Webinar Series “Managing the Remaining Forests” series #15. UUCK & Multi-business Forestry

Webinar Series “Managing the Remaining Forests” series #15. UUCK & Multi-business Forestry

Indonesia - 23 March, 2021

What types of multi-business model in business permit's working area? In the webinar organized by Tropenbos Indonesia, March 20, 2021, Bambang Hendroyono, Secretary General of the Ministry of Forestry and Environment (MoEF), gave examples of several types of existing businesses such as multi-business agroforestry, development of food crops such as rice and vegetables, sylvopasture, carbon and environmental services, and Energy Garden such as bamboo and sorghum cultivation for Biomass Power Plants and animal food.

According to Bambang, a number of reasons underlying the need for multi-business forestry include the very low real economic value of forest land, the very small proportion of effective area, the decreasing market for timber originating from natural forests, and the need to optimize space for utilization of forest areas. With the existence of UUCK No.11/2020, regarding the utilization of Protection Forests (article 26) and Production Forests (article 28), business permit can be granted to individuals, cooperatives, State-Owned Enterprises, Region-Owned Enterprises, or Private-Owned Enterprises. Utilization of Protection Forests and Production Forests can also be carried out in Social Forestry activities by individuals, farmer groups and cooperatives.

"Business permit related to forest utilization is limited by considering aspects of forest preservation and aspects of business certainty," said Bambang. While the government guarantees business certainty through regulations, permit holder is responsible to protect, maintain and conserve the forest where they operate. Bambang also explained the transformation of the forest utilization business platform under the UUCK, from an activity type-based business to landscape-based with integrated multi-business. Thus, if previously the business was more wood oriented, now it has multi-business orientation including wood or non-timber forest products and environmental services. "If previously the utilization of forest land values was less optimum, now it is more optimum," he explained.

Efforts to encourage multi-business forestry are also carried out by BPDSHL Way Seputih Way Sekampung in Lampung through forest and land rehabilitation, as stated by Idi Bantara, Head of BPDSHL Way Seputih-Way Sekampung. With a forest area of more than 1 million ha, Lampung has a potential land area of 312,070 ha which can be used as a business space for fruit crops or other non-timber forest products. According to data from the Forestry Agency, currently 256 Social Forestry permits have been received by the communities in Lampung with an area of more than 180,000 ha.

Based on PP 105/2018, the steps to implement forest and land rehabilitation in Lampung by BPDSHL started by the establishment of an implementation team in collaboration with the Forestry Service and KPH, which primary task is to have direct communication with the communities in field to increase their trust. The team assists farmers in planning, capacity building through nurseries to ensure seedlings, planting in the right season, intensive maintenance, and providing assistance in the field.

Among the institutional assistance activities carried out are providing business opportunities for forest farmers, so that government incentives can become additional capital for them. In addition, support for business access by building processing industries around or in forest areas, and facilitating business networks between farmers/forest farmer groups and businesses world through the promotion of products and services to attract new investors. In his presentation, Idi explained, among the key success of multi-business forestry is the use of local superior plants such as what has been done in agroforestry system in Gunung Balik Protection Forest with local avocado type "Siger Sai Sibatu".

Meanwhile, according to Dodik Ridho, Professor of the Faculty of Forestry and Environment of IPB, multi-business forestry as prospective green businesses can be carried out through integrated agroforestry. He showed an example of the decision of farmers in Tanjung Jabung, Jambi to convert their oil palm plantations into coffee plantations. He also recommended the use of multi-business forestry application for decision making in management options and optimal forest management pattern as well as for monitoring of plan and business realization.

The 15th webinar of “Managing the Remaining Forests” series was attended by around 600 participants from various backgrounds, including NGOs, universities, government agencies such as the Forestry Service and FMUs.

The presentations available for dowdload HERE

Check out more in-depth presentations and discussions in the webinar via the following link: