevant meeting to ensure that all parties are informed with the updates and hence are able to take relevant actions. • The multistakeholder forum can also be comprised of members from different ministries, such as during the discussion on updating export data for the Directorate of Sustainable Forest Management. This forum comprised of MoEF, Ministry of Trade, and Ministry of Industry. In this forum, the representatives of these ministries have in-depth and open discussions on export related data and thus allow easier process to reconcile and to make decision. • During the design of the Impact Monitoring System (SMD) of SVLK implementation, several issues are being discussed in consultation processes by multistakeholders. Based on their interest and background, these stakeholders set the principles for formulating the system, scope, safeguard, data collection and monitoring, and institutional requirement. By having this kind of multistakeholder forum, MFP acknowledged the different yet complementing roles of these stakeholders and how they play a significant part in

The unified nature of relation between MFP team and the Ministry of Environment and Forestry as one team has yielded a positive collaboration. By having to work with, instead of for, the government, both have the same objectives to pursue and therefore born a positive synergy of implementation between the two. These collaborations happened in number of cases, such as being at the same team to host Joint Conference between four ministries, preparing the launch of first shipment after the fully implementation of FLEGT VPA, and many more. These process has enabled us to build the trust and to adapt faster in order to ensure the effective delivery of the programme.

Robust local evaluators with specific knowledge on the programme have helped MFP in taking timely action to improve our quality of delivery. MFP have trained 10 individuals from different areas in Indonesia including Riau, Jambi, Kalimantan, Sulawesi, East Java, and NTT to evaluate MFP’s activities in the local level. These individuals

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

are experienced in doing evaluations with various donors and in dealing with poverty, human rights, indigenous communities, and community forestry including community development and community logging issues. Training has been conducted to ensure they have knowledge on the programme, such as on SVLK, small and medium timber enterprises, as well as gender and social inclusion principles. During their tenure, the evaluators have direct discussions with the grantees and provided suggestions to improve programme delivery and to ensure that it answers to the overall programme’s objective. This approach has also enabled MFP in identifying findings from the field that are not covered in the grantees’ report.

Despite the importance of opening market access to enterprises, it is more important to equip them during the preparation stage. MFP has facilitated the participation of selected small-scale timber enterprises in numbers of key furniture exhibition in both national and international scale. Regardless of their high quality products, our experience highlighted that our interventions on capacity upgrading before participating in the exhibition is a necessity before facing visitors and buyers. These includes developing relevant publications such as leaflets and catalogues to provide right information for buyers, learning how to negotiate with buyers – especially for first timer enterprise dealing with international buyers, learning how to speak good English, and developing interesting packaging to attract buyers. In addition, we also learn that the exposure of Indonesian Legal Wood brand should be more present for the customers to be aware of the timber certification

Assisting BLU to improve their disbursement system and management performance is strategic work for MFP in strengthening the development of medium and small-scale timber industries. In the development of business unit for CBFE, a revolving fund scheme is important to ensure that the business unit is right on target and sustainable. Other than a skilled expertise needed to develop this kind of scheme, it is also important to identify the source of financing that are available for this purposes. MFP provides assistance for BLU to transform into a strong financial institution by identifying intermediary institutions, considering the limited capacity of staffs in BLU to perform direct dissemination. This institution is expected to channel the disbursement thus can be accessed quickly and easily by CBFE. MFP’s attempt to strengthen BLU is expected provide a significant contribution to the much larger goal of assuring a sustainable supply of certified wood for Indonesia’s future.

Support from third parties such as NGOs and consultants is important to facilitate the process in obtaining the community forestry license. The dynamics of regulation related to community forestry have make it difficult for CBFM to follow the updates where therefore support from third party will be key to ensure the issuance

of the license. This third party will also act as the facilitator to connect and seek for confirmation from various stakeholders in local and national level. They will also ensure that all of the required steps, such as participatory mapping and conflict resolution, are taken to accelerate the process in obtaining the license. In terms of collaboration with FMU, the following are some of the elaboration: • Formulation of a Memorandum of Understanding (MoU) between NGOs and FMU is a good strategy to build trust and joint commitment between two parties. For example, in Muko Muko FMU in Bengkulu, an MoU is signed and it stated the agreement to collaborate between Genesis and Muko Muko FMU in social forestry programme. The MoU clearly states the commitment and the role of each party, budget distribution and allocation, and activities to strengthen communities’ institutions. This strategy is expected to be replicated by other facilitated FMUs.

Figure 5.1. Coordination and Awareness MFP.3 team to Bengkulu Governor about sustainable forest management pattern of CBFM

• Good leadership in FMU is key to encourage commitment in getting areas allocated for community forest. A good example for this case is from the Head of Alor Pantar FMU where he allocated all empowerment areas and specific territories in the FMU to be managed by the people around forest areas through HKm (Community Forest) scheme. Up to now, an area of 13,000 Ha is undergoing permit process in MoEF and an area of 10,000 hectares is under the process of document preparation at the community level. This model is an exemplary for other Head of FMUs. • Basic business skill to key staffs at the FMU is indispensable. MFP is currently working at 15 FMUs, where one of our priorities is to develop business unit within the FMU, especially in developing CBFE. From our experience, understanding the nature of business is key as it will guide the staffs throughout the process of developing their business.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Annex

