Member-level Livelihood Outcomes and Governance Pathways in Community Forest Enterprise (CFE) to Achieving Sustainability: Evidence from West Sumatra, Indonesia

Community Forest Enterprises and Sustainability

Authors

  • Lady Chania Ehime University image/svg+xml Author
  • Atsushi Matsuoka The Graduate School of Agriculture, Ehime University, Japan Author

DOI:

https://doi.org/10.66529/agripat.2026.2.3.94

Keywords:

community forest enterprise, livelihood, triple bottom line, sustainability

Abstract

Community Forest Enterprise (CFE) in Indonesia aims to improve livelihoods and support forest conservation, but member-level outcomes remain underexamined. This study examines member-level livelihood outcomes and governance pathways for CFE sustainability in West Sumatra, using a mixed-methods approach with 62 members across 10 CFEs. The results showed that among the 62 respondents across 10 CFEs, only 29% have half of their total income from CFE. While 41% of them are still receiving less than 25% of their total income. This suggests that the CFE's position is still in its early stages and that CFE is treated as a supplementary livelihood rather than a main one. Governance participation is high (87% meeting, 77% decision making), and members receive six non-cash benefits, such as job, facility, daily needs, knowledge, and market. Social-oriented CFEs provide more non-cash benefits, while business-oriented CFEs provide more economic benefits. Environmental engagement varies across categories (66% waste management, 67.7% replanting, and 43.5% forest monitoring), with social-oriented CFEs showing higher engagement than business-oriented ones. The study contributes a governance-capability pathway model and reframes Triple Bottom Line (TBL) as multi-value sustainability. Recommendations include inclusive governance and recognition of mixed orientations to improve the CFEs.

References

Aguirre, M. L. C. (2019). Environmental Awareness and Education: A Key Approach to Solid Waste Management. In International Peer Reviewed Journal This journal is produced by the International Association of Scholarly Publishers (Vol. 10). Editors and Reviewers, Inc. http://orcid.org/0000-0002-9032-5014

Amaliyah, A., Saifuddin, S., & Jauhari, T. (2023). Empowerment of social forestry business group in improving village welfare in South Lampung. Community Empowerment, 8(4), 508–518. https://doi.org/10.31603/ce.9015 DOI: https://doi.org/10.31603/ce.9015

Ameridyani, A., Tokito, M., & Saizen, I. (2025). Towards community-driven rural development: Path of women group in empowering rural Women’s capacities and role in rural development. World Development Perspectives, 39. https://doi.org/10.1016/j.wdp.2025.100700 DOI: https://doi.org/10.1016/j.wdp.2025.100700

Bong, I. W., Moeliono, M., Wong, G. Y., & Brockhaus, M. (2019). What is success? Gaps and trade-offs in assessing the performance of traditional social forestry systems in Indonesia. Forest and Society, 3(1), 1–21. https://doi.org/10.24259/fs.v3i1.5184 DOI: https://doi.org/10.24259/fs.v3i1.5184

Ciccarino, I. D. M., & Fernandes, M. E. da S. T. (2024). A bibliometric review of stakeholders’ participation in sustainable forest management. In Canadian Journal of Forest Research (Vol. 54, Number 3, pp. 252–267). Canadian Science Publishing. https://doi.org/10.1139/cjfr-2022-0329 DOI: https://doi.org/10.1139/cjfr-2022-0329

Coffman, M., & Umemoto, K. (2010). The triple-bottom-line: Framing of trade-offs in sustainability planning practice. Environment, Development and Sustainability, 12(5), 597–610. https://doi.org/10.1007/s10668-009-9213-4 DOI: https://doi.org/10.1007/s10668-009-9213-4

Estrin, S., Mickiewicz, T., Stephan, U., Acs, Z., Aidis, R., Autio, E., Earle, J., Khavul, S., Korosteleva, J., & Reynolds, P. (2012). Entrepreneurship, social capital, and institutions: 1 social and commercial entrepreneurship across nations the authors acknowledge valuable comments from the editor’s entrepreneurship, social capital and institutions: social and commercial entrepreneurship across nations. www.gemconsortium.org DOI: https://doi.org/10.1111/etap.12019

Febriamansyah, R., Yuerlita, & Nugroho, S. (2021). Land use change, climate change, and river basin management: A preliminary study in small river basin of Batang Paninggahan, West Sumatra, Indonesia. Natural Resource Governance in Asia, 325–342. https://doi.org/10.1016/B978-0-323-85729-1.00021-9 DOI: https://doi.org/10.1016/B978-0-323-85729-1.00021-9

