INTERNATIONAL TROPICAL TIMBER ORGANIZATION

TITLE

SERIAL NUMBER

COMMITTEE

SUBMITTED BY

ORIGINAL

SUMMARY

ITTO

PROJECT PROPOSAL

PROMOTING SELECTED NON-TIMBER FOREST PRODUCTS BASED ON COMMUNITY PARTICIPATION APPROACH TO SUPPORT SUSTAINABLE FOREST MANAGEMENT

PD 277/04 (I)

FOREST INDUSTRY

GOVERNMENT OF INDONESIA

ENGLISH

The proposed Project (follow-up of the Pre-Project PPD No. 55/02 Rev. 1) is intended to increase contribution of NTFP to the forest sector in East Kalimantan economic development. The increase would happen when small-scale industry of NTFP and its marketing network have been established, supported by the respective stakeholders. On­station and on-farm demonstration plots that directly involve the community would serve as initial stage in establishing the production subsystem. Sustainability of the Project could be expected from the sustainability of cultivation, processing, market system, and national policy. If the NTFP business as alternative source of income is developed, the surrounding community would have better welfare and therefore, less damage to the forest due to decreasing illegal logging and forest encroachment.

EXECUTING AGENCY

IMPLEMENTING AGENCY

DURATION

APPROXIMATE STARTING DATE

PROPOSED BUDGET AND OTHER FUNDING SOURCES

FOREST PRODUCT TECHNOLOGY RESEARCH AND DEVELOPMENT CENTRE, FORDA

BIOPHARMACA RESEARCH CENTER, BOGOR AGRICULTURAL UNIVERSITY

36 MONTHS

UPON APPROVAL

Source

IITO

Gov't of Indonesia

TOTAL

Contribution in (US$)

388,027

62,047

450,074

Table of Content

PART I: CONTEXT

1. Origin 2. Sectoral Policies 3. Programmes and Operational Activities

1. Project Objectives 1.1. Development Objective 1.2. Specific Objectives

2. Justification 2.1. Problem to be Addressed

PART 11: THE PROJECT

2.2. Intended Situation after Project Completion 2.3. Project Strategy 2.4. Target Beneficiaries 2.5. Technical and Scientific Aspects 2.6. Economic Aspects 2.7. Environmental Aspects 2.8. Social Aspects 2.9. Risks

3. Outputs 3.1. Specific Objective 1

- Output 1.1. - Output 1.2. - Output 1.3.

3.2. Specific Objective 2 - Output 2.1. - Output 2.2. - Output 2.3.

4. Activities 4.1. Output 1.1.

- Activity 1.1.1. - Activity 1.1.2. - Activity 1.1.3. - Activity 1.1.4. - Activity 1.1.5.

4.2. Output 1.2. - Activity 1.2.1. - Activity 1.2.2. - Activity 1.2.3.

4.3. Output 1.3. - Activity 1.3.1. - Activity 1.3.2. - Activity 1.3.3.

4.4. Output 2.1. - Activity 2.1.1. - Activity 2.1.2.

4 4 5

6 6 6 6 6 7 7 8 8 9 9 9 9

10 10 10 10 10 10 10 11 11 11 11 11 11 11 11 11 11 11 11 12 12 12 12 12 12 12 12

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4.5. Output 2.2. - Activity 2.2.1. - Activity 2.2.2.

4.6. Output 2.3. - Activity 2.3.1. - Activity 2.3.2. - Activity 2.3.3. - Activity 2.3.4.

5. Logical Framework Worksheets 6. Work Plan 7. Budget

7.1. Overall Project Budget by Activity 7.2. Yearly Budget by Source-GOI 7.3. Consolidated Yearly Project Budget

PART Ill: OPERATIONAL ARRANGEMENTS

1. Management Structure 2. Monitoring, Reporting, and Evaluation 3. Future Operation and Maintenance

PART IV: TROPICAL TIMBER FRAMEWORK

1. Compliance with ITTA 1994 Objectives 2. Compliance with ITTO Action Plan

ANNEXES

12 12 12 12 12 12 12 12

13 15 16 16 17 18

19 20 21

22 22

A. Profile of the Executing & Implementing Agencies A-I B. Curricula Vitae of the Key Staff B-1 C. Location Map of the Proposed Project C-l D. Description of the Selected NTFP to be Developed Through Community Participation D-l

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Ringkasan

MENGANGKAT HASIL HUTAN NON-KAYU MELALUI PENDEKATAN PARTISIPASI MASY ARAKAT UNTUK MENUNJANG PENGELOLAAN

HUTANLESTARI (Promoting Selected Non-Timber Forest Products Based On Community

Participation Approach To Support Sustainable Forest Management)

Pohon masalah (Problem Tree)

Hasil hutan selama ini dianggap hanya berupa kayu baik oleh masyarakat umum maupun praktisi kehutanan. Sementara hutan dimengerti sebagai kesatuan ekosistem yang terdiri atas berbagai macam flora dan fauna dengan peran, fungsi, dan manfaatnya masing-masing. Oleh karenanya semestinya mudah dimengerti pula jika hutan tidak hanya menghasilkan kayu, tetapi dapat menghasilkan berbagai macam jenis hasil. Menurut kategori manfaat, setidaknya dalam manfaat langsung telah ada pemisahan hasil hutan berupa kayu dan non-kayu. Terlepas dari istilah non-kayu yang masih sering menjadi kontroversi, jenis hasil hutan tersebut telah tercantum dalam statistik kehutanan, yang berarti telah diakui nilai manfaatnya. Namun demikian nilai tersebut selama ini masih merupakan bagian kecil dari total nilai yang diterima, sementara itu secara ilmiah telah terbukti bahwa nilai hutan berupa kayu sesungguhnya hanya ±5% saja dari total nilai hutan (Fakultas Kehutanan IPB, 1996). Atas dasar hal tersebut maka untuk merealisasikan total nilai hutan non-kayu diperlukan adanya upaya mengelola hasil hutan non-kayu secara lebih intensif.

Dipandang dari disiplin ilmu ekonomi, untuk menghasilkan manfaat maksimum, maka pemanfaatan hutan seharusnya dilakukan dengan cara menentukan kombinasi hasil kayu dan non-kayu secara optimum. Hal ini teIjadi karena keduanya dalam satu ekosistem yang dapat saling meniadakan dan saling mendukung, dengan demikian jika pengelolaan hutan hanya memutuskan satu j enis produksi maka kebij akan tersebut j elas tidak tepat.

Pengalaman pengelolaan hutan di Indonesia selama ini masih terus condong kepada hasil kayu saj a. Walaupun paradigma telah berubah, dalam pelaksanaan pengelolaan seperti itu belum dapat direalisasikan. Oleh karena itu kontribusi hasil hut an non-kayu tetap terus akan kecil sampai setelah benar-benar teIjadi perubahan dalam pelakasanaan di lapangan. Untuk itu diperlukan upaya nyata untuk "mengangkat" hasil hutan non-kayu agar dapat memberikan kontribusi hasil secara nyata. Salah satu hasil hutan non-kayu ialah tumbuhan obat yang dapat diusahakan dalam satu sistem penanaman hutan. Pada hutan alam, tumbuhan obat ini sangat besar potensinya baik ditinjau dari jenis dan jumlahnya. Sementara itu pemanfaatannya sampai saat ini masih sangat terbatas, dalam arti belum merupakan suatu usaha intensif baik ditinjau dari integrasinya di dalam pengusahaan hutan maupun produk-produk olahan yang dihasilkannya serta sistem pasamya pun belum berkembang. Sifat yang lebih penting lagi ialah bahwa tumbuhan obat ini dapat diusahakan dalam bentuk usaha skala kecil baik budi daya maupun proses pengolahannya.

Dari uraian tersebut jelas bahwa kontribusi hasil hutan non-kayu, dalam hal ini tumbuhan obat, bagi sektor kahutanan di Indonesia pada umumnya dan di Kalimantan Timur pada khususnya masih relatif keci!. Hal tersebut disebabkan tidak lain karena belum terbangunnya suatu sistem usahalindustri yang mapan dalam arti merupakan suatu rangkaian subsistem budi daya, pengolahan, dan pemasaran dalam suatu aktivitas bisnis yang kuat dan mandiri.

Untuk mewujudkan hal tersebut sangat tepat jika usaha yang dimaksud dimulai dalam suatu sistem penge10laan hutan, dengan melibatkan masyarakat dengan harapan mereka menjadi pelaku utama dalam usaha tanaman obat. Di samping itu, bentuk usaha seperti ini dapat pula diintroduksikan kepada masyarakat sekitar hutan untuk dapat dilakukan pada lahan-Iahan miliknya, dengan membentuk kelompok -kelompok usaha.

Pohon tujuan (Objective Tree)

Atas dasar permasalahan tersebut maka tujuan umum dari proyek ini ialah meningkatkan kontribusi hasil hutan non-kayu (tumbuhan obat) terhadap sektor kehutanan dalam pengembangan ekonomi di wilayah Kalimantan Timur. Selanjutnya, tujuan spesifik proyek ialah (1) Membangun dan mengorganisasikan suatu usaha kecil tumbuhan obat yang terdiri atas rangkaian usaha budi daya, proses pengolahan, dalam suatu desain manajemen usaha kecil, dan (2) membangun suatu sistem pemasaran yang sehat dan adil yang terwujud dalam suatu jaringan pemasaran yang kuat.

Dari kedua tujuan spesifik tersebut diharapkan terbentuk suatu sistem usahalbisnis yang terdiri atas subsistem produksi (budi daya), subsistem pengolahan, subsistem pemasaran dan subsistem kelembagaan dalam suatu tatanan usaha skala kecil yang kuat. Dengan terbentuknya usaha yang dimaksud maka se1ain akan meningkatkan pendapatan masyarakat secara langsung, juga berkontribusi dalam pembangunan ekonomi setempat. Dampak lanjutan yang diharapkan adalah dapat mengurangi kerusakan hutan, karena masyarakat telah dapat memiliki sumber paendapatan dari usaha tersebut.