North Sumatra

South Sumatra

Lampung

South Kalimantan

South Sulawesi

Central Sulawesi

West Java

Central Java

Province

Muba - OKI

Wonosobo

Grobogan

Blora

Solo 2

Bogor

Tasikmalaya

Garut

Ciamis

Jepara

5 15

Kuningan

Cirebon

Luwu

Banggai

Sinjai

Soppeng

Palu

Tabalong - HS Tengah

Luwu Utara

Hulu Sungai Selatan

OKI

Lampung Utara

OKU - Lahat

Primary (<6000)

IUI (<500)

TDI

Simalungun

IRT

Asahan

TPT 5

Management Unit

Madina

District/Municipality

Table 7.1. Key Activities to Support FLEGT VPA

Annex 1: List Certified Companies

52 Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Total

East Java

DI Yogyakarta

Banyuwangi 618

Pacitan

Ngawi

114

292

Lamongan

Jombang

Nganjuk

Situbondo

Probolinggo

Kulon Progo

Bondowoso

Bantul

Lumajang

Sleman

Yogyakarta

7 79

Pekalongan

Klaten

Magelang

Temanggung

Purbalingga

Banyumas

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016 53

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Annex 2: JIC IDN – EU Table 7.1. Key Activities to Support FLEGT VPA

Activities

Date, Location

Joint Working Group Indonesia – European Union (IDN-EU) Meeting

Main Outcome • Data completion for the EU due to their requirements in reporting on the rollout of the SVLK in Indonesia.

18 September 2015, Jakarta

• Responsibilities of the EU Member States in implementing and enforcing EUTR: (i) Competent Authority (CA); (ii) Penalties; (iii) Checks on operators & monitoring organisations; (iv) Biennial reports to the EU Commission.

13 November 2015, Jakarta

The final draft of JWG Closure Report.

27 January 2016, Jakarta

Technical preparation for FLEGT licensing

21 July 2016, Jakarta

Update from the EU on their internal process towards FLEGT licensing start, implementation of EU Timber Regulation, and other VPA process.

Joint Expert Meeting

• Both parties need to have reliable data to finalize the Annual Report 3 July 2015, Jakarta

22 September 2015, Jakarta

The decision of the Commission on Public Information for the independent monitor should be upheld and the revised Ministerial Decree on SVLK should recognise the IM organisations’ access to data and information related to SVLK. • Indonesia has achieved significant progress with data collection on SVLK rollout. Some data related to timber harvesting on conversion areas (IPKs), use of Suppliers Declaration of Conformity (SDoC), timber industries and traders still need to be improved. VIndonesia is revising the Minister for Forestry Regulation No. 43/2014 and Minister for Environment and Forestry (MoEF) Regulation No. 95/2014 on SVLK for the second time.

2 February 2015, Jakarta Joint Implementation Committee (JIC) meeting

The final update of Action Plan. • The internal preparations to initiate FLEGT licensing The joint action plan will be addressed by December 2015.

8 July 2015, Jakarta

EU will entail internal adoption procedures to amend the annex to the FLEGT regulation and prepare the EU market for receiving FLEGT licences. Indonesian will certify more producers under its timber legality assurance system, the SVLK, and to improve the access of information for independent monitors

18 May 2016, Brussels

Preparation on the FLEGT license as a follow up on the earlier announcement by President of the European Commission Jean-Claude Juncker and President Indonesia Joko Widodo.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Annex 3: MAD Module Development of community based forest enterprises (CBFE) into profitable, socially responsible and sustainable businesses required a phased and measured approach by committed organizers and field facilitators. The results of a global research, conducted by Duncan McQueen, the International Institute for Environment and Development (iied), that Investing in Locally Controlled Forestry (ILCF) is a successful working model to follow for CBFEs. It’s been identified that 80 to 90% of the forest based businesses are small to medium scale enterprises. What’s needed is a toolkit for CBFEs to identify right product to be developed and the business management supports necessary to successfully enter and develop the market. Sophie Grouwels of the Food and Agricultural Organization (FAO), Forestry Department, has been the initiator in the development of the Market Analysis and Development module. As the name suggests, this module put forward the importance of the market first. Basically, there are 4 modules for the MA&D, requiring 4 phases of implementation. However, the most important is ‘phase 0’ in which, at the start, key stakeholders are identified to ensure that supporting elements and services are available for CBFE development. Without these supports, the objectives of the project will be difficult to accomplish.

The four modules and short descriptions are the following: Phase 1: Assessing the existing situation:

SNV, as the working partner of MFP3, collaborated with the Center for Forestry Education and Training, MoEF (CFETPUSDIKLAT) and the Center for People and Forest (RECOFTC) in introducing the MA&D module in four (4) selected Forest Management Units (KPH). The four KPH are: KPH-P Benakat, South Sumatera; KPH-P Banjar, South Kalimantan; KPH-P Poigar, North Sulawesi; and KPH-L Alor Pantar, East Nusa Tenggara. Due to time constrained, during the implementation stage of Training of Trainers (TOT), the four modules are compressed into just two phases. Phase 1 &2 were integrated for the first round of trainings, and Phase 3 & 4 integrated for the second round. The participants of TOT included staff of FMUs, forest extension workers (officials and community), forestry trainees and local NGOs. There are at least three objectives for the MA&D trainings. The first is to develop business plans for CBFEs that will be submitted to financial institutions. The second objective is to have cadre of local trainer-facilitators to support community groups in developing their businesses. And the final objective is for CFET to adopt MA&D as the official training package in entrepreneurship development for FMUs.

