EX-POST EVALUATION Report

ITTO Project PD 42/00 Rev. 1 (F)

Training of Trainers for the Application of the National and the ITTO Criteria and Indicators for Sustainable Forest Management at the Forest Management Unit

Level (Indonesia)

Prepared for ITTO

By

ROMEO T. ACOSTA KENNETH P. RODNEY

September 2006

39RFM-6 12 October 2006

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Training of Trainers for the Application of the National and the ITTO Criteria

and Indicators for Sustainable Forest Management at the Forest Management Unit Level

ITTO Project PD 42/00 Rev. 1 (F)

Table of contents Part 1: Executive Summary Background information about the project. . . . . . . . . . . . . . . . . . . . . . . . 1 Evaluation purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Scope of the evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Conclusions of the evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Part II: Main Report Project context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Description of the project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Development objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Specific objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Planned outputs`. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Actual outputs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Work plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Required inputs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Project rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Evaluation scope and focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Evaluation methodology . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Findings and lessons learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Synthesis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

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ANNEXES

Annex 1: Logical Framework, PD 42/00 Annex 2: The Challenge Towards Sustainable Management of Natural

Production Forest in Indonesia Annex 3: Equivalence Analysis of ITTO C&I and the National C&I for SFM (in

Indonesian) Annex 4: Performance Analysis and Constraints Toward Sustainable Forest

Management Practices Annex 5: Resume Report on the Implementation of the Activity 1.5.1.

“Training Process to a Maximum Period of Two Weeks” Annex 6: The Panel of Instructors, PD 42/00 Annex 7: Development of Internal Forest Management Performance

Monitoring Annex 8: PD 42/00 Trainees

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ACRONYMS/ ABBREVIATIONS

APHI Asosiasi Penguhasa Hutan Indonesia (Association of Indonesian Forest Concession Holders) APKINDO Association of Indonesian Wood Panels Manufacturers CFET Center for Forestry Education and Training (of the MoF) C & I Criteria and Indicators (for SFM) FMU Forest Management Unit FSC Forest Stewardship Council ITTA International Tropical Timber Agreement ITTO International Tropical Timber Organization LEI Lembaga Ekolabel Indonesia (Indonesia Ecolabel Institute) MoF Indonesia Ministry of Forestry PEA Project Executing Agency (also EA) PSC Project Steering Committee PT Limited Company SFM Sustainable Forest Management SIMON-SFM Computerized database application developed by PD 42/00 USD US Dollars

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PD 42/00 Rev. 1 (F) List of People Contacted Ir. Hendro Prastowo Executive Director, APHI Ir. Lisman Sumardani Deputy Executive Director, APHI Mr. Rukmantara Project Manager, PD 42/00 Ir. A.A. Malik Secretary General, APKINDO Ir. IBW Putra Alas Kusuma Group Ir. Doddy Former member of the Trainer Pool Ir. Ahmad Former member of the Trainer Pool Fajariana Kumalasari Project Administrative Officer Ir. Arifin Concessionaire representative; project trainee Ir. Dikdik Concessionaire representative; project trainee Ir. Wahyu Concessionaire representative; project trainee Ir. Heri Concessionaire representative; project trainee Ir. Yoga Concessionaire representative; project trainee

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PROJECT EVALUATION REPORT ITTO Project PD 42/00 Rev. 1 (F) Training of Trainers for the Application of the National and the ITTO Criteria and Indicators for Sustainable Forest Management at the Forest Management Unit Level Part I: Executive Summary 1. Background information about the project The Project was approved by the International Tropical Timber Council during its Twenty-ninth Session in October-November 2000. The Project Executing Agency was the Association of Indonesian Forest Concession Holders [Asosiasi Penguhasa Hutan Indonesia (APHI)]. The project aimed to contribute to sustainable forest management in the field and to the achievement of the ITTO Objective 2000. The development objective of the project was “to enhance the human resource capacity in C&I for SFM in order for APHI to be able to lead its members to practice SFM that will eventually result in certification, and to enhance the efforts of member (companies) to achieve ITTO Objective 2000”. Its specific objective was to train 300 personnel of the forest concessions and other relevant institutions in Indonesia on the application of the ITTO C&I, and these staff were expected to become trainers and advocates for their respective organizations on SFM in general, and on C&I in particular. The trainees were expected to become the internal assessors of SFM within the forest management units they represented. As part of the training, the participants from concession holder companies undertook an assessment of the level at which their companies were satisfying the ITTO C&I. A national interactive database for reporting and monitoring APHI’s members’ implementation of SFM was developed. The applicability of the ITTO C&I in the Indonesian context was analyzed. Constraints to the application of SFM in Indonesia were identified. Several documents representing analyses and studies on SFM in Indonesia were produced. 2. Evaluation purpose This evaluation is an ex-post evaluation. The primary purpose of the evaluation is to provide a concise diagnosis of the project so as to point out the successful and unsuccessful outcomes, the reasons for successes and failures, and the contribution of the project towards ITTO’s Objective 2000 and the ITTO Yokohama Action Plan, and to draw lessons that can be used to improve similar projects in the future

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3. Scope of the evaluation The evaluation consisted of desk reviews of relevant project documents. Interviews were made with the following: Senior officers of APHI and APKINDO, officials of the Ministry of Forestry, Project implementing staff of the PEA, some of the trainee-beneficiaries of the project, and managers of forest concession companies in Indonesia. Field observations were undertaken in a forest concession area in West and Central Kalimantan. The evaluation mission consisted of Mr. Kenneth P. Rodney (Team Leader) and Mr. Romeo T. Acosta (Consultant). The evaluation was undertaken from 01 June 2006 to 28 July 2006. Desk review of project-related documents and related materials was undertaken from 01 June 2006 to 12 July 2006. Consultations with the Executive Director and staff of the Executing Agency (APHI), the Executive Director of APKINDO, were undertaken at APHI and APKINDO offices, Jakarta, on 13 and 24 July 2006. Senior officers of some APHI member companies, including trainees from some companies with headquarters in Jakarta were also consulted. Field visits were made on 19 to 20 July 2006 in the concession area of PT Sari Bumi Kusuma, one of the forestry companies represented in the training, in West and Central Kalimantan. 4. Conclusions of the evaluation The project contributed to relevant government mandates and initiatives on SFM by drawing the attention of major forest stakeholders to the issues of (a) SFM in the Indonesian context, (b) ITTO’s C&I and its application in Indonesia, and (c) forest certification issues in the light of Indonesia’s international forestry trade.

The comparative analysis of the ITTO C&I and the national (LEI) C&I is an important result of the project. The study identified 43 out of the 66 ITTO indicators as relevant and applicable to the Indonesian context. Many of the indicators were judged as ‘inapplicable’ not because these are not relevant to the Indonesian situation, but more because of the absence or inadequacy of the necessary policy or institutional framework in the country at present to enable forest companies to attain these indicators, as well as the lack of capacity of the forestry companies to generate data on these indicators. (Project implementers maintain that the ‘inapplicable’ indicators are not relevant in the Indonesian situation, such as forest disturbance due to fire, animal, drought and others).