Strategi Proyek (Project Strategy)

Strategi proyek yang dimaksud disini adalah meliputi langkah-Iangkah yang akan dilakukan untuk mencapai tujuan proyek tersebut. Langkah-Iangkah yang dimaksud ialah

1. Mengembangkan usaha ini pada dua areal sekaligus, yaitu pada hutan negara yang dikelola PT Inhutani I yang selanjutnya disebut on-station dan pada lahan masyarakat yang selanjutnya disebut on-farm, dengan masing­masing masyarakat setempat sebagai pelaku utamanya

2. Menerapkan teknologi tepat guna (appropriate technology) dalam bidang budi daya, pemanenan, dan pengolahannya.

3. Menganalisis zat bioaktif yang terkandung dalam tumbuhan obat yang akan dikembangkan yang selama ini telah diyakini bermanfaat namun belum dianalisis melalui standar laboratorium modem

4. Membangun kelompok-kelompok usaha yang beranggotakan para petani sehingga dapat menjadi satuan-satuan usaha yang kuat dan mandiri

5. Membangun sistem pasar melalui pengembanganjaringan pasar yang kuat baik pada pasar lokal sampai regional

Atas dasar 5 strategi yang akan ditempuh, maka dibuat sejumlah aktivitas dan dari kelompok-kelompok aktivitas tersebut akan dihasilkan 6 output. Output dalam tujuan spesifik ke-l ialah (1) memapankan sistem budi daya termasuk pemanenannya, (2) memapankan sistem pengolahan, dan (3) membangun suatu rancangan manajemen usaha skala kecil. Selanjutnya output dalam tujuan spesifik ke-2 ialah (1) memapankan strategi bisnis kelompok, (2) memapankan pasar tujuan, dan (3) membangun jaringan pemasaran yang kuat.

Target Pemanfaat (Target Beneficiaries)

Pemanfaat langsung dari proyek ini adalah masyarakat yang terlibat pada empat desa. Pemanfaat berikutnya adalah pemerintah dalam bentuk model manajemen, upaya pelestarian hutan; para pakar, peneliti, pihak perguruan tinggi, LSM dan pihak-pihak lain terkait dapat melakukan proses pembelajaran dari seluruh aktivitas dalam proyek ini.

Gambaran Keberhasilan Usulan Kegiatan dengan Dana ITTO Usulan ini diharapkan dapat disetujui oleh ITTO karena prakegiatannya telah dilaksanakan (Pre-Project PPD No. 55/02 Rev. 1) selama 6 bulan (Mei-Oktober 2003). Stakeholders yang telah menyatakan komitmennya antara lain PT Inhutani I, Dinas Pertanian Tanaman Pangan setempat, LSM Bioma, peneliti di Universitas Mulawarman, dan masyarakat di keempat desa.

Bogor, 11 November 2003

Tim Peneliti Pus at Studi Biofarmaka, Institut Pertanian Bogor

PARTI: CONTEXT

1. Origin A Project proposal is prepared as a follow-up of the Pre-Project PPD No. 55/02 Rev. 1

entitled Assessing the Contribution of Selected Non-Timber Forest Products Based on Community Participation Approach to Support Sustainable Forest Management that has been completed on the area of Industrial Timber Plantation (HT!) Batu Ampar Unit of the PT Inhutani I, East Kalimantan Province. The Proposal is submitted to ITTO in conjunction to fulfill ITTO priorities, i.e. conservation of tropical forest biodiversity. Discovery of an anticancer compound from forest plant, efficacy of medicinal plants from forest area in therapy for various diseases, and biodiversity of Indonesian tropical forest that consists up to 30,000 species from the total of 40,000 species in the world, implies that medicinal plants in the tropical forest in Indonesia would contribute to the wealth of tropical forest. Therefore, the existence of medicinal plants in the tropical forest of Indonesia must be conserved. The Pre-Project that has been completed was aimed to gather the necessary baseline data, including potential of medicinal plants on the intended location, condition of the community social and culture, and the potential market.

The Pre-Project recorded 201 species of forest trees on the natural forest of Batu Ampar that have medicinal potential. From hereinafter, these species will be called collectively as non-timber forest products (NTFP). Four villages surrounding the forest area are Sungai Merdeka, Mentawir, Semoi I, and Semoi N. These community members are willing to develop NTFP as a side job to their family income. The accessibility of these areas is very good to Balikpapan market, with the average distance of 62 km, good road condition and transportation. Demand on medicinal raw material by the Balikpapan main market is 8.19 tons/annum, consists of pasak bumi 3.21 tons, kayu kuning 1.17 tons, tabat barito 0.72 tons, and kayu sapang 0.64 tons. Demand on these Kalimantan commodities in Java Island is 490.23 tons/annum; among others are pulasari (129.81 tons), kedawung (88.01 tons),pasak bumi (74.61 tons), andpulai (26.46 tons).

Stakeholders that would be involved in the development of NTFP are the local government (Agency for Regional Planning, Agricultural Office), a private sector (PT Inhutani I), the local university (Mulawarman University), NGO (Bioma), the villagers (Sungai Merdeka, Mentawir, Semoi I, and Semoi N). In the initial step, routine guidance would be given to the villagers, rendered by the stakeholders according to their respective roles.

The NTFP would be developed as follows. Initially, the NTFP would be produced in small­scale quantity by taungya system in the villages of Desa Sungai Merdeka, Semoi I, and Semoi N; but for Desa Mentawir it would be developed in the village forest (hutan adat). Medicinal plants that are on great demand by the villagers and therefore would be developed on these areas are Pasak Bumi, Kayu Kuning, Tabat Barito, Ginger, and Turmeric. Locations proposed by the villagers to develop NTFP are as the following: for Sungai Merdeka and Mentawir villages would be on the garden and the agricultural field, and for Desa Semoi I and Semoi N would be on the garden and Transmigration Land I. The NTFP development should reduce the pressures to the natural forests, primarily those exerted by the surrounding communities. NTFP development should involve community participation of the four villages surrounding Bukit Bangkirai forest; therefore, it should support the natural forest conservation. Involvement of the community should be initiated by a socio-cultural survey, focus group discussion, and workshops in the targeted four villages.

2. Sectoral Policies In accordance with implementation of decentralization of the governance (Law No. 22,

1999) to raise autonomy and to push regional development, the NTFP development would be one of community empowerment through wise utilization of natural resources. Increasing income and welfare of the community would be the main goal of the government policies in implementing the regional autonomy, which is in effective since the year 2001.

NTFP development shall increase forest value, and in turn shall be beneficial to the natural forest resource conservation. The development shall also contribute to increasing income and

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welfare of the villager's household, which in turn shall improve the economic condition of the corresponding villages and the regional economic condition as well. NTFP development shall also aim to support one of the ITTO's priorities in management of tropical natural forest through biodiversity conservation of the tropical natural forests.

This Proposal also supports the national programs in Indonesian forest development as implemented by the Ministry of Forestry (Directorate for Non-Timber Forest Products), Directorate General of Land Rehabilitation and Social Forestry). In this regard, NTFP are characterized by their woody parts (trees) and could be cultivated under forest canopy.

3. Programmes and Operational Activities The NTFP development proposal is aimed to support various development programs, i.e. (1)

ITTO's programs in tropical natural forest management in the form ofbiodiversity conservation, (2) Indonesian forestry program in the form of NTFP enrichment by planting the appropriate trees and the under storey plants, (3) program of regional autonomy in the form of improving community welfare, and (4) community empowerment program through establishment of NTFP business. Community participation and roles of stakeholders would be a key factor for the successful NTFP development as being proposed.

Since 1993, an NGO so-called LATIN (Lembaga Alam Tropika Indonesia) and KAIL (Konservasi Alam Indonesia Lestari), has performed a development programme on traditional medicinal plants, taking place in the Meru Betiri National Park in East Java Province since 1993. The activities include (1) delving community knowledge on medicinal plants, (2) gathering information regarding medicinal plants, (3) processing/formulating medicines, and (4) therapy on common diseases among the community. In 1999, after 6 years of commencement, the program has shown significant results. At the beginning, there were only 43 households involved with the area of only 7 hectares, but in 1999 the number of household participated in the program increased to 2500 households, involving an area of no less than 1500 hectares. The proposed activities for East Kalimantan Province would be very much similar to those in East Java, except that it would be more challenging. However, it is hoped that the results would be relatively similar as those successfully developed in Meru Betiri National Park.

The Proposal on NTFP development is intended as a follow-up for the PPD No. 55/02 Rev. 1. In the previous pre-project, the Team has collected and analyzed rigorously pertinent data regarding resource potential, socio-cultural condition, and market for the NTFP. This proposal contains an effort to empower the community through development of NTFP that would be in agreement with the sustainable forest management.

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PART 11: THE PROJECT

1. Project Objectives

1.1. Development Objective Objective of the proposed Project is to increase contribution of NTFP to the forest sector in East Kalimantan economic development. In 10 years to come, the contribution should increase 5% of the district forestry sector in Pasir Penajam dan Kutai Kartanegara districts. The increase would happen when small-scale industry of NTFP and its marketing network have been established, supported by the respective stakeholders.

1.2. Specific Objectives The specific objectives ofthe Project are as follows: 1.2.1: To establish small-scale NTFP industry 1.2.2: To establish marketing system ofNTFP

2. Justification

2.1 Problems to be Addressed

As shown in Figure 1 that is formulated based on PPD 52/02 Rev.l, the main problem in promoting NTFP is its low contribution from this part of forestry sector to economic development in East Kalimantan in particular, and in Indonesia in general. The problem is due to the fact that NTFP is not considered as commodities that are continuously traded and could share some benefit to the economic development, especially in increasing the community income through strong small enterprises. So far, the NTFP -including those having medicinal potential- were gathered from the nearby natural forests and directly consumed or processed in simple ways to be sold in limited quantities, while the demand of such medicine national and internationally is growing. A result of this prevailing utilization pattern is that the sustainability of resources and its utilization are unlikely to happen. In other words, the existing utilization would not support the sustainable forest management and the sustainability of its utilization.

