Interconnection with the Ministry of Environment and Forestry's Information System, Ministry of Industry Boosts the Performance of the Processed Wood Industry

Processed wood illustration (photo: dock. Antara)

JAKARTA - The Ministry of Industry (Kemenperin) hopes that the interconnection of the forestry product information system with the Ministry of Environment and Forestry (KLHK) will spur the performance of the processed wood industry and national furniture industry.

In this regard, the Ministry of Industry agreed to exchange data between the Ministry of Environment's Sustainable Forest Management Information System (SIPHL) and the Ministry of Industry's National Industrial Information System (SIINas) with the facilitation of the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves).

This agreement was marked by the signing of a Cooperation Agreement (PKS) regarding the exchange and utilization of data on wood raw materials and wood processed products (interconnection of forestry industry product information systems).

"It is hoped that the interconnection between SIPHL KLHK and SIINas Ministry of Industry will provide benefits to the government as a policy maker, and also to wood industry players both in the upstream and downstream sectors," said the Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, in a written statement received by VOI, Saturday, December 16.

The benefits to the government include, among other things, transparency in the flow of data on wood raw materials to the downstream sector and vice versa as data material in policy making.

"The benefit for industry players is that in the future it is hoped that there will be a dashboard on the availability of wood raw materials and downstream industry offtakers so that the flow of wood raw materials to industry will be faster," he said.

Based on records from the Ministry of Industry, the wood, rattan and bamboo processing industry as one of the agro-industry sub-sectors has contributed 4 percent with an export performance value reaching 4.66 billion US dollars throughout 2022.

Meanwhile, based on data from SIINas and associations, there are 520 processed wood industry companies (KBLI 16) with a direct workforce of 310,330 people.

The total realization of investment in the processed wood industry in Indonesia reached IDR 3.5 trillion throughout 2022. Meanwhile, the export performance of the furniture industry was recorded at reaching 2.47 billion US dollars in 2022.

In addition, the number of furniture industries (KBLI 31) is recorded at 1,114 companies with direct employment of up to 143,119 people and total investment throughout 2022 of IDR 2.9 trillion.

It is known that the Coordinating Ministry for Maritime Affairs and Fisheries facilitates the interconnection of forest product information systems to bring information systems closer to upstream and downstream and support synergy between institutions in the digital era.

This facilitation is contained in the Cooperation Agreement (PKS) regarding the exchange and utilization of data on wood raw materials and processed wood products which was signed by Deputy for Environmental and Forestry Management of the Coordinating Ministry for Maritime Affairs and Fisheries Nani Hendiarti, Acting Director General of Sustainable Forest Management of the Ministry of Environment and Forestry (KLHK) Agus Justianto, as well as the Director General of Agro Industry, Ministry of Industry (Kemenperin) Putu Juli Ardika on Thursday, December 14.

The main point of interconnection of this information system is to enable SIPHL and SIINas to exchange data in two directions via an online system. Data on the use of wood and processed wood products is available in real-time via dashboards at the Ministry of Environment and Forestry and the Ministry of Industry, which supports the government in monitoring the production and use of wood and processed wood products in the domestic industry.

This collaboration is a concrete step in synergy between institutions to support traceability of raw materials to finished wood products and to increase production in the Indonesian forestry industry.