Integrated Financing Model to Accelerate Independence of Social Forestry Business Groups
The Social Forestry programme has now reached 8.3 million hectares nationally, with Social Forestry Management Approval decrees (SK) granted to 1.4 million household heads, involving 16,771 KUPS.
Bandarlampung (ANTARA) - The Director General of Social Forestry at the Ministry of Forestry (Kemenhut), Catur Endah Prasetiani P, said that an integrated or “blended finance model” will accelerate the self-reliance of Social Forestry Business Groups (KUPS).
“The Social Forestry programme has now reached 8.3 million hectares nationally, and the Social Forestry Management Approval decree has been granted to 1.4 million household heads, with 16,771 KUPS within it,” said the Director General in Bandarlampung on Wednesday.
She said the 16,771 KUPS are divided into four categories: blue, silver, gold and platinum. There are already KUPS in the gold and platinum groups, but not yet many.
“So new models and innovations are needed to raise the level of the KUPS. Through this blended finance model, this is one of the activities to accelerate the self-reliance of KUPS nationally, and in Lampung specifically, to reach platinum level,” she said.
She explained that the blended finance model can address three gaps, namely disparities in access, capacity and capital for the KUPS.
“The Social Forestry Management Approval decree has been given to 1.4 million household heads. But the problem is how to create financing innovation, hence this blended finance model. The planning process for this project and model was prepared over the previous year, and today its implementation begins,” she said.
She continued that many grants have been provided, from foreign assistance, the state budget (APBN), regional budgets (APBD) and others. However, a sustainable business ecosystem is needed to develop the KUPS, hence the need to encourage self-reliance among the KUPS in the regions through this integrated financing.
“Lampung is one of seven provinces nationally implementing the integrated financing model. We see that now we must start moving to implement financing innovation,” she added.
According to her, the programme will be implemented in seven provinces: Aceh, Bengkulu, Lampung, West Sumatra, East Java and South Kalimantan. It is hoped that from these seven provinces the model can be replicated across other provinces, as social forestry exists in 37 provinces.
The integrated or blended finance model is an effort to strengthen the economy of communities living around forests through the development of social forestry enterprises, by strengthening institutions and increasing the productivity of social forestry business groups.
In Lampung Province, the model is being implemented in South Lampung and Pesawaran Regencies, targeting six KUPS enterprises that will directly benefit 552 household heads.