Overview of the MA&D Approach

THE FOUR MA&D PHASES

PRELIMINARY PLANNING PHASE OR, ‘PHASE 0’

PHASE 2 : CARRYING OUT SURVEY IN ORDER TO SELECT PRODUCTS & IDENTIFY ENTERPRISE IDEAS

PHASE 1 : ASSESSING THE EXISTING SITUATION

PHASE 3 : PREPARING AN ENTERPRISE DEVELOPMENT PLAN

PHASE 4 : SUPPORTING THE START-UP PHASE OF ENTERPRISES

Potential entrepreneurs gain an understanding of the issues; identify the problems and opportunities and shortlist a range of products. Phase 2: Carrying out surveys to select products and identify enterprise ideas Potential entrepreneurs select the best products and gather information for the further development of those products. Phase 3: Preparing the enterprise development plan Entrepreneurs formulate an enterprise development plan that integrates all the necessary strategies and services to ensure the sustainability of the new enterprises. Phase 4: Supporting the start-up phase of the enterprises Entrepreneurs obtain training, technical assistance and -if necessary- financing for the implementation of their business plan.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Annex 4: Summary of Impact Monitoring Indicators Table 2. lorem ipsum dolor sit amet

Indicator Number

Indicator

Governance 1.1.

Conflict between industries and the community

1.2

Recognition of the management unit by the community

1.3.

Effectiveness of the performance of companies

1.4

Informal/illegal transaction costs for processing wood licences

1.5.

Effective wood administration

1.6.

Existence and sustainability of community owned forests

1.7.

Appropriate business permits and land titling

1.8.

Increase of transparency in SVLK implementation

1.9.

Public participation in SVLK implementation

1.10.

Coordination with other government agencies

Illegal Logging 2.1.

Prevention and management of illegal logging

2.2.

Establishment of a wood production control system

2.3.

Legal products which can be traced

2.4.

Potential for wood laundering

Forest Conditions 3.1.

Sustainability of wooden products

3.2.

Forest coverage

3.3.

Biodiversity protection

3.4.

Physical environment management

Economic Development 4.1.

Implementation cost of SVLK

4.2.

Payment for financial responsibility

4.3.

Volume and value of illegal wood based exports

4.4.

Number of destinations for exporting of products

4.5.

Growth of export harbours

4.6.

Use of legal wood in the domestic market

4.7.

Risk of the supply contract being cut off and the threat of legal sanctions

4.8.

Access to capital facilities for VLK/PHPL holders in banking and other financial institutions

Livelihood (including Social and Gender) 5.1.

Opportunities for legal wood manufacturers

5.2.

Increased capacity of business owners to oversee the administration of wood supplies

5.3.

Health and safety protection and implementation of the rights of those in the labour force

5.4.

Efforts to empower community groups including those from vulnerable groups

5.5.

Increase in community participation and activity in the economy

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Annex 5: Result of IFEX Table 2. Results from Participants of IFEX 2015

Name of company

CV Aida

Results (Closing Order) Order from: India 1x20’, Singapore 1x20’, Taiwan 1x20’ and Thailand 1x20’ Value: USD 24,000

KSU Apikri

Retail sales during show: ± IDR 2.000.000 Order: IDR 3,000,000 from a customer in Jakarta

CV Mebel Jati Jepara

Order from: Spain-hotel 1x20’ (already shipped); India 1x20’ and some local sales Value: IDR. 437,346,050.

UD Mebel Anak

Order for antique reproduction furniture from Lithuania 1x20’ Value: USD 13,345

CV Tita International

Order from: Hotel Shangrila (Colombo) 8 x40’ HC; Rivera 2x20’ and 1x40’ and 1x20’ from Lunex for shipment to Europe. Retail sales USD. 6,511 Value export: USD. 93,937 Progress update: indoor furniture 12 x40’ (7 containers for Romania, 5 containers to Egypt)

TRI-ER

Order of 1x20’ for Dubai, UAE

UD Romansa Jati

Order: 10 pcs various products Update progress : 1x40’ for United States buyer Value: USD 12,000

UD Jati Aji

No confirmed order

UD Kayu Jati

Received orders for 1,000m3 of various species of wood

UD Smart Sungkai

Received orders for 5-20m3 of wood

UMHR Wonolestari Bantul

Orders for Rain tree (Trembesi) with a circumference of 3.5 meter and up (standing stock). Value: IDR 31,000,000

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Data on Visitor to MoEF-MFP Stands in IFEX 2016

No.

Name of Company/ Groups

Number of Visitor

Number of pot. buyer

11-Mar

12-Mar

13-Mar

14-Mar

11-Mar

12-Mar

13-Mar

14-Mar

Total visitor

Total pot. buyer

Tita International

Romansa

Mario Antik

Mercusuar

177

Woloan

179

Mela Kreasi

Patriasa

Mitra Wana Bakti Kartini (timber)

UD. TNS Berkah Ilahi (timber)

Vista

Tri Utami

Famous

107

Wono Lestari (timber)

