Enviro News Asia, Jakarta – Indroyono Soesilo, Chairman of the Indonesian Forestry Community Communication Forum (FKMPI), is advocating for technology integration in sustainable forestry production and supply chain efficiency to boost export performance.
“The Indonesian forestry sector has great potential for sustainable growth,” said Indroyono Soesilo during the IFEX 2025 Seminar organized by the Indonesian Furniture and Handicraft Industry Association (HIMKI) in Jakarta on Saturday (March 8, 2025).
According to the Ministry of Forestry, Indonesia’s furniture exports reached USD 1.6 billion in 2024, while handicraft exports totaled USD 89 million. The export trend of forest products also showed a 14.4% increase as of February 2025 compared to the same period last year.
Indroyono highlighted the importance of plantation forests in supplying raw materials for the wood industry, as well as the challenges faced, including tenure issues. He also pointed out the success of community forests in supplying industries as a model that can be further developed.
To enhance global competitiveness, FKMPI encourages wood-based product diversification, expansion of export markets to the Middle East and Africa, and increased investment through partnerships with the UK, Germany, Japan, Korea, and the European Union. Additionally, utilizing logging waste and providing tax incentives for forestry machinery revitalization have been proposed to improve industrial efficiency.
In support of sustainable production, Indroyono also emphasized the potential of wood-based construction, which already meets national standards (SNI) and is currently being proposed to the Government Goods/Services Procurement Policy Agency (LKPP).
Through these strategic initiatives, the forestry sector is expected to become more competitive and contribute to sustainable economic development.
Meanwhile, Krisna Septiningrum, Director of Forest and Plantation Products Industry at the Ministry of Industry, stated at the same event that the agro-industry plays a strategic role in the non-oil and gas processing industry. In 2024, the agro-industry, including the wood processing industry, contributed 52% to the Gross Domestic Product (GDP) of the non-oil and gas processing industry.
“The key to the competitive advantage of the wood processing industry lies in a sustainable wood raw material supply and the modernization of machinery and technology,” said Krisna Septiningrum.
Krisna added that to enhance the productivity, capacity, and quality of forest products, the Ministry of Industry has provided support through an industrial machinery/equipment restructuring program. This program offers partial reimbursement for machinery/equipment purchases based on specific criteria, with a maximum reimbursement value of IDR 1 billion, in accordance with the Domestic Component Level (TKDN) requirements.
