The International Finance Corporation’s (IFC) country manager for Indonesia, Adam Sack, has spoken about plans to invest some US$500 million in the coming financial year into various projects, including sustainable forestry programs.
Seattle, WA, August 13, 2011 -- The International Finance Corporation’s (IFC) country manager for Indonesia, Adam Sack, has spoken about plans to invest some US$500 million in the coming financial year into various projects, including sustainable forestry programs.
Forestry Research Associates (FRA), a research and analysis consultancy, claims the investment will help to support a change in attitudes towards sustainable forestry in Indonesia, aiding the protection of the nation’s valuable forests. “This investment will help to establish managed forestry as a valid industry in Indonesia, underlining the fact that it makes more sense in the long run to protect the forestry industry for many generations to come by managing logging in a sustainable way,” stated FRA’s analysis partner, Peter Collins.
Mr Sack explained that much of the money will go towards establishing private sector partnerships with firms that have the country’s interests at heart. He said that with regard to sustainable forestry and agribusiness – one of the major investment areas – “There’s a number of potential partners to whom we are committed to serve with long-term capital.”
The financial impact of the investment is expected to be far-reaching, creating business opportunities and jobs within sectors such as forestry, agriculture and infrastructure. The IFC’s regional director, Sergio Pimenta, said, “We expect to support 72,000 jobs, reach 157,000 farmers and facilitate loans to micro, small and medium enterprises worth around $12.3 billion.”
Indonesia is home to massive areas of forested land and the trees growing in the South East Asian country are essential to the protection of the earth’s climate as they absorb carbon dioxide and emit oxygen. This helps to reduce the amount of harmful gases being released into the atmosphere, offering Indonesia the potential to make money through carbon trading initiatives.
“Managed sustainable forestry is all about ensuring people realize that trees have a value when they are still standing as well as when they are felled and turned into timber products,” explained Mr Collins. He added that projects such as the plantations operated by Greenwood Management in Brazil help to attract investment and assist in validating this new approach to forestry management in emerging economies.
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