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Italyinus reducing the public's dependence on imported products.
TKDN is one of the government’s instruments to develop
domestic industries and promote the use of local products.

Energy plantation forest development
Agus Justianto, chair of Indonesia's FOLU Net Sink 2030
Working Team at the Ministry of Environment and Forestry,
stated that developing energy plantations (HTE) is a viable
element to increase carbon absorption as harvested wood
can be used as a raw material to generate electrical power.
She said the indicative area of customary forests has During a recent Indonesian Biomass Energy Society
been set at 1.11 million hectares and 265,000 hectares have (MEBI) talk show on ‘Energy Plantation Forests in the Energy
been determined through a decree. Transition Era’ chairman Hadi Siswoyo revealed that based on

In total, 1.37 million hectares of customary forests have KLHK data, there are currently 25 Forest Utilisation License
been designated for 138 indigenous community groups. (PBPH) units that support HTE development.
She stated that the Indonesian government will continue In addition, State-Owned Enterprises manage Java's
this process. forests (Perum Perhutani) and have allocated 67,000 hectares
for HTE development
Furniture imports flooding Indonesian market
The chairman of the Indonesian Furniture and Craft Industry Harmonising ASEAN forest management standards

Association (HIMKI), Abdul Sobur, has pointed out that the At the 27th Meeting of the ASEAN Working Group on Forest
domestic market is being flooded with imported furniture Product Management the Indonesian government emphasised the
products. importance of harmonisation of forest management standards.
According to HIMKI’s analysis, in the first quarter of 2024 According to Dida Mighfar Ridha, Director General of
imports of furniture products increased by 29 percent year Sustainable Forest Management at the Ministry of Environment
on year to IDR2.07 trillion. and Forestry, standardisation is essential for enhancing
Imported furniture products from China contributed the sustainable forest management and optimising the utilisation
most (84%) followed by Vietnam (3%), Malaysia (2%) and of forest products.
the US (2%). Indonesia has achieved significant progress in collaborating

Other significant shippers of mainly high value items included with ASEAN member countries including in the area of the
Italy, Germany, Singapore, Taiwan, South Korea and Japan. legality and sustainability of forest products.
Sobur said Indonesians are buying simple and cheap One notable achievement is the certification system that
smart furniture and suggested the government should raise guarantees the legality and sustainability of forest products.
the Domestic Source Component Level (TKDN) for furniture This system is a strategic programme that ensures wood
products. products and raw materials are obtained from sources that
TKDN represents the value of using goods or services meet legal and sustainable management standards.

sourced from within the country. This policy aims to advance The same meeting produced several regional policy
Indonesia's economy by supporting local industries and recommendations including the implementation of the ASEAN