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The biggest challenges in establishing timber plantations in Indonesia concern a range
of social aspects, in particular those dealing with people living inside concessions and
in the areas surrounding plantations. CIFOR’s research shows that a sustainable
supply of timber may be achievable through partnership schemes that encourage
companies and local communities to work together in sharing both the benefits and
risks of investing in plantations. Despite recent private sector support for partnership
schemes, there is evidence to suggest companies often do not have a clear idea of
the measures needed to ensure tree growers’ full commitment. In the short-term,
companies would not gain economic benefits from the amount of wood produced under
partnerships, but more by sharing the risks and benefits with local communities in
establishing timber plantations. However, the challenges are complex and the long
term viability of partnerships depends on ensuring the partnership can deal with to the
changing condition.