1. PT Hatfield Indonesia, Indonesia

Abstract: Community-Based Forest Management (CBFM) has had a long experience in Indonesia to support the sustainable forest management. The CBFM approach has evolved into a new model, i.e., Social Forestry (SF). The SF drives to a more legal access from local community to utilize forest area. This SF opens opportunity for a more responsible investment by private sector to create cooperation’s with community organizations. The Forest Investment Program-1 implements CBFM through SF and has conducted activities in 17 villages, targeted a 17,000 ha into an agreement between communities with FMU and private sectors. A SWOT analysis is used to identify potential commodities in the targeted village and also to assess capacity of community organization. Interviews and focused group discussions were conducted to facilitate the development of a proposed cooperation with external parties for potential investment. Within the FIP-1 villages, there are five licenses for Social Forestry. Additionally, 6 new licenses are in the process. A total of USD 5 Million investment is planned for 17 villages. In average, for those 5 villages that has obtained SF licenses, a total of USD 1.6 Million have been invested in creating alternative livelihood, including USD 100 K/village for bee keeping, aquaculture and handicraft business development, USD 1.3 M for forestry program, and USD 222 K for village infrastructure program. In addition to those commodity based investment, the ecosystem services (forest carbon) is also a promising sector for investment. The Social Forestry, with a legal access to forest area, and an improved capacity of community organization, has a great opportunity to be part of the forest carbon business development.

Key words: social forestry, sustainable forest management, Borneo, Kalimantan, community forest