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Approximately 41% of the Earth’s land surface is covered by drylands that supports 36% of the world’s human population. In Yogyakarta Province, Indonesia 53% of the province is covered by drylands in which the driest regency, Gunung Kidul that occupies nearly 47% of the province, is covered by 70% agricultural dryland. Despite the phenomena of forest degradation activities for agricultural developmet by large corporation, nearly abandoned agricultural drylands such as in Gunung Kidul Regency exists all over Indonesia. Such drylands have not attracted large investors nor government to develop into agricultural activities due to economic reasons. This research explored a community based afforestation project being carried out by the support of social investors and academic researchers, virtually without involvement of the government. Among other, teak is one of only few plantations that could grow in such dryland areas and being the core competency of local farmers. The basic arrangement between the investors and farmers was mudharabah revenue sharing as an alternative to conventional pay-incash to land owners and smallholder farmers. The economic benefits of the program were valued by using enterprise budget method by considering the capital investment and operating expenses in which cost inflation and teakwood prices increases were incorporated. This research proved that the community-based teakwood afforestation activities along with mudharabah revenue sharing in marginal drylands could fairly improve the wealth of all stakeholders in the program.

GREENPRENEURSHIP AT THE BASE OF THE PYRAMID: A SMALL SCALE COMMUNITY-BASED AFFORESTATION PROJECT IN INDONESIA