Low contribution ofNTFP to the forest sector in East Kalimantan economic development

I I I

Small-scale NTFP industry is undeveloped Marketing system ofNTFP is undeveloped

I I J I I I I I

NTFP cultivation Management plan NTFP Strategy Marketing Marketing system is of small-scale processing business objective is not network of small-unknown NTFP industry is system is in- unit is not yet yet formulated scale NTFP

undeveloped appropriate established industry is not exist

I I I I Activity 1.1.1 Activity 2.2.1 Activity 2.3.1 Activity 1.1.2 Activity 1.2.1 Activity 1.3.1 Activity 2.1.1 Activity 2.2.2 Activity 2.3.2 Activity 1.1.3 Activity 1.2.2 Activity 1.3.2 Activity 2.1.2 Activity 2.3.3 Activity 1.1.4 Activity 1.2.3 Activity 1.3.3 Activity 2.3.4 Activity 1.1.5

Figure 1. Problem tree for promoting selected non-timber forest products based on community participation approach to support sustainable forest management

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Many plant species have been known and utilized by the community as their traditional medicine; some are very popular by Indonesian at large and even by pharmaceutical industries. However, relation between producers and consumers in various forms of good is not yet established as an interdependent entity system that is characterized by mutual benefit. The villagers, as individuals, have acted as producer of medicinal plant by gathering the materials from the forest for their own needs or sell them to other party, such as processing unit and from thereon, to the consumer. This activity (as producer) is only performed incidentally by the community and has not established as an organized commercial enterprises. While the trader has been very few, even single in each region. Hence, market of the product is categorized as local monopsonistic market structure, similar to market of agricultural products. In this market system, the villagers as producers have always had low bargaining position as compared to the buyers. For Indonesia, obstacles in developing small-scale enterprise system originate from both subsystems, i.e. production subsystem and marketing subsystem. In the case of promoting NTFP, the production subsystem includes cultivation, harvesting, and the subsequent processing, while for marketing subsystem, it includes establishment of market that brings mutual benefit for both the producers and the consumers.

As illustrated in Figure 1, the problem tree diagram shows that the main problems to be solved are establishing NTFP small-scale industries and fair market system. These two problems would exert equal important effect on the low contribution to the economic development. According to the problem tree diagram, the development objective is formulated as promoting selected NTFP based on community participation approach to support sustainable forest management through establishment of small-scale industry and the corresponding marketing system.

2.2 Intended Situation after Project Completion On-station and on-farm demonstration plots that directly involve the community would serve

as initial stage in establishing the production subsystem, and in the immediate future would be a model for developing NTFP in small-scale industry throughout all Indonesian regions. During the three-year Project lifetime, the farmer can earn income from quick yielding medicinal plants such as ginger and other rhizomes, while other NTFP will contribute later.

Sustainability of the Project could be expected from the sustainability of cultivation, processing, market system, and policy. When the NTFP is developed as alternative of source income, the surrounding community would have 'better welfare. This would bring about less damage to the forest due to decreasing illegal logging and forest encroachment.

Small-scale NTFP industry that are viable and supported by established market would contribute to the economy and can share knowledge and experience for the govemment(local or central), in formulating sound and suitable forest management policy. These benefits would result a maximum total value of both timber and NTFP.

2.3 Project Strategy Increasing contribution of NTFP to community income would decrease the need for

harvesting timber. In addition, increasing contribution of NTFP to forestry sector would lessen dependency on government revenue from timber. Hence, the pressure on timber would be decreased.

NTFP cultivation, small-scale industries based on NTFP, and market establishment would be integrated and become a strategy of this proposed Project. The strategy would resulted low risk as compared to NTFP development unintegratedly with processing units and with market establishment. The risk faced by the farmers when they fail in selling the raw product is their reluctant in receiving innovation brought by the Project. This integrated Project strategy wich integrating would need less cost, because the integration of cultivation, processing, and marketing ofNTFP would reduce transaction cost and transportation cost, meanwhile it would increase greater added value at local level.

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2.4. Target Beneficiaries Direct beneficiaries of the Project will be communities in the four villages that can function

as medicinal plant cultivators, processors, gatherers, and merchants. Secondary beneficiaries would be the local government, NGOs, and universities. The local government will earned knowledge and experience from this project could develop some similar from this Project in other villages and districts within the province. The participated NGOs may have some experiences that can be applied to facilitate other community groups in developing similar project. The surrounding universities would learn from the Project implementation to develop science and technology. All stakeholders would get valuable benefits when they directly involved either as implementer, facilitator, study team members, workshop participants, or parties who are going to receive reports from this Proj ect.

2.5. Technical and Scientific Aspect In Indonesia, forest products are categorized into timber and non-timber forest products

(NTFP). At present, the main utilized forest product is timber, meaning that the forest is not giving maximum total value because of single use, while endowing multi uses of forest. In conjunction with this matter, the Faculty of Forestry, Bogor Agricultural University IPB (1996) identified the value of timber extracted from the forest is only less than 5% of its potential tota value. This study reveals that it is important to change the forest management toward producing some combinations of timber and NTFP.

Higher value derived from timber and NTFP, theoretically, can be shown by production possibility frontier (PPF), as discussed in various resource economic textbooks. Based on this theory, forest management should be oriented toward the production of these two categories of forest products. By utilizing the two categorized products, the maximum value of forest could be achieved, as well as the efficiency of forest resource utilization and environment conservation.

The environmental values of NTFP have direct correlation to the type of forest from which they are harvested. In natural forest, where diversity is generally much greater than in plantation forest, the environmental value of NTFP is much higher since these products are part of the forest ecosystem where every component, living and non-living of the forest, interrelated to each other (Haeruman 1995).

NTFP are no longer "minor forest product" but major products of great socio-economic value. They are harvested not only from natural forest, but also from areas under similar use and plantation. They may be in the form of woody plant such as bark, gum, leaves, fruits, oil, or they may come from forest ecosystem, such as wildlife or grasses. New NTFP are being developed continuously, such as medicines and chemicals, genetic materials of flora and fauna to improve agricultural productivity. Availability of some of these new products depends on the existence of natural forest habitat and its exploitation poses another threat to the sustainability of the forest.

Sustainability of forest production, including NTFP, requires proper management. Since NTFP in many areas have traditionally been considered as by-products, their production has not been managed at all. It has been a "hunter and gatherer" type activity and its sustainability is questionable. To improve the sustainable management of NTFP, more knowledge is needed, especially of forest ecology and ecology of NTFP, that is, the role of plant and animal matter in the intricate and interrelated ecological system.

This proposed Proj ect is intended to develop NTFP both on state land (PT Inhutani I) and private land. By materializing this endeavor, the household would have new income, so that dependencies on the traditional income, including illegal logging would be lessened. The dependency is concerning economic as well as psychological aspects.

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2.6. Economic Aspects

Successful NTFP business may be evaluated from (1) number of individuals that have established business, (2) increase income for the farmers and for the region, (3) good impact to the economic development. A previous study showed that business in kumis kucing (Orthosiphon spicatus BBS) and kapulaga (cardamom) in Sukabumi, West Java, is certainly profitable, indicated by B/C > 1, NPV positive, and IRR > higher than the prevailing bank interest (Darusman et al. 2003).

The study may indicate the similar potential and expectation, that the proposed business developed by this study with the same indicator, can promote financial and economic benefits.

The implementation of small scale industry supported by the ITTO will be developed within 3 years period, hence during the development period community's income will be obtained from the fast growing medicinal plants such as ginger and other rhizomes, which other slow growing NTFP will contribute later. The aim of this project is establishing a business system that would relate subsystems of production, processing, marketing, and institutional support that could sustain, strong and autonomous.

NTFP business would need appropriate technology which capable to increase productivity and to business and resources sustainability. Eventualy successful NTFP business would reduce community dependence on timber utilization as prime source of income, and the NTFP business would bring about significant impact on forest conservation.

2.7. Environmental Aspect The proposed Project would result positive impact on the environment, where the secondary

forests or degraded forest and other unproductive land could be covered by high productivity timber and NTFP. In addition, the proposed Project would contribute to biodiversity enrichment.

Improvement in cultivation technique, harvesting, processing, and marketing as well as entrepreneurship are likely to contribute in reducing pressure to the forest and various forms of forest degradation due to the existence of alternative income source. NTFP business would require more intensive watching and cultivation activity, as compared to timber business; therefore, the proposed Project would contribute to reduction of forest fire, resulting better environment.

2.8. Social Aspects Population density in the villages within the Project area is 10-50 personlkm2

, with the popUlation annual growth of 1-1.4%. Most (90%) of the villagers are involved in agricultural activities as their main job. Their side jobs are fishing in the nearby rivers and bay and illegally cutting trees from the surrounding natural forest (illegal operation). The proposed Project would provide jobs for the new labor force as well as for the old labor force that are currently unlunderemployed. Therefore, the new side jobs would serve as an alternative for the villagers who are now working as illegal loggers.

The proposed Project would also introduce an industrial culture and initiate entrepreneurial behavior to the farmer groups who cultivate the medicinal plants, to the groups who are involved in raw material gathering and processing, and also to group of merchants. The Project is likely to increase family income of the farmers, the small-industry holders, raw material collectors, and merchants. Thus, the aggregate output of this activity would increase the community welfare. Wider outcome of the Project would be better condition of the respective regional revenue, labor absorption, reducing unemployment, and loosening the dependence of the villagers on the natural forests. As a consequence of the potential utilization of the Project, the beneficiary community and the stakeholders would give positive response and deliberate participation to the Project. 2.9. Risks

The most possible risk of the Project is failure in marketing. Monopsonistic market has shown a significant decrease of price and therefore would be detrimental to the farmers and the

9

small-industry holders. The risk might be lessened through functioning of the farmer collectives and cooperatives that are able to organize market and bargain strongly with the monopsonistic market.

The other risk of the Project is low participation, commitment and trust to the farmer collective and cooperatives. This particular risk could be minimized through facilitating activities performed by the participated NGOs.

There may be also risk of a low support from the local government. The government function in providing information services and policies would be very important. Involving multistakeholders including the respective local government from the very beginning of the Project could minimize the risk of low support.

3. Outputs

3.1. Specific Objective 1: To establish small-scale NTFP industry The Project would initiate small-scale NTFP industry in each village, producing some kind of processed NTFP. The raw materials could be acquired from cultivation on-farm and on-station (on PT Inhutani I forest area), as well as those from outside the villages.

