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Monday, 13 April 2026
Forest News

Indonesia Promotes Multi-Business Forestry as Strategy for Global Forest Bioeconomy

Enviro News Asia, Vienna – Indonesia highlighted the Multi-Business Forestry (Multi Usaha Kehutanan/MUK) approach as a strategic framework to develop forest-based bioeconomy during the Global Summit: Advancing Sustainable Forest-Based Bioeconomy Approaches in Vienna, Austria. The summit gathered representatives from around 60 countries and approximately 120 international and regional organizations to discuss sustainable forest management and bioeconomy development.

Indonesia’s delegation emphasized that increasing forest productivity through a forest-based bioeconomy requires concrete actions in implementing sustainable forest management. The strategy gained stronger legal support following the enactment of the Job Creation Law, which was revised through Law No. 6 of 2023, enabling the development of bioeconomy through the Multi-Business Forestry scheme.

Krisdianto, Director of Forest Product Fees and Administration and member of the Indonesian delegation, stated that forests can generate economic benefits not only from timber but also from non-timber forest products, environmental services, and nature-based tourism.

He explained that the Multi-Business Forestry framework integrates the licensing system for utilizing non-timber forest products into the Forest Utilization Business Permit (PBPH). Permit holders have also revised their Business Work Plans (RKU) and Annual Work Plans (RKT) to maximize forest-based economic opportunities.

The summit was opened by Austria’s Federal Minister of Agriculture and Forestry, Climate and Environmental Protection, Regions and Water Management, Norbert Totschnig. He stressed that forests play a critical role in addressing climate change, supporting rural development, and accelerating the transition toward a sustainable bioeconomy.

Totschnig also highlighted the importance of strengthening international cooperation, knowledge exchange, and innovation to fully harness the potential of forest-based bioeconomy while ensuring biodiversity conservation.

The summit was organized as a Country and Organization-Led Initiative (COLI), co-chaired by Austria and South Africa with support from Australia, Finland, Japan, Türkiye, the Food and Agriculture Organization (FAO), the International Union of Forest Research Organizations (IUFRO), and the United Nations Forum on Forests Secretariat (UNFFS).

Participants shared similar views on the direction of forest-based bioeconomy development. Austria and Finland emphasized integrating bioeconomy into climate, industrial, and innovation policies, including promoting wood-based construction as a renewable and low-carbon building material.

Australia, Japan, and Türkiye highlighted the need for stronger cross-sector policy coherence and sustainable value chains through technological innovation and standardized systems.

Meanwhile, international organizations including FAO, the United Nations Forum on Forests (UNFF), and IUFRO underlined the importance of science-based policy making and stronger science–policy collaboration to accelerate the implementation of sustainable forest bioeconomy.

In business discussions, industry representatives noted the growing investment potential in bio-based products such as timber and non-timber forest products. However, they also identified challenges including limited financing, lack of specific regulations, and the need for harmonized product standards.

Private sector stakeholders and international partners stressed the importance of legal certainty, supply chain legality systems, and traceability mechanisms to strengthen market trust and consumer confidence in forest-based products.

The summit produced the Vienna Call for Actions and a Co-Chairs Summary, which will be presented at the 21st session of the United Nations Forum on Forests (UNFF) in May 2026 and the 28th session of the Committee on Forestry (COFO) in September 2026.

Indonesia’s delegation expressed its support for the outcomes of the summit, emphasizing that sustainable forest management is not solely the responsibility of governments but also of all stakeholders who benefit from forest resources. (*)