Title | Assessing the Sustainability of NTFP-Based Community Enterprises: A Viable Business Model for Indonesian Rural Forested Areas |
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ID_Doc | 43 |
Authors | Harbi, J; Cao, YK; Milantara, N; Mustafa, AB |
Published | Forests, 14, 6 |
Structure | I can help analyze the article and present sections with two sentences each. The article evaluates the financial performance and sustainability of community forest-based businesses operating in the Lakitan-Bukit Cogong forest management unit (LBC FMU) in Indonesia. The study aims to determine the type of business suitable for the physical conditions of tropical forests, local culture, and profitability. Forest management in Indonesia has historically been complex due to its intricate connections with local societal factors, and the rural economy lacks a robust foundation, leading to high dependence on natural resources. The study aims to assess the financial performance and sustainability of community forest-based businesses operating in the LBC FMU. The study was conducted in the LBC FMU, and data were collected through semi-structured and in-depth interviews with key informants, field inventories, and market assessment. The sample was purposively selected based on discussions with key informants, and the selection process also included field observations and a preliminary survey. The financial viability of the seven small forest enterprises (SFEs) was summarized in Table 4, which showed that all businesses have positive values for all financial indicators. The value and supply chain analysis of the SFEs revealed that three out of seven developed enterprises are derived from rubber trees. The MDS-RAPForest analysis showed that all stress and RSQ values indicate that the MDS results are an accurate representation of the situation at hand, forming a good model. The sustainability index and status can be indicated by the results of the RAPForest ordination chart. The study suggests that sustainable NTFP-based activities within a community context can be facilitated through interconnected market systems, appropriate price regulations, and support from stakeholders and legal frameworks. The jurisdictional approach and cross-production system strategies are also discussed as potential solutions. The study concludes that the SFE with the highest level of sustainability is the Mellifera bees' honey enterprise, and the least sustainable aspects are the institutional and administrative ones. The key factors that need to be considered for the development of SFEs are the presence of raw materials without exploiting land resources, exploitation practices that are not environmentally friendly, market reach, yield/salary/wages, level of mastery of IT and marketing, commitment and motivation of the chairpersons and members, and village/regional regulations that govern operations. The article references a range of sources, including academic journals, books, and reports, on topics such as community forestry, forest management, sustainable livelihoods, and jurisdictional approaches. Please let me know which sections you would like me to analyze further. |
Summary | The article assesses the sustainability of non-timber forest products (NTFP)-based community enterprises in Indonesia's forested areas. The study focuses on seven small forest enterprises (SFEs) in the Lakitan-Bukit Cogong forest management unit (LBC FMU). The SFEs produce essential oils, honey, wood charcoal, skewers, and liquid smoke. Financial viability analysis and a qualitative approach were used to assess the feasibility of the businesses. The results showed that all businesses have positive values for financial indicators, suggesting their financial viability. The value and supply chains of the SFEs were analyzed, and the results indicated that the saps-processing industry has a remarkable flow. The Multidimensional Scaling and Rapid Appraisal for Forest (MDS-RAPForest) approach was used to evaluate the sustainability of the SFEs. The results showed that the SFEs are categorized as sufficient/quite sustainable, with the apiculture enterprise being the most sustainable. The study highlights the importance of promoting adaptable forest-based enterprises and jurisdictional approaches to support small-scale forest enterprises. The findings suggest that sustainable NTFP-based activities can be facilitated through interconnected market systems, appropriate price regulations, and support from stakeholders and legal frameworks. |
Scientific Methods | The research methods used in this study are: 1. 2. 3. 4. 5. 6. 7. 8. The study used a variety of data sources, including: 1. 2. The study used a range of data analysis techniques, including: 1. 2. 3. 4. Overall, the study used a mixed-methods approach, combining both qualitative and quantitative methods to gather data on the financial viability and sustainability of community forest-based businesses in Indonesia. |
Article contribution | This article presents an in-depth analysis of small-scale community-based forestry enterprises (SFEs) in Indonesia, specifically focusing on their financial viability and sustainability. The study evaluates the seven SFEs operating in the Lakitan-Bukit Cogong (LBC) forest management unit (FMU) and assesses their financial performance, value chain, and supply chain. The results show that all seven SFEs are financially viable and have positive values for all financial indicators. The study highlights the potential of SFEs as a viable business model for rural forested areas in Indonesia, providing livelihoods for local communities. The findings also suggest that sustainable NTFP-based activities within a community context can be facilitated through interconnected market systems, appropriate price regulations, and support from stakeholders and legal frameworks. The article contributes to the field of regenerative economics by highlighting the importance of small-scale forestry enterprises in providing economic benefits for local communities while also promoting sustainable forest management. The study's findings can inform policymakers, researchers, and practitioners working on sustainable forest management, forest-based enterprises, and community livelihoods. Key contributions of the article to regenerative economics: 1. 2. 3. 4. 5. Overall, the article provides valuable insights into the potential of small-scale forestry enterprises in promoting sustainable forest management and supporting local livelihoods in Indonesia. Its findings can inform policymakers, researchers, and practitioners working on sustainable forest management, forest-based enterprises, and community livelihoods. |