The project was effectively implemented despite the initial difficulties in assembling together a National Expert Panel and the Panel of Instructors (Core Trainers). The project, in fact, produced more substantial outputs over and above its original mandate. Before the project, there was a perception among most stakeholders (government staff, concession holders) that the commitment to SFM is mainly triggered by the need to have forest (timber) certification for concession holders in order to satisfy the certification

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demands in the international market. The participants to the training have been made to understand the deeper necessity of SFM in its economic, environmental/ecological, and social aspects, and that forest (timber) certification is not the only reason for implementing SFM. The participants to the training gained substantial knowledge in the C&I of ITTO, FSC and LEI. They were able to undertake a guided analysis of the applicability of the ITTO C&I under Indonesian conditions. The 43 indicators which were judged relevant to Indonesia were applied in 77 forest concessions by the trainees, resulting in an initial judgment of the individual progress of these concessions in putting SFM into practice. The majority of the trainees were from forest concession companies from different regions in Indonesia. Thus in terms of organizational and geographic coverage, the project results are fairly well disseminated. There is a need, however, to broaden the coverage in terms of the number of forest concessions in Indonesia; only 88 companies were represented out of about 300 in the whole country. The project has produced substantial documentation of project results, particularly those related to identification of constraints in implementing SFM, operational guidelines for internal monitoring by companies, and C&I reporting. Studies on the economics of SFM in Indonesia and on the “applicable” indicators have significant value for forest policy development in the country. Some of these documents were not planned to be the main output of the project and were supposed to serve as background material to the training; as it turned out the analyses, description of current conditions, and recommendations contained in these works add much value in furthering SFM work in Indonesia in the long run. The implementation of the project was undertaken in a cost-efficient manner. Significant additional outputs were produced at no additional cost. The project was even able to remit back to ITTO USD 11, 307 representing the unspent balance of the ITTO contribution. The project contributed to the attainment of the following objectives enunciated in ITTA 1994:

(c) To contribute to the process of sustainable development; (d) To enhance the capacity of members to implement a strategy for achieving

exports of tropical timber and timber products from sustainable managed sources by the year 2000;

(g) To develop and contribute towards mechanisms for the provision …. expertise needed to enhance the capacity of producing members to attain the objectives of this Agreement;

The project was consistent with the following items of the Yokohama Action Plan:

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(e) Assist human resource development and institutional strengthening by conducting national, regional, and international training activities and the provision of fellowship.” (h) Encourage and increase the involvement of non-government stakeholders, including industry and trade associations, environmental organizations and indigenous groups, in the activities of the Organization with a view to promoting transparency, dialogue and cooperation in furthering ITTO’s objective. 5. Recommendations The needs for similar projects in the future Human resource capacitation is a continuing work, and this is most important in developing the capacities of ITTO member countries to achieve SFM. Projects on human resource development for SFM need to be continuously developed and supported, either through government or APHI, or both. The objectives of such future projects. Future projects on human resource development for SFM should have, at the minimum, the following generic objectives:

1. To orient major decision makers in government and forestry companies on SFM and C&I in such a manner that SFM and C&I become institutionalized in the decision-making processes for forest management. In the case of government, other government agencies outside of the forestry agencies, but whose mandate impact on forest policy in the country (e.g., agriculture, trade) should be included.

2. To establish a comprehensive training curriculum, appropriate to the conditions of the country, that can be further implemented even after the phase-out of ITTO support.

3. To expand the coverage of training to a broader spectrum of forestry practitioners at many levels.

Innovative approaches/designs for projects aimed at training nationals in SFM

The following innovative practices/designs may be adopted: 1. Incorporating SFM and C&I training modules in the regular human

resource development programs of forestry companies. 2. Incorporating SFM and C&I training modules in the regular human

resource development programs of government forestry agencies. 3. Incorporating SFM and C&I courses in the curricula of forestry schools

and universities. 4. Identifying, and popularizing, “best practices” of forestry organizations

that exemplify SFM in a country.

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5. Including SFM and C&I in the coverage of forestry licensure examinations in countries where such licensure processes are present.

Appropriate target groups

1. Senior decision makers in forestry agencies and other government

agencies, including local governments 2. Senior decision makers in forestry companies and other related forestry

organizations 3. Middle-level managers and field staff of forestry companies and related

forestry organizations 4. Staff of planning units of forestry companies, government forestry

agencies, and local government units 5. Faculty staff of forestry schools and universities 6. Staff of forestry consulting organizations and forestry professional

organizations

The organizational arrangements of similar projects

Projects aimed at developing SFM capacities should be organized taking into consideration the following elements, where appropriate: 1. Several national core training teams may be organized in order to

ensure that the availability of trainers when and where required. Training schedules would be dependent on the time-availability of the trainers if there were only a limited number of trainers. It is complicated to organize the schedules and availability of 40-50 trainees for a training session and adjusting training schedules to the availability of a few trainers complicates things more.

2. Project Steering Committees should be on the lookout for other projects being implemented in a country which may have overlapping scope or objectives with the project which they oversee. Complementation and collaboration with such related projects would be extremely beneficial and productive.

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Part II: Main Text 1. Project context

Description of the project The Project was approved by the International Tropical Timber Council during its Twenty-ninth Session in October-November 2000. The Agreement for the implementation of the project was signed on 11 December 2000 and the first disbursement of funds was made on 9 April 2001. The Project Executing Agency was the Association of Indonesian Forest Concession Holders [Asosiasi Penguhasa Hutan Indonesia (APHI)]. The project aimed to contribute to sustainable forest management in the field and to the achievement of the ITTO Objective 2000. Its specific objective was to train 300 personnel of the forest concessions and other relevant institutions in Indonesia on the application of the ITTO C&I, and these staff were expected to become trainers and advocates for their respective organizations on SFM in general, and on C&I in particular. The trainees were expected to become the internal assessors of SFM within the forest management units they represented. As part of the training, the participants from concession holder companies undertook an assessment of the level at which their companies were satisfying the ITTO C&I. A national interactive database for reporting and monitoring APHI’s members’ implementation of SFM was developed. The applicability of the ITTO C&I in the Indonesian context was analyzed. Constraints to the application of SFM in Indonesia were identified. Several documents representing analyses and studies on SFM in Indonesia were produced. Development objective The project was conceptualized to respond to the following key issues in Indonesia: (a) majority of field managers (of forest concessions) and their staff lacked knowledge on the Criteria and Indicators of SFM, thus constraining the updating of data on forest management performance (of FMUs); (b) only a small number of FMUs are certified compared to the total number and area covered by FMUs in Indonesia. The lack of capacity to practice SFM and apply the C&I for SFM constrains the process for certification of Indonesia forestry companies and impairs their capability to meet the growing demand for certified wood in the international timber trade. Thus, the development objective of the project was “to enhance the human resource capacity in C&I for SFM in order for APHI to be able to lead its members to practice SFM that will eventually result in certification, and to enhance the efforts of member

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(companies) to achieve ITTO Objective 2000”1 [This development objective is restated as “to accelerate (the) sustainable forest management process by forest concession companies (in Indonesia)” in other parts of the Project Completion Report2.] Specific objectives

1. To train 300 participants representing 300 concession holders in Indonesia on the ITTO and the Indonesia C&I for SFM

2. To develop internal assessors within the forest concessions out of the trained participants who will take the lead in improving the forest management in their respective FMUs.

