{
    "success": true,
    "data": {
        "id": 1837355,
        "msgid": "govt-to-shift-from-conventional-timber-to-multi-enterprise-forestry-1783000214",
        "date": "2026-07-02 20:13:48",
        "title": "Govt to shift from conventional timber to multi-enterprise forestry",
        "author": "",
        "source": "ANTARA_EN",
        "tags": "",
        "topic": "Economy",
        "summary": "The Forestry Ministry is pivoting away from conventional timber production towards a multi-enterprise forestry model, citing stagnant economic returns. The new framework will integrate food production, biomass energy, and water utilisation, while also targeting carbon trading as a major future revenue stream. The government estimates that restoring 12 million hectares of degraded land could yield up to US$130 billion in carbon reserves.",
        "content": "<p>The Forestry Ministry announced the policy pivot during an online\npanel on Thursday, citing stagnant economic returns from a sector\nhistorically dependent on raw wood production.<\/p>\n<p>Timber production has become increasingly challenging from a\ncommercial standpoint because operational production costs frequently\nexceed current market prices, according to the ministry\u2019s Director of\nForest Utilization Business Development Ilham.<\/p>\n<p>\u201cWe need to find optimization options for transformation beyond\ntimber, for example, utilizing silvopasture for food, energy for biomass\nand biofuel, and water utilization,\u201d Ilham noted.<\/p>\n<p>The ministry\u2019s newly designed MUK framework is specifically designed\nto reinforce the three pillars of Indonesia\u2019s national security agenda:\nfood, energy, and water.<\/p>\n<p>Beyond tangible commodities, the government is looking at\nenvironmental services\u2014specifically carbon sequestration and trading\u2014as\nthe next major macroeconomic driver.<\/p>\n<p>Ilham revealed that the government\u2019s target of restoring 12 million\nhectares of land has the potential to store up to 13.4 billion tons of\ncarbon reserves.<\/p>\n<p>\u201cMultiplied by US$10 (per ton), that is US$130 billion. This is quite\nextraordinary. So Indonesia must be able to transform, not just rely on\nwood,\u201d he remarked.<\/p>\n<p>To prevent overlapping claims and guarantee absolute legal certainty\nfor green investors, the government has finalized a highly structured,\ncross-ministerial zoning framework for carbon management.<\/p>\n<p>Under the regulations, business actors are required to secure proper\nbusiness permits and spatial legalization from respective ministries\ndepending on the zone of operation.<\/p>\n<p>For areas located within state forest zones, permits must be obtained\nfrom the Forestry Ministry.<\/p>\n<p>For inland Other Use Areas (APL), permits are issued by the Ministry\nof Agrarian Affairs and Spatial Planning\/National Land Agency (ATR\/BPN),\nwhile projects in coastal zones fall under the jurisdiction of the\nMinistry of Maritime Affairs and Fisheries (KKP).<\/p>\n<p>Related news: Indonesia ready to implement carbon trading\necosystem<\/p>\n<p>Related news: Indonesia pushes for faster peatland restoration to fix\ndegraded lands<\/p>\n<p>Related news: Indonesia\u2019s mangroves gain global spotlight for climate\nrole<\/p>\n<p>Translator: Sean Filo Muhamad, Yashinta Difa<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/govt-to-shift-from-conventional-timber-to-multi-enterprise-forestry-1783000214",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}