The existence of the LPHD is considered important, because it can improve the standard of living of the community around the forest area as well as be able to maintain the stability of the forest ecosystem, one of which is the LPHD Muara Danau, but its management is still considered not optimal in developing agroforestry businesses. This study aims to analyze the performance of the LPHD Muara Danau in village forest management. The research methodology are interviews, observation, and documentation studies. The data obtained were analyzed descriptively. Results showed that the performance of the Muara Danau LPHD was categorized as quite good, this was seen from three aspects, namely institutional, area and business management. The institutional management aspect is measured based on the participation of the management and LPHD members in participating in the activities as many as >75% of the members are present in the activity (91%) and the type of binding group rules in the form of (AD/ART) and unwritten rules (84%) and area management is measured based on types of forest resource conservation activities carried out were 52 people (95%) and the impact that was felt by 2-4 impacts on the environment from Village Forest management was 48 people (87%). However, business management has not yet achieved optimal results, measured based on the absence of local institutions (cooperatives) that carry out marketing of forest products. LPHD agroforestry business development needs to be increased in order to maximize the marketing of forest products.

Muara Danau Village Forest Management Institution (LPHD) is a forum on forest management activities that aim to improve community welfare. At present, the condition of the farming business is not effective, so it requires some rules as a measure of success. This study aims to analyze the institution of the Muara Danau Village Forest Management Institution (LPHD) in the implementation of Village Forest Management. The research was conducted in Muara Danau Village, Semende Darat Laut Subdistrict, Muara Enim Regency, South Sumatra Province, from March to April 2020. Data were analyzed by using the SSBP approach. The results of the study showed the situation of farmers utilizing forest resources in the form of water sources and non-timber forest products. Smallholders manage the forest based on institutional structure stated in the AD/ART, and administrative sanctions. In terms of planting patterns in the arable land, the structure controls farmer behavior by using an agroforestry system. This makes Muara Danau Village Forest Management Institution (LPHD) obtain a good performance in the aspect of institutional management which is measured by the involvement of members and institutional administrators in group activities/training (91%) and the types of binding group rules in the form of written rules (AD/ART) as well as unwritten rules (84%) in managing areas measured based on the type of forest resource conservation activity (95%). However, managing businesses have not obtained optimal results, as measured by the absence of institutions that handle the marketing of forest products for groups (cooperatives). Based on the results of the research, the institution of Muara Danau Village Forest Management Institution (LPHD) is categorized as good.