Lomart

Subtotal=

285

359

343

124

115

105

1,111

345

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Annex 6: Publication and films a. Printed materials 1. SVLK: Improving Forest Governance and Promoting Trade of Legal Timber Products from Indonesia (brochure, available in Indonesian and English) 2. Indonesia’s Independent Forest Monitors: The Behindthe-Scenes Heroes (brochure, available in English) 3. Directory of certified timber company in Bali (brochure, available in English) 4. Community Forest (poster, available in Indonesian) 5. The Forest Management Unit: Achieving Improved Forest Governance in Indonesia (brochure, available in English) 6. Policy Brief on Social Forestry (brochure, available in Indonesian and English) 7. Newsletter MFP (4 editions, available in Indonesian and English) 8. FMU profile (brochure, available in Indonesian) 9. MFP3 Achievement in Community Based Forest Management (brochure, available in Indonesian) 10. Adopt A Tree (brochure, available in English) 11. Annual Report FLEGT VPA 2015 12. Songs of the Trees and Forests (poetry book, available in English) 13. Indonesia’s Timber Legality Assurance System (brochure, available in Indonesian and English) 14. FLEGT VPA Annual Report Update April-December 2015 (flyer, available in English) 15. Banner Lokalatih Alih Informasi Identifikasi Kayu 16. Banner Pertemuan Pengelolaan Dana Hibah 17. Banner Dialog Perhutanan Sosial (Sorong, Papua) 18. Poster DKP ( Bahasa Jawa) 19. Poster ILW 20. Poster Pemenang lomba Infografis HHI 2016 21. Polo Shirt MFP 22. Polo Shirt Lengan panjang ILW & Saka Wanabakti 23. Polo Shirt Hari Hutan Internasional 2016 24. Polo Shirt “Legal Wood Makes Good Design” 25. Polo Shirt + Celana TIM KPH 26. Brosur SVLK ( Bahasa Indonesia & English) 27. Brosur P3H KLHK 28. Brosur Import Regulation for Forest Product 29. Brosur DKN 30. Brosur Ekspor Industri Kehutanan 31. Roll Up Banner Community Based Forest Management 32. Roll Up Banner Dialog Perhutanan Sosial (Sorong, Papua) 33. Roll Up Banner Konpers 4 Menteri 34. Roll Up Banner HHI 2016 35. Roll Up Banner Testimoni SVLK 36. Pin Plastik ILW 37. Pin Akrilik ILW 38. Pin Kayu ILW 39. Postcard ILW

40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59.

Flashdisk Kayu ILW Gantungan Kunci ILW Payung Golf ILW-MFP Payung Lipat ILW Tas Ransel ILW Tote Bag ILW Sticker ILW Sticker “Buy Legal Wood”, “Make It A Cool World” Souvenir Kacamata Kayu Souvenir Radio Kayu MAGNO Topi Rimba SVLK MFP SVLK Print Ad ( Bahasa Indonesia & English) Annual Report FLEGT VPA Booklet Forest Management Unit Policy Brief Perhutanan Sosial Kalender 2016 Jaket TIM KPH Block Note MFP Kemeja Lapangan KPHP Yapen Materi Pelatihan Identifikasi Kayu P3HH

b. Non-printed materials 1. JIC friendly e-mail (e-newsletter) 2. Buletin MFP3 (e-newsletter) 3. Community Based Forest Management (video, available in English) 4. FMU profile (four profiles, video, available in English) 5. The Journey of Timber (video, available in English) 6. SVLK: Is This Wood Certified (video, available in Indonesian and English) 7. Indonesia Climate Change Challenge (video, available in English) 8. Women Makes Good Forest Governance (video, available in Indonesian with English subtitle) 9. Indonesia’s Timber Legality Assurance System (video, available in Indonesian and English) c.

Print advertisement 1. Legal Wood Makes Good Design (3 editions, published on following magazines: Bravacasa Indonesia and Femina) 2. Saving Our Forest, Strengthening Our Economy (published in Indonesian and English version of Tempo magazine) 3. Kerenkah Rumah Ini? (published in Indonesian version of Tempo magazine) 4. Saving our forest, strengthening our economy (published in Jakarta Post)

d. Merchandise, including pin, keychain, totebag, USB stick, postcard, stickers, roll up banner.

ARUPA

Bumi Hijau Lestari

HUMA

JAVLEC

Agency Grant Agreement #

Strengthening Timber Community Based Forest Enterprises and Small Medium Enterprises

Facilitating community groups as KPH partners and to facilitate agreement of the parties in the preparation and application of Standard Mechanisms for participatory mapping and conflict resolution.

Strengthening Community Forest Farmers Group in Pati, Central Java

SVLK Implementation on private forest and timber small medium enterprise.

Title

• Sustainable timber documentation will facilitate the assessment of the feasibility of the business from the needs of the raw materials.

• Timber management and documentation that will change entire timber circulation chain includes CBFE, Registered Timber yard (TPT), primary industry and SME as main capital to obtain timber legality certification.

• To facilitate CBFE to have business plan to manage the businesses and to provide guidelines for the development of enterprises so that the timber CBFE and SME have clear references to run the business.

• To facilitate the timber CBFE and SME to find best products, market segments and branding communication;.

• To initiate enterpreneurship in the farmer forest group to increase their incomes;

• Seminar to share knowledge among stakeholders related to the mapping and conflict resolution.

• Mainstreaming participatory mapping and conflict resolution;

• Capacity building in participatory mapping and conflict resolution;

• Preparation of standard procedures for conflict resolution and participatory mapping tenurial forestry;

• Institutional strengthening of community groups;

• Expected to have sustainable farmer group to manage forest that produce continuously and with minimum impact on environment.

