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Various empirical cases prove that forestry development policies have not been able to improve the welfare of forest community. In fact, the forest has a very large potential including the availability of productive plants which have high market potential. Many researchers propose the importance of increasing the role of forest resource-based SMIs or Small and Medium Industries (in Indonesian terms: Industri Kecil Menengah or IKM) as a way to increase the income of forest community. However, much of the SMIs formation in forest community often fails due to the inappropriate identification of problems and design policies. Based on that issue, this study has two objectives, namely: (i) identifying the driving and inhibiting factors of the development of SMIs managed by forest community; and (ii) arranging the design of forest community empowerment by increasing the role of SMIs. Implemented with case study method, this study found that the challenge of forming SMIs in the forest community to produce productive crops in the form of Porang (Amorphophallus Oncophyllus) is caused by the conservative character of the community characterized by a low entrepreneurial spirit due to the cultivation of unproductive values. However, the forest community is basically the typical open society who highly upholds the conservation of forest resources and has strong social capital. Therefore, they need an intervention in changing their mindset of life orientation and mediation from external parties (e.g the government) that is related to capital, marketing, and knowledge about cultivation. The presence of external parties is very necessary considering that the increasing role of SMIs requires a variety of variables that cannot be provided by forest community such as innovation, creativity, as well as mature, opportunistic, and ambitious business calculations. It can be said that the effort to increase the role of SMIs in forest community is very relevant and requires external parties as well as collective institutional governance. This finding can be a proliferation in constructing the stages of empowering forest community through the increasing role of SMIs.

russian journal of agricultural and socio-economic sciences

FOREST COMMUNITY EMPOWERMENT THROUGH THE INCREASING ROLE OF PRODUCTIVE CROP-BASED SMIS AROUND FORESTS: A STUDY ON PORANG PLANTS IN EAST JAVA, INDONESIA