Cross-Subsidy Plan for Timber Industry in Revised Forestry Law

The House of Representatives of the Republic of Indonesia (Dewan Perwakilan Rakyat Republik Indonesia – “DPR RI”) plans to revise Law No. 41 of 1999 on Forestry, as amended several times, most recently through Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “UU 41/1999”). Member of Commission IV of the DPR RI, Darori Wonodipuro, said that he would adjust matters regarding the national wood industry in the revision.

Darori said that many non-timber forest product (industri hasil hutan bukan kayu – “HHBK”) industries have closed, so policy updates are needed. “Is it because of the ban on log exports? Maybe the logs are opened, some for domestic use and some for foreign use. So that it can cover the company's operational costs,” he told Hukumonline.

Currently, processed timber is exported, but not all countries accept it because there is timber from other countries. “So later we will include articles that can support the timber industry in Indonesia. They must cover each other, for example there are cross-subsidies,” said Darori.