• Strengthening community forest farmers group program by mentoring activity to the community forest farmers group to manage forest in their private land according to sustainable and SVLK standard in Pati district, central Java with around 1,000 (20 groups with total area covered of 280 Ha) farmers will be involved in this activity

• To facilitate partnership between the owners of private forests and timber businesses.

• To encourage certified community timber trade

• To educate the owners of the timber business product on the SVLK policy related

• Assisting private forest on the SVLK implementation to expand certified total private forest area. The total number of potential forest wood farmers who have been certified on the community forest list is still well-below the needs of the timber industry.

Program Description

Table 2. MFP’s Partners through Grants Mechanism

Annex 7: List of Partners 60 Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

To encourage establishment of registered timber yard (TPT) and to facilitate licensing of wood industries

Forming a self-reliance and entrepreneurship in the forest management unit, the forest village, community forest, community plantation forest and small medium industry with SVLK standard.

Support the Development of FMUs

Updating legal policy to encourage the implementation of KPH, CBFM in Indonesia through strengthening of SVLK partners.

The integration of timber legality verification system (SVLK) based on KKNI into the university’s/ college’s curriculum.

LESEHAN

Sahabat Timur Indonesia (SATIN)

Working Group Tenure

Indonesian Center for Environmental Law (ICEL)

Program Studi Kehutanan Universitas Sumatera Utara

• Training on the material development for the curriculum based KKNI related to SVLK.

• Training on GBPP and SAP development as implication of the curriculum based KKNI related SVLK

• Workshop on the curriculum of the forestry faculty based on KKNI (Indonesia national qualifications framework) related to SVLK

• Workshop on SVLK with primary target audience is educational institutions such as universities or research institutions.

• Facilitation of the formulation of a national policy related to the acceleration of SVLK implementation, CBFM and KPH

• Facilitation of the establishment of group coordination between parties to accelerate the implementation of SVLK at regional level

• To increase human resources capacity and organisational management skills of FMU officers.

• To facilitate the development of RPHJP at 4 KPH targets.

• To share experience between parties on the concreate works on how to manage KPH

• To increase knowledge and understanding of the parties regarding the associated regulation related to forest management unit (FMU).

• Organize a training on Surat Keterangan Asal Usul (SKAU) for Buleleng, Bali area.

• In collaboration with local governments in this regards, Department of Plantations and Forestry especially forestry extension unit to do an inventory of community forest, HD, HKM, HTR and SME in the district of Buleleng.

• Identify perceptions and goals among all parties involved in the project.

• To improve capacity and increase understanding of potential SMEs related to Timber Administration (TUK) on the timber management and Conformity Declaration (DKP).

• To facilitate the strengthening of entrepreneurial activities for potential small and medium enterprise (SME) in Kediri regency.

• To facilitate the formation of registered timber yard (TPT) as a follow-up to the MFP2 program that has facilitated the Forest Management Unit (UMHR) in Trenggalek, Magetan, Nganjuk and Kediri areas

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016 61

SVLK Curriculum development for the university

Increase capacity of the CBFE wooden houses (Woloan) and timber traders/timber yard (TPT) in the implementation of SVLK

Implementation of SVLK Workshop for journalist in East and Central Java, and Yogyakarta.

Strengthening of small timber industry and related government agencies in the implementation of SVLK and FLEGT-VPA in Indonesia

Lembaga Penelitian dan Pengabdian Masyarakat (LP2M) Universitas Nusa Bangsa

Yayasan Lembaga Pemberdayaan dan Pengembangan Sumberdaya (YLP2S)

Perkumpulan Masyarakat Jurnalist Lingkungan Indonesia - The Society of Indonesian Environental Journalist (SIEJ)

Kemitraan bagi Pembaruan Tata Pemerintahan [Kemitraan]

Yayasan Penabulu

Socialization of Permenhut No. 43/2014 dan Pedirjen 5/2014

Title

Agency Grant Agreement #

• Implementation of SVLK socialization activity for DKI Jakarta; West Java; Central Java; East Java; North Sulawesi; Gorontalo; West Sulawesi; South Sulawesi province.

• Managing Joint Implementation Committee (JIC) secretariat

• Strengthening capacity, coordination within organization, network of independent monitoring forestry to monitor the SVLK implementation as well as ensuring its credibility in the global market

• Facilitating the acceleration of certification IUIPHHK holder of up to 6000 m3 outside of Java

• Strengthening policy, coordination and human resources capacity related government agencies for SVLK implementation at district/city and provincial level

• Training on SVLK media coverage for journalist

• Implementation of SVLK seminar and training for journalist in Central, East Java and Yogyakarta

• Mentoring for Supplier Declaration of Conformity for timber products traders/timber yard (TPT)

• Training for Supplier Declaration of Conformity for timber products traders/timber yard (TPT)

• Entrepreneurial mentoring on the wooden houses industry (Woloan).

• Entrepreneurial training on the wooden houses industry (Woloan).

• Implementation of the teaching of the SVLK material/courses to the UNB student.

• Advance training on SVLK for professor and assistant

• SVLK material or course development for university

Program Description

62 Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

• To conduct 1 day seminar to share experiences and formulate important issues related to government policy in the management of Natural Resources in the forestry sector and strengthening the identification of opportunities between systems that can be synergistic.

