EduAsiaNews, Antalya Türkiye – The Indonesian Chamber of Commerce and Industry (Kadin) is promoting regenerative forestry businesses as part of Indonesia’s bioeconomy transformation, which supports climate action, biodiversity conservation and community welfare. Through the Kadin Regenerative Forest Business Hub (RFBH), efforts to strengthen collaboration among the government, business sector, local communities and international partners are aimed at expanding the sustainable use of biological resources while generating greater added value through innovation, investment and market development.
Shinta Widjaja Kamdani, Kadin Indonesia’s deputy chairwoman for human development, culture and sustainable development, called for the development of a forest-based bioeconomy to increase economic value while supporting climate action and community welfare.
“Indonesia’s biological wealth needs to be developed into a source of sustainable economic growth through the regenerative and sustainable use of forests in partnership with local communities. To achieve this, businesses need to strengthen partnerships with the government, communities and development partners,” Shinta said.
She made the remarks in her closing address at a dialogue titled “Forest-Based Bioeconomy for Climate, Nature and Communities: Advancing Indonesia’s Nature-Based Economy through Multi-Use Forest Landscapes,” organized by the Kadin Regenerative Forest Business Hub (RFBH) at the Indonesia Pavilion during the 31st UN Climate Change Conference (COP31) in Antalya, Türkiye, on Thursday (Nov. 12, 2026).
According to Shinta, efforts to strengthen regenerative forestry businesses must be linked to industrial innovation, market development and access to investment. Such partnerships are essential to ensuring that the use of biological resources supports business growth while safeguarding ecosystem functions and community livelihoods.
From the government’s perspective, Forestry Ministry Director General of Sustainable Forest Management Laksmi Wijayanti underscored the importance of sustainable forest utilization in supporting Indonesia’s Nationally Determined Contribution (NDC) targets, the Indonesia’s FOLU Net Sink 2030 target and the development of a forest-based bioeconomy.
“The multi-business forestry policy aims to increase the added value of forest products while promoting forest rehabilitation in collaboration with communities through social forestry schemes, including customary forests. These initiatives are developed into value chains to ensure that economic benefits are distributed more broadly and equitably among stakeholders,” Laksmi said.
She added that the development of deforestation-free and traceable forest products across landscapes requires business partnerships, including financing support. Sustainable landscape management, she said, is fundamental to maintaining these economic benefits over the long term.
Meanwhile, Kadin Indonesia Deputy Chairwoman for Business and Sustainable Governance Elim Sritaba outlined the Kadin RFBH approach to creating added value through productive, inclusive and regenerative landscape-based forestry businesses.
The planned expansion of multi-business forestry (MUK) through Kadin RFBH in 2027–2029 is targeted to cover at least 10 Forest Utilization Business License (PBPH) units and social forestry areas. This phase will build on the groundwork laid during 2022–2025 and pilot project implementation in 2025–2027.
“We are ready to partner with stakeholders to expand the implementation of regenerative forestry, promote social inclusion and contribute to global climate and biodiversity targets,” Elim said.
Kadin projects that the development of MUK in underproductive forest areas through agroforestry could cover 1.8 million hectares. In its initial phase, 10 MUK pilot projects are targeted for implementation during 2025–2029, ahead of full-scale implementation. The projected gross revenue from these targets amounts to Rp814 trillion per production cycle, with the potential to create 1.4 million jobs.
Elim highlighted the need for long-term financing, guaranteed market access, policy support and community partnerships with inclusive benefit-sharing arrangements.
Pilot locations currently under development include the Bentala landscape in East Kalimantan and Kubu Raya in West Kalimantan, with plans to expand the initiative to several other landscapes in Sumatra and Kalimantan.
ParagonCorp Deputy CEO Dr. Sari Chairunnisa emphasized the private sector’s role in creating markets for a forest-based bioeconomy through value chains that support environmental sustainability. Research and innovation in raw materials, she said, serve as a bridge between Indonesia’s biological wealth and industrial demand.
“Sustainability underpins our decisions and innovation priorities, shaping how we create long-term value,” Sari said.
She cited Sulawesi patchouli, which is being explored for skincare applications; Kalimantan tengkawang, which is being developed as a local alternative to shea butter; and microalgae research in West Java conducted in collaboration with the National Research and Innovation Agency (BRIN).
For patchouli, efforts to strengthen the value chain connect regenerative cultivation, bioprospecting and research, standardized ingredient extraction, and product formulation. She also stressed the importance of quality, safety and responsible practices at every stage, alongside fairer market access for local communities.
Sari’s presentation also addressed the relationship between corporate decarbonization and Indonesia’s transition to a low-carbon economy, including the role of the Kadin Net Zero Hub. The development of biological resource-based value chains and industrial emissions reduction are intended to complement each other in supporting the country’s climate commitments.
Head of the International Forestry Unit at the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO), Maggie Charnley, highlighted the role of international partnerships and development finance in expanding a sustainable and inclusive forest-based bioeconomy.
“Development finance can help establish viable business models and open up investment opportunities for sustainable forest management. Partnerships must ensure that economic benefits go hand in hand with biodiversity protection and the empowerment of local and Indigenous communities,” Maggie said.
She noted that exchanges of experience between countries could help advance business models, innovative financing mechanisms and partnerships tailored to the needs of individual landscapes.
Kadin RFBH Coordinator Rukmantara explained that the targeted landscape-based MUK pilot projects were being developed in line with the 2025–2029 National Medium-Term Development Plan (RPJMN), which sets a target of 10 pilot projects with a minimum investment of Rp1.2 trillion.
“Over the next three years, Kadin RFBH will focus more on developing MUK in underproductive forest areas through agroforestry initiatives in partnership with communities to build business ecosystems across landscapes,” Rukmantara said.
In parallel, Kadin RFBH is working with stakeholder initiatives to develop innovations and explore opportunities to utilize biodiversity credits as a market mechanism for MUK, alongside the existing carbon market.
The dialogue underscored the importance of linking sustainable forest management with industrial needs, long-term financing and market access to expand Indonesia’s forest-based bioeconomy.
By strengthening these partnerships, Kadin RFBH aims to promote regenerative forestry businesses that support national climate targets while creating jobs and ensuring the equitable distribution of benefits for local and Indigenous communities. (**)
