World Applied Sciences Journal 26 (Natural Resources Research and Development in Sulawesi Indonesia): 105-111, 2013 ISSN 1818-4952 © IDOSI Publications, 2013 DOI: 10.5829/idosi.wasj.2013.26.nrrdsi.26019 Corresponding Author: Meisanti, Department of Agriculture Economic, Faculty of Agriculture, Universitas Halu Oleo, Kendari, Southeast Sulawesi 93212, Indonesia. Tel:+628-5242717322. 105 Sustainable Management of Teak Plantation Forest by Local Farmers in Sulawesi, Indonesia Yosep Monim, Nur Rahmah, Kamaruzaman Jusoff,, Heliawaty, Anas Nikoyan, 1 2 3 4 2 Ilham Yamin Ismail, Meisanti, Zakiah Uslinawaty and Hartina Batoa 5 2 6 2 Department of Agribusiness, Faculty of Agriculture, 1 Universitas Satya Wiyata Mandala, Nabire, Papua 98801 Indonesia Department of Social Economics, Faculty of Agriculture, 2 Universitas Halu Oleo, Kendari, South East Sulawesi 93232 Indonesia Department of Forest Production, Faculty of Forestry, 3 Universiti Putra Malaysia, 43400 UPM, Serdang, Selangor, Malaysia Department of Agriculture Socio-economics, Faculty of Agriculture, 4 Hasanuddin University, Makassar, South Sulawesi, 90245 Indonesia Political Science Program, Faculty of Social Science and Humanities, 5 Universiti Kebangsaan Malaysia, Bangi, Selangor 43600 Malaysia Faculty of Agroforestry, Universitas Halu Oleo, Kendari, South East Sulawesi 93232 Indonesia 6 Submitted: Sep 29, 2013; Accepted: Dec 1, 2013; Published: Dec 20, 2013 Abstract: From the implementation point of view, the sustainable management of the teak forest was implemented based on the principle management of teak forests by applying the ecolabel system. This approach is an alternative to the management of teak plantation forest by the local community as the main beneficiary. However, the shortcoming of the internal institutional group decreases the productivity of collective labour members and efforts to build cooperation with others. Comprehensive understanding is needed for the continuity of the institution as a system having a contingency against the strategic dynamical environment of politics and economics. In addition, the basic theory comprising of system (S), contigency (CO), politics (P) and economics (E) known as SCOPE has been well incorporated and discussed into the system. The benefit of SCOPE is to share all contributions from multi parties in the form of resource, organization and norms (RON). Key words: Institutional sustainability Community Teak forests Ecolabelling INTRODUCTION Indonesia has been known as one of the main teak Teak (Tecnona grandis) is one of the world's quality of Indonesian teak has decreased due to the major timbers known for stunning color, fine grain improper growth and destructive harvesting of saplings and has a strong resistance. Teak plant grows that has accelerated land degradation [3. According to naturally in the tropical regions of Asia such as data from the Directorate General of Department of India, Myanmar, Laos, Thailand and came to the Forestry, Indonesia has considerable potential for island of Java in Indonesia about 400 to 600 years community forests area of about 1,568,415.63 ha in 2004. ago [1]. Teak forest is the source of livelihood for the There is about 966,722.27 ha (61.66%) of them including surrounding communities in Indonesia and is community forest organizations. Of the total area of forest increasingly facing multi dimensional challenges in in Indonesia, about 50% exist in Java and at least 70% of the last 15 years in the context of sustainable forest wood consumption in Java was met from the public management [2]. forests [4]. producers in the world. However, lately the quantity and