 For generations, Indonesians have been growing trees in their gardens and on their land to supplement their income. Trees grown in small numbers can help meet the country's demand for wood, as supply from natural forests continues to decline. Their harvesting can also add precious rupiah into the pockets of smallholders across the country. But these so-called smallholder timber plantations tend to generate little profit, as many farmers don't know the techniques that will help them get the greatest benefit from their trees. Forest officer Woody Yanto says that farmers are often unaware that better grades of logs attract higher prices in the market. So they don't make any particular effort to grow better timber. Farmers are also generally unaware of the different prices applied for various grades of logs in the market. So they miss the opportunity to produce better timber and fetch higher prices. We've been analysing along the forestry value chain from growing through to selling, harvesting and transport, primary processing, secondary processing and retailing. So analysing the value added along the different stages of that value chain, we want to understand better if there's opportunities for smallholders to add value, participate further along that value chain to improve the returns from forestry for them. What's been especially interesting is we've looked at a number of instances of the different types, the great diversity of value chains, the different ways that they can be organised, the different ways they are organised, basically coming up with the idea that there is no one right way, but that there are many ways. It's really quite context specific. Timber value chain studies were conducted in five districts, Gunung Kidol and Pati in Java, Sambawa in West Nusa Tenggara, Bulukumba in South Siloesi and South Conaway in Southeast Siloesi. We found some interesting findings, first the most common timber value chain model that found on the ground was individual farmers sell the timber to middlemen who then resell it to processors or industries. However, in some cases we found that some farmers form a group and sell the timber collectively. They did it in order to gain more market access and better price. Second, we also found that middlemen play very important roles in the value chains. In many cases middlemen were the only access for farmers to sell the timber. It should be noted that middlemen did not always get higher profit as compared to farmers. Farmers forming cooperatives and marking their timber collectively is an important step towards boosting their income. Cooperative Wana Manunggalostadi serves as a cooperative to bring strength to individual farmers. Smallholder farmers like Srianti have also benefited from the community-based commercial forestry project. A collaborative research project conducted by C4 and its research partners. Living in Deng Kok Village, near Jogjakarta, Srianti and her husband have a small farm where they earn income raising cattle and growing trees. I have been involved in training on how to grow trees and how to grow them. Farmers appreciate the training that provides practical knowledge and skills. This kind of training is good to be scaled up by government institutions such as forestry extension services and other development agencies. In implementing this training, women need to be included as they have the potential to apply those techniques. We have a lot of experience and knowledge, especially seeing how farmers are so excited to follow this training and how to increase their income in the field. We from the government have tried to continue to program this training in 2015. The government can also support these smallholder timber growers by simplifying regulations and reducing their transaction costs. To curb illegal logging, farmers must get a certificate of timber origin. The Surat Ketarangan Asal Usu Kayu, every time they sell their timber. The government is also developing a legality assurance system, the SVLK, System Verificasi Legalitas Kayu, with which all timber producers must comply, including these smallholders. It is difficult for smallholder to obtain this certificate because it has a lot of requirements and it is expensive. We are happy that the government has allowed farmers to obtain the SVLK certificate in group or can use documents to replace this SVLK document. This SVLK could create an incentive for smallholder timber growers by removing the obligation of certificate of origin once they have complied with the SVLK. C4's project has helped farmers to be more market oriented by improving the timber they grow and their management and promoting the value of cooperatives. A good price for timber is an important driving force and the government can strengthen farmer capacity and simplify trade regulation, making smallholder timber plantations an attractive business now and in the future.