Output 1.1: Established selected-NTFP cultivation system So far, NTFP cultivation system is not known. Therefore, the Team would do some experiments on the field regarding cultivation of selected NTFP. Based on the acquired knowledge, the Team would carry out trainings for villagers regarding the cultivation techniques. The selected species would be pasak bumi (Eurycoma longifolia Jack.), tabat barito (Ficus deltoidea Jack.), akar kuning (Arcangelisia flava (L) Merr) , kayu sepang (Caesalpinia sappan Linn.), seluang bilum (Luvunga eleutherandra Dalz.), kumis kucing (Orthosiphon aristatus (Bl.). Miq.), ginger (Zingiber ofJicinale Roxb.), and ken cur (Kaempferia galanga L.). The selected NTFP cultivation is established on-station (Unit Bukit Bangkirai-PT Inhutani l, 50 ha) and on-farm in villages (Sungai Merdeka, Mentawir, Semoi l, and Semoi IV, 5 ha each). NGO, e.g. Bioma would take part on facilitating the cultivation of NTFP as well as of other medicinal plants. A workshop on NTFP cultivation system would be held in order to disseminate the cultivation system, in addition as a monitoring and evaluating the activities.

Output 1.2: Established appropriate NTFP processing system Appropriate NTFP processing is established to at least one group in each village. Appropriate processing degree would be applied according to the existing resources (human, material, capital, traditional wisdom) that could be in the range of providing dried raw material to 'jamu' formula. The action would be initiated by some laboratory work in order to assure the quality of products. Following the lab work, the Team would hold some training to the villagers on establishing a processing unit. Workshop would be convened to demonstrate the processing system to some neighboring communities.

Output 1.3: Developed management plan of small-scale NTFP industry The Team would encourage some potential villagers to form business groups, at least by one group in each village, train these new business institutions, and together discuss and prepare business management plans.

3.2. Specific Objective 2: To establish marketing system ofNTFP In order to establish marketing system of NTFP, some strategic business must be introduced among the stakeholders (farmer-industry-merchandiser). Output 2.1: Established strategic business unit Strategic business unit is established by at least one group in each village. The Team would conduct some training on matters pertaining to business unit. The Team and NGO would be

10

very helpful in facilitating the cooperation among the units, the academic persons, and the government agencies. Upon the termination of the Project, the respective NGO would play an important role to be facilitator for these business unit activities.

Output 2.2: Developed marketing objective Marketing objective would also be implemented by at least one group in each village. Marketing objective that would be appropriate is Quality-Quantity-Delivery. Initially, the Team and the NGO take the lead to develop the marketing objective through some training activities. Again, upon the termination of the Project, the NGO would take care of this matter.

Output 2.3: Established marketing network of small-scale NTFP industry Business units in the four villages (at least four units) would be trained to establish marketing network, facilitated by the Team. Together with the corresponding stakeholders, promotion on NTFP would be carried out. Means of promotion includes leaflet distribution, exhibition, and workshop on marketing network of small-scale NTFP industry. The workshop also function as a monitoring and evaluation to the success of the Project.

4. Activities

4.1. Output 1.1 Established selected NTFP cultivation system Activity 1.1.1 To train cultivation and harvesting techniques

Actions: (1) select on-farm and on-station area for cultivation, (2) do some field experiment on cultivation and harvesting ofNTFP, (3) prepare cultivation manual, (4) train the villagers to cultivate NTFP

Activity 1.1.2 To assist cultivation development Actions: (1) provide seeds and/or seedlings of selected NTFP and other medicinal plants to be cultivated (2) provide fertilizer and equipment for cultivation, (3) inspect cultivation practices

Activity 1.1.3 To hold workshop on cultivation and harvesting system. Actions: (1) invite neighboring communities to attend workshop, (2) invite keynote speakers to disseminate cultivation and harvesting system for NTFP and other medicinal plants, (3) hold two workshops, (4) prepare workshop proceedings

Activity 1.1.4 To establish on-farm and on-station NT-species cultivation. Actions: (1) prepare the designated land for cultivation (Sungai Merdeka, Mentawir, Semoi I, and Semoi IV) and on-station cultivation (Unit Bukit Bangkirai-PT Inhutani I), (2) build fences surrounding the plots

Activity 1.1.5 To monitor and to evaluate cultivation and harvesting Actions: (1) prepare log book for monitoring, (2) monitor every 6 moths, (3) analyze progress and failure, (4) remedial work for cultivation and harvesting techniques

4.2. Output 1.2 Established appropriate NTFP processing system Activity 1.2.1 To extract bioactive compounds ofNTFP species

Actions: (1) delve indigenous knowledge about traditional medicine practice, (2) do laboratory work to confirm the efficacy of NTFP, (3) prepare scientific paper on the efficacy of NTFP, (4) distribute information to the villagers regarding the efficacy ofNTFP

Activity 1.2.2 To train appropriate processing techniques and quality control Actions: (1) do laboratory work on good practices in producing raw medicinal material of NTFP, such as moisture content, bioactive content, contamination level, (2) prepare manuals regarding NTFP post-harvest and further processing, (3) train the villagers

11

Activity 1.2.3 To hold workshop on appropriate NTFP processing system Actions: (1) invite neighboring communities to attend workshop, (2) invite keynote speakers to disseminate post-harvest and further processing for NTFP and other medicinal plants, (3) hold two workshops, (4) prepare workshop proceedings

4.3. Output 1.3 Developed management plan of small-scale NTFP industry Activity 1.3.1 To train business entrepreneurship

Actions: (1) prepare training materials, (2) invite villagers and home-industry holders, (3) carry out training

Activity 1.3.2 To establish group of small-scale industry Actions: (1) do laboratory work to prepare appropriate machineries as necessary for processing NTFP and other medicinal materials, (2) provide machineries on-site, (3) invite villagers having potential to run home industry, (4) establish the group of home-industry holders

Activity 1.3.3 To promote business group management plan Actions: (1) prepare manual for planning business management, (2) invite home-industry holders, NTFP farmers, (3) train to prepare business management plan.

4.4 Output 2.1 Established strategic business unit Activity 2.1.1 To train strategic business

Actions: (1) prepare training materials, (2) invite villagers, home-industry holders, and merchants, (3) carry out training

Activity 2.1.2 To facilitate strategic business development. Actions: (1) invite facilitators: NGOs, Mulawarman University, Bogor Agricultural University, etc.

4.5. Output 2.2 Developed marketing objective Activity 2.2.1 To train marketing objective development.

Actions: (1) prepare manual for marketing objectives, (2) invite merchants, (3) train to prepare marketing objective

Activity 2.2.2 To facilitate marketing objective development Actions: (1) prepare facilitator team of marketing, (2) analyze program, progress and failure, (3) perform facilitation.

4.6. Output 2.3 Established marketing network of small-scale NTFP industry Activity 2.3.1 To facilitate marketing meetings

Actions: (1) prepare facilitator team of marketing, (2) prepare manual of marketing network, (3) hold marketing meeting.

Activity 2.3.2 To promote marketing within and beyond East Kalimantan Province Actions: (1) prepare leaflet, (2) open house/marketing affairs, (3) industrial visit.

Activity 2.3.3 To hold workshop on marketing network of small-scale NTFP industry Actions: (1) invite marketing stakeholders to attend workshop, (2) invite keynote speakers to disseminate further purposes of marketing network, (3) hold two workshops, (4) prepare workshop proceedings

Activity 2.3.4 To monitor and to evaluate marketing network Actions: (1) prepare logbook for monitoring, (2) monitor every 6 moths, (3) anal yze progress and failure, (4) remedial work for marketing network.

12

5. Logical Framework W orksheet

OBJECTIVE INDICATORS MEANS of ASSUMPTION VERIFICATIONS

DEVELOPMENT Contribution ofNTFP • Report of forest sector • Good support OBJECTIVE for 10 years IS contribution to District- from local Increased contribution increased 5% ofPasir East Kalimantan government ofNTFP to the forest Panajam and Kutai economic development sector in East Kartanegara districts in Kalimantan economic East Kalimantan development through development

of small-scale NTFP industry and marketing network

SPECIFIC Small-scale NTFP • Annual report of • Good support OBJECTIVE 1 industry is established, cultivation and from local To establish small- producing processed harvesting activity government scale NTFP industry NTFP from cultivation • Annual report ofNTFP

and harvesting in 4 processing activity villages

OUTPUT 1.1 Selected NTFP • Annual report of • Land status for Established selected cultivation is cultivation activity on- cultivation (on-NTFP cultivation established on-station station (50 ha) station and on-system (50 ha) and on-farm in • Annual report of farm) is clear and

villages (Sungai cultivation activity on- clean of conflict Merdeka, Mentawir, farm, 5 ha at each • Good commitment Semoi I, and Semoi village of participants IV, 5 ha each) • Report of training • No fire accident

• Report of workshop • Workshop proceedings

OUTPUT 1.2 Appropriate NTFP • Report of group • Good commitment Established appropriate processmg IS establishment of participants to NTFP processing established to at least • Annual report of group the group program system one group in each activity • Good support

village • Report ofbioactive from local compound ofNT- government speCIes

• Report of training • Report of workshop • Workshop proceedings

OUTPUT 1.3 Management plan is • Document of • Good commitment Developed implemented at least management plan of participants to management plan of by one group in each • Report of training the group program small-scale NTFP village • Report of group • Good support industry establishment from local

• Annual report of group government activity

13

OBJECTIVE INDICATORS MEANS of ASSUMPTION VERIFICATIONS

SPECIFIC Marketing system of • Document of • Good commitment OBJECTIVE 2 NTFP is established agreement among of participants to To establish marketing through cooperation stakeholders the group program system ofNTFP among stakeholders • Report of group • Good support from

