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Developing and promoting market-based agroforestry options and integrated landscape management for smallholder forestry in Indonesia (Kanoppi2)

This project aims to improve smallholders' livelihoods through landscape-scale management of the farm-forest interface, scaling up the adoption of improved production practices and value chains for timber and non-timber forest products (NTFP).
Building on previous achievements (FST/2012/039, FST/2005/177, FST/2003/025), this project will expand market-based agroforestry and develop integrated landscape management in the poorest provinces of eastern Indonesia and on Java, the most densely-populated island.
Rural householders in the provinces of Nusa Tenggara Timur and Nusa Tenggara Barat earn less than AUD 300 per year, well below annual earnings in other parts of Indonesia, while Yogyakarta is one of the most densely-populated parts of the country with a high proportion of rural poor people.
Developing timber and non-timber forest product value chains, so that farmers earn more value from their products, will improve livelihood opportunities, but poor silvicultural management practices result in low productivity and profitability from integrated timber and NTFP production systems. Smallholders and communities lack market access, processing capacity and appropriate business models to realise value from their products. Effective extension strategies are needed to spread successful management options widely amongst households, and to align landscape management policies both to remove barriers to developing timber and NTFPs value chains and to reconcile agricultural and forest land uses to deliver provisioning, regulating and cultural ecosystem services.
The project could generate large economic returns for smallholders because of the value of timber and NTFPs that can be produced and marketed from integrated production systems, which are even higher when intercrops are combined. Attendant environmental benefits including biodiversity and soil health are coupled with social benefits including greater gender equity.