Indonesia is blessed with a huge forest resources, the total area of state forest lands is around 120 milion hectares of which around 60 million hectares are allocated for production forests that allows development a gigantic capacity of wood processing using planted timbers as the raw material. While exports of processed wood products had increased from 20.2 million m3 in 2020 to 23.3 million m3 in 2021, domestic national consumption decreased from 26.2 million m3 to 25.1 million m3 during the annual period which is widely perceived as the impact of the COVID-19 pandemic that hit Indonesia since early in 2020.
For sure, reduction in domestic consumption is not in the interest of the government and society; domestic consumption has to be steadily promoted that it may serve as a stabilizer for wood production during the economic crises such as the one caused by COVID-19 pandemic.
The proposed project aims to increase contribution of the national forest industry to national economic development. Its specific objective is to promote a strong and resilient domestic consumption of wood products, to be achived through delivery of two outputs, namely: i) increased capacity of domestic market to satisfy consumers’ need for wood product, and ii) enhanced institutional arrangement for steadily rising domestic consumption of wood products.
The project will be implemented in a participatory, collaborative manner, for which partners will be selected based on competence. Risks will be managed by putting in place the relevant mitigating measures since the onset of project operations.