Post-permit social forestry: An analysis of the economic impact of the forestry revolving fund facility to the community of forest farmers

Abstract

Social forestry was expected to improve the welfare of local communities by supporting people who live near the forest and rely on its natural resources while preserving their forests. The social forestry business was focused on managing all potential resources (Non-Timber Forest Products and Timber Forest Products) over its area's development as well as environmental services. In this regard, providing only legal access is not quite sufficient. It should be followed by strengthening business capital for forest farmers as their most basic problem was limited capital for their business development. The government has answered this matter by providing a Revolving Fund Facility, also known as Fasilitas Dana Bergulir (FDB), to forest farmers. In accordance with those elaborations, this study aimed to analyze forest farmers’ characteristics who received the FDB program benefits and to investigate the FDB impact on their Economic. This study was conducted on the selected community forest farmers group in Tebat Pulau Village as the largest beneficiaries of the fund in Rejang Lebong, Bengkulu Province. This study uses exploratory and descriptive-analytical methods. The economic impact of the FDB Program is increased production (76%), income, and employment (20%). Regression analysis proves that land area, number of workers, and partnerships positively affect income. The types of partnerships that have been carried out are bringing in Off Takers, capital support, education and training, equipment assistance, provide counselling. Furthermore, the determinants of income are the number of workers, the proportion of transportation costs, the proportion of input costs, the type of partnership, the appropriate use of funds, and their involvement in planning.