Planned Outputs

Output 1. Developed training curriculum, training modules and training materials Activity 1.1 Recruitment of National Experts to establish a National

Expert Panel (panel of instructors) Activity 1.2. Collection of information for a general overview of the

existing problems facing concessionaires related to SFM practices.

Activity 1.3. Review of the national (Indonesia) and ITTO C&I Activity 1.4. Design training curriculum and training modules

Output 2. Established panel of instructors (“core trainers”) Activity 2.1. Collection of references for candidates Activity 2.2. Evaluation and decision on the selection of the panel of

instructors

Output 3. Developed training materials Activity 3.1 Development of training materials in accordance with the

modules defined by the National Experts Activity 3.2. Production of training materials and related documents

Output 4. Selected training sites in five (administrative) regions Activity 4.1. Evaluation on the suitability of training sites Activity 4.2. Scheduling of training periods for each region, and

identifying the instructors and participant-trainees Activity 4.3. Arrangement of travel documents, administrative matters, for

mobilization of instructors

Output 5. Improved capabilities of 300 forest concessions personnel Activity 5.1. Conduct of training (maximum of two weeks per session) Activity 5.2. Conduct of internal assessment by each trainee at the forest

company he/she belongs to

1 Completion Report, PD 42/00, February 2004 2 Ibid, p. 25

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Activity 5.3 Analysis of the constraints faced by each concession in implementing SFM by the respective trainees

Activity 5.4 Conduct of (national) workshop to present and synthesize the analysis of constraints (identified in Activity 1.5.3)

During project implementation the following additional activities were undertaken (at no additional cost):

Development of practical guidelines to monitor the practice of SFM for FMUs Economic analysis of practicing SFM

The logical framework of the project, as reconstructed by the evaluation mission, is as shown in Annex 1. The verified indicators during the evaluation are included in this annex. Actual outputs Output 1. The development of training curriculum, training modules and training material

a. A Project Expert Panel was established to provide expert guidance for the implementation of the project. The panel was composed of 6 experts from the Ministry of Forestry, from APHI, a concession company, and Lembaga Ekolabel Indonesia (LEI).

b. Assessments undertaken by the trainees (in conjunction with the training under Output 5) in 77 companies resulted in the identification of the constraints facing Indonesia forest concessionaires in implementing SFM; 5 regional workshops were undertaken to synthesize the results and recommended actions to overcome these impediments were formulated. These are documented in “The Challenge Towards Sustainable Forest Management Practices in Indonesia” (Annex 2).

c. The applicability of the ITTO C&I in the Indonesian context was tested and documented in “ Equivalence Analysis of ITTO C&I and the National C&I for SFM” (Annex 3); 43 out of the 66 ITTO indicators were found applicable and relevant to the Indonesian context (Table III-2, Annex 4).

d. Training syllabus, training modules and training design were developed; these were continuously updated in the course of implementing the ten (10) training sessions as more inputs were gathered during the training sessions. (Annex 5)

The training curriculum is summarized as follows:

Subject Matter Training Hours

Sustainable Forest Management 50 Theory: 30 1 Forestry legislation 42 Forest landscape/ forest resource security 83 Production/economic aspects of forest management 64 Ecological/environmental aspects of forest mgt. 6

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5 Social aspects of forest management 6 Practicum: 20 6 Filling-in of the ITTO C&I reporting format 20Forest Certification 44 Theory: 10 1 Techniques and methods of data collection 42 Decision-making process (Analytical Hierarchy Process) 43 Technical presentations 2 Practicum: 34 1 Techniques and methods of data collection (simulation,

data analysis and classification) 4

2 Data verification in the field 163 Decision-making process and reporting 84 Presentations 6

Output 2: Establishment of a panel of instructors (“Core trainers”)

Eighteen (18) experts from various relevant institutions were organized into a panel of core trainers. (Annex 6). The subjects covered by the various instructors are: a. Forestry policy b. SFM system, forest landscape, forest resource security management c. ITTO vision and mission, the ITTO C&I reporting format d. Production aspects of SFM e. Ecological/environmental aspects of SFM f. Social aspects of SFM g. Analytical Hierarchy Process (AHP) in decision-making for forest

certification h. Technical presentation for trainers i. Strategies for SFM practices

Output 3: Development of training materials

a. Produced training curriculum, training modules, training materials b. Translated the ITTO Manual (Part B) for the Application of C&I for SFM

(Forest Management Unit Level) into Bahasa Indonesia c. Developed user-friendly reporting format for FMUs d. Conducted pre- and post-training evaluation of trainees e. Translated and disseminated ITTO Policy Development Series 7 and 10

and other relevant references from English to Bahasa Indonesia Output 4: Selection of training sites A process of selection of training sites was undertaken. The following sites were finally chosen as the training sites:

a. PT. ITCI Kartika Utama, East Kalimantan b. PT. INHUTANI I, East Kalimantan c. PT. Perhutani I, West Java d. PT. Diamond Raya Timber

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e. Center for Forestry Education and Training, Bogor f. Malang, East Java g. Perhutani II, West Java h. PT. Suka Jaya Makmur, Ketapang, West Kalimantan

Output 5: Improvement of the capabilities of 300 forest concessions personnel Conduct of training – 233 persons from 109 organizations were trained; 193 trainees represented 88 forest concession companies in various parts of the country; 25 trainees represented 18 government (national and local) government agencies; 15 trainees came from other organizations (consultancy firms, independent assessors commissioned by MoF to evaluate forest concession performance). In terms of gender distribution, 216 trainees were male; 17 were female. Ten (10) training sessions were conducted as follows:

a. 1st session, 04-13 September 2001, at PT ITCI Kartika Utama, East Kalimantan

b. 2nd session, 03-12 October 2001, at PT INHUTANI I, East Kalimantan c. 3rd session, 04-14 November 2001 at PT Perhutani I, West Java d. 4th and 5th session, March and April 2002, at Pekanbaru and Bukitinggi;

field works for both sessions were conducted at PT Diamond Raya Timber e. 6th session, 19-28 June 2002, at CFET, Bogor, West Java f. 7th session, 5-15 August 2002, in Malang, East Java g. 8th session, 11-21 October 2002, at Perhutani II, West Java h. 9th session, 21-30 January 2003, at Perhutani II, West Java i. 10th session, 22 February – 03 March 2003, at PT Suka Jaya Makmur,

West Kalimantan

Conduct of internal assessment by each trainee at the forest company he/she belongs to – Assessments were undertaken by the trainees in 77 (out of 88) companies represented in the training, using the 43 identified applicable indicators. The companies were rated based on (a) extent to which a company can completely fill up the information required in the list of indicators, and (b) availability and quality of information on the indicators. A system of ranking was used; companies were rated “Very Good”, “Good”, “Moderate”, “Poor”, “Very Poor”. 37 (48%) FMUs were rated “Good to Very Good”; 28 (36%) were ranked “Moderate,” and 12 (16%) were ranked “Poor” to “Very Poor.”

