Six Social Forestry Business Groups in Lampung to Receive Rp11.1 Billion Blended Finance Support
The implementation of the blended finance programme for Social Forestry Business Groups (KUPS) is targeting six KUPS in two regencies of Lampung Province as part of efforts to expand social forestry enterprises in the region.
“Today we are launching the blended finance model for Social Forestry Business Groups (KUPS) in Lampung, and there will be six KUPS joining this activity, which will be facilitated by Watala as the intermediary institution,” said Catur Endah Prasetiani P, Director General of Social Forestry at the Ministry of Forestry, in Bandarlampung on Wednesday.
She stated that the six KUPS targeted for intervention are located in South Lampung and Pesawaran Regencies, Lampung Province. “I have visited Lampung several times, and Lampung is the region with the fastest implementation of social forestry programmes. With this programme, we hope more KUPS can expand their business opportunities and strengthen their institutions.”
Andi Suprayogi Abadi, Chairperson of Watala Lampung, added that the blended finance project in Lampung Province aims to strengthen institutional capacity and increase KUPS productivity. By developing this financing scheme, it is expected to open access to various funding sources while simultaneously expanding market opportunities for social forestry enterprises.
He said the project in Lampung will run from 22 April 2026 to 31 March 2027, with intervention locations in South Lampung and Pesawaran Regencies. Six KUPS Enterprises will be the target groups, directly benefiting 552 households that depend on sustainable forest management.
The six KUPS will develop various leading social forestry commodities: KUPS Enterprise Madu Selatan Jaya, KUPS Enterprise Bioterna Kompos Nusantara, KUPS Enterprise Makarya Khagom Nusantara, KUPS Enterprise Sai Helau, KUPS Enterprise Pala Alam Lestari, and KUPS Enterprise Berkah Kemiri.
“These KUPS Enterprises have the prospect of being developed into value-added and competitive businesses. Through intensive assistance, this project is expected to enhance the institutional capacity of business groups, improve business governance, expand marketing networks, and increase community incomes,” he said.
He explained that the project receives funding support from the Global Green Growth Institute (GGGI) through the Environmental Fund Management Agency (BPDLH) amounting to Rp11.11 billion. Watala, as the intermediary institution, will facilitate assistance, strengthen institutional capacity, develop financing models, and build business partnerships that can expand KUPS market access.
“The development of this blended finance model is expected to be an innovative solution to the financing challenges that social forestry business actors have faced. Besides providing access to more diverse funding sources, this model can also encourage KUPS to build healthy, independent businesses capable of gaining the trust of financing institutions or business partners,” he added.
Unlike conventional financing approaches that typically rely on grants, this blended finance model combines various funding sources from the government, financial institutions, the private sector, philanthropy, and impact investment. This allows KUPS to gain broader access to capital to develop their businesses, improve commodity quality and productivity, and strengthen institutional capacity to manage enterprises professionally, independently, and sustainably.