Seminar of “Synergizing Government Regulation with the Voluntary Scheme Initiative in Supporting the Sustainable Natural Resources Management in Indonesia”

Facilitating the extension of SVLK implementation for the community forest in E. and S. Lampung

Lembaga Ekolabel Indonesia (LEI)

Keluarga Pecinta Alam dan Lingkungan Hidup (Watala)

Bali Lite Institute

• The communication production including regular (monthly) MFP3 MEL newsletter, online and print.

management of MEL MFP3

• Produce series of books and ther communication as per MFP3’s request.

• Conduct MEL training II.

Technical support and

• The management of MEL consultantsvincluding regular travel, accommodation and reporting and other administrative duties related to MEL.

• Provincial workshop

• Capacity building: a). Mapping training (location of community forest to be submitted for SVLK certification, digitation, overlay. b). Inventory training and trees data collection. c). Training on the wood handicraft product.

• Data and document collection, preparation of administrative documentation to meet requirement of the SVLK certification

• Institutional strengthening

• Focus group meeting, task and roles division of the group and agreement on the scope of work in the group.

• SVLK socialization and initial assessment on the areas of work, the community forest management unit groups in East and South Lampung districts

• Internalisation of activities, preparation of detail activities plans and coordination with local department of forestry in South and East Lampung districts and head of BP2HP area VI Lampung.

• to take part in the Furniture Trade Expo event to promote furniture and handicraft products with SVLK standards

Participation of DPD AMKRI Jepara to Trade Expo Indonesia 2014

DPD AMKRI Jepara

• To take part in the Furniture Trade Expo event to promote furniture and handicraft products with SVLK standards

Participation of APKJ Jepara to Trade Expo Indonesia 2014

Asosiasi Pengrajin Kayu Jepara (APKJ)

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016 63

Strengthening the accountability of forest management through the operation of the forest management unit (FMU) and Independent monitor.

SVLK and Improvement Road of Law Management Primer Sector.

Yayasan Auriga Nusantara (AURIGA)

Perhimpunan Lingkar Pembaharuan Desa dan Agraria (KARSA)

Yayasan Genesis

Expansion of managed areas by facilitating community sustainable forest based in Bukit Barisan Landform, Bengkulu province

Strengthening SVLK group for timber yard, IUIPHH and IUI group in Java and Bali

Yayasan Peningkatan & Pengembangan Sumberdaya Ummat (YP2SU)

Title

Agency Grant Agreement #

• Survey and discussions related to the use, management , capital and marketing of forest product

• Submission of proposed provision working area of forest by the village government to the Regent.

• Facilitate mapping village borders proposed forest Working Area.

• Trainings for Ccommunity Participatory Mapping rural mapping team members.

• Facilitate negotiation of village borders.

• Serial Village Meetings to document Preparation proposed Scheme community-based forest resource management.

• Build unnderstanding of development Scheme community-based forest resource management at the selected villages.

• Assessment or Initial observation Villages Potential Development Scheme of community-based forest resource management (Community Based Forest Management; CBFM)

• Facilitate the establishment of provincial Regional Forestry Board (Dewan Kehutanan Daerah – DKD).

• Policy brief on Research of strengthening SVLK and primary sector on forest management

• Multi-stakeholder workshop

• Research of strengthening SVLK and primary sector on forest management

• The operation of FMU in Sorong district (West Papua).

• Align the forestry agenda of Papua through the initiation of multistakeholders forestry forum in Papua.

• Integrating SVLK initiatives with other green inititiaves to make the legal and sustainable timber trade work out.

• Strengthening of SVLK through a credible independent monitoring in Papua, West Papua, South East Kalimantan, Central Kalimantan, West Kalimantan and South Kalimantan.

• Group internal audit as part of SVLK certification.

• Technical assistant on the implementation of SVLK for group members

• Training on Suppliers declaration of conformity (DKP)

• Training on the timber administration (TUK) and

• Conduct workshop on assessment of readiness on the fulfillment SVLK requirement

Program Description

64 Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

To support sustainability forest management in Sumatera

CBFM as a form of guarantee public access to forests.

Independent Monitoring fo SVLK in East Java

Perkumpulan untuk Kemandirian Masyarakat Sipil Sumatera (Pundi Sumatera)

Komunitas Konservasi Indonesia (Warsi)

Pusat Pendidikan Lingkungan Hidup (PPLH) Mangkubumi

• Apply and escort submitted complaint letter to the auditor -related findings obtained from monitoring activities. 5. Develop a monitoring document as a review / evaluation of the implementation of the SVLK in East Java

• Field survey to monitor the implementation of the SVLK in primary industry and secondary industries as well as the circulation of logs .

• Strengthening of information and data in forest monitoring

• Workshops and training in monitoring and implementation SVLK

• Obtaining PAK LHK based on the proposal of the Minister of CBFM scheme in the area of governance KPH

• KPH Unit I and Unit VII to support the expansion of the scheme PHBM Village Forest ( HD ) , Community Plantation Forest ( HTR ) and HKm in the region

• Jambi province :

• Determination of the work area ( PAK ) from LHK Minister based on the proposal that has been done by the regents in West Sumatra .

• Submission of PHBM of the district government ( Bupati ) in West Sumatra to the Minister of Environment and Forests ( LHK ) based map of potential PHBM indicative and villages .