Analysis of the constraints faced by concession holders in implementing SFM and

conduct of synthesis workshops – The internal assessment made by the trainees of their own companies also included the identification of constraints facing FMUs in the implementation of SFM. These constraints, including recommended actions to overcome these constraints, were synthesized in 5 regional workshops and documented in “The Challenges Towards Sustainable Forest Management Practices in Indonesia” (Annex 2).

The full documentation of the training sessions, including the internal assessments

and identification of constraints to SFM implementation is in “Resume Report on the

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Implementation of the Activity 1.5.1 ‘Training Process to a Maximum Period of Two Weeks’ “.(Annex 5). Additional outputs Guidelines to monitor the practice of SFM for FMUs – The project developed guidelines documented in the following(in Indonesian, Engish summary in Annex 7):

o (Applicable) Criteria and Indicators for SFM (based on the ITTO C&I) o Guidelines for asessment procedure and decision-making of SFM internal

monitoring o Guidelines for development of SFM corrective action plan

Financial and economic analysis of practicing SFM in Indonesia (copy available from APHI).

The full report on project implementation, documents generated, studies undertaken, etc. are contained in two CDs available at APHI (aphi@yahoo.com). Work plan The project duration was planned for a period of 24 months from June 2001 to June 2003. The actual project implementation was 33 months, extended at no additional cost until March 2004. Required inputs ITTO inputs was USD 326,523.00; the actual expenditure out of ITTO contribution was USD 315,216.00. APHI, the Project Executing Agency, provided in-kind inputs equivalent to USD 249,500. Project rationale The project was intended to contribute to the attainment of sustainable forest management in Indonesia, as well as to contribute to the attainment of ITTO Objective 2000. It was relevant to the following items of the Yokohama Action Plan which stipulated that ITTO will:

“e. assist human resource development and institutional strengthening by conducting national, regional, and international training activities and the provision of fellowship.” “h. encourage and increase the involvement of non-government stakeholders, including industry and trade associations, environmental organizations and indigenous groups, in the activities of the Organization with a view to promoting transparency, dialogue and cooperation in furthering ITTO’s objective.”

2. Evaluation scope and focus

The primary purpose of the evaluation is to provide a concise diagnosis of the project so as to point out the successful and unsuccessful outcomes, the reasons for successes and failures, and the contribution of the project towards ITTO’s

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Objective 2000 and the ITTO Yokohama Action Plan, and to draw lessons that can be used to improve similar projects in the future.

Scope and focus of the evaluation

a) Analyze and assess: 1. The overall role and contribution of the project in light of sectoral

policies, development programmes, priorities and requirements to achieve sustainable forest management in Indonesia.

2. The effectiveness of the project’s implementation and its effectiveness in promoting sustainable forest management, including the current status and roles of the trainees and their direct and indirect contributions towards the achievement of sustainable forest management.

3. The overall contributions of the trainees towards the achievement of sustainable forest management, via a survey of these beneficiaries and others.

4. The contributions of any specific studies in forestry-related disciplines prepared by the project’s beneficiaries/trainees towards the achievement of sustainable forest management in Indonesia.

5. The results and potential impact of applied research conducted by the project and/or its beneficiaries (if any) and its contribution to the overall knowledge as related to sustainable forest management.

6. The impact of project activities on the livelihoods of target populations. 7. The effectiveness of dissemination of project results. 8. The overall post-project situation in the project’s area of influence. 9. The unexpected effects and impacts, either harmful or beneficial, and

the reasons for their occurrences. 10. The cost efficiency in the implementation of the project, including the

technical, financial and managerial aspects. 11. Follow-up actions in order to enhance uptake of project results. 12. The project’s relative success or failure, including a summary of the

key lessons learnt; and the identification of any issues or problems that should be taken into account in designing and implementing similar projects in the future.

b) Provide a synthesis to:

1. Assess the overall role and meaningful contribution of the project in achieving sustainable forest management (SFM) in ITTO Producer Member countries taking into account ITTO’s objectives, Yokohama Action Plan, and Objective 2000.

2. Assess the potential and actual contribution of the project to ITTO’s SFM work.

3. Evaluate the overall impact on and relevance of the project for the forestry and environmental authorities, Executing Agencies, the forest

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industry and conservation sector and local communities being served and the country.

4. Evaluate the overall attainment of the objectives and assess the overall effectiveness of the project.

5. Evaluate the overall appropriateness of the costs and cost structure and use of resources within the project.

And make recommendations on:

1. The needs for similar projects in the future. 2. The objectives of such future projects. 3. Innovative approaches/designs for projects aimed at training nationals

in SFM. 4. Appropriate target groups, e.g. countries, government, organizations,

educational institutions, forestry sector, local communities, etc. 5. The organizational arrangements of the projects. 6. Follow-up and evaluation practices. 7. Supplemental, alternative activities, processes, procedures, and/or

follow-up programmes in the field of SFM training, if appropriate.

3. Evaluation methodology The evaluation mission consisted of Mr. Kenneth P. Rodney (Team Leader) and Mr. Romeo T. Acosta (Consultant). The evaluation was undertaken from 01 June 2006 to 28 July 2006. Desk review of project-related documents and related materials was undertaken from 01 June 2006 to 12 July 2006. Consultations with the Executive Director and staff of the Executing Agency (APHI), the Executive Director of APKINDO, were undertaken at APHI and APKINDO offices, Jakarta, on 13 and 24 July 2006. Senior officers of some APHI member companies, including trainees from some companies with headquarters in Jakarta were also consulted. Field visits were made on 19 to 20 July 2006 in the concession area of PT Sari Bumi Kusuma, one of the forestry companies represented in the training, in West and Central Kalimantan.

4. Findings and lessons learned The role and contribution of the project in light of sectoral policies, development programmes, priorities and requirements to achieve sustainable forest management in Indonesia The Indonesian government mandated the adoption of sustainable forest management over its state forests by promulgating Ministerial decrees number 576/Kpts-II/1993 and number 610/Kpts-II/1993.3 A set of criteria and indicators was also promulgated through MoF Decision 4795/Kpts-II/2002 (Kriteria dan Indikator Pengelolaan Hutan Alam 3 Iskandar, Internal evaluation of PD 42/00 Rev.1(F), Jakarta, 2003

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Produksi Lestari Pada Unit Pengelolaan) and its implementing rules Decision 4796. The MoF recently required the mandatory certification of forest management units, and is currently in the process of evaluating the performance of forest management units vis-à-vis the government-mandated C&I. The project contributed to these government mandates and initiatives by drawing the attention of major forest stakeholders to the issues of (a) SFM in the Indonesian context, (b) ITTO’s C&I and its application in Indonesia, and (c) forest certification issues in the light of Indonesia’s international forestry trade. The relevant C&I determined by the project as applicable in the present Indonesian context were used as inputs to the promulgation of the MoF Decision 4795 on the adoption of a national C&I. The comparative analysis of the ITTO C&I and the national (LEI) C&I is an important result of the project. The study identified 43 out of the 66 ITTO indicators as relevant and applicable to the Indonesian context. Many of the indicators were judged as ‘inapplicable’4 not because these are not relevant to the Indonesian situation, but more because of the absence or inadequacy of the necessary policy or institutional framework in the country at present to enable forest companies to attain these indicators, as well as the lack of capacity of the forestry companies to generate data on these indicators. Some examples of this ‘inapplicable’ judgment are the following (the reasons for ‘inapplicability’ are quoted verbatim from the technical report; underscoring supplied for emphasis):

“Indicator 1.8 : Many obstacles, especially at participation level which is difficult to measure

Indicator 4.6 : Many obstacles especially due to the plantation forest is separated management to the natural forest management

Indicator 5.5 : The weakness is on the areal history related to the existence of important species

Indicator 6.2 : Watershed is not made as main consideration in forest management

Indicator 7.18: Not yet done in Indonesia due to no specific law , for that not yet available . Meanwhile there are some other obstacles on site; (a) operational license of FMU based on law on state forests; (b) capability of local communities in fact is still low to be involved in decision making in FMUs….”

