Jakarta, July 2 -- Indonesia is accelerating the transformation of national forest utilization by shifting from a timber-based business model to a Multi-Enterprise Forestry (MUK) scheme to boost the green bioeconomy.

The Forestry Ministry announced the policy pivot during an online panel on Thursday, citing stagnant economic returns from a sector historically dependent on raw wood production.

Timber production has become increasingly challenging from a commercial standpoint because operational production costs frequently exceed current market prices, according to the ministry's Director of Forest Utilization Business Development Ilham.

"We need to find optimization options for transformation beyond timber, for example, utilizing silvop...