Fisher, L. A., Kim, Y. S., Latifah, S., & Makarom, M. (2017). Managing forest conflicts: Perspectives of Indonesia’s forest management unit directors. Forest and Society, 1(1), 8–26. https://doi.org/10.24259/fs.v1i1.772 DOI: https://doi.org/10.24259/fs.v1i1.772

Fisher, M. R., Moeliono, M., Mulyana, A., Yuliani, E. L., Adriadi D , Kamaluddin, A., Judda, J., Sahide, M. A. K., & Adriadi, A. (2018). Assessing the new social forestry project in Indonesia: recognition, livelihood and conservation? In International Forestry Review (Vol. 20, Number 3). DOI: https://doi.org/10.1505/146554818824063014

Foundjem-Tita, D., Duguma, L. A., Speelman, S., & Piabuo, S. M. (2018). Viability of community forests as social enterprises: A Cameroon case study. Ecology and Society, 23(4). https://doi.org/10.5751/ES-10651-230450 DOI: https://doi.org/10.5751/ES-10651-230450

Fung, A., & Thompson, D. (2025). Conflict of interest in government: Avoiding ethical and conceptual mistakes. In Governance (Vol. 38, Number 1). John Wiley and Sons Inc. https://doi.org/10.1111/gove.12870 DOI: https://doi.org/10.1111/gove.12870

Galudra, G. (2019). Focusing on facilitation: Issues and challenges of capacity development in Indonesia’S social forestry reforms. Forest and Society, 3(1), 133–136. https://doi.org/10.24259/fs.v3i1.5995 DOI: https://doi.org/10.24259/fs.v3i1.5995

Goi, H. C., & Francois, K. K. (2022). Stakeholders’ Engagement for Sustainability in Social Entrepreneurship. https://doi.org/https://mba.nucba.ac.jp/en/research/article/nbr01_features_02.html

Gu, W., Pan, H., Hu, Z., & Liu, Z. (2022). The Triple Bottom Line of Sustainable Entrepreneurship and Economic Policy Uncertainty: An Empirical Evidence from 22 Countries. International Journal of Environmental Research and Public Health, 19(13). https://doi.org/10.3390/ijerph19137758 DOI: https://doi.org/10.3390/ijerph19137758

Gunawan, H., Yeny, I., Karlina, E., Suharti, S., Murniati, Subarudi, Mulyanto, B., Ekawati, S., Garsetiasih, R., Pratiwi, Sumirat, B. K., Sawitri, R., Heriyanto, N. M., Takandjandji, M., Widarti, A., Surati, Desmiwati, Kalima, T., Effendi, R., … Nurlia, A. (2022). Integrating Social Forestry and Biodiversity Conservation in Indonesia. In Forests (Vol. 13, Number 12). MDPI. https://doi.org/10.3390/f13122152 DOI: https://doi.org/10.3390/f13122152

Kurniasih, H., Ford, R. M., Keenan, R. J., & King, B. (2021a). The Evolution of Community Forestry Through the Growth of Interlinked Community Institutions in java, Indonesia. World Development, Vol 139(105319).

Kurniasih, H., Ford, R. M., Keenan, R. J., & King, B. (2021b). The evolution of community forestry through the growth of interlinked community institutions in Java, Indonesia. World Development, 139. https://doi.org/10.1016/j.worlddev.2020.105319 DOI: https://doi.org/10.1016/j.worlddev.2020.105319

Laurens, S., & Perdana Kusuma Putra, A. H. (2020). Poverty alleviation efforts through MDG’s and economic resources in Indonesia. Journal of Asian Finance, Economics and Business, 7(9), 755–767. https://doi.org/10.13106/JAFEB.2020.VOL7.NO9.755 DOI: https://doi.org/10.13106/jafeb.2020.vol7.no9.755

North, D. C. (1990). Political Economy of Institutions and Decisions (J. Alt & D. North, Eds.). Cambridge University Press.

Pasaribu, S. I., Vanclay, F., & Zhao, Y. (2020). Challenges to implementing socially-sustainable community development in oil palm and forestry operations in Indonesia. Land, 9(3). https://doi.org/10.3390/land9030061 DOI: https://doi.org/10.3390/land9030061

Piabuo, S. M., Hoogstra-Klein, M., Ingram, V., & Foundjem-Tita, D. (2022). Community forest enterprises (CFEs) as Social Enterprises: Empirical evidence from Cameroon. Forest Policy and Economics, 135. https://doi.org/10.1016/j.forpol.2021.102664 DOI: https://doi.org/10.1016/j.forpol.2021.102664

