This value increase is estimated to be up to 10 times greater than\nconventional timber-reliant business models.<\/p>\n
The Director General of Sustainable Forest Management at the\nministry, Laksmi Wijayanti, stated in a media briefing in Jakarta on\nThursday that the low economic value of forests remains one of the main\nchallenges in sustainable forest management.<\/p>\n
This condition often makes forest areas less competitive than other\nland uses that are considered more economically profitable.<\/p>\n
\u201cIf we continue with our current business model, the value per\nhectare of forest is low. If we look at the contents of the forest, it\nis clearly underpriced. It is understandable that people consider it\nbetter to replace it with something else,\u201d she said.<\/p>\n
Several studies indicate that the direct economic value of forests\nremains relatively low. A study by the Faculty of Forestry and\nEnvironment at IPB University estimated the value at around Rp4 million\nper hectare per year, far below the annual value of oil palm\nplantations, which reaches around Rp40 million per hectare.<\/p>\n
To that end, Wijayanti stated that the government is striving to\nimprove this situation by developing multi-enterprise forestry schemes\nthat allow for the simultaneous utilization of various forest resources,\nincluding timber and non-timber forest products, agroforestry,\nenvironmental services, eco-tourism, and carbon trading.<\/p>\n
She stated that this scheme can significantly increase the economic\nvalue of forest areas while maintaining their ecological functions.<\/p>\n
\u201cWe hope that with multi-enterprise schemes, that value will increase\ntenfold. We are still using agroforestry schemes for food reserves. That\nwill automatically increase tenfold,\u201d she added.<\/p>\n
Wijayanti stated that this transformation is also necessary because\nthe forestry business model, which has historically relied on timber,\nfaces competitive challenges.<\/p>\n
According to her, several wood-based forestry products, particularly\nthose from natural forests, have experienced stagnant growth, depressing\nbusiness profitability and investment in long-term forest\nmanagement.<\/p>\n
Currently, forestry concession areas cover approximately 29 million\nhectares, while the government is also implementing a 12 million-hectare\nsocial forestry program to expand community access to forest\nmanagement.<\/p>\n
Through the multi-enterprise forestry scheme, concession holders are\nencouraged to form partnerships with local communities to develop\nagroforestry and other strategic commodities.<\/p>\n
Wijayanti stated that some concessions that have implemented\nmulti-enterprise forestry have allocated around 100,000 hectares for\ncommunity partnerships, including through agroforestry development.<\/p>\n
\u201cWe want forest utilization to be equitable. It should not be\nconcentrated in the hands of just a few parties. Communities must also\nbe encouraged to participate,\u201d she said.<\/p>\n
Besides agroforestry, Wijayanti believes the economic value of\nforests can be increased through the development of environmental\nservices, including carbon trading, which the government is currently\nintroducing as a new source of income for forest managers.<\/p>\n
She said opportunities for increasing economic value could also come\nfrom the development of biodiversity credit instruments and various\nenvironment-based financing schemes that are emerging globally.<\/p>\n
\u201cWe believe it could actually be hundreds or even thousands of times\ngreater than the current value,\u201d she said.<\/p>\n
Related news: Indonesia, Norway assess forest rehab under FOLU\n2030<\/p>\n
Related news: Itera develops mushroom biodiversity research center in\nSumatera<\/p>\n
Related news: Indonesia reactivates forest fire desk to face El Nino\nthreat<\/p>\n
Translator: Arie Novarina<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-pushes-multi-enterprise-forestry-to-boost-economic-value-1782402613", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }