Abstract
In Java, where private forest area has been recently increasing, I examined the relations between Timber Processing Company B and farmers, who produce timber sourced from the private forests, through contract planting that implemented by Company B. A field survey in Tasikmalaya District, where the most contract planting was undertaken as compared to the rest of Java, revealed that, from 1999, farmers had been undertaking tree planting and harvesting according to the prices offered by the company. Because of the lack of supply control, the company resorted to contract planting. Contract planting was undertaken on both private land and government-owned agricultural estate land. The ratio of intercropping, which reflects diverse management strategies, was higher in the latter, as in private land without contract planting. Moreover, households that undertook planting on private land were likely to do so with a focus on timber production. These facts imply that contract planting on private land is quite favorable for the stable supply of timber production. However, there is the risk of the company purchasing the timber at lower prices because it has discretion to decide the time of harvest and purchase price.