Some of the indicators are judged as ‘inapplicable’ under current policy, operational frameworks, and/or institutional environments on forest management and governance in the country. This does not mean that the indicators are neither relevant nor useful to SFM in Indonesia; it only means that major changes are needed in many aspects of governance and management so that these indicators of SFM elements can be fulfilled by FMUs.

4 See the document “The ground applicability test of the ITTO C&I for sustainable management of natural tropical forests in Indonesia” in the Project Completion Report

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The project undertook a process of identifying the constraints facing FMUs in the application of SFM and made relevant recommendations to address these constraints. The current political dynamics in Indonesia as these impact on setting up the processes for SFM were analyzed. Important issues at the national and local levels which impinge on the implementation of SFM were identified, particularly on the decentralization of governance, the recognition of claims and rights of customary communities over forest resources, and land-use conflicts and disjoints in various levels of decision-making in the use of forestlands and forests5, 6. It would be very valuable for forest stakeholders in Indonesia, particularly government (at national, provincial, and regency levels) and forest concession holders to take note and take into serious consideration the results of the analyses, description of current conditions, and recommendations contained in the documents and publications produced by the project. The effectiveness of the project’s implementation and its effectiveness in promoting sustainable forest management, including the current status and roles of the trainees and their direct and indirect contributions towards the achievement of sustainable forest management. The project was effectively implemented despite the initial difficulties in assembling together a National Expert Panel and the Panel of Instructors (Core Trainers). The project, in fact, produced more substantial outputs over and above its original mandate. Before the project, there was a perception among most stakeholders (government staff, concession holders) that the commitment to SFM is mainly triggered by the need to have forest (timber) certification for concession holders7 in order to satisfy the certification demands in the international market. The participants to the training have been made to understand the deeper necessity of SFM in its economic, environmental/ecological, and social aspects, and that forest (timber) certification is not the only reason for implementing SFM. The participants gained substantial knowledge in the C&I of ITTO and LEI. They were able to undertake a guided analysis of the applicability of the ITTO C&I under Indonesian conditions. The 43 indicators which were judged relevant to Indonesia were applied in 77 forest concessions by the trainees, resulting in an initial judgment of the individual progress of these concessions in putting SFM into practice. It is expected that the participants brought back to their respective organizations a better understanding of SFM and the C&I process, and hopefully influence the management decisions of both government and forest concession managers. However, several of the

5 See Nugraha, et. al. The Challenge Towards Sustainable Management of Natural Production Forests in Indonesia, January 2002 6 See Akhmad, Performance Analysis and Constraints Toward Sustainable Forest Management Practices, July 2003 7 Iskandar, op. cit

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former participants as well as staff of the PEA who were interviewed expressed serious concerns over what they perceived as the inadequacy of ‘enabling conditions,’ mostly at the policy levels of both government and concession holders, which constrain the application by the trainees of their skills and knowledge. Such constraints are repeatedly identified and elucidated in the various documents and publications of the project. These findings and recommendations should be used as inputs, particularly by MoF and the provincial/regency governments, to improving the enabling conditions and improving forest management practices both at the national and local governments, and in improving forest management practices by forest concession holders. The overall contributions of the trainees towards the achievement of sustainable forest management, via a survey of these beneficiaries and others. There were 233 representatives from 109 organizations who went through the training. Majority of the trainees were males (216) with only a few females (17). Of the organizations represented, forest industry constituted 88, with 193 participants; government agencies (national, provincial, regency) constituted 18, with 25 participants, and other organizations (consultancy firms, independent assessors) constituted 3, with 15 participants (Annex 8).. The geographic distribution of the forest companies represented in the training is distributed among 14 provinces, as follows: Central Celebes 5 Central Kalimantan 12 East Java 1 East Kalimantan 28 Irian/Papua 6 Jambi 4 Mollucas 2 North Sumatera 3 Riau 10 South Celebes 1 South Kalimantan 1 South Sumatera 1 West Kalimantan 11 West Sumatera 3

The 233 trainees were expected to play two roles after completion of the project: (a) to become part of a pool of ‘core trainers’ that APHI and its members could utilize to train other staff – even high-level managers of concession companies – on SFM, and (b) to become internal assessors of their respective companies to monitor their progress towards SFM, and to be able top advise forest concession managers, including company Board of Directors, on corrective actions that should be taken to be able to pursue SFM. As previously discussed, several participants and company officials expressed serious concern over what they perceived as the inadequacy of ‘enabling conditions,’ mostly at

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the policy levels of both government and concession holders, which constrain the application by the trainees of their skills and knowledge. Most of the trainees may be at levels of their organization that do not enable them to influence changes in company policies and forestry practices. An interactive web-based monitoring and database system (SIMON-SFM) was developed by the project. This is supposed to be accessible to member concessionaires, and through which companies could update their respective information on progress of implementation of SFM. The database is supposed to be centrally managed and maintained at APHI headquarters in Jakarta. The pool of ‘core trainers’ has a big potential to maintain the momentum for continuously training forestry practitioners and managers in the country. Admittedly, only 88 companies were represented in this project out of more or less 300 forest concessions in the whole country. However, several of these companies were already certified in one way or another (ISO 9000 or 14000)8 and this would have highlighted to other companies’ ‘best practices’ and the viability of implementing SFM, while simultaneously making good progress on their respective efforts of getting certified. (The concession visited – PT SBK – designated its trainees as the core team to handle the certification efforts of the company). APHI (and the MoF) should move fast to monitor the whereabouts of the trainees. Several of them reportedly have moved to other companies, the present whereabouts of some are not known, or the companies of some of the participants have shut down operations.9 The human resources developed in Project 42/00 should be fully utilized to advance the further development and implementation of SFM and C&I in the country. Also, harnessing these human resources could easily jump-start the implementation of the newly-approved follow-on project - ITTO Project PD 389/05 Rev. 2(F): Application of the Internal Monitoring of SFM Performance at Forest Management Unit Level – which will be jointly implemented by MoF and APHI. The contributions of studies in forestry-related disciplines prepared by the project, including results and potential impact of applied research conducted by the project and/or its beneficiaries and its contribution to the overall knowledge as related to sustainable forest management. The publications and documents produced by the project are valuable contributions to the SFM work in Indonesia. While these documents were not planned to be the main output of the project and were supposed to serve as background material to the training, as it turned out the analyses, description of current conditions, and recommendations contained in these works add much value in furthering SFM work in Indonesia in the long run :

8 Also other certification processes including chain-of-custody and certification of legal source, e.g., in the case of PT Sari Bumi Kusuma, where field observations were made during the evaluation 9 Information from interviews with former participants and PD 42 implementing staff of APHI

