by - International Tropical Timber Organization · problem that the cause‐effect relationship was...

Prepared for the Project by:

Dr. Hiras Sidabutar, Project National Expert and

Mr. Jimmy Chandra, Project Coordinator

Executed by :

Directorate General of Forestry Enterprise Development (BUK), The Ministry of Forestry of Indonesia

In collaboration with :

The Indonesian Sawmill and Woodworking Association (ISWA)

With the assistance of:

The International Tropical Timber Organization (ITTO)

Jakarta, July 2013

Project Title : Operational Strategies for the Promotion of Efficient Utilization of Rubberwood from Sustainable Sources in Indonesia

Serial Number : PD 523/08 Rev. 1 (I) Executing Agency : Directorate General of Forestry Enterprise Development (BUK), The

Ministry of Forestry of Indonesia Manggala Wanabakti Forestry Center, Block I, Floor 5 Jl. Gatot Soebroto, Senayan, Jakarta Phone: 62‐21 5730379 Collaborating Agency : Indonesian Sawmill & Woodworking Association (ISWA) Manggala Wanabakti Forestry Center, Block IV, Floor 8, Wing C Jl. Gatot Soebroto, Senayan, Jakarta Phone: 62‐21 5746336 Starting date : May 2010 Duration : 36 months Budget : ITTO US$ 605,094 Disbursed amount US$ 449,040 GOI/ISWA US$ 302,700 Total US$ 907,794 Project Key Personnel:

‐ Mr. Jimmy Chandra, Project Coordinator

‐ Dr. Hiras P. Sidabutar, National Expert

‐ Ms. Diah Herlinawati, Project Secretary

‐ Ms. Herlina Lesmana, Project Finance

‐ Mr. Josef Dwinanta, Project Technician Published by : BUK, ISWA and ITTO

Place & date : Jakarta, July 2013 Copyright © ITTO Project PD 523/08 Rev. 1 (I) This report is the product of the BUK, ISWA and ITTO; interested parties may reproduce the report in whole or in part solely for own use by acknowledging its source, otherwise requires prior written permission of the copyright owner if used for commercial purposes.

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List of abbreviation

BUK : Bina Usaha Kehutanan/Forestry Enterprise Development BRIK : Forest Industry Revitalization Body CEA : Crop‐Estate Agency DG : Directorate General FORDA : Forestry Research and Development Agency GOI : Government of Indonesia Inpres : Presidential Instruction IPB : Bogor Agriculture University/Insitut Pertanian Bogor ISWA : Indonesian Sawmill & Woodworking Association ITTO : International Tropical Timber Organization JPFA : Jambi Provincial Forestry Agency MOF : Ministry of Forestry MOU : Memorandum of Understanding MDF : Medium Density Fibreboard NGO : Non‐government Organization NOL : No Objection Letter PCA : Provincial Crop‐estate Agency PFA : Provincial Forestry Agency PMT : Project Management Team PTC : Project Technical Committee PTPN : Perkebunan Nusantara Co. Ltd. PSC : Project Steering Committee R & D : Research & Development SKAU : Surat Keterangan Asal Usul/Certificate of Origin UGM : Gajah Mada University YPO : Yearly Plan of Operation

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Table of contents

List of abbreviations ……..……………………………………………….………………………………………………………. iii

Table of contents …….……………………………………………….…………………………………………………………….. iv

Executive summary ….…………………………………………..…………………………………………………………………. v 1. PROJECT IDENTIFICATION

1.1. Context ………………………….……………………………………………………………………………………. 1 1.2. Origin and problem ………………..…………………………..………………………………………………….. 2

2. PROJECT OBJECTIVES AND IMPLEMENTATION STRATEGY

2.1. Project objectives ………….……………………………………………………………………………………. 4 2.2. Project implementation strategy ………………………………………………………………………….. 4 2.3. Assumptions and risks …………..……….……………………………………………………………………….. 5

3. PROJECT PERFORMANCE

3.1. Planned vs realized performance ……………………………………………………………………………. 7 3.2. Time schedule ..............................………………………………………………………………………….. 10 3.3. Inputs applied ..............……………..………………………………………………………………………….. 10

4. PROJECT OUTCOME AND INVOLMENT OF TARGET BENEFICIARIES

4.1. Achievement of the specific objective …………………………………………………………………. 12 4.2. Pre‐Project’s vs at project completion’s situations ……………………………………………….. 19 4.3. Involvement of the target beneficiaries ……………………………………………………………….. 26 4.4. Project sustainability .....…………..………………………………………………………………………….. 28

5. ASSESMENT AND ANALYSIS

5.1. Project rationale and identification process ………………………………………………………. 30 5.2. The problems addressed, project design and implementation strategy ……………….. 30 5.3. Critical differences between planned and actual implementation ......……………….. 31 5.4. Adequacy of projects inputs …..………………………………………………………………………….. 33 5.5. External influences ...............…..………………………………………………………………………….. 34 5.6. Project beneficiaries ............…..………………………………………………………………………….. 34 5.7. Project sustainability .............…..………………………………………………………………………….. 35 5.8. The institutions involved in project implementation ........………………………………….. 35

6. LESSONS LEARNED

6.1. Project identification and design …………………………………………………………..……………. 37 6.2. Project implementation ……………………………………………………………………….…………….. 37

7. CONCLUSIONS AND ROCOMMENDATIONS

7.1. Conclusions ………………………………….………………………………………………………..……………. 39 7.2. Recommendations ………..…………………………………………………………………….…………….. 40

Selected references

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Executive summary Project identification and design

1. The Indonesian wood industry had been facing raw material supply problem since early 1990s as evident by the decreasing capacity utilization rates of installed capacity in the primary wood industries and declining production of both sawn timber and plywood.

2. Completed ITTO pre‐project documented in 2005 that the total area of rubber plantations in Indonesia was around 3.4 million hectares; replacement of old, unproductive plantations could yield about 13.5 m3 of logs in a sustainable basis but only around 22 percent of this potential had been utilized by the primary forest industries.

3. The full utilization of the log potential would be a significant contribution to lessening the raw material supply problem facing the national wood industry. Accordingly, the key problem addressed by the project was “very low utilization rate of rubberwood from old rubber plantations”.

4. The key problem was adequately analyzed in order to clearly reveal its direct as well as indirect causes and consequences; the clear cause‐effect relationship had facilitated construction of a sound project design having the elements that were relevant to solving the problems at hand.

5. Correspond to the key problem addressed, the specific objective of the project was defined as “to promote the utilization of rubberwood from sustainable sources” which was expected to be achieved through delivery of five outputs and execution of twenty‐two activities.

Project implementation and strategy

6. The project was executed by the Directorate General of Forestry Enterprise Development (BUK) of the Ministry of Forestry in collaboration with the Indonesian Sawmill and Woodworking Association (ISWA) for thirty‐six months starting May 2010.

7. The strategy pursued comprised three major elements namely to motivate and convince the rubber growers, improve enabling conditions and demonstrate appropriate technologies for action. The strategy was operationalized in a collaborative manner involving the primary beneficiaries, concerned government authorities and partners.

8. The project had been implemented in a smooth fashion without major difficulties and with only minor adjustments to planned activities and budget which was attributable

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mainly to the sound project design, appropriate implementation strategy, supportive main stakeholders and able project management team.

9. The project was implemented in full observance of the project agreement, existing ITTO rules and procedures as well as GOI’s regulations governing international cooperation. During the course of project implementation, three yearly plans of operation, five bi‐annual progress reports and three financial audit reports had been submitted to ITTO while fourteen no‐objection letters had been issued by ITTO at the request of the executing agency.

10. The assumptions made were valid during the project duration; the potential risks identified during the project formulation stage had been successfully kept from occurring through execution of pre‐specified mitigating measures in a consistent manner.

Project performance

11. All planned project activities had been fully executed with minor adjustments to timing of execution of three activities and to the scope of two activities while two new activities had been identified and implemented with the prior endorsement of the Project Steering Committee (PSC).

12. All planned and additional activities had been completed within the sanctioned time and financial budget; the activities were completed within thirty‐six months with ITTO funds expended in a total amount of US$ 439,819 or US$ 9,221 unspent funds by end of June 2013.

Project outcome and involvement of target beneficiaries

13. Achievement of the project has been assessed using the revised indicators; five defined outputs had been achieved or delivered noting that Output 1 was achieved partially while Outputs 2 and 5 were slightly short of the targets. The specific objective has been declared as “nearly achieved” due mainly to the partial achievement of Output 1 and the short of targets performance of Outputs 2 and 5.

14. Among the tangible project results are the proceedings of the workshops, technical reports on the implementation of pertinent activities of individual outputs, manuals on appropriate technologies, several technical documents of various topics, and 398 trained farmers on skills for rubber tree harvesting, agro‐forestry model development, rubberwood preservation, charcoal making and logs sawing operations.

15. The policy implication that worth mentioning is the announcement of Permenhut No. 30 of 2012; formulation of this ministerial decree took into account the comments and observations on the requirement of SKAU for shipment of forest products made by the main stakeholders during the occasions of the workshops organized under the project.

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16. The primary beneficiaries were actively involved in the project implementation: rubber farmers were involved in the training programs, dialogues and workshops; the rubber companies were involved in the conduct of feasibility study, organized dialogues and workshops; the wood industries were involved in the procurement, installment and testing of sawing machineries and in organized dialogues and workshops.

Lesson learned

17. Among the important lessons learned from the project formulation process are:

The key problem addressed by the project was identified under the completed pre‐project and adequately analyzed involving the main stakeholders; the problem analysis identified direct and indirect causes as well as consequences of the key problem that the cause‐effect relationship was definitely clear and easy to digest.

The clear cause‐effect relationship had facilitated construction of a sound project design having strong vertical logic, relevant elements and well defined interventions .

The sound project design had eased the operational planning and facilitated the smooth project implementation with only minor adjustments to planned activities.

The implementation strategy adopted that comprised elements of motivating and convincing of rubber plantations owners, improvement of enabling conditions and introduction of appropriate technologies was proved applicable and effective in achieving the specific objective.

The variations between planned and actual implementation had occured due mainly to the lack of information on specific matters and the Project Coordinator’s concern over operational efficiency; the variations could have been avoided by conducting an ex‐ante evaluation prior to commencing with the project operations.

The critical determining factors of project sustainability include applicability of the technologies and skills learned by farmers from the project, continued political support by the governments at different levels and enhanced cooperation between rubber and wood processing companies in the utilization of rubberwood from replanting areas.

18. Among the important lessons learned from the project implementation process are:

The Executing Agency of the project was the Directorate General of BUK that had mandated ISWA to fully implement the project based on a Memorandum of Understanding signed by both parties establishing roles and responsibilities of each in a clear manner which had avoided any confusion during the course of project implementation.

