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contributions to the national economy, employment, and to contribute to reducing poverty by at least 50 near the Forest Area and nationally, by 2025.
c. Forestry products and services that are environmentally friendly and competitive, and that have a high added value.
This will be demonstrated by: 1. A forestry contribution to GDP three times as large as the contribution in 2005 which
was 1.3 of GDP. The increased contribution to GDP will be achieved through an increase in the market value of forestry products and services in line with: increased
timber production from plantation forests; increased rattan, resin, honey and silk production; growth in the seed and seedling industry; and greater utilization of
forests for recreation and environmental services. This will lead to a more diverse source of national non-tax forest revenue.
2. A structure and performance of Indonesia’s forest industry that is more competitive and environmentally friendly. The priority of Indonesia’s forestry industry structure
will be on sawn timber, panels, moulding, furniture, plywood, and pulp and paper, with the use of advanced technology and adjustment of raw material supply derived
from forest plantation and community forest, at an international standard.
3. Development of innovative forestry products as a result of research and development conducted by public and private forestry research institutions with a more efficient,
effective and environmentally friendly management system.
d. An enabling forestry investment climate. This will be demonstrated by:
A safe and profitable industry that benefits investors and the public, and contributes to national economic growth and employment. As markets for environmental services and
non-timber forest products develop, the forestry industry, including SMEs, will benefit.
e. Promotion of forestry products and services. This will be achieved through a consistent
promotion of Indonesia’s forestry products and services in all activities related to forest products trade.
f. An active role of society in supporting responsible and equitable forest management.
This will be demonstrated by: 1. Guaranteed increase of revenue to communities through a profit sharing system that
is transparent and equitable using the tripartite approach between the government, private, and community in determining a good profit sharing system.
2. Community independence in forest management through clearly defined management rights for the Forest Area, through community group empowerment,
and through multi-stakeholder participation. Communities will have a clear understanding of their rights and responsibilities in managing forests which will be
according to applied norms and principles.
3. Increase of area of independent and sustainable private forests hutan rakyat which support the forest’s contribution to community livelihoods.
4. Resolution of social conflict related to forest management so that communities are able to do sustained forest management and obtain lasting benefits.
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IV.2. The creation of a strong institutional framework for forestry development
A strong institutional framework supported by dynamic regulations is one of the keys to forestry’s successful contribution to national development. This can be achieved
through: a. Reform of the existing institutional structure to create an enabling framework for a
stronger and sustainable forestry sector. b. Systematically strengthening human resources in the forestry sector to increase the
sector’s global competitiveness. c. Reform of forestry regulations and bureaucracy to increase work opportunities in
forestry and to decrease poverty levels in and around the Forest Area.
a. Reform of the existing institutional structure to create an enabling framework for a stronger and sustainable forestry sector.
Several steps will be taken to achieve this goal, including the following:
1. Forestry institutions are systematically developed in accordance with principles of good governance and sustainable forestry and community empowerment with
considerations of cost-effectiveness and scale. 2. The forestry institutional framework is restructured to allow government bodies at
the central, provincial, regional, and forest management unit levels to efficiently provide services, including facilitation and regulation. This will be in the form of
Forest Management Unit Kesatuan-kesatuan Pengelolaan HutanKPH which will be in line with regional independence in an era of decentralization and principles of
sustainable forest management. The creation of forest management institutions will consider the abilities and local conditions of each region as well as its position in the
market chain Figure 29.
Figure 29. Target for developing KPH institutions up to 2025 units
340
244 142
57 50
100 150
200 250
300 350
400 450
500
09 14
19 24
Years
KPH U
n it
s
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3. Empowerment of community forestry groups to improve community bargaining power and sense of ownership in regards to forest management. This will be done
through greater recognition of local management rights and traditional knowledge in forest management, and through increased community access and responsibility in
forest utilization, especially for communities living in and near the Forest Area.
4. Revitalization of forestry business institutions aimed at scale adjustment, business efficiency, and global competitiveness in upstream and downstream processing.
b. Strengthening of forestry sector human resources . This will be achieved through
