<![CDATA[Kotabaru Regency in South Kalimantan Province possesses substantial natural resource potential in rural areas surrounding forest zones, which has the potential to support sustainable regional development. However, the optimal utilization of these resources still faces various challenges, including limited infrastructure, poor connectivity, weak institutional capacity, and ineffective governance. In response to these conditions, the government has implemented a social forestry program reinforced through a business-cluster-based Integrated Area Development (IAD) approach. This study aims to analyze the current state of social forestry enterprises within the core clusters of the Integrated Area Development (IAD) program in Kotabaru Regency using a descriptive qualitative approach. Data were collected through observation, interviews, and document analysis. The analysis was conducted using a pentagonal asset framework encompassing natural capital, human capital, social capital, economic capital, and infrastructure capital. Research findings indicate that natural capital is relatively sound and has the potential to support the development of agroforestry, non-timber forest products, and ecosystem services. However, its utilization remains suboptimal due to limited human resource capacity, restricted access to financing, inadequate production and distribution infrastructure, and weak institutional frameworks. Therefore, the development of Integrated Area Development (IAD) must prioritize institutional capacity building, business diversification, improved access to capital, and integrated infrastructure development as key strategies to support the sustainable development of social forestry.]]>
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