National reforestation fund: case of Indonesia

Abstract

In order for the forestry fund to have substantial meaning, the fundamental factors that inhibit the forestry business must be removed first. Although public investment of the reforestation fund (DR) is quite large, the overall productivity of the land developed for industrial plantation forest has failed to achieve the targets set. Two internal factors that need to be addressed are (1) the property rights issue and (2) timber price, which are very crucial for long-term investments. Only when forestry investments are attractive, then the funds will flow to the forestry sector. If forestry investment is not profitable, then the forestry fund will only be wasted and there will be no sustainable production forests. Keywords: Dana reboisasi (DR), Natural forest, Royalty, Incentive, Profitable, Sustainable