The Impact of Joint Community Forest Management (PHBM) on Local Community Income in Upstream of Ciliwung Watershed, Bogor Regency-Indonesia

Abstract

Abstract Forest area in the upstream of Ciliwung watershed is one of the last remaining forests in the hinterland of Jakarta metropolitan. Forest degradation and the rapid pressure of land use change are serious issues in the Greater Jakarta area that need to be addressed. In 2009, Joint Community Forest Management (PHBM) was initiated by Perum Perhutani in the upstream area of Ciliwung watershed at Kampung Cibulao, Tugu Utara Village, Bogor Regency. This PHBM program involved a forest farmer group in managing village forests, particularly through the management of shade-grown coffee and mountain bike trails. This study investigates the impact of the PHBM program on the local economy improvement using the latest datasets of financial management of forest farmer group in 2017. The aims of this study are to analyse: 1) farmers income from PHBM activities; 2) feasibility of shaded-grown coffee and mountain bike trails activities by using benefit and cost analysis (NPV, IRR, Nett B/C Ratio). The results show that there has been a significant increase of income namey 16.55% or IDR 248,333/hectare/month of cherry and 47.77% or IDR 716,563/hectare/month of green beans. Meanwhile, the management of mountain bike trails has increased the farmers’ income by 32% or IDR 480,000/person/month. The finding of feasibility study shows that Mountain Bike Trails Management is financially not feasible for communal business if it uses the current proportion of business sharing. Therefore, it is necessary to renegotiate the proportion of sharing in order to provide more economic benefits for the local people.