With regard to the improvement of forest law enforcement, governance and trade, the Government of Indonesia has undertaken a lot of efforts and initiatives through the issuance of regulations to provide legal guidelines for all stakeholders that have business or activities in the forestry sector particularly small forest enterprises wich is predominantly managed by communities. The role of timber produced from community forests is increasingly important due mainly to the dwindling supply of wood from natural forests. The Ministry of Forestry has created a breakthrough in contributing to strengthen forest governance and reduce leakage of state tax revenues through the issuance of the Ministerial Decree number No 30/Menhut-II/2012 in June 2012 outline of timber administration system from a Community Forestry to a primary industry. It regulates the usage of documents of origin (Surat Keterangan Asal Usul, SKAU) as a tracking system to ensure timber legality. The spirit of these regulations is to simplify the administrative requirements for wood originating from community forests by making village heads eligible to issue transport documents, which also legalize the harvested timber. In light of the importance in tackling the issues, the project will improve the administration of timber produced from community forest in Java and Nusa Tenggara Region. The expected outputs of the project are: 1) Ministerial Regulation (Permenhut) No. 30/Menhut-II/2012 properly implemented; 2) Support by beneficiaries (land owners/farmers, traders and users of timber produced, local govermnet) of timber administration increased
Upon completion of the project, new regulation on timber administration in community forest will be implemented effectively and disseminated among major forest stakeholders and sustain the forest as well as collect the optimum forest product revenue. The capacities of relevant parties/stakeholders particularly staff of villages in implementing timber administration had been improved. Trade volume of legal timber from sustainable community forest will increase as well. As long term effect of the project intervention it is expected that local economy of forest dependent Communities in Java and Nusa Tenggara region increased and illegal logging and illegal timber in Indonesia reduced.