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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Multi Forestry Business

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.

The MUK scheme is also one of the major projects in the draft RPJMN 2025-2029 so that future opportunities are increasingly wide open. For PBPH (Forest Utilisation Business Permit) owners, this regulation is a great opportunity because there is another potential income besides timber utilisation without the need to apply for a new permit. Especially since the Government is currently getting stricter in taking action against PBPHs that are inactive or not utilising the land properly, PBPHs need to immediately review and explore more profitable opportunities in PBPH management. Kadin through the Regenerative Forest Business (RFB) programme has conducted scientific studies on MUK business schemes on commodities that have the opportunity to be developed.

In addition, MUK management with sustainability and regenerative principles is in line with global trends where demand for sustainable production continues to increase so that forest management with the concept of MUK and regenerative forestry will increase the competitiveness of its products to meet the demands of potential offtakers.

Pada 10 Agustus 2023, Kadin menggelar Owners Lunch Meeting, dengan tujuan :
1. Provide information on PBPH management opportunities with Multi Forestry Business (MUK) and Regenerative Forest schemes.
2. Encourage PBPH owners to utilise their land properly to obtain optimum added value while avoiding licence enforcement action.
3. Discuss issues that pose challenges in the implementation of the MUK scheme

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry