1. Conditional Land Tenure in Watershed Protection Forest Suyanto The Land Tenure Center’s forum “Designing Pro-Poor Rewards for Ecosystem Services,” April 7-8, 2008, on the University of Wisconsin campus, Madison, WI.

2. Background In many parts of Asia, government owns and controls most of forest area. This condition obstructs local people’s access to forest as their important resources for their livelihoods and condemns them to poverty more deeply. Land tenure can be an attractive incentive for farmers to get engaged in sustainable management of protected forest land.

3. Four Criteria in Developing Reward for Environmental Services Mechanisms: (van Noordwijk et al 2006) Conditional : based on real cause-effect relations between land use and environmental services Realistic : WTA < Reward < WTP Voluntary : adaptive and reflect effective voice of communities and balanced negotiation power at all levels Pro-poor: understand the relations between poverty and ES provision and to develop pro- poor mechanisms

4. Research Site: Sumberjaya  55,000 ha sub-district comprising a 40,000 ha upper Way Besai watershed  Land status: about 40% protection forest and 10% national park  in reality forest cover <10%  2004: 87,000 people  Density: 161 people/km 2  Coffee is a major crops  Agroforestry system (shade coffee & fruit trees) could maintain watershed function

5. Research Site: Sumberjaya  Current public investment scheme: land rehabilitation  Hydro Electric Company, 90 MW  Potential mechanisms for reward transfer in near future  A benchmark for conflicts of forest-watershed functions in Indonesia  “Myth-understanding” regarding watershed functions led to often violent evictions of thousands of people

6. Provided for secure tenure through long term lease contracts with farmer groups in protected forest land Requirements of farmer groups: Plant multi-story agroforestry trees with coffee on deforested protected forest land Protect the soil with soil and water conservation measures Protect remaining forest area Conditional land tenure (HKm)

8. Tree Planting per Ha in 2000-2005

10. 1994 1997 2000 Reduced Fire

11. Sources of Income in Way Besay Watershed Lampung in 2004

12. Income inequity in Way Besay Lampung in 2004 Income'scoefficientPseudo Sharesconcentrationgini ratio A. Farm Income Coffee garden at State land0.410.990.37 Coffee garden at Private land0.141.780.67 Rice field0.060.880.33 Others Farm income0.111.020.38 B. Non Farm0.12.220.84 C. Wage Agriculture0.13-0.33-0.13 Non Agriculture0.03-0.06-0.22 d. Others Transfer0.020.210.08 e. Total Income 0.38

14. Conclusions and Implications HKm program appears targeted to poorer households The program appears to promote investments in tree planting Over time these investments may increase participants’ income and provide environmental benefits Conditionally is important element in PES

15. Sources for this presentation Projects: 1.Property Rights, Environmental Services and Poverty in Indonesia (BASIS-ICRAF- IFPRI-MSU). 2.RUPES Actions Research In Sumberjaya, Lampung 3.Suyanto.et al (2007). Poverty and Environmental Services: Case Study in Way Besai Watershed, Lampung Province, Indonesia. Ecology and Society. 12(2):P. 13