Ministry of Forestry Directs 5.67 Million Hectares of Forest for Sustainable Business

MAKASSAR, GARISBUMI.com – The Ministry of Forestry has designated around 5.67 million hectares of forest area in the Forest Utilization Direction Map (PAPH) for Forest Utilization Business Licensing (PBPH) in 2026.

An area approximately 85 times the area of DKI Jakarta can be proposed for sustainable business activities in production and protected forest areas. Its use is not only directed at wood, but also food security, energy, non-timber forest products (NTFPs), environmental services, and carbon reserves.

Director General of Sustainable Forest Management (PHL) of the Ministry of Forestry, Laksmi Wijayanti, said PAPH 2026 was designed to encourage the use of forest areas without having to remove forest cover.

"We want to prove that forests that remain standing can be more profitable than converted forests. PAPH is a momentum for correcting space utilization in the forestry sector," said Laksmi in the 2026 PAPH Socialization in Makassar, South Sulawesi, Thursday, 24 September 2026.

The South Sulawesi Provincial Government welcomes this policy as a bridge between the potential of forest areas and their legal use.

Secretary of the South Sulawesi Environment and Forestry Service, Erwin Werianto, said that the implementation of PAPH in the regions would be supported by 24 Forest Management Units (KPH) as managers at the site level.

Sugar palm for bioenergy, coffee and cocoa for food

PAPH 2026 contains special allocations to support food and energy security. Based on a study by the Ministry of Forestry together with the Ministry of Agriculture, around 387,641 hectares were directed for the development of sugar palm as a source of bioenergy.

In addition, around 68,454 hectares are allocated for agroforestry for various food and plantation commodities, such as rice, corn, soybeans, coffee and cocoa.

The Director of Forest Utilization Plan Development at the Ministry of Forestry, C. Hendro Widjanarko, emphasized that sugar palm development should not be carried out in monoculture.

According to Hendro, sugar palm plants can grow well in the shade and still maintain forest cover of around 50 percent.

"Aren actually grows well in the shade, with forest cover of around 50 percent. So, the scheme is mixed. The forest is maintained, the results can be harvested," he said.

This approach is expected to create economic value from forest areas while maintaining their ecological functions.

Around 902 Thousand Hectares for Reforestation

PAPH 2026 also directs around 902,298 hectares of area for forest and land rehabilitation. This area is a relatively compact stretch of degraded land and is not subject to permits.

This policy is part of the follow-up to the President's direction to accelerate the recovery of forest areas experiencing degradation.

Permit holders in this area can develop environmental services, non-timber forest products and carbon reserves. However, business activities must run simultaneously with the restoration of forest cover.

In addition, almost a quarter of the entire 2026 PAPH is in the moratorium area for new permits or the Indicative Map for Cessation of Granting Business Permits, Approvals for the Use of Forest Areas, or Changes in the Allocation of Forest Areas and Other Use Areas (PIPPIB).

This area consists of around 1.33 million hectares of protected forest and 1.37 million hectares of production forest. Its use must not change the natural landscape and is limited to environmental service activities and non-timber forest products.

Mandatory Governor's Recommendation for PBPH Applications

PAPH 2026 was determined through Minister of Forestry Decree Number 7253 of 2026. The map can be accessed by the public via the Ministry of Forestry's Geospatial Information System (SIGAP) portal.

Director of Forest Resources Inventory and Monitoring, R. Agus Budi Santosa, said PAPH geospatial data received an A or 100 in the quality assurance process. The data is also equipped with metadata to support its use by the government and stakeholders.

"PAPH Thematic Geospatial Information can be used by sharing via the SIGAP network or without a network," said Agus.

The Ministry of Forestry has also tightened licensing governance. Every PBPH application must now be accompanied by a governor's recommendation.

Applicants who previously only submitted a receipt for submitting a recommendation are given a maximum of 90 days to complete the document.

Laksmi assesses that local government involvement from the start is necessary to prevent overlapping areas and ensure that forest use plans are in accordance with conditions on the ground.

PAPH is also the basis for the governor in issuing recommendations on PBPH applications.

"The governor's recommendation is a form of synergy between the central government and regional governments. Apart from that, an OSS system is needed at BKPM to process PBPH applications," said Oktripan Arung Langi from the Directorate of Forest Utilization Business Development.

Permit Applications Are Processed Through OSS

PBPH applications in protected forest and production forest areas are processed through the Online Single Submission (OSS) system.

Since the issuance of Government Regulation Number 28 of 2025, applicants must also pay attention to changes to the Standard Classification of Indonesian Business Fields (KBLI).

Neisa Artdiyasa from the Ministry of Investment and Downstreaming/Investment Coordinating Board explained that the OSS system will display the adjustment of the 2020 KBLI code to 2025 KBLI based on the conversion table.

"Business actors can choose KBLI that suits the business they want to run," he said.

PAPH 2026 Welcomed by Forestry Industry Players

The General Chair of the Indonesian Wood Panel Association (APKINDO), Bambang Soepijanto, assesses that PAPH 2026 has the potential to open up sources of raw material supply from new permits.

Meanwhile, the General Chair of the Indonesian Forest Entrepreneurs Association (APHI), Soewarso, stated that he would revise the production forest road map for the 2019–2045 period to be in line with the multi-business forestry model.

PAPH is dynamic and will be updated at least once a year. Input from local governments, business actors and stakeholders will be used in the preparation of PAPH 2027 which is scheduled to start December 2026.

The government emphasizes that determining the area in the PAPH does not mean that a business permit is automatically granted. Each application must still meet environmental, administrative and technical requirements, as well as obtain recommendations from the local government.