The contribution of the forestry and woodcutting sub-sector to the GDP reached Rp112 trillion. This is very small because it is less than 1 percent of the GDP.
Jakarta (ANTARA) - The contribution of the forestry and woodcutting sub-sector to the national gross domestic product (GDP) stood at only Rp112 trillion or 0.66 percent last year, Finance Minister Sri Mulyani Indrawati has informed.



"The contribution of the forestry and woodcutting sub-sector to the GDP reached Rp112 trillion. This is very small because it is less than 1 percent of the GDP,” she said at the 7th Indonesian Forestry Congress here on Tuesday.



The sub-sector accounted for Rp91.6 trillion or 0.67 percent of the GDP in 2017, Rp97.4 trillion or 0.66 percent of the GDP in 2018, Rp104.1 trillion or 0.66 percent of the GDP in 2019, Rp108.6 trillion or 0.7 percent of the GDP in 2020, and Rp112 trillion or 0.66 percent of the GDP in 2021.


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In the past five years, the contribution of the sub-sector has increased in terms of value, but it has stagnated in terms of the percentage value. In addition, the prices in the sub-sector have also shown a downward trend, particularly since 2020, she noted.



The current prices in the forestry sub-sector grew 4.6 percent in 2017, rose to 6.3 percent in 2018, and moved up further to 6.9 percent in 2019. The current prices fell to 4.3 percent in 2020 and fell further to less than 3.1 percent in 2021.



Noting that the contribution of the sub-sector is less than 1 percent of the GDP, she said the government needs to make improvements since Indonesia is home to tropical forests.

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Since some of the tropical forests have been turned into timber estates, the sub-sector should have contributed significantly to the GDP, she added.



"This means that since some of the tropical forests have been turned into timber estates, I think it doesn't sound right if the contribution is less than 1 percent. There must be something that we need to improve,” she said.


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Translator: Astrid Faidlatul H, Suharto
Editor: Fardah Assegaf
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