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agreement has been pushed back as Indonesia and the EU She anticipates that through collaboration between Indonesia
are not in agreement on several matters and it is necessary and China there can be technology transfer.
to find solution as soon as possible.
Earlier, the Director General of International Trade Negotiations Forestry sector under performing

at the Ministry of Trade, Djatmiko Bris Witjaksono, advised Sudarsono Soedomo, Professor of forestry at the Bogor
that the IEU-CEPA negotiation has stalled due to policy Agricultural Institute (IPB) pointed out that there has been
disagreements. limited investment in the forestry sector which hinders future
Witjaksono also described the European Union Deforestation prospects.
Regulation (EUDR) as a major stumbling block that has According to him, out of the total domestic Investment
prevented the two parties from finalising the long-awaited between 2020-2022, which amounted to IDR3,256 trillion,
economic agreement. the forestry sector only managed to attract investments of
IDR28 trillion.
Boosting exports of sustainable forest products Out of the total Foreign Direct Investment of IDR50,267

The Ministry of Environment and Forestry is continuing its efforts trillion in 2023 only IDR96 trillion was invested in the forestry
to increase the export value of responsibly and sustainably sector.
produced forest products. "The small investment is inversely proportional to the vast
Ristianto Pribadi, Director of Forest Product Processing forestry area. Of the total land area in Indonesia, 2/3 is forest
and Marketing Development in the ministry stated that efforts area," said Sudarsono Soedomo in a statement. He added; the
to boost export value will be accompanied by measures natural forest industry is shrinking while the development of
to enhance product value in the domestic market, thereby plantation forests is progressing very slowly. Forests account

promoting the downstream processing of forest products. for 2/3 of the land but the forestry sector contributes less
"The success of sustainable forest management depends than one percent to the GDP".
on all parties involved in the wood product supply chains until
they reach consumers. To this end, it is crucial to improve Responses to delay in EUDR implementation
traceability, efficiency and the preservation of raw material The Indonesian government has called for the revision of the
sources," he said. European Union Deforestation Regulation (EUDR).
He explained that modernising equipment in the forest and Airlangga Hartarto, the Coordinating Minister for Economic
wood product processing industry can increase the value of
the raw materials used and reduce production waste. Melena-Nsk

He urged the forestry sector to innovate in addressing
global challenges, particularly those related to greenhouse
gas emissions.
In related news, the Director of Forest Products and Plantation
Industry in the Ministry of Industry (Kemenperin), Setia Diarta,
revealed that wood processing mills in Indonesia use mostly
imported machinery which could create opportunities for local

companies to manufacture machinery possibly through joint
ventures with overseas manufacturers.