Tuesday, 17 April 2012


           According to Secretary General of the Forestry Ministry, Hadi Daryanto, currently there are at least 56 wood processing industries who partnered with smallholders. Total investment value of this industry reaches Rp 2.31 trillions and could absorb a direct employment of 21,300 workers.

            This industry relies on supply of raw materials from the smallholders. To meet demand for raw materials, they also distributed at least 109 million seeds. In addition to distributing seeds, wood processing industries also carry out accompaniment for management of forests owned by the smallholders.

            “Increase in demand of wood from forests managed by smallholders in Java caused price of sengon wood to increase continuously and now reaches Rp 600,000 – 800,000 per cubic meter. Sengon wood is currently in high demand in Java”, he said.

            Forestry Minister, Zulkifli Hasan, asked the industries not to expect obtaining Forest Concession (HPH) that could supply demand of wood from natural forests. Fulfillment of raw materials of wood processing industries will be encouraged to use wood supply from forests owned by smallholders under partnership scheme.

         The Forestry Ministry will multiply grant of legal access to the community to utilize forests by granting business concession on the area inside and around the forests through development of smallholder plantation forests, smallholder forests, and village forests. This is done to continuously encourage forestry development which is pro-smallholders, pro-creation of work opportunities, pro-growth, and pro-environmental preservation.

           Therefore, in the future, forestry development policy will multiply grant of legal access by granting business license in a most expansive way possible to the communities inside or around the forests through Logging Concession (IUPHHK), smallholder plantation forest concession (HTR), and village forest concession.

            “Wood processing industries will be empowered to develop HPH for ecosystem restoration. So, the tree in the forests will not be cut, but will be enriched, while the industries must collect logs from plantation forests. With this method, wood industries will still be developing, but on the other hand, forest coverage will increase”, the Minister said.

            Currently, 80 percent of demand of raw materials of wood processing industries reaches 50 million cubic meters which are the products of plantation forests. “The remaining 20 percent is derived from natural forests. It means that volume of trees cut from plantation forests decreases and tress planted is dominating supply of wood raw materials for the industries”, he said.

            Based on projection of the Directorate General of Forestry Business Development, potency of plantation forests on land owned by smallholders has reached 3.5 million hectares. While, standing tree potency is estimated to reach 125.6 million cubic meters and potency of plants ready for harvest could reach 20.9 cubic meters a year.

            And, the Forestry Ministry is also developing utilization of environmental services, hydro services, nature tourism, geothermal, non-wood forest products (HHBK), and flora and fauna germplasm. There methods utilize forests to obtain economic value without cutting tress”, he said.

 Business News - March 28, 2012

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