(farmer-industry- establishment local government merchandiser) • Annual report of group • No trade barrier

activity among district/province

OUTPUT 2.1. Strategic business unit • Document of strategic • Good commitment Established strategic is established by at business of participants to business unit least one group in each • Report of training the group program

village • Report of facilitation • Good support activity from local

government OUTPUT 2.2. Marketing objective is • Document of marketing • Good commitment Developed marketing implemented by at objective of participants to objective least one group in each • Report of training the group program

village • Report of facilitation • Good support activity from local

government OUTPUT 2.3. Strategic business unit • Document of • Good commitment Established marketing is established by at agreement among of participants to network of small-scale least one group in each stakeholders the group program NTFP industry village • Report of marketing • Good support

meeting from local • Report of workshop government • Workshop proceedings • No trade barrier

among district and prOVInce

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6. Work Plan

OUTPUT I ACTIVITIES Responsibility SCHEDULE OF MONTH

Institution I 2 3 4 5 6 7 8 9 \0 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

S~esific Objective I : To establish small scale based NTFP industry

Output 1. 1. Established selected NTFP cultivation system

~ ~ Activity I. I. I. To train cultivation and harvesting techniques FORDA,IPB

Activity 1.1.2. To assist cultivation development Local NGO (BIOMA)

Activity 1.1.3. To hold workshop on cultivation and harvesting system FORDA,IPB I Activity 1.1.4. To establish on-fann & on station NT -species cultivation PT INHUT ANI I, Local Government I I Activity 1.1.5. To monitor and evaluate cultivation and harvesting FORDA, IPS, Local Government - • - • Output 1.2. Established appropriate NTFP processing system I I Activity 1.2.1. To extract bioactive compounds crNT -species IPB

~ ~ Activity 1.2.2. To train appropriate processing techniques and quality control FORDA,IPB

Activity 1.2.3. To hold workshop on appropriate NTFP processing system FORDA,IPB - - -Output 1.3. Development management plan of small scale based NTFP

~ I I I

Activity 1.3.1. To train business enterpreneurship FORDA,IPB I I Activity 1.3.2. To establish group of small scale industry FORDA, IPB, Local Government I I Activity 1.3.3. To promote business group management plan FORDA, IPB, Local Government

Snecific Ob'ective 2 : To establish marketing system ofNTFP Outout 2.1. Established strategic business unit Activity 2.1.1. To train strategic business FORDA,IPB -Activity 2.1.2. To facilitate strategic business development FORDA, IPB, Local NGO Ou!ll!!t 2.2. Developed marketing objective Activity 2.2.1. To train marketing ob·ective develooment FORDA,IPB -Activitv 2.2.2. To facilitate marketing ob·ective development FORDA, IPB, Local NGO OulP-'lt 2.3. Established marketing network of small scale based NTFP industry

~ Activity 2.3.1. To facilitate marketing meeting FORDA,IPB r--r--Activity 2.3.2. To promote marketing within and beyond province Local Government, PT INHUT ANI - -~ -• "-Activity 2.3.3. To hold workshop on marketing network FORDA,IPB .-Activity 2.3.4. To monitor and evaluate marketing network FORDA, IPB, Local Government -Pro 'ect Management: Pro 'ect preparation FORDA, IPB, PT INHUTANI I -ITTO Monitor & Evaluation !TTO -

7. Budget

7.1. Overall Project Budget by Activity

OUTPUT / ACTIVITIES BUDGET COMPONENT PROJECT SUB DUTY CAPITAL CONSUMABLE MISCELLANOUS QUARTER GRAND

PERSONNEL CONTRACT TRAVEL ITEMS ITEMS YEAR TOTAL

SQesific Objective I : To establish small scale based NTFP industry

OU!ilut 1.1. Established selected NTFP cultivation system

Activity 1.1.1. To train cultivation and harvesting techniques 8,824 - 7,059 882 1,765 - QI - YI,Y2,Y3 18,529

Activity 1.1.2. To assist cultivation development 10,588 - 10,588 6,353 2,118 - QI,Q2,Q3 - YI,Y2,Y3 29,647

Activity 1.1.3. To hold workshop on cultivation and harvesting system 10,588 - 8,824 3,529 3,529 - Q2,Q3 - YI,Y2,Y3 26,471

Activity 1.1.4. To establish on-farm and on-station NT -species cultivation - 13,235 - - - - QI,Q2,Q3 - YI,Y2,Y3 13,235

Activity 1.1.5. To monitor and evaluate cultivation and harvesting 8,824 - 8,824 1,765 1,765 - Q2,Q3 - YI,Y2,Y3 21,176

OU!ilut 1.2. Established appropriate NTFP processing system

Activity 1.2.1. To extract bioactive compounds ofNT-species - 11,765 - - - - QI-YI 11,765

Activity 1.2.2. To train appropriate processing techniques and quality control 5,294 5,294 2,647 882 1,765 - Q2 - YI,Y2,Y3 15,882

Activity 1.2.3. To hold workshop on appropriate NTFP processing system 5,294 - 4,412 1,765 1,765 - Q2,Q3 - YI,Y2,Y3 13,235

OU!ilut 1.3. Development management plan of small scale based NTFP

Activity 1.3.1. To train business enterpreneurship 5,294 5,294 2,647 882 1,765 - Q2 - YI,Y2,Y3 15,882

Activity 1.3.2. To establish group of small scale industry 5,294 - 4,412 2,118 882 - Q2 - YI,Y2,Y3 12,706

Activity 1.3.3. To promote business group management plan - 2,941 - - - - Q3-YI 2,941

Snecific Ob'ective 2: To establish marketing system ofNTFP Output 2.1. Established strategic business unit Activity 2.1.1. To train strategic business 5,294 5,294 1,765 441 882 - Q2 - YI,Y2,Y3 13,676 Activity 2.1.2. To facilitate strategic business development 8,824 - 5,294 6,353 2,118 - QI,Q2,Q3 - YI,Y2,Y3 22,588 Output 2.2. Developed marketing objective Activity 2.2.1. To train marketing obiective development 5,294 5,294 1,765 882 882 - 02 - YI,Y2,Y3 14,118 Activity 2.2.2. To facilitate marketing obiective development 8,824 - 5,294 6,353 2,118 - 01,Q2,03 - YI,Y2,Y3 22,588 Output 2.3. Established marketing network of small scale based NTFP industry Activity 2.3.1. To facilitate marketing meeting 8,824 - 5,294 6,353 2,118 - 02 - YI,Y2,Y3 22,588 Activity 2.3.2. To promote marketing within and beyond province - 22,353 - - - - Q2 - YI,Y2,Y3 22,353

Activity 2.3.3. To hold workshop on marketing network 5,294 - 4,412 1,765 1,765 - Q2,Q3 - YI,Y2,Y3 13,235

Activity 2.3.4. To Monitor and evaluate marketing network 7,059 - 8,824 1,765 1,765 - Q3 - YI,Y2,Y3 19,412

Auditing - - - - - 4,500 Q3 - YI,Y2,Y3 4,500

Sub Total (ITTO): 82,059 53,603 82,059 42,088 27,000 4,500 QI,Q2,Q3 - YI,Y2,Y3 291,309 Sub Total (E. Host Gov.lGOI): 27,353 17,868 - - - - 01,02,03 - YI,Y2,Y3 45,221

GRAND TOTAL : 109,412 71,471 82,059 42,088 27,000 4,500 QI,Q2,Q3 - YI,Y2,Y3 336,529

7.2 Yearly Project Budget by Source - GOI

No. Budget Compoueuts :

7.3. Consilidated Yearly Project Budget

Budget Compouents :

YEARLY PROJECT BUDGET BY SOURCE-GOI

Budget Components: Annual Disbursements Total 2003/04 2004/05 2005/06

10. Project Personnel 27,353 9,118 9,118 9,118 20. Sub Contracts 17,868 6,985 5,074 5,809 30. Duty Travel - - - -40. Capital Items - - - -50. Consumable Items - - - -60. Miscellanous - - - -70. Executing Agency Management Costs (5% x Total Overall) 16,826 5,815 5,432 5,579 EXECUTING AGENCY/HOST GOVT. TOTAL: 62,047 21,918 19,624 20,506

PART Ill. OPERATIONAL ARRANGEMENTS

1. Management Structure:

Appropriate stakeholders would be involved in Project implementation. Simple and effective organization is needed to support and facilitate the process as shown in Figure 2 .

... Forest Research and Development Agency ITTO

... r. ................ ..... (FORDA)

~ Project Steering Committee:

- ITTO - MoF, Bureau ofInt. Coop, R & D, RLPS - Local Forestry Service (Dishut) Provincial &

Districts - Head of IPB Research Institute - Fac. of Forestry IPB- Dean - Team Leader - Local Representatives - PT Inhutani

Steenng CommIttee + - - Research Institute IPB

Executing Body t ..

Team Leader ... ~

National Experts .....

Secretary ... .. Treasurer .... ~

• " • Cultivation Industry Marketing System IProcessing System

Coordinator Coordinator Coordinator

I ... Experts, Assistants, Technicians, Facilitators

Figure 2. Organization chart ofproject implementation

19

2. Monitoring, Reporting and Evaluation:

Arrangement for Reporting • A progress report will be submitted to ITTO every 6 months (2 times within one year period)

and occasionally as ITTO may require at least 4 weeks before the visits. • Separated progress and status according to specific activities will also be reported and submitted

to ITTO within one month of the completion of activities. • Annual financial report audited by independent auditor will be submitted accordingly.

Arrangement for ITTO Monitoring and Review: • ITTO secretariat will carry out a project review mission at least once within one year period • The first mission will be focused on the feasibility of project management and project

experiment model in East Kalimantan, Indonesia, at the commencement of the project, on a date agreed.

Evaluation: • ITTO proj ect evaluation is carried out a mission at the nearest period 3 months before the

project completion. However, midterm evaluation will be decided necessary under the agreement between the ITTO and PIA and the Team Leader. The Term of Reference (TOR) formulated by the Project Steering Committee (PSC), Project Staff and Monitoring mission under the auspices of ITTO. The recommendation will be based on the stage of achievement and future possible program identified during the first establishment of the project.

• Unscheduled mission can be accepted and foreseen for the sudden and unexpected environmental impacts interfere to the project execution that is considered as complicated in its nature.

