Forestry Ministry revises forest product processing rules to boost downstream industry

The Ministry of Forestry (Kemenhut) is preparing to refine regulations on forest product processing as a strategic step to accelerate downstream industrialisation, increase the added value of forest resources, and strengthen the competitiveness of the national forest products industry. Erwan Sudaryanto, Secretary of the Directorate General of Sustainable Forest Management (PHL) at Kemenhut, stated that the rules being revised include Minister of Environment and Forestry Regulation No. 8 of 2021 concerning Forest Governance and the Preparation of Forest Management Plans, as well as Forest Utilisation in Protection Forests and Production Forests. The regulatory refinement is a follow-up to the implementation of Government Regulation No. 28 of 2025, while also addressing 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 downstream industrialisation,” said Erwan. According to him, the forestry development paradigm is no longer sufficient if it is solely oriented towards providing 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 guaranteed sustainable supply of raw materials, downstream industrialisation will never run. Therefore, the Ministry of Forestry’s role as the guardian of forest resource sustainability is becoming increasingly strategic,” he said. Erwan further emphasised that future forestry industry development must be carried out through a forest-based value chain approach, building connectivity from forest management, harvesting, transportation, processing, distribution, and marketing to exports as a complete ecosystem. This approach is believed to produce a forest products industry that is more efficient, competitive, and capable of meeting global market demands regarding legality, sustainability, and product carbon footprint. Meanwhile, Ade Mukadi, Director of Forest Product Processing and Marketing Development at Kemenhut, explained that the regulatory refinement is directed at simultaneously strengthening the guidance system for a legal, efficient, and sustainable forest product processing industry. The refinement is also expected to enhance the effectiveness of reporting, monitoring, evaluation, and supervision as part of strengthening governance in the forestry sector. “We must implement good forest governance, from upstream to the market, so that the supply of raw materials remains guaranteed and forest sustainability is maintained,” said Ade.