Forestry Contribution to Indonesian Economic Growth Highest in the World after China

Jakarta, Indonesia, Nov 20, 2012 – (ACN Newswire) – The contribution of the forestry sector in Indonesia improves the welfare of the rural population, increasing consumption in this segment by approximately 4%, and contributing to the economic growth in Indonesia of around 6.5%.

Several policies from The Ministry of Forestry create job opportunities by providing legal access to the rural population, such as the Community Plantation Forest (HTR), Social Forest (HKm) and Rural Forest (HD), thus providing rural communities with sustainable employment throughout the year without requiring the Community Nursery (KBR) or Forest and Land Rehabilitation (RHL) throughout the year, with an average state budget of Rp 2.6 trillion.

Likewise, the Industrial Plantation Forest (HTI) with 232 units covering 9,778,734 ha, where the average annual planted area is 500,000-600,000 ha, with year-round employment in rural areas in seedbed, land preparation, planting, nurturing, harvesting, processing and marketing. In addition, the Ministry of Forestry has provided funds of Rp. 2.5 Trillion for the activities of Community Plantation Forest, Social Forest (HKm), Rural Forest (HD), Community Forest (HR), and Industrial Plantation Forest (HTI) with a revolving loan fund through the Public Service Agency (BLU). Realization of this fund has increased the development of Community Planted Forest, which in 2011 reached Rp 30,007,545,490, having come in 2010 to Rp 5,119,140,000, for a cumulative Rp 35,126,685,490.

Legal access for Natural Tourism Permits, also granted by the Ministry of Forestry to rural communities through the Regulation of Ministry of Forestry P.48/Menhut-II/2010, allows the rural population not only to transport and sell souvenirs, but also contributes to Natural Tourism Business management.

In addition, the Ministry of Forestry has also helped rural communities through the delegation of Timber Legalizing to Village Heads for issuing Certificates of Origin of Timber. For Sengon timber, this requires only a Sales Note without a Certificate of Origin. The Ministry of Forestry has delegated authority to regional Regents to issue Investment Permits for rattan, sago, gum, seeds and honey as non-timber forest products, as regents are closer to rural communities.

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Source: Kementerian Kehutanan

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