Schedule of monitoring and reporting:

No. Description No. Date l. First Disbursement Request l. January 2005 2. First Project Progress Report 2. March 2005 3. First Monitoring Mission 3. May 2005 4. First Technical Report 4. June 2005 5. Second Disbursement Request 5. July 2005 6. Second Project Progress Report 6. August 2005 7. Second Monitoring Mission 7. November 2005 8. Second Technical Report 8. September 2005 9. Third Disbursement Request 9. January 2006 10. Third Project Progress Report 10. March 2006 1l. Third Monitoring Mission 1l. May 2006 12. Third Technical Report 12. June 2006 13. Fourth Disbursement Request 13. July 2006 14. Fourth Project Progress Report 14. August 2006 15. Fourth Monitoring Mission 15. May 2006 16. Fourth Technical Report 16. June 2006 17. Project Completion Report 17. April 2008

20

3. Future Operation and Maintenance:

The Project would be implemented for 3 consecutive years; however, the goal of the project might be more completely attainable in 5 years. Therefore, the Project activities should be continued by the local government and PT Inhutani I, which may also in collaboration with private sectors concerning 'jamu' or pharmaceutical enterprises, and stakeholder's participation. Dissemination of methods and approaches in performing a small scale industry models, in the form of training, workshop, extensions, and formal educations will be offered to the interested parties who are willing to develop similar activities in the other parts of East Kalimantan.

To support the success of the Project, research and development on cultivation system, processing, and marketing should be continued after the termination of the Project. Bogor Agricultural University, Mulawarman University, the local government, PT Inhutani I, should carry out these activities simultaneously, either individually or in collaboration.

Maintenance of the Project by the local government and PT Inhutani I may be terminated no longer than 10 years, and the small-scale business enterprises, which is strong and autonomous, might be exist thereafter.

21

PART IV. TROPICAL TIMBER FRAMEWORK

1. Compliance with ITTA 1994 Objectives

Article 1 Objectives

Recognizing the sovereignty of members over their natural resources, as defined in Principle 1 (a) of the Non-Legally Binding Authoritative Statement of Principles for a Global Consensus on the Management, Conservation and Sustainable Development of all Types of Forests, the objectives of the International Tropical Timber Agreement, 1994 (hereinafter referred to as "this agreement") are:

(t) To promote and support research and development with a view to improving forest management and efficiency of wood utilization as well as increasing the capacity to conserve and enhance other forest values in timber producing tropical forests;

(i) To promote increased and further processing of tropical timber from sustainable sources in producing member countries with a view to promoting their industrialization and thereby increasing their employment opportunities and export earning;

(1) To encourage members to develop national policies aimed at sustainable utilization and conservation of timber producing forests and their genetic resources and at maintaining the ecological balance in the regions concerned, in the context of tropical timber trade

2. ITTO Y okohama Action Plan

3.3. Forest Industry Goal 2: Improve Industry's Efficiency of Processing and Utilization of Tropical Timber from

Sustainable Sources Action 5: To extent possible, given the Organization's primary focus on timber, develop, publish

and disseminate techniques and technologies on product development and on utilization efficiency of non timber forest product.

Action 6: Promote increased awareness and utilization of existing information on wood properties and end use requirements.

22

ANNEXES

ANNEX A.1 - PROFILE OF THE EXECUTING AGENCY

FORESTRY RESEARCH AND DEVELOPMENT AGENCY (FORDA)

FORDA's mISSIOn is to find and to provide science and technology to support sustainable, diversified uses of forest for the benefit of people. To pursuit the mission, FORDA's research priorities are

1. Research and development to secure forest resources base 2. Development of harvesting technique and assessment of all type of quality products obtainable

from forest including non-timber forest products and service. 3. Research in environmental management and biodiversity assessment, genetic resources, forest

health, and water resources management. 4. Improving sylviculture techniques and forest management practices to enhance better

socioeconomic conditions of forest dweller and social welfare programs. 5. National forest policy research and assessment of forest practices including institutional aspects

toward achieving Sustainable Forest Management.

ORGANIZATION STRUCTURE

Director General

I Secretary

I

I I I I I Program

1

Personal I Finance I I General Affair I Division

I I I I Center for Social

1

Center for Tree

1

Center for Forest Center for Forest Nature Economic Research on Improvement Products Technology Conservation Research

Forestry Research and and Development Development

I I I I Watershed Rehabilitation

11

Forest research

I Seed Technology ~

I Reforestation

Technology Institute (2) Institute (6) Institute Technology Institute

Non-Timber Forest Products Research KUDK Laboratory

FORDA's personnel As of March 1999, FORDA has been supported by 2382 scientists and employees, of which 270 hold post graduates degree and 476 BS degree holders, and the remaining are graduated of either technical, senior and junior high schools.

A-I

The infrastructure of the Executing Agency Facilities available at FORDA are

• Libraries; • Laboratories facilities for forest products ad non-timber forest product research; • Dry and wet laboratories facilities for forest research; • Herbarium • Office building for meeting, wring rooms in Bogor, Jakarta and other cities; • Experimental Forest in Bogor, Haurbentes, and Samarinda

A- 2

ANNEX A.2 - PROFILE OF THE IMPLEMENTING AGENCY

BOGOR AGRICULTURAL UNIVERSITY (IPB) BIOPHARMACA RESEARCH CENTER

Bogor Agricultural University (Institut Pertanian Bogor, IPB) is a state university with its core competence as the leading educational and research institute in the development of science and innovation of technology anticipates demands and changes in the use of biopharmaca. Within this context, IPB has established a research center focusing on biopharmaca development and optimizing efforts to conserve natural resources observing proper policy and bio-prospective regulation. This center has committed its existence as a networking institution and coordinating research on biopharmaca-related materials. Biopharmaca is defined as plants, animals, and microbes that have potential properties as drugs, health food, functional food, and neutraceutical for human, animal, and plants.

Organizational chart of Bogor Agricultural University with the three functions and the corresponding units

'f Education

Study Programs

Sogor Agricultural University

T Research

Research Institute

, Community Service

Community Service Institute

Research~~~~-+------L------.

List of main projects and studies conducted in the last three years and donor agencies (1) Hepatoprotector effect of crude polar extract from Arcangelesia flava and Zingiber

casummunar (PT Indofarma) (2) Parkia speciosa as an antidiabetic on mice (Ministry of National Education) (3) In vitro propagation of Ficus deltoidea, Spatipylum, Litsea cubeca, Eurycoma longifolia and

Arcangelesiaflava (Ministry of National Education). (4) Antimicrobial activity of forest tree Homolanthus populneo and Shorea leprosura (Ministry of

National Education) (5) Compounds for treatment of obesity and hipercholesterolemia from Guazuma ulmifolia

(National Research Council) (6) Screening of anticancer compounds using brine shrimp test and cell culture assay from 30

species of forest and horticulture plants (Ministry of National Education)

List of Project and Pre-Project submitted to the ITTO: one Pre-Project, completed

A- 3

Laboratory of Plant Conservation, Department of Forest Resource Conservation; dealing with exploration, conventional and tissue culture cultivation and conservation of forest medicinal plant, also education for the community development surrounding the forest area. Laboratory of Horticulture, Department of Agronomy; dealing with conventional and tissue culture cultivation and production of domesticated medicinal plants. Laboratory of Analytical, Organic, Physical, and Biochemistry, Department of Chemistry; dealing with extraction, fractionation, purification, and mechanism study of active compound from natural resources. Laboratory of Microbiology and Mycology, Department of Biology; dealing with assays of microbes in isolation and identification. Biomedical Laboratory-Primate Research Centre, Physiology and Pharmacology Department, Integrated Chemical Analysis Laboratory; dealing with in vitro e.g. cell/tissue culture and in vivo assays, toxicity tests and efficacy assay on non-primate and primate. Conservation and Cultivation Biopharmaca Station; dealing with display, collection, and production ofbiopharmaca.

Research budget in 1999,2000, and 2001 were 450 million, 750 million, and 1.1 billion rupiahs respectively (sallary of university staff not included). There are 40 staff members in our center, consist of 22 Dr, 14 MS, and 4 BS with various diciplines of science. Biopharmaca Research Center is a multidiciplinary center. So far, there was no subcontract activity in our center. Breakdown of budget is as follows: duty travel 15-20%, capital items (not included), consumable items 60-70%, miscellanous 5-10%, and management cost of 10-15% from total budget.

Personnel in the forestry-related fields (a) Twelve experts with post graduate degree (Dr. Yadi Setiadi, Prof. Dr. Dudung Darusman, Dr.

Suminar S. Achmadi, Dr. Irdika Mansur , Ir. Ervizal AM Zuhud, MS, Ir. Didik Suhardjito, MS, Ir. Yulius Hero, MSc, Ir. Siswoyo MS, Ir. Agus Hikmat, MS, Ir. Edhi Sandra, MS, Ir. Dodi Nurohmat, MS,)

(b) - Experts with graduate degree (c) Two middle level technicians (d) - Administrative personnel (e) Thirteen total number of personnel in the forestry-related fields

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ANNEX B.I - CURRICULA VITAE OF THE KEY STAFF

1. Name 2. Place and Date of Birth 3. Gender 4. Status

5. Nationality 6. Professional Job 7. Home address

8. Office address

9. Educational background:

Prof. Dr. Ir. Dudung Darusman, MA. Ciamis, 14 September 1950 Male a. Professor of the Natural Resource Economic,

Faculty of Forestry, Bogor Agricultural University IPB b. Head of Laboratory Politic, Economic and Social

Forestry, Faculty of Forestry, IPB Indonesia Professor n. Gunung Batu Rt. 04112 No.59 Bogor Phone: +62 - 251 - 322 937 Kampus IPB Darmaga PO BOX 168 Bogor +62 - 251 - 623 805

1. Sarjana (Ir) Kehutanan, Faculty of Forestry 1975, majoring in Forest Economic and Forest Management.

2. Diplome of Post Graduate on Forestry Economics, 1976, Univ. of Gajah Mada, Y ogyakarta.

3. Master of Art (MA) on Resource Economics, 1984, Department of Agricultural Economics, Univ. of Wisconsin, Madison, USA.