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To implement the project, ISWA had established a small Project Management Team (PMT) comprising four project key personnel, one national expert and two DG BUK counterparts; the small PMT proved able to adequately perform project management tasks in an efficient manner.

The monitoring and evaluation of progress in implementation had been performed through two Project Technical Committee (PTC) meetings, four PSC meetings and monthly technical meetings of the PMT; such meetings had greatly contributed to the smooth project operations.

The strategy pursued in implementing the project was defined during the project formulation stage consistent with the project elements specified and operationalized in a collaborative manner by working closely with the primary beneficiaries, relevant institutions and national consultants; the strategy proved effective in achieving the specific objective.

The project was managed in full compliance with existing ITTO rules and procedures; all the documents required by ITTO including (Yearly Plans of Operation) YPOs, bi‐annual progress reports, financial audit reports and documents of particular had been timely submitted to ITTO and facilitated immediate issuance of any approvals requested by ISWA.

The roles and responsibilities of ISWA and the national consultants were well elaborated in the respective terms of reference which had facilitated accomplishment of assigned tasks in an effective fashion.

The project had been successfuly completed within the sanctioned financial and time budget due mainly to the adequate project design, supportive primary beneficiaries and partners, strong coordination with ITTO and DG of BUK as well as the cooperative and competent national consultants.

The active participation of rubber farmers in the implementation of relevant activities was realized without any major difficulties because the farmers were convinced that the activities would greatly contribute to their livelihood.

The original indicators of achievement defined in the Logical Framework Matrix (LFM) was exclusively based on the project design constructed during the formulation stage; appropriateness of the indicators as a tool for measuring achievement was evaluated regularly at the beginnings of current years of operation and adjusments made as necessary based on actual progress in implementation.

Conclusions and recommendations

19. The conclusions drawn from the entire process on formulation and implementation stages are:

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The key problem addressed by the project “very low rate of utilization of rubberwood from sustainable sources” was identified under the completed ITTO‐assisted pre‐project involving the main stakeholders based on the preliminary estimate of existing rubberwood growing stock and its state of utilization; successful removal of the key problem would greatly contribute to lessening the wood supply problem facing the national wood industry.

The key problem was adequately analyzed, its causes and sub‐causes as well as consequence were clearly specified; the project design was constructed based on a clear and logical cause‐effect relationship that its vertical logic was strong and its elements were consistent with the problems to be resolved.

The project was implemented by ISWA on behalf of Directorate General of Forestry Enterprise Development (BUK) with close supervision by the Directorate of Forest Product Processing and Marketing (BPPHH) of BUK without any major administrative or operational difficulties.

The project had been smoothly implemented and successfully completed to achieve its defined specific objective; the smooth implementation and successful completion of the project were made possible by, among others :

‐ The sound project design that eased operational planning; ‐ The effectiveness and appropriateness of the implementation strategy; ‐ The adequate resources in terms of manpower, funds and time; ‐ The generally strong support of the primary beneficiaries and partners, and ‐ The able project management team.

The project operations were managed by a small management team comprising the project coordinator, a secretary, a finance staff, a technician, a national expert and two BUK counterparts that was able to complete the project within the sanctioned financial and time budget.

The specific objective defined was nearly achieved through the full execution of twenty‐two planned as well as two additional activities pertaining to five outputs and delivery of the outputs noting that three outputs were fully achieved and two outputs were slightly short of targets.

The assumptions made were valid throughout the project duration and the mitigating measures defined were effective in preventing the potential risks from happening.

The indicators of achievement originally defined had been revisited at the beginnings of current years of operations and necessary adjustments made based on progress in implementation to ensure applicability and appropriateness of the indicators as the tool for measuring project achievements.

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The primary beneficiaries of the project had demonstrated their cooperative and supportive attitude towards the project implementation noting that the rubber companies were less cooperative for business policy, technical and administrative reasons.

20. The following recommendations have been made based on above lessons learned and conclusions:

It is strongly recommended that any ITTO project proponent to perform an adequate analysis of the problem to be addressed in accordance with existing ITTO manual on project formulation to ensure clarity of cause‐effect relationship.

To be sound, a project design must be constructed based on a clear cause‐effect relationship to ensure relevance and effectiveness of project interventions to solving the problems at hand.

Any collaboration in project implementation should be based on a memorandum of understanding that clearly defines roles and responsibilities of the parties involved in order to avoid unnecessary confusion and disharmony of institutional relation during the project implementation.

To ensure a smooth implementation and successful completion of a project, appropriateness of strategy for implementation, adequacy of inputs as well as support of primary beneficiaries and partners are among the enabling conditions that are required to prevail.

It is best to employ a small but able project management team in order to minimize cost of personnel, ensure effectiveness of coordination and increase adaptability to changing project environment.

Achievements of a project must be assessed using the pre‐specified indicators; to be realistic as a tool for measuring achievements, such indicators need to be occasionally revisited and adjusted as necessary based on progress in implementation.

The potential risks associated with the project implementation should be defined correspond to the assumptions made; relevant mitigating measures identified during the project formulation stage must be exercised and modified as necessary during the course of project implementation.

It is strongly recommended for BUK and ISWA to continue exploring the possibility of establishing cooperation between the rubber companies with wood industries in rubber logs supply through organized dialogues between high‐rank officials of the Ministries of Forestry, Agriculture and State‐owned Companies, in view of increasing value‐added of the rubberwood harvested from replanting areas.

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1. PROJECT IDENTIFICATION

1.1 Context

The utilization rate of installed production capacity in sawmilling industry increased from 86% in

1980 to 97% in 1989 but went down to only 41% in 2005; in the plymilling industry the rates increased

from 51% in 1980 to 99% in 1997 but decreased sharply to 42% in 2005. The main reason was the

timber domestic supply problem due to scarcity of wood raw material, dwindling supply capacity of

natural forest, in-efficiency in processing, low quality of products brought about by the use of

inappropriate, relatively old technologies, lack of professionalism at both management and operation

levels and sluggish adjustment of mentality to the increasing scarcity of wood situation.

Realizing the fact that the national wood industry was weakening which certainly entailed

undesirable far reaching implications, then the government had embarked in five priority programs,

one of which was “revitalization of the forestry sector focusing on the wood industry”. The annual

harvestable, volume of rubber logs was estimated by PPD 80/03 Rev. 2 (I) at around 13.5 million m3 of

which only a tiny part had been utilized by the processing mills mainly in Sumatra Island. This

sustainable resource when fully utilized could significantly reduce the raw material supply problem

facing the national wood industry and increase exports of rubberwood products especially furniture

parts and chip wood.

Among the main activities of the wood industry revitalization program that had been

implemented by the time this project was formulated were:

• To speed up the establishment of forest plantations through identification of suitable lands;

• To improve productivity of natural forest through enrichment planting of logged over areas

using genetically improved planting materials of dipterocarps species in collaboration with

forest concession holders;

• To continue reviewing and enhancing existing rules and regulations on wood industry

development in collaboration with the Ministries of Industry and Trade and with the national

timber associations; and

• To form BRIK (Forest Industry Revitalization Body) in 2003 mandated to oversee exportation

of wood products; export permits are to be granted only to those companies that consume

wood originating from legal and verifiable sources.

In addition, the activities that had been initiated to overcome the raw material supply problem

included:

On the supply side:

- Forest plantation development and introduction of genetically improved fast growing species as

mentioned above

- Practice of reduced impact logging

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- Rehabilitation of degraded forests using fast growing species

On the demand side:

- Improved processing efficiency and product quality

- Product diversification

- Promotion of lesser used species

1.2 Origin and problem

Project PD 523/08 Rev. 1 (I) was built on the findings of completed pre-project PPD 80/03 Rev.

2 (I) entitled “Promoting the utilization of rubberwood from sustainable sources in Indonesia”; the

findings are summarized below:

i. The total area of rubber plantation in Indonesia in 2005 was around 3.37 million ha, distributed

in Sumatra Island 2.38 million ha (71 %), Kalimantan Island 0.83 million ha (25 %) and other

islands 0.16 million ha (4 %).

ii. In terms of ownership, bulk of plantations, 2.88 million ha or 86%, were owned by smallholders

or farmers and 0.49 million ha or 14% by state-owned and private companies.

iii. The smallholding plantations were normally not well managed, highly fragmented with area

less than 5 ha per owner, poor accessibility, low production of latex and limited replacement of

old trees thus harvesting of wood. In contrast, the large scale plantations owned by the

companies were well managed with high accessibility, area of individual blocks averaging well

above 500 ha, with high yield of latex and well scheduled replacement of old plantations.

iv. The rubber companies commonly replace plantations at 25 years of age; applying this

replacement age nation-wide, the rate of replacement or replanting would be around 134,892

ha per year, 116,000 ha by smallholders and 18,892 ha by companies.

v. Based on the preliminary growing stock surveys conducted in Sumatra and Kalimantan, it was

found that the average volume of wood biomass was 240 m3 and 200 m3 per hectare,

respectively. Therefore, around 30.81 million m3 of wood biomass is harvestable per year in

Indonesia of which around 13.5 million m3 were saw logs having average diameter of 20 cm

and up.

vi. Out of the 13.5 million m3 of saw logs, only about 2.96 million m3 or 22 % had been utilized so

far, mostly originating from large scale plantations owned by rubber companies, for sawn

wood and veneer and only a tiny amount of biomass was used in Medium Density

Fibreboard (MDF) making in Sumatra Island.

vii. The extremely low rate of rubberwood utilization were caused mainly by: i) lack of interest in

the utilization of rubberwood owned by companies; ii) lack of incentive and capacity to replace

and utilize old trees by smallholders; iii) weak government policy on rubberwood utilization; iv)

lack of investment in rubberwood utilization mainly due to poor accessibility and unavailability


of reliable information in terms of quantity, quality and distribution of resource; and iv)

unavailability of appropriate technology for commercial utilization of rubberwood on

smallholding plantations.

The key problem addressed by the project was “very low rate of utilization of rubberwood”. The

corresponding specific objective was defined as “to promote the utilization of rubberwood from

sustainable sources”, i.e. from replanting areas. This objective was certainly relevant to overcoming or

lessening the raw material supply problem facing the national wood industry.

oooOOooo


2. PROJECT OBJECTIVES AND IMPLEMENTATION STRATEGY

2.1 Project objectives

One of the main problems facing the wood industry in Indonesia was insufficient supply of wood

raw materials. While vast rubberwood biomass was available from rubber plantations to feed the

industry thus potentially could lessen the problem, only a tiny portion of the resource had been utilized

by the industry. Estimated total extractable volume of saw logs in 2005 was around 13.5 million m3 of

which only around 2.96 million m3 or 22% had been used mainly in the production of sawn wood and

veneer. The very low rate of utilization was indeed a waste of rubberwood resource in light of the

shortage of wood raw material supply thus had to be increased to the extent possible considering the

potential harvest from replacement of old rubber plantations. Therefore, it was thought imperative to

promote the utilization of rubberwood resource in the near future in light of resource availability and

the problem facing the national wood industry.