• Encouraging the availability of district service center for the facilitation process by the district to the community

• West Sumatra Province :

• Other activities related to entrepreneurial community based forestry development

• Consolidation to strengthen institutional of APIKS

• Develop Regional Information Knowledge Center (RIKC) as data center and information monitoring and SVLK

• Strengthen the capacity of civil society and understanding in Sumatera about the SVLK implementation and citizen monitoring

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016 65

Independent Monitoring Kalimantan Timber

Strengthening the Capacity of Communities In SVLK Activity Monitoring Implementation In the Work Area Perhutani Unit 1 , Unit 2 and Unit 3

Yayasan Cakrawala Hijau Indonesia (YCHI)

Lingkar Studi Pengembangan Pedesaan (LSPP

Eyes on the Forest

Strengthening the implementation of SVLK through monitoring and improvement of policy on SVLK

To Strengthen the credibility of SVLK through Independent Forest Monitoring

Forest Watch Indonesia (FWI)

Title

Agency Grant Agreement #

• Coordination with local FMUs to facilitate monitoring activities

• Investigation of illegal timber supply chain from Riau and West Kalimantan

• Expansion of scope of monitoring of 20% of management units among HPHs and HTIs during certification process and post monitoring based on MFP3 data in Riau and West kalimantan .

• On-line submission of complaints directly to relevant parties, including MoEF.

• Training on the use of mobile application in monitoring.

• Develop regional on-line database on monitoring results to be linked with the national data base developed by JPIK and other independent monitoring organisations.

• Focus Group Discustion ( FGD ) at the Tapak level between communities as observers with JPIK Central Java

• Standards Compliance Monitoring PHPL Performance Assessment Rights Holder Manage / Perum Perhutani and in the Management Unit (MU) in Central Java.

• Monitoring SVLK Workshop and Discussion of Results Monitoring PHPL

• Policy advocacy to local governments on result of independent monitoring organisations.

• Data base on independent monitoring reports in Kalimantan, to be linked to the national data base..

• Consolidate report on independent monitoring in Kalimantan.

• Monitoring of timber supply chain from Kalimantan.

• To Strengthen and consolidate the networks of independent monitoring in Kalimantan.

• To create synergies between Indonesian Independent Monitoring organisations with international environmental organisations to effectively monitor the timber supply chain from Indonesia to the importing countries.

• To build synergies across independent forest monitoring organisations in order to effectively monitor the timber supply chain

• To raise national profile of independent monitors as an integral part of SVLK.

• To improve effectivity of SVLK through analysis of monitoring results and revisions of SVLK regulations (P.95/2014 and P.14/2014) towards a Government Regulation (PP) on SVLK .

• To improve quality of database on monitoring results as well as public access to the database by developing an online database platform

• Improve Monitoring SVLK

Program Description

66 Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Development of Curriculum and Syllabus SVLK in Higher Education in Samarinda

Strengthening program for competitive , sustainable and export oriented of SME Furniture

ASPEKJA Assistance for VLK Standard Forest Management Development

Enterpreneurship Development of Community-Based Forest Management Unit ( CBFM )

Yayasan Bumi

Yayasan FOKUS Usaha Mikro Kecil dan Menengah PEAC Bromo

Atjeh International Development (AID)

Perkumpulan BDS Indonesia

• Assistances for Marketing Access

• Assistances for Business Financing Access.

• Development of the business capacity of forest management

• Monitoring and Evaluation

• Business Development ASPEKJA

• Development of Forest Management System Standard VLK

• ASPEKJA Institutional Strengthening.

• Preparation and Dissemination

• Marketing Business Forum

• Business Forum Financing for SMEs furniture in the three project sites

• Strengthening training for SMEs furniture business

• Pendampingan desain dan teknik produksi.

• Workshop program assistance

• Finalize Syllabus and Curriculum SVLK

• Quick Test SVLK Learning Module on Higher Education ( Mini - teaching)

• Writing Workshop Syllabus and Curriculum SVLK in Higher Education

• Project Team Establishment and Debriefing.

• SVLK Integration Workshop into Higher Education Curriculum

• Participation in workshop on revision of improvement of SVLK system

• Testing of complaints processing by following up on selected complaints submitted to KAN.

• Cooperation with local media to publish results of independent monitoring.

• Cooperation with local universities and students organisations to develop long-term recruitment of monitors.

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016 67

Forestry Entrepreneurship and SMEs through International Trade Shows in 2016

Capacity Building of FMUs in Yapen, Sorong and South Sorong to strengthen recognition of adat communities and expansion of adat-based CBFMs

Yayasan Riwani Globe

JERAT (Jaringan Kerja Rakyat) PAPUA

Title

Agency Grant Agreement #

• The operation of FMU in Yapen and Sorong district (West Papua).

• Align the forestry agenda of Papua through the initiation of multistakeholders forestry forum in Papua.

• Integrating SVLK initiatives with other green inititiaves to make the legal and sustainable timber trade work out.

• Strengthening of SVLK through a credible independent monitoring in Papua, West Papua.

• Monitoring and Assistance Post- Exhibition

• Training and Exhibition Preparadness

Program Description

68 Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

PT Hatfield

PT. SUCOFINDO

Vendor Contract #

PT Electronic Data Interchange Indonesia (EDII)

Periodic Evaluation design

Impact Monitoring, design and application

SILK Online (Inluded DE & DI)

Title

• Reporting findings to the Joint Implementation Committee

• Assessment of the effective implementation of corrective actions previously identified and recommended; and

• Identification and recording of cases of non-compliance and system failures, and prescribing necessary corrective actions;

• Assessment of the adequacy of data management and timber traceability systems supporting the TLAS as well as the issuance of FLEGT licences;

• Evaluation of the effectiveness of supply chain controls from the point of production in the forest to the point of export from Indonesia;

• Audits of compliance by all bodies undertaking control functions within the provisions of the TLAS;

• Periodic Evaluation (PE) is an independent evaluation done by an independent third party, referred to as Evaluator. The objective of PE is to provide assurance that the TLAS is functioning as described, thereby enhancing the credibility of the FLEGT licenses issued under this Agreement.

