Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

0
House Bill No. 828

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO PRESCRIBE, AS A PRIORITY PROGRAM, THE SCIENTIFIC
PROPAGATION, CULTURE, PROCESSING AND UTILIZATION OF
RATTAN, CREATING FOR THIS PURPOSE THE PHILIPPINE
RATTAN DEVELOPMENT OFFICE, ALLOCATING FUNDS
THEREFOR AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Rattan comprises about 600 species in 13 genera in the old world tropics. It is
widely distributed in tropical Asia where rattan cultivation and trade form significant
activities and secondary sources of income. In the Philippines, rattan is considered
as one of the country’s most important and valuable non-timber forest products. In
fact, the trade of raw rattan canes and finished products, namely furniture and
handicrafts, peaked in the 1970s and 80s.' Regrettably, due to minimal development
of rattan plantations, the supply of natural rattan resources started to diminish. This
was further exacerbated by the decrease in the natural habitat of rattan as a result of
widespread logging

Close to one million Filipinos are employed in the rattan industry in various
capacities, mostly as gatherers and workers in furniture and handicraft sectors. For
many marginalized people living in and on the fringes of the forest, particularly
indigenous people, rattan provides cultural richness in household’ furnishings,
building materials, and personal adornment, as well as an opportunity to eam cash
Despite the importance of rattan, the Philippine’s rattan industry is in decline

Although the value per unit of rattan furniture has increased, the Philippines
overall has had diminishing market share. The Philippine world market share is
0.4% compared to China's 12.6%. During the 1980s, the country was the largest

+f. Florentino 0. Tesoro, Sustainable Ratan Management and Utitzation in Southeast Asa,
? USAID 2006 FRAME Philippines Rattan Value Chain Study.


exporter of furniture in Southeast Asia. Today, the country ranks a poor fifth among
Southeast Asian countries behind Malaysia, Indonesia, Thailand and Vietnam.
Furniture ranks seventh among the Philippine’s non-traditional exports,”

Rattan has been a source of revenue both in the local and foreign markets. In
2005, the Philippines exported US$ 91.80 million worth of rattan finished products to
various parts of the world. There are also approximately 2100 workers engaged in
rattan handicraft manufacture. The furniture industry consists of about 15,000
companies with 481,500 direct workers and about 300,000 subcontractors or indirect
workers. In 1999, Rivera estimated that about 17,426 workers are engaged in
gathering, trading, manufacturing and exporting of rattan. However, the exact
number of people involved in these activities is difficult to determine due to
unregistered and small-scale firms.

In spite of its potential to yield high economic value, rattan at present is not
sustainably managed. Fortunately, the Department of Environment and Natural
Resources (DENR) in coordination with its allied agencies has taken the lead in
reviving this beleaguered industry. Through pilot demonstration, research and
application of production and utilization technologies, the DENR thru its research
arm ERDB along with its counterpart agencies in the Southeast Asian Regions have
devised a program that can promote the sustainability of rattan resources.

The DENR's campaign resulted in the renewal of interest in the rattan
industry. Perhaps, now is the time for both the national and local governments to
carry forward what the DENR has started. The formulation of a priority program
specifically tailored to the rattan industry is a step towards this direction. Thus, the
passage of this Bill is most earnestly sought.

WA)” tie HM fury?
DIOSDADO jAL ARROYO GLORIA MACAPAGAL ARROYO
Second District, Camarines Sur Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS:
First Regular Session

House BillNo.__ 828

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO PRESCRIBE, AS A PRIORITY PROGRAM, THE SCIENTIFIC
PROPAGATION, CULTURE, PROCESSING AND UTILIZATION
OF RATTAN, CREATING FOR THIS PURPOSE THE PHILIPPINE
RATTAN DEVELOPMENT OFFICE, ALLOCATING FUNDS
THEREFOR AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Declaration of Policy. —It is hereby declared the policy of the
State to promote and develop a globally competitive rattan industry with the view
of achieving increased production, higher income for rattan farmers and traders,
competitive production, post harvest and marketing system. Thus, the State
undertakes to provide a mechanism to sustainably increase rattan production
and improve the competitiveness of its products.

SECTION 2. Creation of Priority Program. --There is hereby authorized and
prescribed, as a priority program, the scientific propagation, culture and
development of rattan for homecrafts and other industries.