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1. The Challenge Towards Sustainable Management of Natural Production Forest

in Indonesia (Nugraha, A., ed.) (Annex 8) b. Impact of the forestry regulation systems on sustainable production forest

in Indonesia: A review of policy perspective c. Set of problems on a production aspect of forest management activity in

the forest management unit d. Set of problems on a social aspect in realigning sustainable forest

management in the forest management unit e. Set of problems on an ecological aspect of forest management in forest

management unit f. Analyzing SFM problems and recommendations in policy and technical

operational perspective

2. Performance Analysis and Constraints Toward Sustainable Forest Management Practices (Akhmad) (Annex 4)

3. Analisis Kesejajaran Kriteria dan Indikator: International Timber

Organization – Lembaga Ekolabel Indonesia [Comparative Analysis of the ITTO and LEI C&I] (Annex 3)

4. Guidelines for SFM Monitoring

b. (Applicable) Criteria and Indicators for SFM (based on the ITTO C&I) c. Guidelines for assessment procedure and decision-making of SFM internal

monitoring d. Guidelines for development of SFM corrective action plan

5. Economic analysis of sustainable forest management at Forest Management Unit Level in Indonesia (Darusman and Bahruni)

The work done by the project on developing the Guidelines for Internal SFM Management Performance Monitoring, including the interactive database monitoring system (SIMON-SFM) are substantial contributions to improve the capacity of concession holders to move towards SFM. MoF and APHI should vigorously encourage forest companies to use these tools, and also to institutionalize these into the Indonesian forest management processes. The interactive monitoring database system (SIMON-SFM) is not currently being maintained for several reasons, the primary one being that member concessionaires are not updating their information regularly, if they report at all. APHI and MoF would benefit much by jointly reactivating and maintaining this database and encouraging forest concessionaires to input their information into the system. Likewise, this can be a good jump-start for implementing the follow-on project PD 389/05. The impact of project activities on the livelihoods of target populations

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The project did not have any explicit intention to address livelihood issues especially of populations in or around FMU areas. Any livelihood impacts, mainly positive, would indirectly result only if all or majority of the forest concessionaires in Indonesia shift towards SFM. The effectiveness of dissemination of project results The primary project results are the knowledge and skills acquired by the training participants. The participants came from forest concession companies, agencies of the Ministry of Forestry, staff of local governments, forest consultancy firms and independent assessors commissioned by MoF to undertake the performance evaluation of forest concessionaires. The majority of the trainees were from forest concession companies from different regions in Indonesia. Thus in terms of organizational and geographic coverage, the project results are fairly well disseminated. There is a need, however, to broaden the coverage in terms of the number of forest concessions in Indonesia; only 88 companies were represented out of about 300 in the whole country. The project has produced substantial documentation of project results, particularly those related to identification of constraints in implementing SFM, operational guidelines for internal monitoring by companies, and C&I reporting. Studies on the economics of SFM in Indonesia and on the “applicable” indicators have significant value for forest policy development in the country. It is apparent that these results were not substantially disseminated to, and internalized by, forest policy makers in the national and local governments. The further dissemination and promotion of these project results should be pursued by APHI, particularly during the implementation of the follow-on project PD 389/05. The project documentation, especially of the studies undertaken, are available at APHI headquarters in Jakarta, in CDs. It would be very helpful to the cause of SFM in Indonesia if these documentations are distributed to more offices and agencies of MoF, to the local forestry offices of local governments, and to other forest concession holders in Indonesia. The overall post-project situation in the project’s area of influence The project’s areas of influence may be categorized into (a) the national forestry policy environment; (b) the operations on the ground of forest companies, (c) the monitoring of APHI of the performance of its member companies, and (d) the forest management environment in the jurisdiction of local governments. At the national policy level, the MoF has recently decreed for the mandatory certification of forest concessions. It is presently undertaking an evaluation of the performance of forest concession holders through commissioned third-party assessors (some of whom attended the training under this project). At the moment, the performance evaluation is directed primarily towards determining

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which concessions will continue to operate, and which will be closed down (presumably for ‘sub-standard performance’ in forest management). It is not yet clear whether MoF will issue specific guidelines to encourage and assist companies to go into SFM, rather than just determining ‘good’ and ‘bad’ performers. APHI may be able to take this opportunity to influence MoF to take into greater consideration the results and recommendations of the project, with end in view of assisting MoF to promulgate guidelines to encourage and assist forest companies to practice SFM. The project has created greater understanding of SFM and C&I, at least among the companies that were represented in the training and self-assessment. If the assessment of the 77 concessions is any indication of the progress of adoption and implementation of SFM by forest companies, where already 48% of the FMUs assessed were already doing “Good” and “Very Good” even while the project was still going on, then there is a good chance that forest companies in Indonesia would be willing and able to implement SFM given the necessary ‘enabling conditions.’ At the moment, forest companies are not certain on how to move forward because of the constraints they face (analyzed and identified in the project output documents “The Challenge Towards Sustainable Management of Natural Production Forest in Indonesia” and “Performance Analysis and Constraints Toward Sustainable Forest Management Practices.” For APHI, its self-imposed post-project role was to guide and assist its members in achieving SFM, and to be able to do this it must be able to effectively monitor the progress of its members in the implementation of SFM. The interactive monitoring database SIMON-SFM was precisely developed for this purpose. However, this database is not being maintained and updated. APHi and MoF would benefit much by reactivating and maintaining this monitoring system. In the identification of constraints, three major impediments were identified which concerns the provincial and regency governments: (a) inconsistency of local government rules and regulations on forestry vis-à-vis the national forestry policies and guidelines, (b) reallocation of areas presently covered by forest license agreements to ‘permanent non-forest uses’, and (c) awarding of short-term forest extraction rights to third parties in areas presently covered by MoF-awarded concession rights. In at least one regency whose head (Bupati) was interviewed10, there was an expression of interest to support the implementation of SFM. However, the local government leaders and staff need a lot of assistance and capacity-building on SFM and related forestry concerns. The national government, particularly MoF, would need to immediately address these issues as part of the set of incentives for FMUs to go into SFM. The unexpected effects and impacts, either harmful or beneficial, and the reasons for their occurrences. 10 Dr. Jarod Winarno, Bupati (Regency Head) of Sintang, West Kalimantan

