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INVESTMENTS :
PROMOTING SUSTAINABLE TIMBER
PRODUCTION
Presented on Forest Asia Summit 2014 :
Jakarta, 5 – 6 May 2014
the Association of Indonesian Forest
Cencessionaires (A P H I )
• Sustainable timber production must be
positioned in the context of sustainable forest
management  parallel with market
recognition ?
• Demand to manage forest in sustainable
landscapes  what kind of landscape to
ensure sustainable timber production ?
• Growing concern on inclusive business  how
can it be implemented on the ground ?
ISSUES ON SUSTAINABLE TIMBER PRODUCTION
• Lessons learnt  recognition on sustainable
forest management is not always in line with
sustainable timber production
• Underlying factors  policy on wood trade, less
price incentives, undervalue of forest product
utilization
• No guarantee for SFM in the long term if there is
no clear incentives (price, policy, fair market) 
SFM should be addressed parallel with business
sustainability
MARKET RECOGNITION
• Forest role  biodiversity , wood , food , fuel ,
environment services
• Landscape management  ecosystem based
management  HCVF and HCS should be addressed in
the landscape based region, not partially in
management unit
• Economic scale and product diversity  guarantee for
sustainable forest management  should be the main
consideration in the policy making process
• Product diversity  demonstrating business feasibility
 to attract financial support ( eg for HTI and
SILIN/intensive silviculture technique).
LANDSCAPE MANAGEMENT
• Demanding of forest land  an inclusive business which is
a sustainable business that benefits low-income
communities, should be developed.
• Inclusive business  A business initiative that, keeping its
for-profit nature, contributes to increase communities
prosperity in its value chain.
• Inclusive business is not corporate charity/philanthropy. It
is the search for sustainable business models and have the
potential to become part of the mainstream business
model within the companies concerned.
• Cluster of forest management and small scale industries
will be a part of inclusive business model.
INCLUSIVE BUSINESS
Lessons Learnt From Brazil
Multiple land use for forestry and agricultural production (agroforestry)
One year eucalypts intercropped with soybean in Minas Gerais, Brazil
(photo : Laercio Couto)
Lessons Learnt From Brazil
Multiple land use for forestry and agricultural production (agroforestry)
Short rotation eucalypt plantation and sugar cane plantation in Sao
Paulo, Brazil (photo : Laercio Couto)
THANK YOU

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Investments: Sustainable Timber Production - the Association of Indonesian Concessionaires

  • 1. INVESTMENTS : PROMOTING SUSTAINABLE TIMBER PRODUCTION Presented on Forest Asia Summit 2014 : Jakarta, 5 – 6 May 2014 the Association of Indonesian Forest Cencessionaires (A P H I )
  • 2. • Sustainable timber production must be positioned in the context of sustainable forest management  parallel with market recognition ? • Demand to manage forest in sustainable landscapes  what kind of landscape to ensure sustainable timber production ? • Growing concern on inclusive business  how can it be implemented on the ground ? ISSUES ON SUSTAINABLE TIMBER PRODUCTION
  • 3. • Lessons learnt  recognition on sustainable forest management is not always in line with sustainable timber production • Underlying factors  policy on wood trade, less price incentives, undervalue of forest product utilization • No guarantee for SFM in the long term if there is no clear incentives (price, policy, fair market)  SFM should be addressed parallel with business sustainability MARKET RECOGNITION
  • 4. • Forest role  biodiversity , wood , food , fuel , environment services • Landscape management  ecosystem based management  HCVF and HCS should be addressed in the landscape based region, not partially in management unit • Economic scale and product diversity  guarantee for sustainable forest management  should be the main consideration in the policy making process • Product diversity  demonstrating business feasibility  to attract financial support ( eg for HTI and SILIN/intensive silviculture technique). LANDSCAPE MANAGEMENT
  • 5. • Demanding of forest land  an inclusive business which is a sustainable business that benefits low-income communities, should be developed. • Inclusive business  A business initiative that, keeping its for-profit nature, contributes to increase communities prosperity in its value chain. • Inclusive business is not corporate charity/philanthropy. It is the search for sustainable business models and have the potential to become part of the mainstream business model within the companies concerned. • Cluster of forest management and small scale industries will be a part of inclusive business model. INCLUSIVE BUSINESS
  • 6. Lessons Learnt From Brazil Multiple land use for forestry and agricultural production (agroforestry) One year eucalypts intercropped with soybean in Minas Gerais, Brazil (photo : Laercio Couto)
  • 7. Lessons Learnt From Brazil Multiple land use for forestry and agricultural production (agroforestry) Short rotation eucalypt plantation and sugar cane plantation in Sao Paulo, Brazil (photo : Laercio Couto)