Consistent with the wood industry situation and potential growing stock of rubberwood on old

rubber plantations, the project objectives were defined as follows:

• Development Objective: To contribute to the lessening of wood raw material supply problem facing the national forest industry by utilizing the vast rubberwood available from sustainable sources.

• Specific Objective: To promote the utilization of rubberwood from sustainable sources.

2.2 Project implementation strategy

In order to deliver planned outputs and achieve the specific objective and contribute to

achieving the development objective of the project, the basic strategy adopted is as summarized

below:

• Motivating and convincing

There was a compelling need to first motivate and convince the primary stakeholders to utilize

available rubberwood from replanting areas. The main targets were rubber growers, both

companies and smallholders, concerned government authorities at the central, provincial and

district levels, wood processors and potential investors. To this end, reliable and updated

information on potential benefits of utilizing rubberwood resource; quantity, quality and distribution

of the resource as well as on product markets and processing technologies must be made

available. The said information would bring about clear understanding on the rationale for

rubberwood utilization which in turn would motivate and convince target groups to take part in

rubberwood utilization undertakings. Expected main outcomes of motivating and convincing

activities were increased interest amongst rubber growers to replace old plantations and utilize

available rubberwood in a proper manner.


• Improving the enabling conditions

Existing policies governing rubberwood utilization appeared less supportive to perform an efficient

utilization of rubberwood resource thus had to be reviewed and enhanced. Adoption of enhanced

policy on rubberwood utilization that takes into account the natural properties of rubberwood, the

plantation settings, efficiency as well as quality of processing was argued as prerequisite to

improving enabling conditions for investment and to building up competitiveness of investors.

Therefore, reviewing of existing policies and improving coordination amongst authorities

concerned were thought indispensable for improvement of the enabling conditions which would

motivate and convince stakeholders to invest in rubberwood resource utilization.

• Equipping for action

Considering the natural properties of rubberwood and the environment of its utilization, there was

a compelling need to introduce appropriate technologies. These technologies had to be pilot

tested prior to disseminating to interested parties through various means. Without these

technologies it was hard to imagine how rubberwood from farmers’ plantations could be efficiently

utilized.

It should be emphasized that utilization of wood from large plantations and that from

smallholding plantations had to be carried out using different strategies and activities due to the fact

that features of these two groups of plantation are considerably different from each other in terms of

accessibility, wood quality and perception of owners towards utilization. To be successfully

implemented, the project would have to work closely with government authorities at all levels, with

local universities and NGOs, with ISWA members companies taking advantage of their established

network at the project sites and with other forestry associations.

Provinces of Jambi and South Sumatra had been selected as the location of the project as

these two provinces alone contain around thirty-six percent of smallholding plantations in Indonesia.

Two districts in each province were selected as the project sites in close consultation with the

respective provincial governments, namely Batanghari and Muaro Jambi districts in Jambi provinces;

Ogan Ilir and Banyuasin districts in South Sumatra province. In addition, North Sumatra province was

also selected as the project site to implement the activities relating to rubber companies as most

rubber plantations owned by companies were located in this province.

2.3 Assumptions and risks

The major assumptions made to ensure a successful implementation of the project were: i)

competent consultants are available in time, ii) rubber companies are cooperative, iii) rubber farmers

are supportive, iv) political support of the governments continues, and v) appropriate technologies are

adopted by forest beneficiaries. To avoid the risks associated with each of the assumptions, planned

mitigating measures are as described in Table 1:


Table 1. Assumptions, potential risks and mitigating measures

Assumptions Potential risks Mitigating measures

Competent consultants are available in time

Competent consultants not available in time

To solicit needed consultants well in advance and sign MOUs with qualified consultants at the early stage

Rubber companies are cooperative

Rubber companies not cooperative

ISWA executives are to make early contacts with selected companies in North Sumatra explaining the objectives of the project

Rubber farmers are supportive

Rubber farmers not supportive of the project

To conduct intensive dialogue with farmers in collaboration with concerned local governments and local NGO elucidating the project objectives

Political commitment of the government continues

Commitment to increasing rubberwood utilization weakening

To continuously communicate and coordinate with concerned government authorities especially the Ministries of Forestry, Agriculture and Interior through organization of consultative meetings and workshops

Appropriate technologies adopted

Target beneficiaries not keen to adopt new technologies

To undertake technology transfer through conduct of relevant training programs by experienced trainers; such programs are to be designed taking into account the interest of target beneficiaries, educational as well as occupational background of participants

oooOOooo


3. PROJECT PERFORMANCE

3.1 Planned vs realized performance

a. Specific objective

The specific objective was defined during the project formulation stage as “to promote the

utilization of rubberwood from sustainable sources”, corresponded to the key problem addressed.

There was no change made to this defined specific objective during the project implementation.

b. Outputs and activities

Table 2. Progress in implementation and summarized findings

Output/Activity Completion

status/change made to activity

Summarized findings

Output 1: Interest in the utilization of rubber wood owned by big companies increased

Act. 1.1 To provide reliable information on potential benefits of utilizing rubber wood owned by big companies

100 %, YPO 1 No change

• Investment in rubberwood processing by PTPN II not

feasible, insufficient log supply • App. 1,000 ha harvest is required to support

investment in economic scale of sawmilling and woodworking

• Findings presented to the workshop in Medan

Act. 1.2 To facilitate intensive dialogue between large-scale rubber tree growers and the wood industry for adjustment of replanting schedule by big companies to ensure steady supply of wood to processing mills


• Consultations conducted with the Executives of

PTPN II, PTPN III, Bridgestone SRE and London Sumatera companies

• Discouraging result, adjustment to replanting schedule not in the interest of rubber companies

Act. 1.3 To organize one national workshop on rubber wood utilization involving main stakeholders


• The national workshop on “Promoting the Utilization

of Rubberwood from Replanting Areas of Companies and Farmers” conducted in Medan on 20-21 January 2011

• 64 participants discussed on 5 professional papers • Problems on rubberwood utilization identified

Act. 1.4 To facilitate establishment of joint investment between rubber growers and wood processors in rubberwood utilization


• Establishment of joint investment not feasible due to

bussiness policy of rubber companies • PTPN III looks reluctant to cooperate with ISWA

member companies in favor of its subsidiary company

Output 2: Incentives for and capacity in the utilization of wood from farmers’ plantations improved

Act. 2.1 To provide reliable information on potential benefits of utilizing rubber wood owned by farmers


• Potential use of rubberwood identified

• Potential revenue of farmers from rubberwood utilization estimated and communicated


Act. 2.2 To carry out intensive consultation with farmers regarding requirements for and impacts of rubber wood utilization on farmers’ livelihood


• Constraints to and requirements for rubberwood utilization by farmers identified through dialogues

• Farmers are in need of incentive and assistance to replace old plantations

Act. 2.3 To establish models plantation with cash-crops inter-planting for demonstration and training of farmers (4 sites, total 20 Ha)


• Agro-forestry model for rubber replanting established at four sites totalling 14 ha in size

• The rubber planted under agro-forestry model developed well

• Yield of cash-crops less satisfactory particularly in Jambi province due to poor experience and treatments

Act. 2.4 To train farmers on efficient techniques for replanting and harvesting of old trees (4 trainings, 80 trainees)

100 %, YPO 2 Adjusted, see Section 5.3

• 87 farmers trained on agro-forestry techniques

• 80 farmers trained on harvesting techniques

• Farmers found interested in agro-forestry model for replanting

Act.2.5 To identify feasible options for adoption by local governments to assist farmers in replanting of rubber


• Support of seedlings, fertilizers, pesticide, etc. (saprodi) using central and local government funds

• Development of access road to plantation sites to increase economic value of rubberwood

• Deregulation of procedures and requirements for obtaining bank credit and transporting of rubberwood products

Output 3: Government policy governing rubber wood resource utilization revised and enhanced

Act. 3.1 To review the existing laws, rules and regulations on rubber wood utilization


• Only Ministry of Forestry (MOF) decrees on shipment of rubberwood were found effected

• Other local regulations (Perda) had been abolished

Act 3.2 To formulate a new policy that encourages efficient utilization of rubber wood resource


• Inputs to enhance policy on SKAU provided during the workshops

• The inputs were used in the formulation of Permenhut No. P 30 of 2012

Act. 3.3 To organize one national workshop on the new policy involving main stakeholders


• The workshop conducted in Jakarta on 20-21 December 2011

• 60 participants discussed on 5 professional papers • The workshop proposed to formulate a presidential

instruction (Inpres) to accelerate rubberwood utilization nation-wide

Act. 3.4 To establish coordinating mechanisms of rubber wood resource utilization at different levels of government


• Establishment of the mechanism discussed with concerned provincial and district authorities and wood industries in 4 provinces

• Operation of a new mechanism was not supported by consulted stakeholders

• Need to activate existing institutions by assisting in operational funding and skills

Act. 3.5 To submit the new policy to the government for adoption


• Draft Inpres prepared and discussed with Forestry Research and Development Agency (FORDA) and academicians


• Lack of support on Inpres formulation due mainly to questionable accuracy of growing stock data on farmers’ plantations

• Need to do inventory survey to collect reliable growing stock data to justify formulation of an Inpres

Output 4: Investment in rubber wood utilization increased

Act. 4.1 To provide and disseminate up-dated information on rubber wood growing stock, product markets and processing technologies from primary and secondary sources


• Information on growing stock, markets and processing technologies obtained from primary and secondary sources searched and uploaded to installed website

• The website is located at www.ittoiswa.com

Act. 4.2 To conduct field surveys on growing stock of farmers’ rubber plantations at four selected sites and produce update map of plantations in Sumatra island


• Data on growing stock collected from 36 sample plots in 4 districts; average volume of saw logs varied from 16 to 58 m3/ha

• Map of rubber plantations in Sumatra updated in collaboration with DG of Crop-estates of the Ministry of Agriculture

Act. 4.3 To organize two regional workshops on investment in rubber wood resource utilization and its potential role in economic development


• Two planned workshops were combined with prior approval of PSC and conducted in the City of Jambi on 4-5 October 2011

• 71 participants discussed on 8 professional papers • Collaboration between farmers, wood industries and

government is prerequisite to increasing investment

Act. 4.4 To install and operate a publicly accessible rubber wood information system


• A publically accesible website on rubberwood utilization installed and operational since year 2

• The address of the website is www.ittoiswa.com • Main content of the website comprises “about the

project, source of rubberwood supply, processing technologies and products markets”

Output 5: Appropriate technologies are available for the utilization of rubber wood from smallholding plantations

Act. 5.1 To identify alternative technologies and select most promising alternative


• Promising technologies identified using prespecified criteria including suitability and availability of equipment as well as simplicity and sustainability of operation

• On ground of investment magnitude, farmers are recommended to focus on producing sawn timber, wood chip, wood pellet and charcoal

Act. 5.2 To procure, install and pilot test equipment and facilities for sawing, peeling, chipping and kiln-drying


• Multi-ripper sawing machineries purchased, installed and tested at PT Jaya Cemerlang Industry in Tangerang

• Procurement of equipment for peeling, chipping and kiln-drying was cancelled with approval of PSC due primarily to poor access road

Act. 5.3 To publish and disseminate information on pilot-tested technologies and conduct two trainings for rubber growers, investors and local government staffs


• 2 training sessions on operation of multi-ripper sawing machineries completed with 37 participants

• 80 farmers trained on preservation of rubber logs using simple techniques and locally available materials and tools

• 114 farmers trained on charcoal making • 28 charcoal kilns distributed to farmers in 12 villages

Act. 5.4 100 %, YPO 3 • Draft R & D program prepared and reviewed involving the main stakeholders including FORDA,


http://www.ittoiswa.com/

To develop a R&D program on rubber wood resource utilization in collaboration with main stakeholders

No change Centers for R & D on rubber of the Ministry of Agriculture, rubber companies, universities and wood processors

• Final draft R & D program will be submitted to FORDA for use in R & D planning

Notes: The trainings on techniques for wood preservation and charcoal making were supplementary to the original project activities endorsed by the PSC.

