Forestry Ministry revises forest product processing rules to boost downstream industry
Denpasar (ANTARA) - The Ministry of Forestry (Kemenhut) is preparing refinements to regulations on forest product processing as a strategic step to accelerate downstreaming, increase the added value of forest resources, and strengthen the competitiveness of the national forest product industry.
Secretary of the Directorate General for Sustainable Forest Management (PHL) at Kemenhut, Erwan Sudaryanto, in a statement received in Denpasar, Bali, on Friday, said the regulations being refined include Minister of Environment and Forestry Regulation Number 8 of 2021 on Forest Administration and the Preparation of Forest Management Plans, as well as Forest Utilisation in Protection Forests and Production Forests.
The regulatory refinements are being carried out as a follow-up to the implementation of Government Regulation Number 28 of 2025, as well as to respond to the dynamics of industrial development, global trade, and the need for business certainty in the forestry sector.
“Indonesia must not only be known as the country with the largest tropical forests. Indonesia must become a country capable of managing its forest resources sustainably while transforming them into a source of economic growth, job creation, increased investment, and improved community welfare. This is the essence of downstreaming,” said Erwan.
According to him, the forestry development paradigm is no longer sufficient if it is oriented solely towards supplying industrial raw materials.
Going forward, forest management must be able to generate added value through a competitive, innovative, and sustainable processing industry, so that the economic benefits of forest resources can be felt more widely by the community.
“Without sustainable forests, there will be no sustainable forestry industry. Without a supply of raw materials whose sustainability is guaranteed, downstreaming will never take place. Therefore, the role of the Ministry of Forestry as the guardian of forest resource sustainability is increasingly strategic,” he said.
Furthermore, Erwan stressed that future forestry industry development must be carried out through a forest-based value chain approach, namely building connections from forest management, harvesting, transport, processing, distribution, marketing, through to export as one integrated ecosystem.
This approach is believed to produce a forest product industry that is more efficient and competitive, and capable of meeting global market demands regarding legality, sustainability, and the carbon footprint of products.
Meanwhile, Director of Forest Product Processing and Marketing Development at Kemenhut, Ade Mukadi, explained that the regulatory refinements are directed at strengthening the development system for a legal, efficient, and sustainable forest product processing industry.
The refinements are also expected to improve the effectiveness of reporting, monitoring, evaluation, and oversight as part of strengthening governance in the forestry sector.
“We must practise good forest governance, from upstream to market, so that the supply of raw materials remains assured and forest sustainability is maintained,” said Ade.