Enviro News Asia, Bogor — Professor Bahruni, a professor at the Faculty of Forestry and Environment at IPB University, has called for green economic restoration as a strategy to restore the environmental, economic, and social functions of Indonesia’s forestry sector, which have declined since the 1990s.
Bahruni made the statement during his IPB University professorial scientific oration at the Andi Hakim Nasution Auditorium in Bogor on Saturday (August 22), presenting his research under the theme “Valuation of Forest Ecosystem Services: A Prerequisite for Forestry Green Economic Restoration.”
He said green economic restoration should go beyond conventional forest rehabilitation by integrating ecological recovery with production systems, institutions, markets, investment, and community livelihoods.
“Green economic restoration must be realized as a transformation of forestry. This approach is needed to restore natural capital while reviving the economic and social roles of the forestry sector sustainably,” Bahruni said.
According to Bahruni, Indonesia’s forestry economic structure was initially projected to transform gradually from dependence on roundwood production and exports toward primary and downstream processing industries. The transformation was expected to increase added value, create employment and strengthen the sector’s contribution to the national economy.
However, empirical developments since the 1990s have shown that the transformation has not been fully achieved. Roundwood production from natural forests, plywood and sawn timber production have declined, while the primary processing industry has contracted.
Forestry industry growth has subsequently become more concentrated in the pulp and paper supply chain, which relies heavily on plantation forest raw materials. Meanwhile, non-timber forest products, carbon, water, ecotourism, biodiversity and other ecosystem services have yet to reach their full potential as sources of income for forest managers.
Bahruni said approximately 14.98 million hectares, or 26.9 percent, of production forests are currently in a non-forested condition. When all forest functions are considered, he estimated that around 24 million hectares of forest areas require restoration.
The loss of forest cover, he explained, represents not only a decline in timber resources but also the degradation of water regulation, carbon storage, biodiversity protection, employment opportunities, community livelihoods and the overall economic carrying capacity of forests.
“Declining natural capital causes the environmental, economic and social functions of forestry to decline sharply. This is a major challenge in achieving truly sustainable forestry development,” he said.
Bahruni argued that forest recovery cannot rely solely on forest and land rehabilitation programs funded by the state budget. Green economic restoration has a broader scope, combining ecological recovery with economically viable activities, clear markets, sustainable financing and equitable benefit-sharing.
“Green economic restoration is not merely about replanting or restoring land cover. It must restore the ecological capacity of forests while building viable economic activities, clear markets, sustainable financing and fair benefit-sharing,” he said.
He also emphasized the importance of valuing ecosystem services so that the full range of forest benefits can be incorporated into economic policies, spatial planning, investment decisions and forest management.
Forests provide more than timber and non-timber forest products. They also deliver flood regulation, clean water, carbon storage, habitat protection, cultural values and benefits for future generations.
“The absence of a price does not mean the absence of value. Many public benefits provided by forest ecosystems are often overlooked because they do not have complete markets,” Bahruni said.
To address this gap, he proposed the use of the Total Economic Value (TEV) framework, which incorporates direct use values, indirect use values, option values, existence values and bequest values associated with forest ecosystems.
A valuation study conducted in an other-use area in Sintang Regency, West Kalimantan, in 2020 estimated the value of assessed ecosystem service stocks at approximately Rp26.126 trillion, with potential annual benefits estimated at Rp7.292 trillion.
Without intervention, projections to 2050 indicated that forest cover in the area could decline by nearly 59 percent. Such a decline could reduce timber production, water availability, carbon stocks, erosion protection and non-timber forest products.
The analysis also showed that private business profitability does not always align with green economic principles. Under several research scenarios, converting forests into monoculture plantations could increase private profits while reducing regional added value and environmental service benefits. Agroforestry, by contrast, generated the strongest green economic value under the study’s assumptions.
Bahruni said restoration strategies should be tailored to the ecological and socioeconomic conditions of each landscape.
Well-functioning forests should be protected through sustainable forest management, reduced-impact logging, habitat protection and diversified income from non-timber forest products, carbon, water and nature-based tourism.
In degraded but still forested areas, natural regeneration should be strengthened through enhanced natural regeneration. Meanwhile, shrublands, open land and severely degraded areas could be restored through agroforestry or mixed forests using commodities suited to local ecological conditions and community needs.
He also encouraged the development of multi-business forestry models that combine sustainable timber production, non-timber forest products, agroforestry, carbon, water, nature tourism and downstream processing within integrated landscapes supported by adaptive governance.
“Green economic restoration is a bridge between ecological recovery and the economic transformation of forestry. Investment can become a conservation resource when it is directed toward rebuilding natural capital and ensuring that economic benefits are distributed fairly among stakeholders,” Bahruni said.
The scientific oration summarized Bahruni’s research since 1993, particularly studies conducted between 2018 and 2024 in collaboration with students, academics, government institutions, businesses and development partners.
His proposed green economic restoration approach is expected to provide a foundation for transforming Indonesia’s forestry sector by restoring its environmental, economic and social functions while strengthening the country’s sustainable development agenda. (*)