3.2 Time schedule

• The project actually commenced in May 2010

• Planned duration of the project was 36 months; planned project activities were all completed

within the sanctioned time, i.e from May 2010 to April 2013

• In accordance with the project agreement, the Executing Agency is to submit a completion

report and relevant technical reports by end of July 2013 and a final financial audit report by

end of August 2013

• The Executing and Collaborating Agencies are currently striving to finish up the reporting work

3.3 Inputs applied

a. Manpower

i. Project Key Personnel

The key personnel employed by the project based on the no-objection-letter (NOL) of ITTO

No. F. 10-0112 of 10 May 2010 were:

- Project Coordinator : Mr. Jimmy Chandra, ISWA

- Project Secretary : Ms. Diah Herlinawati, ISWA

- Finance : Ms. Herlina Lesmana, ISWA

- IT : Mr. Josef Dwinanta, ISWA

In addition, a national expert, Dr. Hiras P. Sidabutar, was also hired by the project at the

request and financial burden of ISWA.

Two BUK counterparts, Ms. Aryani S. Hut. and Mr. Agus Rahmat S. Hut. had been appointed

by BUK through the executive decision of the Director General No. SK 38/VI-BPPHH/2010 of

16 April 2010.

ii. National Consultants

Nine (9) National Consultants had been employed by the project with the prior expressed

approval of ITTO to assist in the execution of Activities 1.1; 2.1; 2.2; 2.3; 2.4; 2.5; 3.1; 3.2; 3.4;

4.1; 4.2; 4.4; 5.1; 5.2; 5.3 and 5.4


iii. Provincial Jambi Forestry Agency had been appointed as the organizer of the implementation

of Activity 4.3 based on the executive decision of the Directorate of Forest Products

Processing and Marketing No. S.231/BPPHH-3/2011 of 19 July 2011.

iv. NGO Komunitas Anak Kampung was employed by the project to assist in the implementation

of Activities 2.1 and 2.2 as a follow-up to the concern over assuring the smooth project

operations raised by the ITTO Forest Industry Projects Manager at the first meeting of the

PSC on 29 April 2011.

b. Expenditures

Realized expenditures as of 30 June 2013 are as follows:

a. Funds received by ISWA : US $ 449,040

b. Funds expended : US $ 439,819

c. Unspent funds retained by ISWA : US $ 9,221

d. Undisbursed funds by ITTO : US $ -

Financial audit reports on the fiscal years of 2010 and 2011 had been timely submitted to ITTO and

endorsed; with the endorsement of ITTO, the audit report on fiscal year of 2012 will be combined

with the final report scheduled for submission by end of July 2013.

oooOOooo


4. PROJECT OUTCOME AND INVOLVEMENT OF TARGET BENEFICIARIES

4.1 Achievement of the specific objective

a. Original vs revised indicators

Table 3. The original and revised indicators of achievement

Project elements Original indicators Adjusted indicators Development Objective To contribute to the lessening of wood raw material supply problem facing the national wood industry

3 years after project completion Reduced gap between supply of and demand for wood raw materials

3 years after project completion: - Production of rubber logs

increased by 5% in North Sumatra, South Sumatra and Jambi provinces, in total or by province compared to 2009

Specific objective To promote the utilization of rubberwood from sustainable sources

By end of project: Production of rubber wood products increased by 10% by end of year 3 5 to 10 investors apply for investment permit by end of year 3

By end of project: - Total production of rubber logs

from replanting areas in project sites increased by 2.5% compared to 2009

- Interest of rubber farmers in

replacing old plantations strongly stimulated through training of at least 300 farmers in 4 districts on appropriate technologies, participation in organized dialogues at 12 villages and 3 workshops

- At least one rubber company signed MoU on cooperation with wood processing mill (s)

Outputs Output 1: Interest in the utilization of rubberwood owned by big companies increased

Reliable information on rubberwood utilization available Adjusted replanting schedule ensuring steady supply of wood to processors adopted by big companies One national workshop organized Exchange of information took place through meetings and discussions with big companies

Feasibility study on rubberwood utilization by rubber companies completed in year 1 Consultation with rubber companies on feasibility of adjusting replanting schedule conducted One national workshop organized in year 1 in Medan, North Sumatra At least one rubber company indicates interest in cooperating with the wood industries in the utilization of rubberwood from


replanting areas in year 3 Output 2: Incentives for and interest in the utilization of wood from farmers’ plantations increased

Reliable information on utilization of farmers’ rubberwood available Intensive consultation with rubber farmers conducted Models of plantation with cash-crops inter-planting established at 4 sites totaling 20 ha At least 80 farmers trained on planting and harvesting skills at 4 sites

Feasibility of utilizing farmers’ rubberwood in 4 districts collaboratively assessed with owning farmers in years 1 & 2 Needed incentives for replacing old rubber plantations by farmers identified in 4 districts in years 1 & 2 Models of rubber replanting with agro-forestry system established at 4 sites totaling 20 ha At least 80 farmers trained on techniques for harvesting of old trees and agro-forestry system, respectively, in 4 districts in years 1 & 2

Output 3: Government policy governing rubberwood resource utilization revised and enhanced

Revised policy document formulated and disseminated One national workshop on policy enhancement organized

Existing policy on rubberwood utilization reviewed and recommendations for enhancement made in year 2 Draft Presidential Instruction (Inpres) completed in year 3 One national workshop on policy enhancement organized in year 2

Output 4: Investment in rubberwood utilization increased

Updated and reliable information on rubber resource, product markets and technologies available Growing stock surveys carried out at 4 sites in Sumatra 5 to 10 investors apply for investment permit by end of year 3 Rubberwood data base system operational Two regional workshops

Updated and reliable information on resource, products markets and technologies available Growing stock surveys carried out at 4 sites in Sumatra At least 2 wood companies in the project sites submitted to concerned authority letters of interest in rubberwood utilization Rubber wood data base system operational and publicly accessible since year 2 One combined regional workshop


organized

organized in the City of Jambi in year 2

Output 5 Appropriate technologies are available for the utilization of rubberwood from smallholding plantations

One set of equipment and facilities for sawing, peeling, chipping and drying procured and pilot tested at one site in Sumatra Information on tested technologies published and disseminated Two training workshops on appropriate technologies with 40 participants conducted at two sites

One set of equipment and facilities for sawing procured and pilot tested in Tangerang, West Java 3 technical manuals on rubberwood processing published and disseminated by end of project Two training workshops on appropriate technologies with 40 participants conducted at one site in Tangerang in years 2 & 3

b. The outputs achieved and delivered Table 4. Achievement of outputs based on adjusted indicators

Outputs Adjusted indicators Achievement assesed

Outputs Output 1: Interest in the utilization of rubberwood owned by big companies increased

Feasibility study on rubberwood utilization by rubber companies completed in year 1 Consultation with rubber companies on feasibility of adjusting replanting schedule conducted One national workshop organized in year 1 in Medan, North Sumatra At least one rubber company indicates interest in cooperating with the wood industries in the utilization of rubberwood from replanting areas in year 3

Feasibility study on rubberwood utilization by rubber companies completed in year 1 PTPN III expressed interest in such cooperation during the meeting on 6 June 2012 Two wood industries indicated strong interest in cooperation with PTPN III in year 3 The national workshop conducted in year 1 Consultation with 4 rubber companies on adjustment of replanting schedule accomplished

Conclusion: Output 1 is partially achieved; rubber companies were not interested in adjusting their replanting schedules or in making investment in rubberwood utilization Output 2: Incentives for and interest in the utilization of wood from farmers’ plantations increased

Feasibility of utilizing farmers’ rubberwood in 4 districts collaboratively assessed with owning farmers in years 1 & 2

Feasibility of utilizing rubberwood assessed in close consultation with farmers


Needed incentives for replacing old rubber plantations by farmers identified in 4 districts in years 1 & 2 Models of rubber replanting with agro-forestry system established at 4 sites totaling 20 ha At least 80 farmers trained on techniques for harvesting of old trees and agro-forestry system, respectively, in 4 districts in years 1 & 2

Selected farmers at 12 villages interviewed regarding needed incentives for replacement of old rubber plantations Agro-forestry models for rubber replanting established at 4 sites totalling 14 ha in size 80 farmers trained on harvesting techniques 87 farmers trained on agro-forestry techniques

Conclusion: Output 2 is fully achieved noting that the size of agro-forestry model is 6 ha short of target for technical reasons Output 3: Government policy governing rubberwood resource utilization revised and enhanced

Existing policy on rubberwood utilization reviewed and recommendations for enhancement made in year 2 Draft Presidential Instruction (Inpres) completed in year 3 One national workshop on policy enhancement organized in year 2

Existing policies on rubberwood utilization reviewed and recommendations for policy enhancement provided Draft Inpres prepared and reviewed with the main stakeholders National workshop on policy enhancement conducted as planned

Conclusion: Output 3 is fully achieved noting that further process of Inpres is pending for technical reason Output 4: Investment in rubberwood utilization increased

Updated and reliable information on resource, products markets and technologies available Growing stock surveys carried out at 4 sites in Sumatra At least 2 wood companies in the project sites submitted to concerned authority letters of interest in rubberwood utilization Rubber wood data base system operational and publicly accessible since year 2 One combined regional workshop organized in the City of Jambi in year 2

Relevant information collected and uploaded to website since year 2 Growing stock data collected from 36 sample plots 2 wood industries indicated intention to cooperate with PTPN III in rubberwood utilization Website of rubberwood operational since year 2 The workshop conducted as planned

Conclusion: Output 4 is fully achieved


Output 5 Appropriate technologies are available for the utilization of rubber wood from smallholding plantations

