Abstract:
Siak district is located in Riau province that has highly potential tropical forestry. Many
Forest Commercials Right (FCR) operate its business illegally there. The study was
carried out to evaluate FCR activities and its effect on community sosial-economic, such as
to institutional economic, mobilization of community, landowner, business challenge,
employments, and income distribution in surrounding areas. Using purposive sampling
methods, the study result showed that FCR caused decreasing agricultural areas and land
owner of local community; intensifying illegal logging; rising conflict among communities;
increasing mobilization of community. On the other side, forest cutting create business
challenge, employment, income generating, and economic growth in the location.