4. Doctor (Dr) major on Regional Development, 1989, Faculty of Post Graduate, Bogor Agricultural University (IPB).

10. Work Experiences :

Work experiences, job description and responsibilities

1. Lecturer, at the Faculty of Forestry, IPB 2. Vice Dean III for student affair, Fac. Of Forestry, IPB 3. Dean ofthe Faculty of Forestry, IPB

4. Head of Laboratory Politics, Economics and Social Forestry, Faculty of Forestry, IPB

5. Head of Research Center IPB 6. Member of Commissary, Perum Perhutani 7. Commissary at PT Fendi Hutan Lestari (joint venture) 8. Advisory Staff of Ministry of Forestry

11. Papers, Reports and Publications : 1. Indonesian Country Study on Biological Diversity 2. Struktur permodalan dan fmplikasinya dalam Pembangunan HTf

(Financial Structure and its implication in the development of industrial forest plantation)

Year

1976 - present 1979 - 1982 1989 - 1992 and 1992 - 1996 1989 - present

1996 - 1998 1994 - 1998 1995 - 2000 2000

1992 Media Persaki 1991

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3. Kerusakan tegakan tinggal akibat pemanenan kayu dengan system Rimba Indonesia 1993 TPTI dan biaya memperbaiki kerusakannya (Damage of the logged over forest using selective cutting system of TPTI and the cost for rehabilitation.)

4. Small Scale Forestry & Forest Product Industry ; Jawaban komprehensive terhadap masalah pembangunan di Propinsi berlahan marjinal (Small scale forestry & forest product industry ; the comprehensive answer to the problem of development in the marginal land province).

5. Manajemen hutan lestari untuk kesejahteraan masyarakat (Sustainable forest management for people prosperity).

6. Peran serta masyarakat dan pemerintah daerah dalam pengusahaan hutan di Indonesia (Community and local government participation on forest management in Indonesia)

7. Sistem nilai hutan alam Indonesia (Value system of natural forest in Indonesia)

8. Socio economic Dynamics oflndonesian Rain Forest Margins 9. Optimalisasi peran sektor kehutanan dalam usaha peningkatan

kesejahteraan masyarakat di sekitar hutan (Optimalization of forestry sector role and function in the effort to increase the properityof people living in/surrounding the forest).

10. Tinjauan keadilan dan kerakyatan dari kebijaksanaan reformasi dalam hal pelaku ekonomi kehutanan (Perspective on equity and public interest in reformed policy, based on forestry stakeholders economic).

11. Langkah-langkah perbaikan pembangunan ekonomi kehutanan menuju pengelolaan hutan lestari (Improvement strategy of the economic development towards sustainable forest management)

12. Resiliensi kehutanan masyarakat di Indonesia (Resilience of forest community in Indonesia)

13. Rasionalisisasi lahan dan hutan di Indonesia (Rasionalization of forest and land in Indonesia).

14. Tinjauan menyeluruh pungutan usaha sektor kehutanan (General perspective on business levy in forestry sector)

Bogor, Nopember 10t\ 2003

Prof. Dr. Ir. Dudung Darusman, MA

1993

1995

1996

1996

1997 1997

1999

1999

1999

2001

2002

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ANNEX B.2 - CURRICULA VITAE OF THE KEY STAFF

1. Name 2. Place and Date of Birth 3. Gender 4. Status

5. Nationality 6. Home address

7. Office address

8. Educational background:

University and Place

Insitut Pertanian Bogor, Bogor University of Wisconsin, Madison, USA University of Wisconsin, Madison, USA

9. Work Experiences:

SUMINAR SETIATI ACHMADI, PhD Blitar, April 27, 1948 Female a. Professor of the Chemistry, Faculty of Mathematics and

Natural Sciences, IPB b. Head of Organic Chemistry Laboratory, Faculty of

Mathematics and Natural Sciences, IPB Indonesia Jln. Bangka No. 27, Bogor 16143 Phone: +62 - 251 - 324 794 E-mail: ssachmadi@cbn.net.id Department of Chemistry, FMIP A, IPB Jln. Raya Pajajaran, Bogor 16144 +62 - 251- 312642

Degree Year of Field of Study Graduation

Sarjana 1974 Forest Products Kehutanan Technology MS 1980 Forest Products

Chemistry PhD 1984 Forest Products

Chemistry

Bogor Agricultural University, as an academic staff in the Department of Forest Products Technology (1974-1980) and in the Department of Chemistry (1980-present); Head of the Department of Chemistry (1994-2000)

United States National Science Foundation, as an awardee of a research grant for Chemistry of Mangrove Bark Tannin Project, in collaboration with Prof. ET Choong (Louisiana State University) and Dr. RW Hemingway (USDA Southern Forest Experiment Station) (4.5 months altogether in 1992, 1993, and 1994)

University of New South Wales (Australia), as a vIsItmg scholar in the Department of Chemical Engineering and Industrial Chemistry (4 months, 1990)

10. Membership of Professional Organization Indonesian Polymer Society Indonesian Natural Products Society

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ANNEX D. DESCRIPTION OF NON-TIMBER FOREST PRODUCT TO BE DEVELOPED THROUGH COMMUNITY PARTICIPATION

PASAK BUMI (Eurycoma longifolia Jack.) Family: Simaroubaceae. Vernacular Name: pasak bumi (Indonesia), penawar pahit (Sumatera),

bidara laut, memperoleh (Bangka), bidara putih (Java), pasak bumi (Kalimantan), bidara laut, mempoleh (Madura).

Name of Raw Material (Simplisia): Eurycoma longifoliae radix (root ofpasak bumi). Botanical Information: Small...,sized tree, up to 20 m. Leaf compound up to 1 m long, comprises of

11-35, lancet form of 2.5-14 x 0.8-4.5 cm, and even edge. Flowers in compounds, pink, furry at entire part of flower. Fruit of stone-type, up to 1-5, green to yellow in color and black when ripe. Large straight root, brownish white.

Ecology: Found in lowland forest, primary forest, secondary forest, coastal forest, deciduous forest, and in mixed Dipterocarpaceae forest, on 0-700 m above sea level. May grow at unfertile land, acidic land, and sandy ground.

Geographic Distribution: Mainly in Kalimantan and Sumatera. Growth and Development: Propagated by seeds or cuttings. The seed may be taken from fruit,

dried or directly planted. Seedling may be directly planted in the field or in nursery before planted in the field. Media for the nursery should contain organic manure and mixed of earth and mature compost. Planting should be in early rainy season.

Organoleptic and Pharmacological EffectlEmpirical Uses: Specific aroma and slightly bitter. Chemical Content: Root contains compounds such as euricomalacton, lauricolacton (A and B),

dihydroeuricomalacton, euricomanon, euricomanol, benzoquinon, sterol, saponins, and ester of fatty acid sterol.

Uses: Useful parts are root, bark, leaf, flower, fruit, or entire part of the plant. The root is good aphrodisiac, analgesic, headache, malaria, dysentery; the bark is good for analgesic, sprue, anthelmintic, tonic after childbirth, and bone pain; the leaf is good for as itchy; the fruit and flower are good for dysentery; while all parts of plant are good for headache, stomachache, and bone pain.

T ABAT BARITO (Ficus deltoidea Jack.) Family: Moraceae. Synonym: Ficus diversifolia Blume, F. lutescens Descf., F. motleyana Miq.

Vernacular name: tabat barito, lunuk kapit (Kalimantan), tetawar, beringin sunsang, pisang-pisang, kayu arak sendok (Sumatera), ki centong, cecentongan, darandang (Java), tenap-tenap nabi (Simalur).

Name of Raw Material (Simplisia): Fici deltoideaefolium. Botanical Information: Bush up to 25-50 cm high. Straight bole, woody, round, lot of branches,

rough surface, exude sap. Single leaf, sparse, green at the surface and brownish yellow at underside, in form of solet, smooth edge, round tip, sharp-pointed base, 2-5 cm long, short stalk, and slippery surface. Single flower, reddish brown, at underside of leaf, in form of whirligig, pollen and pistil in circular form, petal (free, spiky. Berry fruit, circular shape with diameter of 3-5 mm, and rust colored. Spherical seed, small, and brown. Large straight shoot.

Ecology: Grow limited to the certain place, clayey land, limey land, and sediment of old lava. In rain forest of lowland in Sumatra and Kalimantan; grow on other plant (epiphytic). Grow better in relative humidity of 80-94%, and temperature of 24-32°C, tolerant to temperature and humidity (eurythermal and euryhumidity). Grow on 450-2.400 m above sea level.

Geographic Distribution: Java, Sumatera, Kalimantan, and Sulawesi. Growth and Development: Propagated by cuttings or seeds. Cuttings of 5-10 cm long or have 2-3

buds. Cuttings have slanted cut and flat on the top so that the root may heavily grow. The cuttings may

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be planted on beds containing earth and sand (1:1), and not under direct sunlight (75% intensity. After 1-2 month they may be transferred into plastic bag.

Organoleptic and Pharmacological EffectlEmpirical Uses: No flavor and odorless. Chemical Content: Leaf and fruit contain saponins, flavonoid, and tannins. Uses: Mostly for leaves, which is good for leukorrhoea, aphrodisiac, treatment after childbirth

(tightening vagina muscle).

AKAR KUNING (Arcangelisiaflava (L.) Merr.) Family: Menispermaceae. Synonym: Anamirta flavescens Miq., Menispermum flavum L.,

Arcangelisia lemniscata (Miers) Becc., A. loureiri (Pierre) Diels. Vernacular name: akar kuning (Indonesia), tali kuning, daun bulan (Palembang), areuy ki koneng (Sunda), oyod sirawan, sirawan kunyit, peron, peron sa pi, sirawan susu, sirawan tai, kayu kuning (Java), uwus, tali kuning, kayu kuning (Sulawesi), wali bulan, wari bulan, gumi modoka, mololeya gumini (Ambon), gumi modoku, mololeya (Halmahera utara).

Name of Raw Material (Simplisia): Arcangelisiae flavae cortex, Arcangelisiae flavae radix, Arcangelisiae flavae lignum.

Botanical Information: Woody climber, up to 20 m tall. Round stem, twisting, rough, grey-black bark, and bright yellow wood. Single leaf, sparse, opposite, cylindrical stalk, round base, 10-20 cm long, oval form, smooth edge.

