Institutional Mechanisms for REDD+ - Case Studies Working Paper

Rights and responsibilities under HKm:
Communities possessing an HKm permit are allowed to cultivate and extract NTFPs, plant trees, and utilize
environmental services. Communities wishing to extract timber must apply for a timber resources utilization
permit (IUPHHK), which can only be allocated in production forest.
In the protection forest of Sumberjaya, HKm groups must maintain one block for coffee cultivation and one
block for protection of natural forest. Depending on the group, the protection block could be as much as 50
percent of the land to nil. 179 Within the cultivation block, farmers must maintain multi-strata vegetation and
implement soil and water conservation practices. Group members must pay an annual fee to support the
administration of the group. HKm groups are responsible for enforcing compliance of its members with
these conditions. Groups that do not comply with the conditions of their HKm permit could theoretically
have their permit revoked, although the HKm group members interviewed for this case study did not seem to
believe that this was a likely threat.
5.4.4 BENEFIT SHARING FUNCTIONS
Determination of beneficiaries:
There are no restrictions on the types of communities that can apply for an HKm permit. However, the
likelihood that a community will apply depends on their awareness of the program and their ability to cover
the transaction costs of applying. 180 Thus, communities supported by NGOs or by proactive district forest
officers are more likely to benefit from the HKm program. The HKm Forum members interviewed in
Sumberjaya felt that their success story was largely community and NGO driven, and that government is not
adequately supportive of the program.
Since the RiverCare pilot program had limited resources, only a small number of HKm groups were able to
receive benefits (micro-hydro installation or cash payments). These groups were selected based on their
performance in a competition to develop improved land management practice to reduce soil erosion.
Distribution of benefits:
The main benefit of HKm is secure land tenure, which is equally shared among members of the HKm group.
In the RiverCare program, the Buluh Kapur HKm group received a micro-hydro installation as their reward.
The generator produces enough electricity for 17 out of the 40 households that participated in the RiverCare
program. Those 17 households must pay 10,000 rupiah per month (just over US$1) to maintain the service. 181
HKm groups that received cash payments from RiverCare managed these resources for collective
investments, e.g. to maintain the tree nursery, to buy communal livestock, etc. The HKm Forum provides
supervision and support to HKm groups to be able to manage funds transparently and accountably.
Nonetheless, instances of corruption in HKm groups have been reported. 182
179 Cucu Suryadi.
180 One study (Porras and Neves, 2006) estimated the transaction costs of establishing and managing a HKm group in Sumberjaya at about US$55
per household, or roughly half of the average annual household income. Calculations were based on the time spent to carry out the necessary
activities, at average local wage rates.
181 Interview with Dariono.
182 Interview with Eddy Perwanto.
PRRGP INSTITUTIONAL MECHANISMS FOR REDD: CASE STUDIES – WORKING PAPER 107