Digital Transformation: Strengthening Forest Governance for an Inclusive Economy in Indonesia

By Sonya Dyah Kusumadewi, BMRC Indonesia National Consultant and Krisdianto Sugiyanto, Co-Chair BMRC and Ministry of Forestry of the Republic of Indonesia

Strengthening Sustainable Forest Governance in Indonesia: A Path Forward

To strengthen the sustainable forest governance in Indonesia, the Ministry of Forestry of the Republic of Indonesia is currently refining key regulations, specifically Ministerial Regulation No. 8/2021 on Forest Governance, Forest Management Plans, and Forest Utilization in Protection and Production Forests. This revision aligns with the Indonesian government’s prioritized transformation toward sustainable forest utilization and an inclusive economy. 

These updates also reflect the mandates of Law No. 6/2023 on Job Creation, which aims to remove bottlenecks in forest governance and create pathways for an inclusive economy—particularly for smallholders, indigenous peoples and local communities—through the Multi-forestry Businesses initiatives and Social Forestry programmes. P.8/2021 serves as a technical manual for administrative guidelines, including the governance of forest utilization and product supply chains. These improvements reinforce three pillars of robust forest governance: traceability, legality, and sustainability. Ultimately, this regulatory breakthrough leverages an integrated digital system to address implementation challenges and modernize forestry administration.

Engaging Stakeholders for Better Governance

The revision process is designed to incorporate input from diverse stakeholders, including the general public. To facilitate this, the Ministry of Forestry is hosting a series of 11 national public consultation webinars between June and August 2026, in collaboration with the Multistakeholder Forestry Programme Phase 5 (MFP5).

On July 15, 2026, Dr. Krisdianto Sugiyanto, Co-Chair of BMRC and Director of Forest Revenue and Forest Products Administration at the Directorate General of Sustainable Forest Management, served as a panellist for the fifth webinar, titled “Strengthening transparent, accountable, and integrated forest product administration to support sustainable forest governance.” Joining Dr. Krisdianto were key representatives from academia (Dr. Ir. Farah Diba, S.Hut, M.Si, IPU, from Tanjung Pura University), the forestry business sector (Ir. Purwadi Soeprihanto, S.Hut, M.E, from the Indonesian Forest Concession Holders Association – APHI), and sub-national government (Dr. Ir. Jumadi, M.MT, from the Forestry Agency of East Java Province).

Caption: Dr Krisdianto Sugiyanto explaining how integrated national forestry and administration system can help with accountability for markets.

Integrated Digital Systems for Accountability

During the session, Dr. Krisdianto clarified the critical role of forestry information and administration systems in establishing traceability, legality, and sustainability. These systems are essential for market access, as traceability has become a fundamental requirement in global trade.

Indonesia has established digital systems to support this, including:

  • SIPUHH (Sistem Informasi Penatausahaan Hasil Hutan – Forest Products Administration Information System)
  • SILK (Sistem Informasi Legalitas dan Kelestarian – Legality and Sustainability Information System)
  • SIPASHUT (Sistem Informasi Pengendalian Usaha Pemanfaatan Hutan – Business Management and Utilization of Forest Information System)

As Dr. Krisdianto noted during the session:

“We are now facing challenges regarding non-tariff barriers, and transparent forest administration will support the proactive market diplomacy that Indonesia is actively leading.”

Future regulatory updates will focus on improving the interoperability of these systems, integrating them with the “One Data Sustainable Forest Management” (Satu Data PHL) framework. Beyond technical integration, the revision specifically addresses the needs of smallholders and social forestry businesses. The enhanced SIPUHH system aims to provide simpler, robust procedures that facilitate easier product marketing for these community-based enterprises.

A Competitive Future

Other speakers echoed the importance of system interoperability in boosting transparency and credibility. By creating a reliable decision-support system, Indonesia aims to establish accountability that not only meets market demands but also enhances national competitiveness and attracts green investment.

This webinar series underscores Indonesia’s commitment and multistakeholder processes to advance sustainable forest governance, offering valuable lessons for other BMRC members and beyond.