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There were no unexpected effects and impacts. The cost efficiency in the implementation of the project, including the technical, financial and managerial aspects. The implementation of the project was undertaken in a cost-efficient manner. Significant additional outputs were produced at no additional cost. The project was even able to remit back to ITTO USD 11, 307 representing the unspent balance of the ITTO contribution. The project saved on the costs of training because most of the training sessions and field work were conducted in the areas of forest concessions using their billeting facilities and transportation equipment, among others. This indicates the resourcefulness of APHI, the project executing agency, in utilizing its network of members to support the project. The project administration team was very lean; it basically consisted of 6 persons: a Project Manager, a Project Administrative Officer, a Systems Development Specialist, a Treasurer/Disbursing Officer, and an Administrative Assistant. One major oversight in the project implementation was the failure to connect the project work with another related ITTO project being implemented in Indonesia at that time. This was PD 89/90(F): Sustainable Forest Management and Human Resources Development in Indonesia (Phase III). The latter project had a component – Research on Criteria and Indicators – which was undertaken by the Forest Research and Development Agency of MoF in collaboration with the University of Mulawarman, Samarinda, East Kalimantan. The implementation period for this component was April 2001 to September 2003, almost simultaneous with the implementation of PD 42/00 (June 2001 – March 2004). Harmonization and complementation of the research work in PD 89/90 and the studies on C&I on the ground in PD 42/00 would have had far better results for SFM in Indonesia in the long run. This oversight can not be entirely held against the project implementers of PD 42/00; the PEA was an organization of private forestry companies and, presumably, did not have as wide a view of the scope and extent of SFM work being done in the country that the MoF had. However, the Project Steering Committees of both projects, wherein MoF and ITTO representatives were members, should have been able to see the close connection between the two projects at the beginning, and could have redirected both projects to complement and collaborate with each other. Substantial cost savings for both projects would have been realized, not to mention the immense value of joint results coming out of such complementation and collaboration. This is a situation that the Committees of ITTO, the Expert Panel for Project Evaluation, and member

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countries should be on the lookout for in evaluating and implementing future projects. Follow-up actions in order to enhance uptake of project results APHI, with support from MoF should reach out to all its member companies and strongly encourage them to have their relevant staff trained on C&I. The follow-on project provides this opportunity; if possible, the National Panel of Experts and the Training Instructors should be reconstituted into a permanent body within the organizational structure of APHI. In order to sustain the results of the project, APHI (and the MoF) should move fast to monitor the whereabouts of the trainees. Information should be gathered by APHI on the how these trainees are using their acquired knowledge and skills, if they are being used in their companies to change company policies and forest management procedures, as well whether these trainees are serving as in-house trainers for their companies as originally envisioned. Procedures could be developed by APHI and its members for other companies not represented in the training to use these trained personnel on a ‘loaning’ or ‘secondment’ arrangement. APHI, with support from MoF, should brief the senior executives and Members of the Boards of Directors of companies on what were accomplished in the project, and plan for a continuing discussion with these executives on how to institutionalize C&I in their company management processes (including development of company information systems for C&I), and the utilization of the trained personnel to do in-house training for other staff; also for the possibility of ‘loaning’ these trained personnel to other companies APHI, with support of MoF, should reactivate the monitoring database SIMON-SFM, and strongly encourage members to periodically update data; there should be no apprehension by companies that the information may be used against them, and MoF may make assurances in this respect. The project’s relative success or failure, including a summary of the key lessons learnt; and the identification of any issues or problems that should be taken into account in designing and implementing similar projects in the future. Successes The training of staff from 88 companies is a significant step for enabling forestry companies in Indonesia to move towards SFM. These 88 companies now have staff who could advise them on C&I and SFM processes, and to influence changes in management systems, including setting up company information systems for C&I. It remains to be seen, however, whether these companies will utilize their trained personnel appropriately.

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The organization of the National Expert Panel has a significant potential to continue to serve as advisor to APHI and its member companies on SFM. The multi-sectoral origins of the panel members place the panel in a position to influence policies and processes in their respective organizations to promote SFM and the C&I processes forward in Indonesia. The pool of Core Trainers likewise has significant potential to support further training and curriculum development work on C&I, SFM and certification in Indonesia. The pool of trainers could be utilized in the follow-on ITTO project; the composition of the pool of trainers could be expanded so that future training work can be better scheduled without the constraint of availability of the trainers (a situation which PD 42/00 encountered). The various studies conducted by the project on the applicability of ITTO C&I, constraints to SFM, and economics of SFM, significantly contributed to a better understanding of SFM and C&I in the Indonesia context. Government policy makers and company executives should use these as inputs in their respective areas of work on SFM. Failures Only 88 companies (29%) out of the 300 companies targeted were able to send their staff to the training sessions, although 233 out of the 300 targeted participants were trained. However, this deficiency can not be completely attributed to the PEA considering the wide variance in the situations, attitudes towards SFM, and quality of management of the Indonesia forest companies. A critical deficiency is the absence of a mechanism to institutionalize the human resource development process to expand the pool of trained staff of Indonesia companies on C&I and SFM. Either APHI as the PEA, the MoF-CFET, or both, in collaboration, should have considered a sustainability plan to continue the human resource development program started in PD 42/00. There is no mechanism to monitor and ensure that companies represented in the training utilized the trained personnel in setting up their C&I processes. The trained personnel may be lost or they may not be able to use their knowledge and skills in the field because of non-responsive management processes of their companies. This deficiency could have been partly addressed if the monitoring database (SIMON-SFM) was maintained. This could still be remedied in the database is reactivated and maintained by APHI and its member companies. In evaluating what are the ‘applicable’ indicators, there were no recommendations on how to go about making the ‘inapplicable’ indicators ‘applicable’. Most of the indicators judged as not applicable are judged as such because the information for these are not presently available, or the policy environment is not conducive to the application and determination of these indicators. The reasons for ‘inapplicability’ were identified but

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there were no specific recommendations on what actions, and by whom, should be undertaken to make these ‘applicable’. The project determined that the social aspects of SFM, particularly on the issue of customary rights of local and indigenous peoples, were not well-developed in Indonesia. It would have been worthwhile for the project to have commissioned some studies to develop policy (and even legislative) recommendations to address this aspect of SFM in the Indonesian context. Key lessons learned Human resource development for company workers is essential However, for the trained personnel, they should be able to apply their acquired knowledge and skills in the field. For this reason, decision-makers in the companies should also be made aware of C&I and SFM (not only for certification). Also, government should use the C&I not only for performance evaluation (“go/no-go”) but to be able to assess the situation so that it can develop policies that will encourage companies to practice SFM. Otherwise, the companies will view the C&I reporting process as a trap; it then becomes a disincentive for companies to report information on progress. This project was able to start a deliberate human resource development program for forestry staff (in both private sector and government) on SFM. In this project, however, the people that were trained are spread throughout the country and represent only 29% of the companies in Indonesia. The project could have had a more lasting impact if there was a plan, formulated at mid-term or end of the project, on how this capacitated human resource can be utilized to advance SFM in the country, aside from being internal advocates only in their own organizations. The concern raised by the trainees interviewed, that their acquired knowledge and skills could not be effectively applied unless the ‘enabling conditions’ in national forestry policy and company policies are put in place, is important to be considered by policy makers in both government and the private sector. Issues to be considered for future similar projects Projects run by the private sector, especially national in scope such as PD 42/00, often produce important outputs and outcomes that are valuable to government policy development. There should be a mechanism, identified at project formulation, for deliberately bringing these outputs and outcomes to the attention of government. This could be a role that may be emphasized as part of the terms of reference of Project Steering Committees in future similar projects. The project could have had a more lasting impact if there was a plan, formulated at mid-term or end of the project, on how this capacitated human resource can be utilized to

