Teak systems' contribution to rural development in Indonesia 1

Teak is a valuable tropical timber species produced in industrial plantations in more than 43 countries. National and international demand for teak timber exceeds the sustainable yield from plantations. High demand creates opportunities for enterprising farmers. Teak is now grown in smallholder systems in many tropical countries, as one component of integrated multispecies’ agroforestry systems. These systems enable farmers to diversify production, reduce farm risk, contribute to food security, and generate much needed income. This paper reports the contributions of smallholder teak systems to rural development in Indonesia, where farmers have been producing teak for over 50 years. Indonesian farmers cultivate various mixed tree and annual crop systems, with teak accounting for 56% of the tree component. Annual cropping is an important aspect of these systems, producing commodities for both household consumption and market sale. Besides supplying food for households, smallholder teak systems provide 40% of household income from agricultural and timber crops. Teak and other tree crops allow households to re-allocate labor to off-farm employment when those opportunities are lucrative. However, farmers suffer from limited resources, labor and access to information, which constrain the productivity of their teak systems. Specific recommendations are provided regarding how smallholders can adopt improved silvicultural and marketing management. Roles for government, support agencies and industry are outlined that would provide benefits to all parties. Policy changes are identified that would motivate smallholders to improve the