Piabuo, S. M., Hoogstra-Klein, M., Ingram, V., Runhaar, H., Piabuo, S. M., Hoogstra-Klein, M., Ingram, V., Foundjem-Tita, D., Minang, P. A., & Duguma, L. (2025). Sustainability performance of community forest enterprises (CFES) in Cameroon: Pathways to viable business models. Forest Policy and Economics, 173. https://doi.org/10.1016/j.forpol.2025.103470 DOI: https://doi.org/10.1016/j.forpol.2025.103470

Prihatiningtyas, W., Fitriana, Z. M., Wijoyo, S., & Tiban, N. I. A. (2023). Social Forestry Policy Post the Job Creation Law Promulgation: Is This the Answer to Materialize Sustainable Forest Development? 283–288. https://doi.org/10.11594/nstp.2023.3346 DOI: https://doi.org/10.11594/nstp.2023.3346

Rachmina, D., Herawati, Feryanto, Mahdi, Wibowo, R. P., & Azriani, Z. (2024). Business Sustainability Analysis of the Social Forestry Program in West Sumatra Province. AGRARIS: Journal of Agribusiness and Rural Development Research, 10(2), 215–235. https://doi.org/10.18196/agraris.v10i2.550 DOI: https://doi.org/10.18196/agraris.v10i2.550

Rahayu, S., Laraswati, D., Pratama, A. A., Sahide, M. A. K., Permadi, D. B., Wibowo, W., Widyaningsih, T. S., Suprapto, E., Andayani, W., & Maryudi, A. (2020). Bureaucratizing non-government organizations as governmental forest extension services in social forestry policy in Indonesia. In Forests Trees and Livelihoods (Vol. 29, Number 2, pp. 119–129). Taylor and Francis Ltd. https://doi.org/10.1080/14728028.2020.1753585 DOI: https://doi.org/10.1080/14728028.2020.1753585

Rahman, N. Z., Widodo, Z., Zuhriyah, S., Zamrodah, A., & Purbowo, Y. (2024). Community Perception of the Impact of the Social Forestry Program in Barurejo Village.

Santos, J. B., Scharnigg, R., Monteiro, J., & Pacheco, A. (2025). Fair shares or smart savings? Exploring business models, justice and efficiency trade-offs in Portuguese energy communities. Energy Research and Social Science, 125. https://doi.org/10.1016/j.erss.2025.104102 DOI: https://doi.org/10.1016/j.erss.2025.104102

Siegner, M., Kozak, R., & Panwar, R. (2023). The Effect of Managers’ Personal Characteristics on the Performance of Community Forest Enterprises. Small-Scale Forestry, 22(3), 381–399. https://doi.org/10.1007/s11842-022-09533-9 DOI: https://doi.org/10.1007/s11842-022-09533-9

Sultana, S., Islam, Md. S., Jahan, F., & Khatun, F. (2021). Awareness and Practice on Household Solid Waste Management among the Community People. Open Journal of Nursing, 11(05), 349–366. https://doi.org/10.4236/ojn.2021.115031 DOI: https://doi.org/10.4236/ojn.2021.115031

Suranto, H., Dwi Gustriandha, R., Pudja, D. R., Luthfan, R., Nazah, N. H., Rokmawati, T., Pertamina, P. T., Energy, G., & Ulubelu, T. A. (2025). Social Forestry Business Group (Kups) Margo Rukun Bestari: The Transformation From Poacher To Conservationist. Progress in Social Development, 6(1), 298–303. DOI: https://doi.org/10.30872/psd.v6i1.141

Wijaya, A., Glasbergen, P., Leroy, P., & Darmastuti, A. (2018). Governance challenges of cocoa partnership projects in Indonesia: seeking synergy in multi-stakeholder arrangements for sustainable agriculture. Environment, Development and Sustainability, 20(1), 129–153. https://doi.org/10.1007/s10668-016-9874-8 DOI: https://doi.org/10.1007/s10668-016-9874-8

Wong, G. Y., Moeliono, M., Bong, I. W., Pham, T. T., Sahide, M. A. K., Naito, D., & Brockhaus, M. (2020). Social forestry in Southeast Asia: Evolving interests, discourses and the many notions of equity. Geoforum, 117, 246–258. https://doi.org/10.1016/j.geoforum.2020.10.010 DOI: https://doi.org/10.1016/j.geoforum.2020.10.010

Additional Files

Published

2026-06-25

Data Availability Statement

data available upon request (limited)

Issue

Section

Research Articles

How to Cite

Member-level Livelihood Outcomes and Governance Pathways in Community Forest Enterprise (CFE) to Achieving Sustainability: Evidence from West Sumatra, Indonesia: Community Forest Enterprises and Sustainability. (2026). Journal of Agricultural Policy and Transformation, 2(3). https://doi.org/10.66529/agripat.2026.2.3.94