Providing results of innovative and applied forestry research and development. This Creating an enabling forestry investment climate

43 5. Human resources development in the forestry sector through improved education, training, and exchange programs.

c. Providing results of innovative and applied forestry research and development. This

will be achieved through several steps, including: 1. Providing incentives for research innovations through awards for efforts that result in useful research products. 2. Creating a climate that is conducive to applied research and development. 3. Creating mutually beneficial linkages between research institutions and beneficiaries of research results, and disseminating forestry research and development results widely. 4. Supporting research that can result in useful results for forestry development in the future.

IV.5 Creating an enabling forestry investment climate

Business sustainability in the forestry sector requires an enabling business climate that can guarantee a production process that matches market demand to sustainable forest production. To achieve this, the forest sector requires business certainty, security, and profitability. Steps to achieve an enabling forestry business climate include: a. Regulatory reform relating to forest management, marketing of forest products, and forestry sector investment. The system of incentives, especially for forestry investment, needs to be reviewed and reformulated. 10 20 30 40 50 60 70 80 Wood Prod uc tion, M illion M 3 09 14 19 24 Fase 3: REVITALIZATION After 2020 • HTI Based Industrial Development • Increase Export • Legal, Enduring and Competitive Short Term Medium Term Fase 2: RE-ENGINEERING 2013-2020 • Gap Almost Balanced • “Retool” Industry for Efficiency • Focus on High Value Products Fase 1: RESTRUCTURIZATION Now until 2012 • Intensify Planting • Increase HTI Productivity • Reduce Forest Crime and Debt • Build Alternative Sources • Temporarily Reduce Production Source : ITTOFORDA, USAIDNRM-Bappenas-MFP, CIFORWB dalam Dephut 2005 Figure 37. Roundwood production scenario until 2025 44 b. Providing incentives for SMEs in the forestry sector. c. Developing markets for NTFPs and environmental services, and supporting the creation of infrastructure, market access, and technical support from research and development. d. The forestry and related sectors will support the establishment of an Alternative Financial Institution Lembaga Keuangan AlternatifLKA that can assist in providing capital for community businesses around the forest. e. Supporting the creation of a mechanism for a reciprocal relationship between workers and investors.

IV.6 Promotion of forest products and services