INDONESIA

Indonesia Strengthens Forestry Diplomacy, Showcases Forest Governance Reforms

At the 21st ASEAN Working Group on Forest Management (AWG-FM) meeting held in Siem Reap, Cambodia, Indonesia's Ministry of Forestry presented various progress updates, including updated national forestry statistics, the development of a technology-based forest monitoring system, the implementation of nature-based solutions, and the strengthening of regional cooperation to accelerate the implementation of Sustainable Forest Management (SFM) in the ASEAN region.

Indonesia also noted that its national forest area is approximately 123.9 million hectares, of which about 67 million hectares are production forests managed sustainably. Strengthening monitoring systems, digitizing forestry services, and implementing the legality and sustainability verification system (SVLK+) are seen as cornerstones for enhancing the international market competitiveness of Indonesian forest products.

Furthermore, the Indonesian government announced the outcomes of its "Social Forestry" program: the program has granted community management rights over approximately 8.4 million hectares of land, benefiting over 1.4 million families, and has led to the formation of more than 16,600 Social Forestry Business Groups (KUPS). This program is regarded as a key initiative for improving community welfare while protecting forests.

Indonesia to Shift from Traditional Timber Production to Diversified Forestry Business Model

Indonesia is accelerating the transformation of its national forest utilization, shifting from a timber-centric business model to a "Diversified Forestry Business" (MUK) model to promote a green bioeconomy.

The Ministry of Forestry announced this policy shift during a recent online panel discussion, noting that the industry has long relied on log production and has seen economic returns stagnate.

Ilham, Director of Forest Utilization Business Development at the Ministry of Forestry, stated that from a business perspective, timber production faces increasingly severe challenges because operational costs often exceed current market prices.

Ilham pointed out the need to find transformation and optimization solutions beyond timber production, such as producing food through silvopasture systems, providing energy from biomass and biofuels, and developing water resource utilization pathways. Beyond tangible goods, the government views environmental services – particularly carbon sinks (carbon sequestration) and carbon trading – as the next major driver of macroeconomic growth.

Indonesia Forestry Carbon Hub Officially Launched

The Indonesian government officially launched the "Indonesia Forestry Carbon Hub" as a carbon trading center for the forestry sector and approved several carbon projects deemed ready for implementation. The launch ceremony took place on July 6, 2026, in Jakarta, marking a strategic step by the government to strengthen transparent, accountable, and integrated governance of carbon trading, while also providing strong support for achieving Indonesia's "2030 FOLU Net Sink" target.

During the launch phase, the Ministry of Forestry, based on Minister of Forestry Regulation No. 6 of 2026, approved a number of forestry projects meeting the requirements to issue carbon units through the "Non-SPE GRK" mechanism. This policy opens a new chapter in forestry carbon management, with a strong emphasis on regulatory certainty, transaction transparency, and economic benefits for the nation and communities.

Minister of Forestry Raja Juli Antoni stated that the total area of the first batch of approved projects is approximately 225,000 hectares, with an estimated emission reduction potential of about 30 million tons of CO2 equivalent.

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MALAYSIA

Malaysian Government Drafting Climate Change Bill and Developing REDD+ Financial Framework

Malaysia's Minister of Natural Resources and Environmental Sustainability, Arthur Joseph Kurup, revealed that his ministry is currently drafting the National Climate Change Bill (RUU RUPIN), aimed at establishing a regulatory mechanism to ensure transparent and compliant carbon trading processes. He stated that proceeds from carbon credit trading would be channeled into a climate change fund established under this law to finance various climate response initiatives, including empowering vulnerable local communities.

He also indicated that his ministry is developing an innovative financial mechanism under the national REDD+ (Reducing Emissions from Deforestation and Forest Degradation) implementation strategy, namely the REDD+ Financial Framework. This framework includes two main instruments: Forest Conservation Certificates (FCC) and Forest Carbon Offset Credits (FCO). Both instruments are developed based on the Cancun Safeguards, which emphasize social, environmental, and governance safeguards.

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THAILAND

Thailand's Furniture Export Data for January-June

According to data published on the official website of the Thai Furniture Association, Thailand's total exports of furniture and parts reached USD 996 million in the first half of 2026, a year-on-year increase of 20.77%. During the same period, sawn timber exports amounted to USD 651 million, up 2.37% year-on-year; medium-density fiberboard exports were USD 325 million, down 25.99% year-on-year; and particleboard exports were USD 229 million, down 9.32% year-on-year.

Federation of Thai Industries Proposes Four Strategies to Address US Tariffs

Pimjai Leesaranukul, Chairperson of the Federation of Thai Industries (FTI), revealed that the FTI is closely monitoring US tariff measures after the US announced it would invoke Section 301 of the Trade Act of 1974 to impose additional import tariffs on 60 economies.

For Thailand, starting July 24, 2026, most goods exported to the US will face an additional 12.5% tariff on top of normal duty rates, replacing the 10% temporary tariff under Section 122 which expires on the same date. This measure has a significant impact on Thai industries.

The US is Thailand's largest export market. From January to May 2026, Thailand's exports to the US were approximately USD 38.037 billion, a year-on-year increase of 40.31%, accounting for about 23.5% of Thailand's total exports.

Therefore, the tariff adjustment may affect the competitiveness of Thai businesses in the US market. Particularly affected are product categories heavily reliant on the US market, such as food and processed food, automotive parts, gems and jewelry, furniture, textiles, and garments.

Pimjai stated that to respond to US trade measures, efforts should focus on four key areas:

1. Market diversification to reduce over-reliance on a single market.

2. Enhancing compliance with international standards.

3. Increasing product value and developing innovation to maintain competitiveness under high tariff conditions.

4. Improving supply chains to enhance traceability.

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CHINA

2026 APEC Ministerial Meeting on Forestry Held in Shenzhen

From July 27 to 28, the 2026 APEC Ministerial Meeting on Forestry was held in Shenzhen, Guangdong Province, under the theme "Enhancing Asia-Pacific Forest Resilience for Shared Ecological Well-being." High-level representatives from 21 APEC economies and 7 international organizations, along with experts and scholars, engaged in dialogue and consultation on core issues including advancing global forest goals, promoting technological innovation, and integrating green industries. The meeting reached broad consensus and adopted the "2026 APEC Ministerial Meeting on Forestry Joint Statement." This meeting was one of the key events of the APEC "China Year" and the first APEC ecological sector meeting held in China after 15 years.

Chinese Government Issues Forestry and Grassland "15th Five-Year" Plan

Recently, the National Forestry and Grassland Administration, together with the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Natural Resources, jointly issued the "Forestry and Grassland Protection and Utilization '15th Five-Year' Plan," proposing to strive for a forestry and grassland coverage rate of 56.4%, a forest coverage rate of 25.8%, a forest stock volume of 22.4 billion cubic meters, and a total forestry and grassland industry output value of 14 trillion yuan by 2030. In addition, the Plan explicitly states to "promote the participation of forest carbon sink projects in the national greenhouse gas voluntary emission reduction trading market."