One set of equipment and facilities for sawing procured and pilot tested in Tangerang, West Java 3 technical manuals on rubberwood processing published and disseminated by end of project Two training workshops on appropriate technologies with 40 participants conducted at one site in Tangerang in years 2 & 3

One set of multi-ripper sawing machineries procured and tested at PT Jaya Cemerlang Industry in Tangerang 3 technical manuals published and disseminated 2 training sessions on appropriate technologies conducted with 37 partipants

Conclusion: Output 5 is fully achieved noting that training participants on sawing techniques were 3 persons short of target

c. The specific objective achieved Table 5. Achievement of the specific objective based on adjusted indicators

Specific Objective Adjusted indicators Achievement assesed

Specific objective To promote the utilization of rubberwood from sustainable sources

By end of project: - Total production of rubber logs

from replanting areas in project sites increased by 2.5% compared to 2009

- Interest of rubber farmers in replacing old plantations strongly stimulated through training of at least 300 farmers in 4 districts on appropriate technologies, participation in organized dialogues at 12 villages and 3 workshops

- At least one rubber company signed MoU on cooperation with wood processing mill (s)

Total production of logs in North Sumatra increased from 173,704 m3 in 2009 to 233,720 m3 in 2012; in Jambi decreased from 63,612 m3 in 2009 to 51,603 m3 in 2011 398 farmers trained on appropriate technologies, dialogues with farmers at 12 villages conducted and farmers participated in 2 workshops No MoU signed by rubber companies and wood industries; PTPN III expressed readiness to cooperate and 2 wood industries indicated intention to cooperate with this company

Conclusion: The specific objective is best to be declared as “nearly achieved“ due to the partial achievement of

Output 1 and incomplete fulfillment of Indicator No. 1


As described in the previous section, all defined project outputs had been achieved and

delivered, noting that Outputs 1 and 2 were somewhat short of targets for reasons beyond control of

the project (see Table 4). Conceptually, the specific objective must have also been achieved with

delivery of all defined outputs. This must be so because the outputs had been defined fully consistent

with the main causes of the key problem addressed. Hence, delivery of these outputs must have

resolved the main causes (problems) of the key problem addressed thus achieved the specific

objective, the mirror of the key problem.

In light of the indicators defined in the LFM, achievement of the specific objective is assessed

below: - Indicator 1 : Total production of rubber logs from replanting areas in project sites at project

completion increased by 2.5% compared to 2009

The data collected from the wood industries in Jambi province through the Provincial Forestry

Agency indicated that total rubber logs volume entering the industries decreased from 63,612

m3 in 2009 to only 51,603 m3 in 2011

In North Sumatra province, total volume of rubber logs sold by rubber companies to wood

industries increased from 173,704 m3 in 2009 to 233,720 m3 in 2012

Data on production of rubber logs in South Sumatra province was not available

It is worth commenting on the occurence of different trends on rubber logs production in

North Sumatra and Jambi. In North Sumatra, the logs producers are rubber companies practically

without accessibility problem but lack of interest in efficient rubberwood utilization. The interest

might have been somehow improved through dissemination of relevant information on potential

benefits of rubberwood utilization accruable to rubber companies. The dissemination was

acccomplised through the trainings and workshops organized under the project and through direct

dialogues with the companies. Improved interest might have become the driving force of the

increase in total rubber logs production. Contrary to the situation in North Sumatra, logs owners in

Jambi province were farmers and the problems on rubberwood utilization were mainly the lack of

interest and poor accessibility of plantation sites. While interest might have been improved through

the trainings and information sharing during the workshops and dialogues, accessibility problem

remains. Indeed, it is unrealistic to expect an increase on logs production under the present

condition of access road to farmers’ plantations. This might be part of the force behind the

decreasing production of rubber logs in Jambi province. Other forces might include the lack of

incentives for farmers to replace old plantations, attractive latex price, etc.

It is worth noting that latex is the important source of income for most farmer households.

Price of latex strongly influences decision on replacement of old rubber plantations. During the

2011-2012 period, price of latex was peaking, reached IDR 30-40,000/kg, higher nearly twice as

the normal price at IDR 15-20,000/kg. The lucrative price could have refrained farmers from

replacing old plantations; how unproductive the old trees might be, the trees still produced latex


thus generated additional income for the owners. This might be another reason for the low rubber

logs production in Jambi province.

- Indicator 2 : Interest of rubber farmers in replacing old plantations strongly stimulated through

training of at least 300 farmers in 4 districts on appropriate technologies, participation in organized

dialogues at 12 villages and 3 workshops

Indeed, the interest of rubber farmers in replacing old rubber plantations has been intensified

through implementation of the project activities. The trainings on techniques for harvesting of old

trees, rubber replanting under agro-forestry system, rubberwood preservation, charcoal making

and logs sawing have changed favorably the attitude of farmers towards utilization of rubber

resource. In addition, the dialogues with farmers at 12 villages and with other stakeholders during

the occasions of the workshops have also stimulated interest in rubberwood utilization. This

growing interest, however, is difficult to materialize, at least in the near future, if the fundamental

problem on rubberwood resource utilization, i.e. poor accessibility of plantation sites, is not

removed. The authors’ concern is that by the time the fundamental problem is removed, the

farmers’ interest is already in a weakening or fading out stage that the project might be

unsustainable.

- Indicator 3 : At least one rubber company signed MoU on cooperation with wood processing mill (s)

Towards end of the project no MoU on cooperation had been signed by any rubber company

and wood processor.

PTPN III, owner of largest rubber plantation in North Sumatra, had indicated its readiness to

cooperate with wood industries in the utilization of rubberwood from its replanting areas during

the occasion of consultative meeting on 6 June 2012.

Two ISWA member companies, wood processors in North Sumatra, had expressed their

strong intention to cooperate with PTPN III but unfavorably responded by the latter in favor of

its subsidiary company, PT Tiga Mutiara Nusantara.

Using a signed MoU as the indicator, the specific objective is obviously not achieved, noting that

two wood processors had indicated intention to cooperate with PTPN III although this latter company

had once expressed its readiness to cooperate; using total volume of logs production as the indicator,

the specific objective has been only achieved partially while using the interest of rubber farmers as the

indicator, the specific objective is obviously fully achieved.

Overall then, the specific objective may be declared as partially achieved as only one indicator

is fully achieved, one indicator is partially fulfilled and one indicator is nearly met. Conceptually,

however, with delivery of all pertinent outputs, the specific objective may be categorically declared as

almost fully achieved noting that Output 1 was short of targets.


4.2 Pre-project’s vs at project completion’s situations

a. Tangible project outputs

The tangible results of individual activities under each output which did not exist prior to

implementing the project are listed below:

Output 1

Information on feasibility of rubberwood utilization is now available for use by interested investors

One national workshop on rubberwood utilization was organized in Medan, North Sumatra, on 20-

21 January 2011 with 64 participants and its proceedings produced

A technical report on Output 1 “Strengthening the Interest of Rubber Companies in the Utilization

of Rubberwood on Replanting Areas in North Sumatra” is now ready for publication and

dissemination

Reps. of DGs of BUK, Crop-estates and ITTO adressed the national workhsop in Medan

Output 2

Reliable information on potential benefits of and requirements for rubberwood utilization by

farmers had been collected through consultation with rubber farmer communities and is now

available for use by interested parties

Agro-forestry models for rubber replanting have been established in collaboration with rubber

farmers and can be replicated to other districts with appropriate adjustment for improvement

80 farmers have been trained on harvesting techniques

87 farmers have been trained on agro-forestry techniques


The incentives needed by farmers to replace old plantations had been identified for local

governments to follow-up

A technical report on Output 2 “Improving the Incentives and Capacity for the Utilization of

Farmers’ Rubberwood on Replanting Areas in Jambi and South Sumatra Provinces” is now ready

for publication and dissemination

Training of farmers on felling

Training of farmers on bucking

Newly planted rubber clones with cash-crops inter-planting


2 years old rubber trees on agro-forestry sites in Jambi province

18 months old rubber trees on agro-forestry sites in Ogan Ilir and Banyuasin districts

Output 3

One national workshop on enhancement of policy on rubberwood utilization had been organized

with 65 participants and its proceedings produced

Information on coordinating mechanism and feasibility of its formation is now available for use by

concerned government authorities as well as rubber and wood industry associations

Draft Presidential Instruction (Inpres) had been prepared in close consultation with the main

stakeholders and is now ready for submission to DG of BUK for use or for further process

A technical report on Output 3 “Enhancing Government Policy on the Utilization of Farmers’

Rubberwood on Unproductive Rubber Plantations in Jambi and South Sumatra Provinces” is now

ready for publication and dissemination


DG of BUK, Rep. of ITTO and Rep. of DG Crop-estates addressed the national workshop in Jakarta

Output 4

Information on growing stock, rubberwood markets and processing technologies had been

collected and uploaded to the publically accessible website installed under the project

Information on rubber growing stock had been collected from 36 purposive sample plots

One regional workshop on investment in rubberwood utilization had been organized in the City of

Jambi with 71 participants and its proceedings produced

A technical report on Output 4 “Promoting Investment for the Utilization of Rubberwood on

Unproductive Rubber Plantations” is now ready for publication and dissemination

Reps. of DG BUK and Jambi Government addressed the regional workshop in Jambi


Output 5

One set of multi-ripper sawing machineries had been procured, installed and tested at the factory

site of PT Jaya Cemerlang Industry in Tangerang

37 representatives of rubber farmers, wood industries and governments institutions had been

trained on use of the multi-ripper sawing machineries

114 farmers had been trained on charcoal production techniques

80 farmers had been trained on simple and inexpensive wood preservation techniques

Draft Mid-term R & D program on rubberwood resource utilization had been developed in

collaboration with main stakeholders

A technical report on Output 5 “Developing Appropriate Technologies for the Utilization of

Farmers’ Rubberwood Plantations in Jambi and South Sumatra Provinces” is now ready for

publication and dissemination

Rubber logs to be sawn Multi-ripper sawing machine

Multi-ripper sawing in progress

First and second batches of training participants on the use of multi-ripper sawing machines from Jambi, Banten and West Java Provinces at PT. Jaya Cemerlang Industry in Tangerang


Participants of training on rubberwood preservation

Materials and tools for preservation treatment Coating log-end using paint brush

Coated logs covered with plastic sheet to prevent rain washing


Outdoor lecturing on charcoal making The complete structure of a charcoal drum kiln

Piling of chopped wood inside drum kiln Wood-burnt residual smoke channeled to bamboo pipe and liquefied smoke collected in a container

In addition, a number of technical documents containing technical information on relevant

specific topics or implementation of selected activities are produced in Bahasa Indonesia under the

project; these include:

• Rekayasa Kayu Karet Rakyat untuk Mendukung Pembangunan Rumah Murah

• Petunjuk Teknis Pembuatan Arang Kayu Karet

• Petunjuk Teknis Pengawetan Kayu Karet

• Draft Mid-term R & D Program on Rubberwood Resource Utilization

• Draft Inpres on Accelerating Rubberwood Utilization from Sustainable Sources

• Pelatihan Pengenalan dan Penggunaan Mesin serta Peralatan Pengolah Kayu Karet

b. Sectoral policy and program

During the occasions of the national workshops, participants had repeatedly expressed their

concern over the problems associated with the use of SKAU for shipping of rubberwood products. DG

of BUK had taken into account the experience of and comments made by the wood industries in the

revision of existing ministerial decrees on the requirement for using SKAU for shipment of wood

products originating from private/community forests including rubberwood. The inputs provided by the


project were acknowledged by DG of BUK as evident by the statement made on the communication

letter of the Director of Forest Charges and Forest Products Distribution Management No.

