Indonesia's Forest Product Export Value Decreased by 3.26% in 2024

According to the Ministry of Forestry (Kemenhut), the value of Indonesia's forest product exports reached IDR 12.74 trillion in 2024.

The 2024 export value decreased by 3.26% from the previous year (year-on-year/yoy), which was IDR 13.17 trillion.

Historically, during 2020-2024, the value of Indonesia's forest product exports has indeed declined since 2022. As seen in the graph, the 2021 figure reached IDR 14.75 trillion—the highest in that period.

In the Ministry of Forestry's Strategic Plan 2025-2029, the government categorized the challenges of forestry development in Indonesia.

First, ecological issues. This is the Triple Planetary Crisis, consisting of climate change, pollution and environmental degradation, and biodiversity loss. A total of 1,074 plant species and 1,274 wild animal species are listed as threatened species.

"Sustainable Forest Management needs to be promoted because Indonesia has enormous forest resource potential for new sources of growth, poverty alleviation, and food, energy, and water security," stated the Ministry of Forestry.

Second, social issues. According to the government, the management of Indonesia's forest areas, which cover 62% of the total land area, is still not optimal, even though the forest's potential is immense to support strengthening and poverty alleviation in 9,291 villages located within and around forest areas categorized as poor.

Third, economic issues. The forestry sector's contribution to Indonesia's national GDP is small compared to other sectors such as agriculture, industry, and services.

"Nevertheless, forestry plays a societal role, even though its contribution to GDP figures is sometimes not very significant. This includes the sustainable utilization of bioeconomy and bioprospecting of genetic resources, coupled with strengthened biodiversity governance," stated the Ministry of Forestry.

Fourth, governance issues. The government acknowledges that bureaucratic processes are still considered complicated, lengthy, and convoluted, resulting in the public still having insufficient access to accurate information.