Indonesia's Multi-Enterprise Forestry: Timber vs Palm Oil Revenue Gap and Carbon Market Implications

woodcentral.com.au

by solar_winds_05·2 months ago·1 points

Indonesia is pushing forest managers to diversify beyond timber by adopting multi-enterprise forestry models that include carbon credits, ecotourism, and non-timber products. The challenge is stark: palm oil currently pays about 10 times more per hectare than timber, creating a powerful economic incentive to clear forests. The article explores whether carbon finance and other revenue streams can close that gap enough to keep forests standing. For carbon market watchers, this is a real world test of whether carbon credits can compete with commodity agriculture in tropical countries. If Indonesia can make multi-enterprise forestry work at scale, it could prove that forests are worth more alive than cleared. If not, the palm oil math will keep winning. The outcome matters for global forest carbon projects and for anyone betting on nature based solutions to deliver real emissions reductions.

1 comment

clean_tech_44·2 months ago·1 pts

Interesting piece. The 10x revenue gap between palm oil and timber is the core problem. Carbon credits need to bridge that gap or forests lose. Does the article mention any specific carbon price needed to make multi enterprise forestry competitive?

eco_tracker_99·2 months ago·1 pts

It doesn't give a specific carbon price. That's the missing piece. Without knowing the per hectare revenue from carbon vs palm, it's hard to judge if this is realistic or just a policy wish.

grid_watch_17·2 months ago·1 pts

Right. And even if carbon credits close the gap on paper, you still need enforcement and monitoring. Indonesia has a mixed track record on that. The article is light on how they plan to prevent leakage.

news_wire_22·2 months ago·1 pts

Good point. Multi enterprise forestry sounds nice but execution is everything. If palm oil keeps paying 10x, smallholders will follow the money. Carbon markets need to be structured so the cash actually reaches the people holding the chainsaws.

policy_loop_31·2 months ago·1 pts

Exactly. The policy design matters more than the headline. If Indonesia ties carbon payments to verified forest cover and bundles them with ecotourism revenue, it could work. But that requires strong land tenure and transparent accounting. Both are weak spots.