S.957/BIKPHH-2/2012 of 4 April 2012.

c. Physical environment

In terms of physical environment, during the 3-year period, the project had created the

environment wherein the primary beneficiaries, i.e. rubber farmers, rubber companies and the wood

industries are now more aware of the potential benefits of utilizing rubberwood resource; the problems

facing the efficient utilization of rubberwood from replanting areas are now well perceived and

understood, and; farmers have acquired the skills that enable them to actively participate in the

activities on rubberwood resource utilization.

As regards accessibility problem, it requires strong commitment of the government to invest in

access road construction program. Such a program will certainly create more jobs, augment income

and promote local economies yet the process is not harmful to the environment because rubberwood

is only harvested from replanting areas.

4.3 Involvement of the target beneficiaries

The primary beneficiaries of the project are the wood industry and rubber growers, both farmers

and companies. The project will benefit these beneficiaries directly or indirectly as follows:

• Larger volume of rubber wood available for processing will reduce the idle installed production

capacity, promote processing activities and contribute to local and national economic

development;

• Availability of up-to-date and reliable information on rubber wood resource, product markets and

processing technologies will induce stronger interest in investment on rubberwood processing;

• Training of farmers on replanting and harvesting skills is an invaluable social capital and shall

benefit the farmers in the long run;

• Harvesting of rubber old trees and replanting with cash-crops inter-planting by farmers shall

improve their income through selling of wood and cash-crops;

• Appropriate processing technologies developed under the project can be easily duplicated by

smallholders and big companies owning rubber plantations;

• Cooperation between wood industry with large-scale rubber growers will secure supply of wood

raw materials and augment income of both parties; and

• Enhanced and favorable government policy will allow efficient utilization of rubber wood thus

stronger competitiveness of the wood industry in global market.

The smallholders or farmers, owners of over 80 percent of removable rubber growing stock,

shall be benefited in the future in various ways including: i) harvesting of old trees and selling of wood


to local processors will generate additional income; ii) technical skills acquired through trainings create

self confidence and capacity to carry out activities on replanting and harvesting; and iii) cash crop

inter-planting model plantation generates additional income when properly undertaken and managed.

The big companies can enhance their financial performance through sale of efficiently harvested

rubberwood. Market for raw harvested wood is strong indeed provided that schedule for harvesting

can assure continuous flow of wood to local processors. Processing of rubberwood can be

accomplished either by using own resources or by collaborating with existing wood processors. Selling

of rubber logs will certainly generate revenue accruable to the companies thus enhance their financial

performance.

The secondary beneficiaries of the project include the Ministries of Forestry, Agriculture, Trade

and Industry, local governments, universities and local NGOs. Information on rubber wood resource,

product markets and technologies generated by the project to be publicly made available is of utmost

important for the Ministries in raising their appreciation on the role the rubber wood resource can play

in revitalizing the national wood industry and in decision making concerning efficient rubberwood

utilization. The benefits accruable to local governments include availability of information on the

dynamics of rubberwood resource base and use of the information in local policy making and

economic development planning.

The government institutions were involved in:

The organization of the workshops, the PCAs and PFAs as the participants of all

workshops, Jambi Provincial Forestry Agency (JPFA) as the organizer of the Jambi

workshop and North Sumatra Provincial Forestry Agency (PFA) as the expert panel

member in the Medan workshop;

The compilation of relevant information: the Sei Putih and Sembawa RRCs compiled

relevant information on rubberwood resource status and utilization as presented to the

workshops in Medan and Jakarta; and the FORDA organized the review of draft Inpres

and seconded its experts to assist in project implementation;

The meetings of the PSC as members (DG of BUK, Center for International Cooperation

of MOF, Center for R & D on Forest Products of FORDA, Bureau for Forestry Planning,

and Embassies of the Republics of Japan and Korea in Jakarta); and

The monitoring of project operation from time to time by DG of BUK.

The universities have had the opportunity to take part in implementation of the project by

assigning capable experts to attend the workshops and discussions organized under the project and in

decision making by advising concerned local and central governments. Local NGO has had and will

have the chance to assist local farmers and governments in the implementation of activities designed

to improve livelihood of local communities.


Involvement of the primary beneficiaries is highlighted below:

• The rubber farmers were involved in: The establishment of the agro-forestry models by giving their lands to be used by the

project as the sites of the models;

The physical construction and maintenance of the models;

The trainings on harvesting and agro-forestry development techniques as trainees;

The workshops in Jambi and Jakarta as participants;

The trainings on wood preservation and charcoal making techniques as trainees;

The consultations on rubberwood utilization as respondents; and

The training on sawing techniques using the multi-ripper machineries as trainees.

• The rubber companies were involved in: Hosting meetings and dialogues with the project consultants and ISWA Executives;

The workshops, as speakers in Medan and Jambi and as attendants of all workshops; and

The high-rank officials consultative meeting on cooperation organized on 6 June 2012.

• The wood industries were involved in: The workshops, as attendants of all workshops and as speakers in Medan and Jambi

workshops;

Hosting dialogues;

The installment and operational testing of multi-ripper sawing machineries;

The training on sawing techniques using multi-ripper machineries; and

The high-rank officials consultative meeting on cooperation organized on 6 June 2012.

The rubber farmers are now able to using their skills for producing charcoal and liquefied smoke

of rubberwood; for generating income in land clearing using chain saw and in nearby logging

operations. In addition, trained farmers in Ogan Ilir and Banyuasin districts have indicated their plan to

develop better agro-forestry model for rubber replanting on their own lands. Indeed, the project has

directly benefited farmers by providing daily wages for the establishment of the agro-forestry models,

by granting rubber clone and the yield of cash-crops, by teaching the farmers free of charge on

appropriate techniques for harvesting, rubber replanting under agro-forestry model, preserving

rubberwood, charcoal making and logs sawing using multi-ripper machineries. The skills acquired are

probably the most valuable benefit the farmers have gotten from the project as the skills are long

lasting income generating means. The replanted rubbers will be handed over to the farmers owning

the lands shortly after the project completion; the rubber will be producing latex in about two years

time for about two decades to come which is also a great contribution of the project to the farmers.

4.4 Project sustainability

Sustainability of the project after its completion is expected to be growing through the prevailing

situations that had been developed as follows:


• The information on potential benefits of utilizing rubberwood of old plantations accruable to rubber

farmers, rubber companies and local economies will certainly intensify the attention of

stakeholders to the resource and its utilization (see Technical Reports No. 1 and 2);

• The interest of farmers in practicing agro-forestry system for rubber replanting is now growing due

to its potential for generating income and developing trees; it is very likely that the system is

sustainable;

• The skills acquired by the farmers on tree harvesting and charcoal making are long lasting income

generating means that their use are very likely sustainable;

• The encouraging performance of the multi-ripper sawing machineries is expected to catch the

attention of small to medium scale wood industries as well as farmer groups to invest in and

operate similar machineries; and

• The operation of the publically accessible website of rubberwood is expected to help interested

beneficiaries make decision on business initiatives relating to rubberwood resource utilization.

The arrangements for project sustainability that have been made with the primary beneficiaries

are outlined below:

• The offices of ISWA in Jambi and South Sumatra provinces will continue assisting the primary

beneficiaries in technical matters relating to rubberwood utilization at the latter’s own costs;

• The provincial crop-estate and forestry agencies of Jambi and South Sumatra are planning to

define a mechanism suitable for collection and dissemination of detailed information on harvesting

of old rubber plantations;

• FORDA is committed to doing research works relating to efficient rubberwood processing

technologies; and

• The Crop‐Estate Agency (CEA) of Batanghari district in Jambi province has convincingly

indicated its intention to boost up its efforts on providing incentives for farmers to replace old

rubber plantations in the forms of quality rubber clone, fertilizer, etc.

oooOOooo


5. ASSESMENT AND ANALYSIS

5.1 Project rationale and identification process

Indonesia’s total production of sawn wood increased from 4.8 million m3 in 1980 to 10.4 million

m3 in 1984 but decreased to only 4.3 million m3 in 2005; likewise, total production of plywood

increased sharply from 1.0 million m3 in 1980 to 9.7 million m3 in 1997 then went down to 4.7 million

m3 in 2005 (FAO, 2006). The trend was obvious, increasing quantity of primary wood products during

the first two decades but decreasing thereafter. The primary cause of the undesirable trends was

insufficient wood raw material due mainly to the dwindling supply of natural timbers, inefficient

operations and low quality of wood products. In light of the shortage of raw materials, the ITTO

Technical Mission in 2001 had recommended the wood industries to utilize raw materials of differing

quality and properties such as timber from non-forest sources including rubberwood, by adopting

appropriate processing technologies.

Completed ITTO-assisted pre-project PPD 80/03 Rev. 2 (I) estimated that 13.5 million m3 of

rubber logs were available for harvest every year on a sustainable basis. Out of this volume, however,

only about 2.96 million m3 or 22 percent that had been utilized by the wood industries, mostly

originating from replanting areas of rubber companies; contrary to the fact that has been touched upon

in the previous section, that around 85 percent of rubber plantations in Indonesia were owned by

farmers.

The key problem addressed by the project “very low rate of utilization of rubberwood” identified

under the completed pre-project was consistent with the raw material supply problem then facing the

wood industries. If the logs available at rubber replanting areas could be tapped fully or at higher rate,

it would be a significant contribution to the wood industries. The key problem was identified involving

main stakeholders, especially the wood industries and concerned government authorities, during the

occasions of the workshops organized under the pre-project.

5.2 The problems addressed, project design and implementation strategy

The key problem addressed was thoroughly analyzed involving main stakeholders; its

consequence and direct causes as well as indirect causes were properly identified, using a problem

tree technique. The problem tree, which summarized the consequences and the causes as well as

sub-causes, was used as the basis for constructing a solution tree, the mirror of the problem tree,

which was then used as the basis for defining the project elements.

