The Effect of Forest Commercial Right toward Socio-Economic of Siak Community

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.