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Smallholders play a significant role in the Indonesian palm oil industry. They cultivate more than 40% of the total plantation area, and their production contributes to the national revenue. However, despite their significant role, smallholders continue to face crop management, financial and environmental challenges. The fact that some smallholder plantations are illegally located in state forestland poses challenges for smallholders as regards getting access to finance, improving yields, and obtaining sustainable certification. Government policy on the collection of levies from exported crude palm oil (CPO fund) and its derivative products provides smallholders the opportunity to replant and support their sustainable practices, thereby reducing deforestation. This paper discusses how fiscal incentives of the CPO fund may have been optimized to prioritize these outcomes. We should prioritize the use of the fund not only to support smallholder replanting, but also to clarify their land tenure rights, so that they could get access to sustainable certification and financial institutions. It is also recommended that funds be allocated to subsidize loan interest to the bank and build productive capital during the grace period. These efforts have to be accompanied by building and improving smallholder databases and strengthening local government.

Pinus merkusii Jungh et de Vriese, known as Tusam or Sumatran pine, is the only pine that grows naturally in the south of the Equator with its natural distribution found in Indonesia, the Philippines, Myanmar, Thailand, Laos, Cambodia, and Vietnam. The Sumatran pine is an economically and ecologically important species in Indonesia that covers three native strains, Aceh, Kerinci, and Tapanuli. The resin tapping of the pine has been practiced for hundreds of years while its timber has long been commercially used for various purposes. Although the pine is known as highland species, its adaptability on a wide spectrum environment makes it suitable for various restoration and rehabilitation purposes both in lowland and highland sites. Its high commercial values have also made the species be massively planted in pine plantations outside their natural distribution in Sumatera (i.e., in Java and Sulawesi island). This paper will review the current condition of Sumatran pine and its potential as a restoration and rehabilitation species and delivering its natural and artificial distribution map in Indonesia. In addition, the paper will also show the genetic variability of the species, determine the current innovative practices in silvicultural aspect both at nursery and plantation scales, describe tree improvement program, including its role in agroforestry practices, pine product both timber and non-timber, and its potential resources in relation with climate change mitigation management.

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The current fiscal policy in the forestry sector is still dominated by the management of timber extraction as a basic for sharing forestry revenues from central to local government. Therefore, it requires some shift towards green fiscal policies which positioning the overall benefits of forests. In order to prepare on green fiscal policy framework, it is required the analysis of stakeholders involved in the formulation of green fiscal policy. The objectives of the research are to identify, categorize and investigate the relationship among the involved stakeholders at national and sub-national levels, and then to formulate green fiscal policy by using stakeholders analysis method. The analysis results show that there are 18 involved stakeholders consists of five key stakeholders, seven primary stakeholders and six secondary stakeholders. Based on the category of stakeholders involved in the formulation of green fiscal policy as key players, context setters, subjects and crowds, it is realized the great need for strategies to optimize stakeholders management by enhancing colaboration and cooperation between the subjects and the key players. This will be better achieved by increasing effective cooperation and collaboration between central and local governments in implementing the current fiscal policy on forestry.