How tenure insecurity formulates land market institutions in the limited production forest area in Tanjung Jabung Barat district, Jambi province, lndonesia

This research focuses on the impact of property rights' insecurity that drives tenure insecurity as well
deforestation and forest degradation in the limited production forest (hutan produksi terbatas/HPT) in
Tanjung Jabung Barat district, Jambi Province, Indonesia. Deforestation is considered as a risk management
strategy; tenure insecurity reduces the present value of forest and fosters forest conversion into
agricultural lands-in this case convertion into oil palm and rubber monoculture and rubber agroforest
plantation. Moreover, deforestation is the consequence of strategic interactions between the local
community (which has a claim over land and forest) with the migrant community (which is hungry for land
to gain capital increment). This strategic interaction has driven the formulation of an informal land market
institution and effected the local tenure arrangement that has significantly contributed to deforestation
over the study site area. The current situation of forest land encroachment is the result of the lack of forest
governance at the site level in which the state forest zone is considered more as an open access area or
no-man's land. The research tried to get a better understanding on how the informal land market
institution had been formulated at the study site area