• Work in close communication and coordination with the TWG on Impact Monitoring of SLVK implementation on each stages and scope of works.

• Testing methodology approved by collecting data for a variety of indicators agreed.

• Drafting procedures for collecting data (mention source of data, frequency of data collection, analysis and reporting)

• Analysis of strengths and weaknesses of the existing system, as well as the implications of the existing system associated with the requirement of periodic monitoring TLVS impact in the long term.

• Identification of the structure, mechanism, and tools to provide relevant data and information needed to monitor impact of the implementation SVLK periodically in the long term.

• Enhancement of dashboard monitoring module, exporter reporting module, LIU reporting module, e-Filling module, mobile web, user management, alerting system and bug fixing.

• Providing Application services for SSL certificates, integration with INATRADE using ebMS.

• Providing operational services for network monitoring system, site controller, etc.

• Ensuring robust network connection services for SILK Online

• Undertake maintenance of SILK online including Web application server, database server, file storage server, network firewall, DRC & Data centre.

Program Description

Table 3. MFP’s Vendors through Procurement Mechanism

Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016 69

Graphic recording

PT. Kinarya Imaji Citra Kencana

PT. Optima Nuarta Etika

Indonesia Legal Wood Intergrated Communication Campaign

SILK Online (Inluded DE & DI)

PT. Idano Gawo Orahua (IGO)

Title

Vendor Contract #

• To initiate a movement to use and buy only legal-wood based products (with SVLK).

• To create demand and preference towards legal-wood based products (with SVLK).

• To generate awareness and understanding among the target audience towards the importance of using and buying legal wood – based products (with SVLK) for forestry and environment sustainability.

• The consultant will be responsible to develop the Graphic Recording on timber supply chain in both English and Bahasa Indonesia.

• This graphic recording is aimed to share the complexity of forest governance in Indonesia and how MFP3 contributes in improving the governance through its three main working areas: timber legality through timber certification, forestry entrepreneurship development, and community access to forest.

• Development of Social Forestry Licensing Online. MFP will assist the Directorate of Social Forestry to create an online licensing system for HKM, HTR, HD and Social Partnership

• Development of a database KPH Target (Web based) and FMU Online Course. This system is based website, and will be integrated with the system KPH / Department of Forestry and the MFP.

• Development of Online Forum Certified Wood / TLVS market place. MFP3 be facilitated an online system as a market place for the timber industry are already berSVLK, to strengthen the network business to business to ensure the preservation of forests in the future. This online system is made simple, free and easy to use.

• Making Database System KLHK - FLEGT VPA. The aim is to help the Joint Implementation Committee (JIC) in consolidating the data for FLEGT VPA Action Plan. It required an online system that allows search and update the latest data. Making Database System KLHK - FLEGT VPA. The aim is to help the Joint Implementation Committee (JIC) in consolidating the data for FLEGT VPA Action Plan. It required an online system that allows search and update the latest data.

Program Description

70 Multi-Stakeholder Forestry Programme Phase 3 | Annual Report 2016

Event Organizer for Training of Business Plan for Timber Industry and Government Agencies

Event Organizer for Training of Technology Transfer over Wood Identification for Timber Industry and Government Agencies

Event Organizer for High Level Market Dialogue of 2015

PT. Interdev Prakarsa

PT. Global Mandiri Sehati

PT. Mutu Hijau Indonesia

Media Placement

PT. Satu Media Pratama Citra

• The main purpose of this dialogue/meeting is to encourage the LMD 2015 as soon as possible the implementation of the VPA Indonesia - The European Union fully and improve the legal timber trade in the world to tackle illegal logging and illegal trade, and to support the establishment of sustainable forest management. In addition, urges the EU to recognize the V-Legal Document as FLEGT License as set out in the framework of the VPA, and to eliminate policies that may hinder or delay the recognition of the EU.

• To provide inputs, through recommendations and/or regulatory brief, on the proper documentation and legality of timber sources utilised by secondary timber processing industries

• To conduct applicative research to support viability and legality of Teak root extraction as raw materials for secondary timber processing industry, such as plywood, furniture and handicrafts

• To conduct training on commercial wood species of Indonesia and their proper uses/ technology for timber based industries for auditor, facilitator (including forest extension workers, focal points), and government officials (Aparatur)

• To develop curriculum and syllabus for training on commercial wood species of Indonesia and their proper uses/technology for timber based industries for auditor, facilitator (including forest extension workers, focal points), and government officials (Aparatur),

• Sustainability of CBFEs facilitated by MFP3 programme

• Adoption of more implementable strategies for CBFE Developments by PMU

• Development of business plan, at least for the three (3) small scale timber industry already received revolving funds from Bank BRI Agro

• Development of a short course on entrepreneurship and financial management

• Preparing and pitching editorials and analytical features to key media, with close coordination with MFP and the MoEF on the relevant subject

• Providing strategic communications support during key events (including preparing media mobilization plans, preparing press releasses, inviting journalists, etc)

• Coordinating regular placement in media, both local and national level, to highlight key successes or responding on key issues