By reading the solution tree presented in the project document, it is very clear that i) the specific

objective was defined correspond to the key problem addressed; ii) the outputs were defined

correspond to the direct causes; iii) the activities were defined correspond to the indirect causes, and

iv) the development objective was defined correspond to the consequence of the key problem

addressed. In this manner, the project interventions defined, the outputs and activities, should be the


relevant ones to solving the problems identified at different levels namely the indirect, direct and key

problems.

The implementation strategy pursued was arguably appropriate. The motivating and convincing

activities played critical role in ensuring successful project operations. Farmers for instance, are

owners of around 85 percent of rubber plantations. These people had to be motivated to utilize the

rubberwood they own by harvesting old trees of poor latex productivity and replanting the harvested-

over areas with young plantations. Motivating the farmers were best accomplished through dialogues

and consultations. To this end, reliable information on potential benefits of utilizing wood of old trees

had to be made available and directly communicated with farmers. Convincing farmers was most

effectively carried out through demonstration or training; presenting only materials and information,

how attractive they might be, is usually insufficient to convince farmers because the farmers mostly

are convinced only after seeing. Therefore, a number of activities were appropriately defined to deal

with motivating and convincing farmers.

The “improving the enabling conditions” element of the strategy was argued as indispensable if

the problems at hand are ever to be resolved. The underlying notions of this element are that to

promote rubberwood utilization, investment is definitely required; that to promote investment, favorable

environment must be prevailing; that favorable environment is, to a larger extent, shaped by

government policies. It is, therefore, essential for the governments at different levels to develop and

implement policies that favor investment. Such policies must take into account efficiency of production

process, features of product markets and competitiveness of investors. Therefore, any policies on

rubberwood utilization effected by the government should encourage investment. Existing policies had

to be reviewed and enhanced in view of promoting investment which had been satisfactorily

accomplished.

The “equipping” element of the strategy referred to procurement and testing of different

appropriate technologies for the utilization of rubberwood. Such technologies should be suitable for

processing of rubberwood endowed with particular such properties as sticky latex element, blue stain

prone, etc. Any technologies had to be introduced through demonstration and training in order to

assess applicability and productivity and convince farmers and wood processors for their adoption.

5.3 Critical differences between planned and actual implementation

A number of variations were incorporated into the original plans due to unforeseen

circumstances, some of them intentionally while others unintentionally, as listed below:

i. Activity 2.4: “To train farmers on efficient techniques for replanting and harvesting of old trees”

Implementation of the training on harvesting techniques was moved from the second and third

years to the first and second years with the prior approval of ITTO solely for reason of efficiency.

Upon close consultation with appointed national consultants on Activity 2.3 “to establish models

plantations with cash-crops inter-planting for demonstration and training”, it would be more


efficient to implement Activities 2.3 and 2.4 simultaneously yet consecutively. The efficient

sequence of works on both activities should be: to identify old rubber plantations to be replaced, to

fell down old tress and train farmers on harvesting techniques at the same time, and to establish

agro-forestry replanting models for demonstration and training. The proposed time rescheduling

for implementation of Activity 2.4 was duly endorsed by the ITTO.

ii. Activity 3.3: “To organize one national workshop on the new policy involving main stakeholders”

This activity was originally planned for implementation in the first year thus was included in the

First YPO. It was considered more fruitful to implement Activity 3.3 after completion of Activity 4.3,

the regional workshops, in order to make use outcomes of the latter activity as inputs to the former

activity noting the generally perceived scopes and objectives of the regional and national

workshops. The postponement of Activity 3.3 to year 2 was duly approved by the ITTO.

iii. Activity 3.5: “To submit the new policy to the government for adoption”

The recommendation of the national workshop held in Jakarta on 20-21 December 2011 on the

need to formulate a Presidential Instruction (Inpres) to accelerate rubberwood utilization had been

followed-up by the project. A draft of Inpres had been prepared and reviewed involving the main

stakeholders. The review meeting strongly recommended to put process of Inpres on pending until

reliable data on growing stock of ruberwood is available to strongly justify formulation of such

Inpres.

iv. Activity 4.3: “To organize two regional workshops on investment in rubber wood resource

utilization and its potential role in economic development”

The planned regional workshops dealt with the same theme: investment and regional economic

development. Combining two workshops to only one was thought more efficient without

jeopardizing achievement of the workshops’ objectives. In addition, a combined workshop would

allow for wider participation from the two provinces thus facilitate more comprehensive

discussions. The PSC and ITTO duly endorsed the proposal to combine two regional workshops

into one event.

v. Activities 5.1 and 5.2 : “To identify alternative technologies and select most promising alternative”

and “To procure, install and pilot test equipment and facilities for sawing, peeling, chipping and

kiln-drying”.

It was initially planned to hire an international consultant to assist in implementation of these

activities. Upon consultation with competent experts and the wood industry practitioners it was

found that these activities could be well accomplished by national experts available with FORDA.

Inputs of an international consultant could then be significantly reduced. The proposal on

increasing inputs of national experts and reducing inputs of an international consultant was duly

endorsed by the ITTO.


vi. Activity 5.2 : “To procure, install and pilot test equipment and facilities for sawing, peeling, chipping

and kiln-drying”

It was initially planned to include mobile wood chipper and peeler as well as dry-kiln chamber in

the procurement of processing machineries and facilities. In the absence of access roads to most

farmers’ plantations sites and limited project funds, the Project Coordinator proposed to the PSC

during its second meeting to cancel this procurement. The PSC approved the proposal and

proposed to use balance of funds to finance capacity building of farmers on charcoal making. The

proposal was also duly endorsed by the ITTO.

vii. To follow up the recommendation of the PSC on farmers capacity building, the project had

implemented two additional, unplanned activities, namely training on charcoal making and on

rubberwood preservation techniques using simple and inexpensive methods

viii. Budget revision

With the escalating domestic travel costs in terms of US dollar and significant reduction in inputs

of international consultant, the Project Coordinator had proposed to make budget reallocation. The

amount of US $ 23,750 sourced from budget item 15 was proposed to be put into budget items 21,

35 and 51; this proposal was dully endorsed by the ITTO.

Above listed adjustments to activities and budget did not compromise project operations in any

respects; instead, the adjustments had facilitated the smooth implementation of the project.

5.4 Adequacy of project inputs

In terms of manpower, project inputs can be judged as adequate. Appointed project key

personnel and the national expert had been able to properly handle the overall operational

management of the project. The national consultants hired were generally able to accomplish the

assigned tasks satisfactorily within the sanctioned time and financial budget. It is worth mentioning the

support accorded by the wood industries, particularly Mr. Jimmy Chandra and his technicians at PT

Jaya Cemerlang Industry to the national consultants in the execution of such activities relating to

output 5 as selection, procurement, installation and operational testing of the machineries. The

practical experience of these people in dealing with wood processing technologies greatly helped the

national consultants in accomplishing their tasks.

In terms of funds, the sanctioned budget was sufficient to fully finance the project operations. No

problem had occurred with respect to financing of activities or purchasing of capital items as well as

other needed materials. The project funds were disbursed timely to ISWA on behalf of the executing

agency in four installments. The planned GOI’s contribution was somewhat under-spent; the amount

of unspent funds at the end of the project would be around US $ 65,365 due mainly to reduced

expenses on vehicle and equipment & facilities items.


Disbursed funds had been used in accordance with the provisions of the project agreement.

Appropriateness of expenditures had been audited by an independent, registered accountant and

yearly reported to ITTO. Indeed, proper use of previously disbursed funds was the prerequisite to

realizing the next disbursement by ITTO.

5.5 External influences

The assumptions made with regard to the implementation of the project were generally valid

throughout the project duration. Rubber farmers were cooperative and enthusiastically participated in

the dialogues and training programs organized under the project. The cooperative attitude of the

farmers was closely related to the nature of project activities which were useful for the farmers in

augmenting their income. In fact, the farmers had indicated interest in practicing the agro-forestry and

charcoal making techniques they learned from the project. The government authorities had also

demonstrated political support to the project through their active participation in the discussion

meetings and workshops organized under the project. In fact, the crop-estate agencies of Ogan Ilir

and Banyuasin districts had indicated their intention to step up efforts for introducing the appropriate

incentives identified under the project.

The wood industries had been supportive throughout the project implementation process; they

had been actively involved in the group discussions and workshops, even acted as the presenters of

professional papers as requested by the workshop organizers. The wood industries also helped the

procurement, installment and operational testing of the multi-ripper sawing machineries and selected

processors sent their technicians to attend the trainings on rubberwood processing techniques.

Transfer and adoption of the technologies went on smoothly due mainly to the strong interest of

farmers in the technologies introduced by the project. The exception noted was the attitude of the

rubber companies which was less cooperative particularly with respect to making adjustment to

replanting schedule and investment in rubberwood utilization for the reasons elaborated in the

Technical Report No. 1. Overall, the mitigating measures were effective in minimizing occurrence of

the potential risks that had been identified during the project formulation stage.

5.6 Project beneficiaries

The primary beneficiaries have gained benefits from the project in one way or another. The

rubber farmers are now aware of the potential benefits of utilizing their rubberwood; they have been

equipped with the skills needed for the utilization of the rubberwood they own, the skills which are

long-lasting in nature and applicable for earning income in other such jobs not directly related to

rubberwood as land clearing and charcoal making. The wood industries have gained useful

information on feasibility of investment in rubberwood utilization, on the operation of multi-ripper

sawing machineries and on the potential of rubber logs in the provinces of North Sumatra, Jambi and

South Sumatra. The rubber companies have obtained information on the potential benefits of utilizing

rubberwood from their replanting areas which may affect their future business policy and attitude


towards implementation of replanting program in a more efficient manner through competitive bidding.

The other beneficiary, the government authorities, has been exposed to the potential of rubber logs in

the supply of raw material to the wood industries; more importantly, the authorities are now also aware

of the institutional and technical problems that must be overcome if the potential of rubber logs is ever

to be actually made available for the wood industries.

Indeed the primary beneficiaries will continue gaining benefits from the project outputs: the

farmers by applying the skills they learned from the project; the rubber companies by utilizing the

information on potential revenues from rubber wood utilization and by employing trained farmers in

harvesting of old trees and clearing of the lands for replanting, and; the wood processors will be in a

better position to make business decision by making use of relevant information available with the

rubberwood website. In addition, the government authorities will be able to develop more realistic

policies on efficient rubberwood utilization.

5.7 Project sustainability

This project generated great interest in the utilization of rubberwood from sustainable sources,

i.e. from replanting areas, that the prospects for its sustainability are excellent as highlighted below:

• Rubber farmers were supportive of the project and enthusiastically involved in implementation of

the project activities affecting their livelihood.

• The skills the farmers have learned are long-lasting in nature and applicable to generate income;

this is particularly true with the skills on tree harvesting, agro-forestry model development and

charcoal making.

• The provincial and local governments have indicated their intention to provide appropriate

incentives for farmers to replace old rubber plantations and utilize the rubberwood thereof.

