Jakarta – The Head of the Extension and Human Resources Development Agency at the Ministry of Forestry (Kemenhut), Indra Explotasia, emphasized the importance of downstream processing of forest products, particularly rattan, to strengthen the national industry and provide a broader economic impact for forest village communities.
“Many new KTHs fail due to a lack of downstream processing. Rattan is sold raw, not finished. Downstream processing is needed to add value to products, and this can be achieved through various collaborative steps,” said Indra in a statement in Jakarta.
Indra explained that many Forest Farmer Groups (KTH) in various regions are still unable to process forest products into finished products. As a result, the vast economic potential of the forestry sector has not been optimally utilized.
The Ministry of Forestry is currently encouraging synergy between the government, the business community, and financial institutions to strengthen the value chain of the forest product industry, especially rattan, one of the nation’s leading commodities.
“Indonesia is one of the world’s largest rattan producers, but most of it is still sold in its raw form. With downstream processing, its added value can increase significantly and have a direct impact on forest communities,” he explained.
He emphasized that forestry extension services should not only focus on conservation but also impact community economic activities.
“When extension workers encourage communities to stop illegal activities in conservation areas, alternative businesses must be available that can generate income, so that economic transactions can be assessed,” Indra added.
Steps to strengthen the economy of forest communities have also received support from the Indonesian House of Representatives (DPR RI). Ellen Esther Pelealu, a member of Commission IV of the DPR, assessed the success of the Forestry Community Forestry (KTH) in several regions as proof that the downstream approach can stimulate regional economies.
She cited the example of Central Sulawesi Province, which recorded a KTH economic transaction value of IDR 20.07 billion, exceeding the target of IDR 18.5 billion or around 110 percent.
“This IDR 20 billion achievement is extraordinary and should serve as motivation to continue stimulating the community economy in the forestry sector,” she said.
As a concrete form of support, the government has also increased the budget allocation for the forestry sector. In the 2025–2026 State Budget, the Ministry of Forestry’s budget increased to IDR 6.39 trillion, an increase of approximately 21.4 percent compared to the previous year.
Through this budget increase and the promotion of rattan downstreaming, the government hopes that Indonesia’s forestry industry will be more competitive in the global market. Downstreaming is also expected to strengthen the national industrial supply chain while creating new jobs in rural areas.