Forestry Sector Must be Managed Sustainably to Support Economic Growth
The forestry sector holds a strategic role in supporting economic growth while maintaining environmental balance. Amid increasing global attention on climate change and low-carbon development, sustainable forest management is increasingly viewed as an important instrument to support long-term economic and environmental resilience.
Beyond functioning as a natural carbon sink, forest areas also have great potential to support the development of a green economy, ecosystem restoration, and the creation of social and economic benefits for surrounding communities.
The importance of collaboration in sustainable forest management was a focus of discussions during a meeting between the Association of Indonesian Forest Concessionaires (APHI), former US Ambassador to Indonesia Robert O. Blake Jr., and representatives from New Forests in Jakarta on Thursday (4/6). The meeting was a follow-up to discussions previously held on the sidelines of the United Nations Forum on Forests (UNFF) in New York, USA.
APHI Chairman Soewarso said Indonesia’s forestry sector holds an important position in supporting national economic growth while maintaining environmental sustainability. According to him, strengthening partnerships with various parties, including investors and international institutions, is a necessary step to accelerate sustainable forestry development.
“APHI is in principle open to various forms of investment cooperation that can strengthen sustainable forest management, increase the productivity of forest areas, encourage ecosystem restoration, and provide broader benefits to communities living around forests. Regarding this, innovative financing is a key factor to encourage investment in sustainable forestry development and support the national greenhouse gas emission reduction target,” Soewarso stated.
He assessed that the growing financing needs to support forest management and ecosystem restoration require a more innovative approach, including through the development of various green investment schemes.
Meanwhile, Robert O. Blake Jr. conveyed that Indonesia has great potential in developing nature-based solutions and sustainable forest management, which are increasingly attracting the attention of global investors. According to him, Indonesia’s forestry sector offers opportunities to create economic benefits while supporting environmental conservation efforts.
“Indonesia has enormous potential in developing nature-based solutions and sustainable forest management, which attracts the attention of global investors. We see many opportunities to strengthen partnerships between businesses, investors, the government, and communities in supporting development that provides economic benefits while preserving the environment,” said Blake. He added that open and constructive dialogue among stakeholders is an important factor for building trust and creating sustainable investment opportunities.
A similar view was shared by Director of Investments (Asia) at New Forests, Sanjiv Louis. According to him, Indonesia has a great opportunity to strengthen sustainable forest and landscape management through collaboration between the government, the private sector, financial institutions, and communities. He believes that a balance between economic, social, and environmental aspects will be a crucial factor in supporting green economic growth and increasing resilience to climate change.
“We see that Indonesia has great opportunities to develop various sustainable forest management and land use initiatives. Strong collaboration between businesses, the government, and development partners can support increased landscape productivity, the protection of environmental values, and the creation of long-term benefits for the community,” said Sanjiv Louis. According to him, experience in sustainable investment management and innovative financing can be a supporting factor to accelerate various responsible natural resource management initiatives.
Following the meeting, the parties agreed that communication and information exchange must continue to be strengthened to identify collaboration opportunities that can support investment in the forestry sector. This collaboration is expected to strengthen sustainable forest management, encourage ecosystem restoration, enhance the economic value of the forestry sector, and contribute to the achievement of sustainable development targets and the global climate action agenda. Amid the world’s increasing need for nature-based solutions, Indonesia’s forestry sector is considered to have a significant opportunity to become an important part of efforts to realise greener, more inclusive, and sustainable economic development.