It is worth emphasizing that farmers are the owners of around 85 percent of rubber plantations

and many project activities were devoted to dealing with rubber farmers. Consequently, project

sustainability is, to a larger extent, dependent on farmers’ attitude towards the project and interest in

using the skills and technologies transferred by the project.

5.8 The institutions involved in project implementation

The Directorate General of BUK, Directorate of Forest Products Processing and Marketing in

particular, had been involved in the project implementation by chairing the PSC and exercising close

monitoring of project operations through its staffs appointed as the counterparts. The DG of BUK had

also addressed and attended the workshops organized under the project. FORDA of MOF had

involved in the project implementation by temporarily assigning two of its experts to assist in the

implementation of selected activities.


The universities, particularly the Bogor Agricultural University (IPB) and University of Gajah

Mada (UGM) had participated in the workshops and focused group discussions organized under the

project. The Directorate General of Crop-estates of the Ministry of Agriculture had involved by

addressing the workshops in Medan and Jakarta and by taking part in the consultative meeting in

Jakarta. In addition, the Rubber Research Centers of Sei Putih, Medan and Sembawa, Palembang,

had contributed to the project by presenting invaluable information on rubberwood resource status and

utilization to the workshops organized by the project.

The Provincial Forestry Agency (PFA) of Jambi had been appointed as the organizer of the

regional workshop held in the City of Jambi while the Forestry Agencies of four district governments

had involved in the implementation of activities relating to government policies and identification of

incentives for farmers. The crop-estates agencies at the provincial and local levels had provided

information on existing rubber plantations and assisted in organizing the dialgoues with rubber

farmers. Indeed, the ITTO had greatly contributed to the successful completion of the project by

closely monitoring progress in implementation through its participation in the meetings of PSC,

addressing the workshops, responding quickly to any requests or proposals made by the Project

Coordinator, maintaining effective communication and timely disbursing project funds.

It is worth mentioning that the Embassies of the Republics of Japan and Korea in Jakarta had

participated in the PSC meetings by sending their representatives whom had provided comments and

insights fruitful for improving the project implementation operations. Last but not least, the wood

industries and rubber companies were also involved in the project implementation by consistently

attending the workshops and discussions organized under the project and assisting in implementation

of selected activities.

oooOOooo


6. LESSONS LEARNED

6.1 Project identification and design

• The key problem addressed by the project was identified under the completed pre-project

and adequately analyzed involving the main stakeholders; the problem analysis identified

direct and indirect causes as well as consequences of the key problem that the cause-effect

relationship was definitely clear and easy to digest.

• The clear cause-effect relationship had facilitated construction of a sound project design

having strong vertical logic, relevant elements and well defined interventions.

• The sound project design had eased the operational planning and facilitated the smooth

project implementation with only minor adjustments to planned activities.

• The implementation strategy adopted that comprised elements of motivating and convincing

of rubber plantations owners, improvement of enabling conditions and introduction of

appropriate technologies was proved applicable and effective in achieving the specific

objective.

• The variations between planned and actual implementation had occured due mainly to the

lack of information on specific matters and the Project Coordinator’s concern over

operational efficiency; the variations could have been avoided by conducting an ex-ante

evaluation prior to commencing with the project operations.

• The critical determining factors of project sustainability include applicability of the

technologies and skills learned by farmers from the project, continued political support by

the governments at different levels and enhanced cooperation between rubber and wood

processing companies in the utilization of rubberwood from replanting areas.

6.2 Project implementation

• The Executing Agency of the project was the Directorate General of BUK that had

mandated ISWA to fully implement the project based on a Memorandum of Understanding

signed by both parties establishing roles and responsibilities of each in a clear manner

which had avoided any confusion during the course of project implementation.

• To implement the project, ISWA had established a small Project Management Team (PMT)

comprising four project key personnel, one national expert and two DG BUK counterparts;

the small PMT proved able to adequately perform project management tasks in an efficient

manner.

• The monitoring and evaluation of progress in implementation had been performed through

two PTC meetings, four PSC meetings and monthly technical meetings of the PMT; such

meetings had greatly contributed to the smooth project operations.

• The strategy pursued in implementing the project was defined during the project formulation

stage consistent with the project elements specified and operationalized in a collaborative


manner by working closely with the primary beneficiaries, relevant institutions and national

consultants; the strategy proved effective in achieving the specific objectives.

• The project was managed in full compliance with existing ITTO rules and procedures; all the

documents required by ITTO including YPOs, bi-annual progress reports, financial audit

reports and documents of particular had been timely submitted to ITTO and facilitated

immediate issuance of any approvals requested by ISWA.

• The roles and responsibilities of ISWA and the national consultants were well elaborated in

the respective terms of reference which had facilitated accomplishment of assigned tasks in

an effective fashion.

• The project had been successfuly completed within the sanctioned financial and time budget

due mainly to the adequate project design, supportive primary beneficiaries and partners,

strong coordination with ITTO and DG of BUK as well as the cooperative and competent

national consultants.

• The active participation of rubber farmers in the implementation of relevant activities was

realized without any major difficulties because the farmers were convinced that the activities

would greatly contribute to their livelihood.

• The original indicators of achievement defined in the Logical Framework Matrix (LFM) was

exclusively based on the project design constructed during the formulation stage;

appropriateness of the indicators as a tool for measuring achievement was evaluated

regularly at the beginnings of current years of operation and adjusments made as necessary

based on actual progress in implementation.

oooOOooo


7. CONCLUSIONS AND RECOMMENDATIONS

7.1 Conclusions

i. The key problem addressed by the project “very low rate of utilization of rubberwood from

sustainable sources” was identified under the completed ITTO-assisted pre-project involving the

main stakeholders based on the preliminary estimate of existing rubberwood growing stock and

its state of utilization; successful removal of the key problem would greatly contribute to

lessening the wood supply problem facing the national wood industry.

ii. The key problem was adequately analyzed, its causes and sub-causes as well as consequence

were clearly specified; the project design was constructed based on a clear and logical cause-

effect relationship that its vertical logic was strong and its elements were consistent with the

problems to be resolved.

iii. The project was implemented by ISWA on behalf of Directorate General of Forestry Enterprise

Development (BUK) with close supervision by the Directorate of Forest Product Processing and

Marketing (BPPHH) of BUK without any major administrative or operational difficulties.

iv. The project had been smoothly implemented and successfully completed to achieve its defined

specific objective; the smooth implementation and successful completion of the project were

made possible by, among others:

The sound project design that eased operational planning;

The effectiveness and appropriateness of the implementation strategy;

The adequate resources in terms of manpower, funds and time;

The generally strong support of the primary beneficiaries and partners; and

The able project management team.

v. The project operations were managed by a small management team comprising the project

coordinator, a secretary, a finance staff, a technician, a national expert and two BUK counterparts

that was able to complete the project within the sanctioned financial and time budget.

vi. The specific objective defined was nearly achieved through the full execution of twenty-two

planned as well as two additional activities pertaining to five outputs and delivery of the outputs

noting that three outputs were fully achieved and two outputs were slightly short of targets.

vii. The assumptions made were valid throughout the project duration and the mitigating measures

defined were effective in preventing the potential risks from happening.

viii. The indicators of achievement originally defined had been revisited at the beginnings of current

years of operations and necessary adjustments made based on progress in implementation to

ensure applicability and appropriateness of the indicators as the tool for measuring project

achievements.

ix. The primary beneficiaries of the project had demonstrated their cooperative and supportive

attitude towards the project implementation noting that the rubber companies were less

cooperative for business policy, technical and administrative reasons.


7.2 Recommendations

i. It is strongly recommended that any ITTO project proponent to perform an adequate analysis of

the problem to be addressed in accordance with existing ITTO manual on project formulation to

ensure clarity of cause-effect relationship.

ii. To be sound, a project design must be constructed based on a clear cause-effect relationship to

ensure relevance and effectiveness of project interventions to solving the problems at hand.

iii. Any collaboration in project implementation should be based on a memorandum of

understanding that clearly defines roles and responsibilities of the parties involved in order to

avoid unnecessary confusion and disharmony of institutional relation during the project

implementation.

iv. To ensure a smooth implementation and successful completion of a project, appropriateness of

strategy for implementation, adequacy of inputs as well as support of primary beneficiaries and

partners are among the enabling conditions that are required to prevail.

v. It is best to employ a small but able project management team in order to minimize cost of

personnel, ensure effectiveness of coordination and increase adaptability to changing project

environment.

vi. Achievements of a project must be assessed using the pre-specified indicators; to be realistic as

a tool for measuring achievements, such indicators need to be occasionally revisited and

adjusted as necessary based on progress in implementation.

vii. The potential risks associated with the project implementation should be defined correspond to

the assumptions made; relevant mitigating measures identified during the project formulation

stage must be exercised and modified as necessary during the course of project

implementation.

viii. It is strongly recommended for BUK and ISWA to continue exploring the possibility of

establishing cooperation between the rubber companies with wood industries in rubber logs

supply through organized dialogues between high-rank officials of the Ministries of Forestry,

Agriculture and State-owned Companies, in view of increasing value-added of the rubberwood

harvested from replanting areas.

Responsible for the Report

Project Coordinator Project National Expert Mr. Jimmy Chandra Dr. Hiras P. Sidabutar

Date: July 2013


Selected references

FAO. 2006. FAOSTAT Database home page (http://www.fao.org/). Food and Agriculture Organization of the United Nations, Rome.

ITTO Pre-project PPD 80/03 Rev. 2 (I). 2005: Promoting the utilization of rubberwood from sustainable

sources in Indonesia. Completion Report, prepared by PHJ. Nainggolan, Published by ITTO and ISWA, Jakarta.

Sidabutar, Hiras and Chandra, Jimmy. 2013: Strengthening the Interest of Rubber Companies in the

Utilization of Rubberwood on Replanting Areas in North Sumatra. Technical Report No. 1 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.

Sidabutar, Hiras and Chandra, Jimmy. 2013: Improving the Incentives and Capacity for the Utilization

of Farmers’ Rubberwood on Replanting Areas in Jambi and South Sumatra Provinces. Technical Report No. 2 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.

Sidabutar, Hiras and Chandra, Jimmy. 2013: Enhancing Government Policy on the Utilization of

Farmers’ Rubberwood on Unproductive Rubber Plantations in Jambi and South Sumatra Provinces. Technical Report No. 3 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.

Sidabutar, Hiras and Chandra, Jimmy. 2013: Promoting Investment for the Utilization of Rubberwood

on Unproductive Rubber Plantations. Technical Report No. 4 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.

Sidabutar, Hiras and Chandra, Jimmy. 2013: Developing Appropriate Technologies for the Utilization

of Farmers’ Rubberwood in Jambi and South Sumatra Provinces. Technical Report No. 5 of Project PD 523/08 Rev. 1 (I). Published by BUK, ITTO and ISWA.

oooOOooo


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