Initial Steps to Develop an FMU Business Plan in Central Kalimantan

On Tuesday, July 21, 2020, GGGI supporting the Forestry Office of Central Kalimantan Province held a Forest Management Unit (FMU) Business Plan Webinar featuring expert speakers Ir. Mintarjo Dwijomartono, Acting Director of Protected Forest Management Unit (KPHL), Directorate General of Watershed and Protected Forest Management (PDASHL) and Ir. Dody Dwinardy, M.M., Head of Sub-Directorate for Institutional Development, Directorate of Production Forest Management Units (KPHP) of the Ministry of Environment and Forestry (MoEF).

Opened by the Secretary of the Forestry Office of Central Kalimantan Province, A. Syaifudi S.Pd, M.S.M., the webinar was attended by around 100 participants from various forestry agencies, Forestry Offices, the technical implementation units of MoEF and FMUs in Central Kalimantan, South Kalimantan, as well as East Kalimantan Provinces.

Ir. Mintarjo Dwijomartono explained that one way to achieve the independence of FMUs is through forest utilization. Potentially utilized forest resources include forest areas, environmental services, timber forest products, non-timber forest products and carbon. An FMU’s business plan provides benefits to strengthen the FMU in viewing their asset structure and potentials, such as facilitating opportunities for cooperation and partnerships with the private sectors, communities and donors, clarifying the direction of forest management at the grassroot level, as well as promotional tools for submitting proposals to investors.

Ir. Dody Dwinardy, M.M. conveyed that FMUs play an important role in supporting MoEF in the implementation of the 2020-2024 National Medium-term Development Plan (RPJMN), notably the National Priority 1, namely strengthening economic resilience for quality and equitable growth, and the National Priority 6, which is building the environment, increasing disaster and climate change resilience. There are various cooperation schemes between FMUs and third parties in utilizing the forest areas as regulated in the Minister of Environment and Forestry Regulation Number P.49/MENLHK/SETJEN/KUM.1/9/2017.

Several conditions must be met by FMUs for cooperation, including having implemented Regional Public Service Agency Financial Management Measures (PPK BLUD) or other financial management measures stated in Long-Term Forest Management Plan (RPHJP) and Short-Term Forest Management Plan (RPHJPd), and the involvement of the community. He also added that several FMUs have already reported Non-Tax State Revenues, including FMU Murung Raya from Central Kalimantan.

From this discussion, it is concluded that the future role of FMUs will be increasingly important in preserving the forests while contributing to the livelihood of both local communities and governments. To achieve this ideal condition, support from the government, local governments, private sector and community are needed so that FMUs do not only function as a cost center but could also contribute to the economy.