Development of timber and non-timber forest products’ production and market strategies for improvement of smallholders’ livelihoods in Indonesia

Combining tree planting with NTFP management has been an important part of local farmers’ livelihoods’ strategies for a long time, with each element playing a different role. Integration of improved production and marketing of smallholders’ timber and NTFPs is likely to improve livelihoods, particularly in the provinces of Nusa Tenggara Timur (NTT/ East Nusa Tenggara) and Nusa Tenggara Barat (NTB/West NusaTenggara). Such integration, however, faces significant impediments: 1) insufficient understanding of the trade-offs between timber and NTFPs related to the cost of allocating household labour and financial capital; 2) ineffective silvicultural practices that do not optimise the production of timber and NTFPs; 3) insufficient understanding of market characteristics for different types of products (both timber and NTFPs) to add value in value chains and what the markets require to improve the products’ qualities; 4) there has been conflict with integrated uses and management of timber and NTFPs in the region; and 5) unfavourable policy frameworks governing farm and landscape management that prevent value chains from effectively providing fair profit margins for community producers.