SECTION 3. National Rattan Development Program. --- A National Rattan
Development Program (NRDP) is hereby established which shall embody the
following core programs:

a Investment Promotion and Facilitation shall
contemplate activities designed to increase investment interest in


the rattan industry including the development of rattan from its
cultivation, plantation and harvesting. The said programs should
also explore creative and innovative investment incentives to attract
players in the rattan industry and to hasten the institutionalization of
rattan as a nationwide source of revenue. Finally, programs that
establish links with government financial institutions (GFls) and
other funding institutions to make credit readily available should be
prioritized.

b Production Support and Extension shall cover
programs which promote and provide adequate training on
adapting technologies to individuals engaged in production,
processing and management of rattan, strengthen farmers
cooperatives and organizations involved in the sustainable
development of rattan, and afford opportunities for participation in
international conventions, trade fairs, exhibits workshops, fora and
the likes. This also includes the improvement and advancement of
existing utilization technologies to ensure value-added product that
is competitive in the world market.

c. Research and Development includes _—_the
establishment and maintenance of additional demonstration sites
and/or pilot farms for the culture and propagation of rattan. The
same also covers the transfer and improvement of appropriate
technology and techniques which will be utilized in every phase of
rattan production, processing and utilization. Particular emphasis
shall be made on adoption and upgrading of post-harvest
technology. Research and development shall likewise focus on the
establishment of new utilization technologies to encourage
entrepreneurs to venture into the manufacture of furniture and
handicraft using rattan as raw materials.

d. Market Promotion and Development covers the
conduct of market linkaging, networking and business negotiation
undertakings with the view of promoting the viability of rattan and
rattan products. This also includes concrete steps to host and
participate in local and international conferences on rattan.

e. Infrastructure Development shall focus on the
establishment of appropriate sites for the rattan plantation and the
supporting infrastructure such as farm-to-market roads and power
sources to ensure the expedient delivery of rattan raw materials
and finished products to the end-users.


SECTION 4. Philippine Rattan Development Office-- To ensure the
expedient and effective implementation of the NRDP, there is hereby created a
Philippine Rattan Development Office (PRDO) which shall be attached to the
Department of Environment and Natural Resources (DENR). The PRDO shall be
the lead government agency responsible for strengthening the collaboration of
the various rattan industry players and engineering the development of the rattan
sector with the objective of reducing poverty and alleviating the living conditions
at the community level.

The Regional Offices of the DENR in coordination with respective local
government units will be tapped in the plantation development and in marketing
strategies and technology development for rattan.

SECTION 5. Components of the PRDO.--- The PRDO shall maintain a
Philippine Rattan Information Center which shall principally serve as the
museum, library and digital repository of all information pertaining to rattan. The
library will be a subset of the main library of the Ecosystems Research and
Development Bureau (ERDB) and shall feature specific literatures about rattan
production, rattan processing and rattan conservation.

The PRDO is likewise mandated to create and maintain its own website
that will feature the development of rattan in the Philippines, a periodic update
and report on the rattan project undertaken by the Association of Southeast
Asian Nations (ASEAN) and information focusing on Philippine species of rattan
and other relevant market information.

The PRDO is also tasked to update existing databases on Philippine
species of rattan as may be derived from the ASEAN project.

The PRDO shall maintain Field Research Center(s) in such areas as it
may deem appropriate which shall be formulate strategies on the following
Concerns:

a Rattan Industry Development. This contemplates the
technological advancement in rattan utilization, rattan processing
and in handicraft development.

b. Community Plantation Development. This involves the
determination and identification of sites which can be developed for
rattan plantation especially in communities where there is a
demand for rattan. This will be incorporated in the regional,
provincial and municipal development plan as an additional source
of livelihood


c. _ Rattan Plantation Research Development. This will
include the dissemination of rattan plantation strategies to inform
the public of the current technological advancement in rattan
plantation development.

SECTION 6. Implementing Agency.—The DENR which shall be the
principal agency to ensure that the objectives of this Act are carried out shall
provide the operational details necessary to implement the NRDP. For this
purpose, the DENR shalll have the power to call on other allied agencies to assist
it in whatever means it deems appropriate to implement the programs envisioned
herein:

SECTION 7. Test sites.—-The DENR through ERDB, in collaboration with
the Forest Products Research and Development Institute (FPRDI) and the
University of the Philippines College of Forestry and Natural Resources
(UPLBCFNR) shall initially select and allocate not less than ten (10) hectares in
appropriate sites for every region in the Philippines as pilot demonstration farms
for the implementation of the program envisioned under this Act during its first
year of operation. Thereafter, depending on the viability of the said pilot farms,
the DENR and/or the ERDB shall annually expand and diversify the
implementation of the same.

The DENR, through the ERDB and PRDO shall then determine and
recommend the establishment of new rattan plantation in the country from the
existing forest lands. Existing and/ or established plantations for rattan in the
country shall be re-examined to determine their suitability for further development
into commercial plantations.

SECTION 8. Appropriation. —The cost of acquiring the land, constructing
the appropriate building thereon and the complementation of equipment and
machinery requirement to start the operation of the foregoing demonstration sites
and plantations and the full implementation of the NRDP shall be incorporated in
the Annual General Appropriations. Thereafter, the local government unit where
such sites are located shall include in their annual appropriation such amount as
may be necessary to maintain and develop the said sites.

SECTION 9. This Act shall take effect after fifteen (15) days from its
publication in two (2) newspapers of general circulation.

Approved,