Government policies and regulations for the forestry sector are shifting towards revenue streams and capitalisation of environmental benefits through the Multi Forestry Business (MUK) initiative.
This transformation is underpinned by four main regulations, namely: Law No. 11 of 2020 on Job Creation which mandates the concept of MUK which includes the utilisation of timber and non-timber forest products as well as environmental services; Government Regulation No. 23 of 2021 on the Implementation of Forestry which is an elaboration of UUCK which covers the concept of MUK and activities within MUK; Minister of Environment and Forestry Regulation No. 8 of 2021 on Forest Management which is an operationalisation of Government Regulation No. 23 of 2021 which covers technical aspects such as requirements, application process, and other limitations; Minister of Environment and Forestry Regulation No. 7 of 2023 on Carbon Trading which introduces the concept of carbon trading and its implementation mechanism in Indonesia.
