The Indonesian Chamber of Commerce and Industry (Kadin) is promoting regenerative forestry businesses as part of Indonesia’s bioeconomy transformation to support climate action, biodiversity conservation, and community welfare. Through the Kadin Regenerative Forest Business Hub (RFBH), efforts to strengthen collaboration among the government, businesses, communities, and international partners are aimed at expanding the sustainable use of biological resources and increasing added value through innovation, investment, and market development.
Shinta Widjaja Kamdani, Coordinating Vice Chairwoman for Human Development, Culture, and Sustainable Development at Kadin Indonesia, 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.
Shinta delivered the remarks during the closing session of 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 COP31 in Antalya, Türkiye, on Thursday, November 12, 2026.
According to Shinta, strengthening regenerative forestry businesses needs to be linked to industrial innovation, market development, and access to investment. These partnerships are necessary to ensure that the use of biological resources supports business growth while maintaining ecosystem functions and community livelihoods.
From the government’s perspective, Director General of Sustainable Forest Management at the Ministry of Forestry Laksmi Wijayanti emphasized the importance of sustainable forest utilization in supporting Indonesia’s Nationally Determined Contribution (NDC) targets, 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 supporting forest rehabilitation carried out together with communities through social forestry schemes, including customary forests. These efforts are developed into value chains so that the economic benefits can be 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 provides the foundation for maintaining these economic benefits over the long term.
Meanwhile, Kadin Indonesia Vice 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 Permit (PBPH) units and social forestry areas. This phase will build on the strengthening of the foundation during 2022–2025 and the implementation of pilot projects in 2025–2027.
“We are ready to partner in expanding the implementation of regenerative forestry, promoting social inclusion, and achieving global climate and biodiversity targets,” Elim said.
Kadin projects that the development of MUK in non-productive areas through agroforestry could cover 1.8 million hectares. The initial phase targets 10 MUK pilot projects during 2025–2029 before full implementation. The projected gross revenue from this target is Rp814 trillion per production cycle, with the potential to create 1.4 million jobs.
Elim highlighted the need for long-term financing, guaranteed buyers, 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 to several other landscapes in Sumatra and Kalimantan.
ParagonCorp Deputy CEO Dr. Sari Chairunnisa emphasized the role of the private sector in creating markets for a forest-based bioeconomy through value chains that support environmental sustainability. Research and raw material innovation serve as a link between Indonesia’s biological wealth and industrial needs.
“Sustainability serves as the foundation for our decisions and innovation priorities, shaping the way we create long-term value,” Sari said.
She cited Sulawesi patchouli, which is being explored for skincare products; Kalimantan tengkawang, which is being developed as a local alternative to shea butter; and microalgae research in West Java in collaboration with the National Research and Innovation Agency (BRIN).
For patchouli, strengthening the value chain involves connecting regenerative cultivation, bioprospecting and research, standardized ingredient extraction, and product formulation. She also emphasized the importance of quality, safety, and responsible practices at every stage, alongside fairer market access for communities.
Sari’s presentation also covered 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 reductions in industrial emissions are intended to complement each other in supporting national climate commitments.
Maggie Charnley, Head of the International Forestry Unit at the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO), 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 access to investment for sustainable forest management. Partnerships need to ensure that economic benefits go hand in hand with biodiversity protection and the empowerment of local and Indigenous communities,” Maggie said.
She noted that the exchange of experiences between countries could help develop business models, innovative financing mechanisms, and partnerships tailored to the needs of each landscape.
Kadin RFBH Coordinator Rukmantara explained that the landscape-based MUK pilot projects currently being developed are aligned with the 2025–2029 National Medium-Term Development Plan (RPJMN), which targets 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 non-productive forest areas through agroforestry 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 use biodiversity credits as one of the market mechanisms 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 the forest-based bioeconomy. Through stronger partnerships, Kadin RFBH is promoting regenerative forestry businesses that support national climate targets, create jobs, and ensure fair benefit-sharing for local and Indigenous communities.
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