Indonesia builds resilience in forestry industry in face of possible recession

Indonesia’s Ministry of Environment and Forestry (KLHK) is reportedly preparing a strategic policy to strengthen the country’s forestry sector to face the threat of a possible global recession in 2023.

Siti Nurbaya, the Minister of Environment and Forestry, said to maintain the productivity and sustainability of forestry businesses, the government has provided a number of incentives.

Among them is the facilitation of postponing and paying in an instalment of non-tax state revenue (PNBP) for forestry business actors through Ministerial Regulation Number 21 of 2021.

Indroyono Soesilo, chairman of the Association of Indonesian Forest Concession Holders (APHI) identified incentives that would be helpful in a global recession.

Among them is the implementation of the Job Creation Law for the forestry sector, particularly in relation to the implementation of multi-business forestry, and the implementation of satellite imagery-based work to identify area boundaries and solutions for solving of non-forestry development.

APHI also hopes that the government can revise the Government Regulation Number 12 of 2014 concerning types and tariffs of PNBP that are applied to the Ministry of Forestry, specifically related to the payment of reforestation funds (DR) in rupiah.

In addition, APHI hopes that the government will extend the Ministry of Trade Regulation Number 19 of 2021 concerning export policies and arrangements regarding the policy of expanding the cross-section for commercial wood species that can be exported.

Source: ITTO