Indonesia's Forestry Ministry overhauls PBPH licensing to boost bioeconomy

The Ministry of Forestry (Kemenhut) said the transformation of the forest‑use business permit system (PBPH) is central to advancing Indonesia's forest bioeconomy. The new approach, linked to Multi‑business Forestry (MUK), aims to attract investment, create jobs and ensure a balance of ecological, economic and social outcomes. A revision of Regulation No. 8/2021 is being drafted to streamline procedures, improve certainty for investors and strengthen digital licensing services.

Ministerial officials also highlighted ongoing challenges. Raja Juli noted tenurial conflicts between PBPH holders and local communities and a backlog of more than 200 new permit applications. Kemenhut will tighten licensing stages to prevent abuse of forest areas and ensure that only technically and financially capable operators receive permits. Director‑General Laksmi Wijayanti emphasized that the regulatory tweaks will improve governance, simplify processes, reinforce community benefits and uphold ecological functions.