Ecology: Wild plant, found in rocky coastal or in primary or secondary forest, or in bushes, at 100-1,000 m above sea level. In Sulawesi it is reported on limey area. Flowering in July-September. Gathering is recommended in dry season. Fruit is eaten and spreaded by primates and arboreal mammals.

Geographic Distribution: Java, Sumatera, Kalimantan, Sulawesi, Irian Jaya, and Maluku. Growth and Development: Propagation by seeds and cuttings. For medication of fever and

sprue, the yellow stem is generally cut in the morning for better yield of the sap. One stem generally yield ± 1 kg berberin.

Organoleptic and Pharmacological Effect/Empirical Uses: Odourless, bitter, and function as stomakikum, febrifuse, expectorant, tonic, antipyretic, antiseptic, emenagogum, and alterative.

Chemical Content: Wood and leaf contain saponin, flavonoid, and tannins; root, bole, and twig contain alkaloid berberin, columbamin, palmatin, sobacunin, limasin, homoaromalin, dehydrocoridalmin, 8-hydroksiberin, picnarin, sabanin, talifendin, jatorizin, columbamin, tobacunin, while the pulp contains mucous liquid, and the seed contains saponins.

Uses: Taken for its root, flower, stalk, fruit, leaf, or wood. The root is good for curing bronchitis, anthelminthic, depurative, dysentery, syphilis, diabetes, ulcer, and hepatitis; the flower is good for dysentery; the stalk is good for chicken pox, fever, and sprue; the fruit is good for sprue, the leaf is good for anemia and sprue, and the wood is good aphrodisiac, antiseptic, ulcer, anthelminthic, skin irritation, malaria, enhance digestion enzyme, antiinfection, stomachache, emenagog, desinfectant, analgesic,demulcent, rheumatism, hepatitis, and sprue.

KAYU SEPANG (Caesalpinia sappan Linn.) Family: Caesalpiniaceae. Vernacular name: seupeueng, se pang, so pang, sa pang, sacang, cacang,

lolang, lacang (Sumatera), se pang, kayu secang, soga java, secang, kaju secang (Java), kayu sepang (Kalimantan), cang (Bali), se pang, supa, supang, cang, hape, hong, pantar, sepe, sepel (Nusa Tenggara), pasa, naga, nagel, dolo, sapang, se pang, kayu sema (Sulawesi), and se/en, sawala, hinianga, sinjianga, sunika, sinyiaga, singiang, sangiang, sunyiha, lalang, spel, se pen, roro (Maluku).

Name of Raw Material (Simplisia): Sappan lignum. Botanical Information: Bush up to 5-10 tall. Woody bole, round, having lenti cells and spiky,

curvy spike, lot of branches, brownish green on the exterior. Compound leaves, green, 9-15 cm long;

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leaflets of 10-25 mm long and 3-11 mm wide, elliptical, consist of 10-20 pairs, round tip, smooth edge, and green color. Compound flower, rust colored, pleasant smell, 10-40 cm long, and located on the tip.

Ecology: Usually found as yard fence and as kampong boundary. Flowering all seasons. Grow at 1-700 m above sea level on rocky mountain but not too cool.

Geographic Distribution: All over the archipelago. Growth and Development: May be propagated using seeds, can be planted on various type of

land. The seeds are sowed on nursery, transferred to plastic bag, and kept on seedbed until 10-20 cm tall before they are transferred to the field. This crop can grow better in rather shaded area on an open field. Harvest may be started after 1-2 year. Pest: larvae of Mussidia, Salebria parosema, Argyroploce and Enarmonia palamedes.

Organoleptic and Pharmacological Effect/Empirical Uses: Odorless, bitter, astringent, and also effective for depurative, disinfectant, haemostatic, analgesic, and chelating agent.

Chemical Content: Stem and leaf contain tannic acid, gallic acid, resin, resorcin, red sapan, brasilein, alkaloid, saponins, polyphenols, tannins, phytosterols, and brazil in dye. Also contain volatile oil containing ocimen, and d-f3 phelandrene.

Uses: Harvested for its wood and sold in ground form. Good for bleeding cough, dysentery, diarrhea, bone pain, depurative, headache, stomachache, and the bloated intestine.

SELUANG BILUM (Luvunga eleutherandra Dalz.) Family: Rutaceae. Synonym: Luvanga sermentosa (Bl.) Kurz. Vernacular Name: tembesi

(Indonesia, Java), ki racun (Sunda), seluang bilum (Kalimantan). Name of Raw Material (Simplisia): Luvungae eleutherandrae latex, Luvungae eleutherandrae

cortex, Luvungae eleutherandrae folium. Botanical Information: Shrub, 5-25 m tall. Leaf in compounds, spiral, stalk of 1.5-10 cm long,

oval with dimensions of 7 -25 x 2-10 cm, sharp-pointed tip, smooth edge, green, and the secondary leaf form fin bone. Flower in compounds, protruding from underside the leaf, short stalk, and pleasant smell. Hairless calyx, 1.5 mm high, curvy, green and turn pale or turn white, 1-1.5 cm long. White pistil, furry, 6-7 mm. Fruit of berry type, short stalk, and uncinnate.

Ecology: Growing in mixed forest, roadside, arid garden, and abandoned garden. Grow better on various type ofland with light shade, on 1-1,700 m above sea level.

Geographic Distribution: Java and Kalimantan. Growth and Development: Wild and not yet cultivated. Organoleptic and Pharmacological Effect/Empirical Uses: -Chemical Content: -Uses: Leaf stalk for toothache and rheumatism.

KUMIS KUCING (Orthosiphon aristatus (BI.) Miq.) Family: Lamiaceae. Synonym: Orthosiphon stamineus Bold., 0. grandiflorus Benth., 0.

grandiflorum Auct. Non Terrac., 0. spicatus Auct. Non Benth. Vernacular Name: kumis kucing (Sumatera), kumis kucing, remuk jung, kumis uching, remujung (Java), se-salaseyan, soengot koceng, songot koceng, songkot koceng (Madura).

Name of Raw Material (Simplisia): Orthosiponis aristatifolium, Orthosiponis aristati herba Geographic Distribution: Almost all over archipelago. Growth and Development: Commonly cultivated for pharmaceutical raw material. Could be

harvested for the leaves after 4-6 weeks of planting. Organoleptic and Pharmacological Effect/Empirical Uses: Sweet, slightly bitter, demulcent,

anti inflammation, diuretic, analgesic, and treatment for gallblader.

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Chemical Content: Leaf contain potassium salt, ortosiphon glicoside, essential oil, saponins, sirsimaritin, mioinositol, ortosiphonin, pilion, ramnasin, salvigenin, karotenoid, flavonoid, glucoside, cryptoxantin, and terpenoid.

Uses: Commonly used in traditional medicine to treat various illness.

JAHE/GINGER (Zingiher officinale Roxb.) Family: Zingiberaceae. Synonym: Amomum zingiber L. Vernacular Name:jahe (Indonesia), halia

(Aceh), beuing (Gayo), bahing (Batak Karo) , page (Toba), sipode (Mandailing), lahia (Nias); alia,jae (Melayu), sipadeh, sipodeh (Minangkabau), pege (Lubu), jahi (Lampung), jahe (Sunda), jae (Java), jhai (Madura), jae (Kangean), lai (Dayak), jae (Bali), reja (Bima), alia (S umba) , lea (Flores), luya (Mongondow), melito (Gorontalo), yuyo (Buol), kuya (Baree), laia (Makassar), pese (Bugis), pusu, seeia, sehi (Ambon), sehil (Nusa Laut), siwei (Buru), geraka (Ternate), gora (Tidore), laian (Aru), leya (Alfuru), lali, manman (Irian Jaya).

Name of Raw Material (Simplisia): Zingiber officinale rhizoma, Zingiber officinalefolium. Geographic Distribution: Sumatera, Java, Bali, Madura, Nusa Tenggara, Sulawesi, Ternate,

Tidore, Kalimantan, Maluku, Ambon, and Irian Jaya. Growth and Development: Commonly cultivated for pharmaceutical raw material. Organoleptic and Pharmacological Effect/Empirical Uses: Aromatic odor, hot and slightly bitter,

having the character to refresh and to warm, appetite enhancer, and expectorant. Chemical Content: Rhizome contains essential oil 2-3%, zingiberin, zingiberol, phelandrene,

kamphene, limonene, borneol, sitral, sineol, gingerol, zingeton, carbohydrat 20-60%, oleoresin that contain zingeron, organic acids, oleoresin, and gingerin.

Uses: Commonly used in traditional medicine.

KENCUR (Kaempferia galanga L.) Family: Zingiberaceae. Vernacular Name: ken cur (Indonesia), ceuko (Aceh), tekur (Gayo),

kaciwer (Batak), kopuk (Mentawai), cakue (Minangkabau), cokur (Lampung), ken cur (Melayu), cikur (Sunda), ken cur (Java), kencor (Madura), cekor (Kangean), cekuh (Bali), cekur (Sasak), cekir (Sumba), sokus (Rote), soku (Bima), ken cur, sukung, sikum (Minahasa), humo poto (Gorontalo), tukulo (Buol), tadosi (Baree), cakuru (Makassar), ceku (Bugis), asuali, sauleh, sahulu, soul, umpa (Ambon), souro (Haruku), soulo (Nus a Laut), onegai (Buru), bataka (Ternate, Tidore), ukap (Marind).

Name of Raw Material (Simplisia): Kaempferiae galangae rhizoma. Geographic Distribution: Mainly found in Sumatera, Java, Bali, Madura, Nusa Tenggara,

Sulawesi, Buru, Ternate, Tidore, Maluku, Halmahera, and Ambon. Growth and Development: Commonly cultivated for pharmaceutical raw material. Fresh rhizome

harvested up to 3-8 tons/hectare. Organoleptic and Pharmacological EffectlEmpirical Uses: Specific aroma, slightly hot, slightly

bitter, and gradually causes numb, gives warm feeling; and effective for carminative, anti emetic, and tonic.

Chemical Content: Rhizome contains essential oil 2.4-3.9%, volatile oil that contain cineol, kamferin, carbohydrate, resin, sugar, gum, and mineral.

Uses: Commonly used in traditional medicine to treat various discomfort.

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