Many studies have shown that social forestry practices (hutsos) have great potential for preventing environmental damage and protecting forests, in addition to their potential for improving community welfare. However, social forest management also has a risk of failure. One of the factors that often causes social huts to be less successful is the lack of adequate funding.
Practice in various countries shows that there is generally a tendency towards an ad-hoc approach regarding financing social services, including using a small number of mechanisms such as grants or subsidies which only cover a small part of social services activities. Apart from that, it is generally still very dependent on government funding and foreign aid. To face this challenge, it is necessary to understand how to expand and diversify the funding mechanisms that can be used for social forestry.
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