Improving economic outcomes for smallholders growing teak in agroforestry systems in Indonesia (ACIAR-Teak)

Project Timeframe:
Jan 2007 to Dec 2011

Related country(s)


AUD $810,114


Australian Centre for International Agriculture Research (ACIAR)


Center for International Forestry Research(CIFOR) | Forestry Research and Development Agency of the Government of Indonesia (FORDA) | Institut Pertanian Bogor (IPB) | Kelompok Kerja Hutan Rakyat Lestari Kabupaten Gunung Kidul (POKJA HR)


Teak production and furniture manufacture is a major industry in Java, with about 1.5 million households in the region currently growing teak. Although teak has a high value, smallholder farmers are not benefiting from its production as they should. The reasons for this include poor silvicultural techniques, limited market knowledge and restrictive timber regulation policies. This project's objective is to substantially improve the livelihoods of smallholders growing teak in Indonesia through better silvicultural technologies, introducing financing schemes that provide incentives to participate in growing teak profitably and improving access to markets.

The expertise of scientists from the Centre and CIFOR has been combined to focus on all aspects of smallholder teak production. FORDA, IPB and POKJA HR (local forest management group) are covering silvicultural and financing issues and ANU is providing specialist economic input. The project team is working with farmers and key actors in the teak production chain to ensure the outcomes are grounded in the realities of smallholder production systems. Leading government and non-government agencies are involved as members in the project advisory group.

Activity to date

We began the project by evaluating current and potential silvicultural management practices and are now conducting a series of management trials and publishing a manual on best-practice management in both Indonesian and English versions as well as policy briefs on silviculture, finance and marketing. We have also completed a rapid market appraisal and are preparing to publish information about the methodology and results as well as a book of best practice marketing guidelines.