The direction of government policies and regulations for the forestry sector in Indonesia has shifted since the issuance of Law Number 11 of 2020 on Job Creation, introducing the concept of Multi-Forest Utilization (MUK). This approach allows Forest Utilization Business Permit (PBPH) holders to produce various commodities within a single forest area, including timber and non-timber products, and utilize forest areas and environmental services.

For PBPH holders, MUK presents significant opportunities for additional income beyond timber utilization without needing new permits. The government’s stringent penalties for inactive or improperly utilized PBPH land necessitate a proactive approach to exploring profitable opportunities in PBPH management. Sustainable and regenerative MUK management aligns with global trends, enhancing the competitiveness of Indonesian products due to increasing demand for sustainable production.

KADIN Indonesia, through its Kadin Regenerative Forestry Business (Kadin RFB) program, has been facilitating the MUK transformation since 2022. KADIN emphasizes the need for support from all stakeholders, including government, enterprises, financial sector, supporting businesses, NGOs, academics, and communities. MUK has been included as a major project in the National Medium-Term Development Plan (RPJMN) 2025-2029, with formal support secured. By mid-2023, Kadin RFB completed initial studies on the Pre-MUK Masterplan, and the final MUK Masterplan was finalized by early 2024.