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advance SFM in the country, aside from being internal advocates only in their own organizations. The concern raised by the trainees interviewed, that their acquired knowledge and skills could not be effectively applied unless the ‘enabling conditions’ in national forestry policy and company policies are put in place, is important to be considered by policy makers in both government and the private sector. Future projects of this nature should provide for a process to bring the project outputs/outcomes to the policy processes of both government and relevant private sectors. Lastly, as previously noted, the project PD 42/00 was being implemented at the time a similar project – PD 89/90(F) Phase III – in Indonesia was also working on research on C&I. Cost efficiency and harmonized results could have been achieved, and more valuable outcomes could have resulted, if there was coordination and collaboration between the two projects. This is a situation that the Committees of ITTO, the Expert Panel for Project Evaluation, and member countries should be on the lookout for in evaluating and implementing future projects. Synthesis The overall role and meaningful contribution of the project in achieving sustainable forest management (SFM) in ITTO Producer Member countries taking into account ITTO’s objectives, Yokohama Action Plan, and Objective 2000. The project contributed to the attainment of the following objectives enunciated in ITTA 1994:

(c) To contribute to the process of sustainable development; (d) To enhance the capacity of members to implement a strategy for achieving

exports of tropical timber and timber products from sustainable managed sources by the year 2000;

(g) To develop and contribute towards mechanisms for the provision …. expertise needed to enhance the capacity of producing members to attain the objectives of this Agreement;

The project was consistent with the following items of the Yokohama Action Plan:

(e) Assist human resource development and institutional strengthening by conducting national, regional, and international training activities and the provision of fellowship.” (h) Encourage and increase the involvement of non-government stakeholders, including industry and trade associations, environmental organizations and indigenous groups, in the activities of the Organization with a view to promoting transparency, dialogue and cooperation in furthering ITTO’s objective.

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The project was primarily aimed at achieving the ITTO Objective 2000. It was clear to the PEA that Objective 2000 can only be achieved by Indonesian forestry companies if they had capacitated staff to guide the companies towards the practice of SFM. Assessment of the potential and actual contribution of the project to ITTO’s SFM work. The actual contribution of the project to ITTO’s SFM work is in the capacitation of 233 personnel from different forestry organizations in Indonesia on C&I application, in particular, and in SFM principles and processes, in general. This pool of trained human resource has a big potential to push SFM practice in Indonesia, assuming that these staff be given the opportunity, the environment, and further encouragement, to become active advocates of SFM in their respective organizations. This will require a deliberate move by both government (national and local) and forest concessionaires to harness this pool of resource as trainers and advocates for C&I and SFM. The overall impact on, and relevance of, the project for the forestry and environmental authorities, Executing Agency, the forest industry and conservation sector and local communities being served and the country. The impact of the project on forestry stakeholders in Indonesia is not yet very discernible at present, except in those companies who have proceeded to seriously consider SFM and the implementation of the C&I processes in their operations. However, assuming that the appropriate policy and implementation environment for forestry (and SFM) in Indonesia is put in place, the project may be credited as having contributed very substantially to fulfilling the various interests of forestry stakeholders in the country. Nonetheless, the project is highly relevant to all forestry stakeholders in Indonesia. These stakeholders should take note of the outputs and outcomes that resulted from this project. The overall attainment of the objectives and the overall effectiveness of the project. The development objective of the project was “to enhance the human resource capacity in C&I for SFM in order for APHI to be able to lead its members to practice SFM that will eventually result in certification, and to enhance the efforts of member (companies) to achieve ITTO Objective 2000” [This development objective is restated as “to accelerate (the) sustainable forest management process by forest concession companies (in Indonesia)” in other documents of the project].

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This development objective was substantially achieved y the project. The studies and company assessments done under the project are substantial contributions to SFM in Indonesia, going beyond the original scope of the project. The project’s specific objectives were: (1) to train 300 participants representing 300 concession holders in Indonesia on the ITTO and the Indonesia C&I for SFM, and (2) to develop internal assessors within the forest concessions out of the trained participants who will take the lead in improving the forest management in their respective FMUs. These specific objectives were substantially achieved by the project, notwithstanding the fact that only 233 out of 300 were trained, and only 88 companies were represented out of about 300 in the whole of Indonesia. The effectiveness of the project can only be gauged as partially effective, but this is not a reflection on the project itself. A large pool of human resource has been developed, but it remains to be seen whether such pool of expertise can effectively influence the attainment of SFM in Indonesia. The factors that determine this are beyond the scope of the project, and beyond the control of the PEA and the participants. The overall appropriateness of the costs and cost structure and use of resources within the project. The costs and cost structure of project funds are appropriate and reasonable. The resources were used efficiently; additional substantial outputs were in fact generated at no additional cost. The project was even able to return unutilized resources to ITTO. Recommendations The needs for similar projects in the future Human resource capacitation is a continuing work, and this is most important in developing the capacities of ITTO member countries to achieve SFM. Projects on human resource development for SFM need to be supported in the future. The objectives of such future projects. Future projects on human resource development for SFM should have, at the minimum, the following generic objectives:

1. To orient major decision makers in government and forestry companies on SFM and C&I in such a manner that SFM and C&I become institutionalized in the decision-making processes for forest management. In the case of government, other government agencies outside of the forestry agencies, but whose mandate impact on forest policy in the country (e.g., agriculture, trade) should be included.

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2. To establish a comprehensive training curriculum, appropriate to the conditions of the country, that can be further implemented even after the phase-out of ITTO support.

3. To expand the coverage of training to a broader spectrum of forestry practitioners at many levels.

Innovative approaches/designs for projects aimed at training nationals in SFM The following innovative practices/designs may be adopted: 6. Incorporating SFM and C&I training modules in the regular human

resource development programs of forestry companies. 7. Incorporating SFM and C&I training modules in the regular human

resource development programs of government forestry agencies. 8. Incorporating SFM and C&I courses in the curricula of forestry schools

and universities. 9. Identifying, and popularizing, “best practices” of forestry organizations

that exemplify SFM in a country. 10. Including SFM and C&I in the coverage of forestry licensure

examinations in countries where such licensure processes are present.

Appropriate target groups 1. Senior decision makers in forestry agencies and other government

agencies, including local governments 2. Senior decision makers in forestry companies and other related forestry

organizations 3. Middle-level managers and field staff of forestry companies and related

forestry organizations 4. Staff of planning units of forestry companies, government forestry

agencies, and local government units 5. Faculty staff of forestry schools and universities 6. Staff of forestry consulting organizations and forestry professional

organizations

The organizational arrangements of similar projects

Projects aimed at developing SFM capacities should be organized taking into consideration the following elements, where appropriate: 3. Several national core training teams may be organized in order to

ensure that the availability of trainers when and where required. Training schedules would be dependent on the time-availability of the trainers if there were only a limited number of trainers. It is complicated to organize the schedules and availability of 40-50 trainees for a training

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session and adjusting training schedules to the availability of a few trainers complicates things more.

4. Project Steering Committees should be on the lookout for other projects being implemented in a country which may have overlapping scope or objectives with the project which they oversee. Complementation and collaboration with such related projects would be extremely beneficial and productive.

Follow-up and evaluation practices Mid-term monitoring and mid-term evaluations of projects should deliberately identify the presence and applicability of post-project sustainability plans, including the existence of potential threats to such sustainability plans, in order to ensure that there is a smooth phase-out of the project and a smooth phase-in of project results into the ‘regular’ work of beneficiary organizations of the project.