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Province of British Columbia Processed wood industry plays strategic role in the
economy
The processed wood industry is considered to have a strategic
role in the national economy and significantly contributes

to the Gross Domestic Product (GDP) according to Prof.
Mangku Purnomo, the Dean of the Faculty of Agriculture at
Brawijaya University.
During a discussion hosted by FPUB as part of an ITTO
project, Purnomo communicated the need to develop a
comprehensive national strategy to enhance the competitiveness
businesses could revitalise and strengthen the performance of processed wood products in the domestic market. He
of the timber industry in the country. said "through the project advantages and challenges in the
Adding that integration among industry players will bolster domestic wood industry will be studied.”

the wood supply chain and support the production of high- Several important issues related to the processed wood
quality export products. industry were discussed. The research findings from this
At a June meeting in Surabaya, Krisdianto mentioned project confirm that the domestic market holds great potential
that efforts are needed to address challenges created by for the national wood industry.
the Forest Utilisation License (PBPH) and Forest Product The focus of the discussion was on strategies to enhance
Processing License (PBPHH). the competitiveness of processed wood products in the
A mechanism for cooperation between PBPH and PBPHH local market, particularly through product innovation, quality

holders needs further improvement to ensure a stable supply enhancement, and improved production efficiency.
of raw materials for PBPHH and a market for roundwood
for PBPH. Need for forest recovery strategy for Java
Such integration would address the problem some The Environment and Forestry Ministry has highlighted the
companies have to market roundwood and primary industries need for a strategy and cooperation among stakeholders
will no longer suffer from a shortage of raw material, he said. to accelerate forest and environmental rehabilitation in
Tjipta Purwita, the APHI Management Board member, Java.
explained that production from the natural forest in 2023 "The success of forest and land rehabilitation on the island
was 4.7 million cubic metres whereas the average over the of Java involving the community has made a real contribution

last 10 years was 5.7 million cubic metres. to improving the environment and forest functions and local
He added that several factors are causing a decline economic welfare," said the Ministry's Secretary General,
in natural forest wood production. One is the increasing Bambang Hendroyono.
transportation distances and fuel prices, while wood prices Hendroyono remarked that forest and land rehabilitation
remain constant. Additionally, there is a decreasing trend in can support the achievement of Indonesia's Forest and Land
the demand for wood from natural forests. Use (FOLU) Net Sink 2030.
Tjipta also suggested that expanding the export market, He explained that sustainable restoration of the forest

especially for mixed forest wood, is essential to increase ecosystem in Java must focus on the existing regulations without
added value as it has not been utilised optimally so far. forgetting the aspects of best practices and effectiveness.