The Forest Scribe

Revenues from Indonesian Production Forest Down in 2019

Log from production forest Indonesia

Indonesia saw revenues from its production forests decline by 4.5 percent to Rp 2.73 trillion in 2019 compared to the previous year while investment in that sector also went down 17.7 percent in 2019 to Rp 128.14 trillion, the Environment and Forestry Ministry said.

Non-tax revenues from the country’s production forests went down from 2018’s Rp 2.86 trillion to Rp 2.73 trillion in 2019 while investment in the same sector also declined from Rp 155.71 trillion in 2008 to Rp 128.14 trillion in 2019, the ministry said in a press release issued on Saturday (4/1).

Production forests are natural forests and timber estates designated for the production of timber.

The same press release said that the production of logs from production forest had also declined in 2019 compared to 2018. Natural forests designated as production forests saw their log production down by 21.27 percent in 2019 to 6.77 million cubic meters compared to the previous year, while log production from timber estates also went down, by 9.74 percent in 2019 to just 36.23 million cubic meters.

Director General for Sustainable Management of Production Forests at the Ministry of Environment and Forestry, Bambang Hendroyono, was quoted in the press release as saying that the government was preparing a number of breakthrough policies to raise the productivity of production forests.

With regards to production forest that are natural forests, the policies include guaranteeing business certainty, the application of intensive and multi-system silviculture techniques, the application of Reduced Impact Logging (RIL), conducting performance evaluations, and integration with industries, the release said.

The government will also develop mini timber estates and people’s forest estates (HTR) — production forests operated by individuals, community groups or cooperatives – specially to create employment. The development of timber estates and HTRs are also oriented toward supporting the national industry, including the forestry product, the bioenergy, food, medicine, cosmetics, chemical and feedstock industries. It added.

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