After the issuance of Law No. 6 of 2023 concerning Job Creation and its implementing regulations, forest utilization activities in Protected Forests and Production Forests are carried out through Forest Utilization Business Permits (Perizinan Berusaha Pemanfaatan Hutan – PBPH) through multi-forestry businesses as a form of landscape-based forest management. Forest utilization through forestry multi-businesses is a breakthrough and paradigm-shifting of forest utilization in Indonesia, which changes the implementation of forest utilization from primarily forest utilization for timber forest products, to forest utilization for optimizing forest areas by integrating area utilization, environmental services, timber forest products, and non-timber forest products.

PBPH holders recognize the development of forestry multi-businesses as:

1. Conflict resolution efforts;

1. Supporting Government Programs in Food Security;
2. Added value of forest areas;
3. Optimizing the use of NTFP, environmental services, agroforestry, and ecotourism;
4. Controlling natural and plantation forests as well as optimal management of production forests.

Based on Law Number 32 of 2024 Regarding Conservation of Natural Biodiversity Resources and Ecosystems, Preservation Areas are areas outside of nature reserve areas, nature conservation areas, and conservation areas in waters, coastal areas, and small islands whose ecological conditions are maintained to support the life support function or the survival of natural biological resources and their ecosystems. Preservation areas cover Protected Forest areas, Production Forest areas, and Other Land Use areas (APL).

Every PBPH holder in the Preservation Area is obliged to maintain the continuity of the protection function of the area by carrying out conservation activities for biodiversity resources and must make adjustments to the management of business licensing areas including providing its funding.

The Government of Indonesia has the ambition to achieve the target of FOLU Net Sink 2030. Landscape-based forest management through multi-forestry businesses can optimize forest areas, utilize unproductive forest areas to protect natural forests from deforestation, increase forest product productivity, and diversify forest products by integrating area utilization, environmental services, timber forest products, and non-timber forest products. 

PBPH is a form of forest area that is professionally managed for the production of wood and other forest products. As an important part of the global ecosystem, PBPH has a strategic role in maintaining ecological balance, providing natural resources, and providing social and economic benefits for local and national communities. In its management efforts, PBPH can also have a significant impact on the environment and surrounding communities, both positively and negatively. Management of High Biodiversity Resources in the Preservation Area is crucial to ensure that forest management practices in PBPH meet sustainable forest management principles. It is also one of the efforts in achieving the FOLU Net Sink  2030 target.

In the Indonesian Pavilion COP 29 UNFCCC in Baku, Azerbaijan, the Directorate General of Sustainable Forest Management, the Ministry of Environment and Forestry will hold a session on Orchestration of Preservation-Based Production Forest Management.