Policy Strategy for Strengthening the Non-Timber Forest Product Value Chain in the Health Cluster of Indonesia's Bioeconomy
DOI:
https://doi.org/10.59141/jiss.v7i10.2594Keywords:
Non-timber forest products, Health clusters, Value chains, Systems thinking, Causal loop diagramsAbstract
The limited value addition of non-timber forest products (NTFPs) in Indonesia's health-related bioeconomy remains a significant challenge, reflected in substantial price disparities between fresh raw materials sold by farmers and dried medicinal plant materials (simplisia) purchased by processing industries. Between 2020 and 2025, the forestry-sector NTFP production base contracted by 20.9%, despite aggregate production figures appearing to double. This study aimed to identify structural constraints and formulate appropriate policy strategies. A qualitative policy research design employed two analytical tracks: prioritizing policy issues using the Urgency, Seriousness, and Growth (USG) method and examining systemic relationships through interviews and focus group discussions. Verbatim transcripts informed a causal loop diagram (CLD) containing 80 variables, 134 causal relationships, and 17 feedback loops. Policy alternatives were subsequently assessed using William N. Dunn's evaluation criteria. The findings revealed 12 reinforcing loops, only two supporting desirable change, and three balancing loops sustaining a low-value equilibrium. Isolated interventions, including seed assistance, financial grants, cooperation agreements, and demonstration plots, proved insufficient to overcome structural constraints. Three strategic leverage points emerged: establishing supply-guarantee institutions, securing downstream investment commitments for regional postharvest processing, and expanding health financing coverage for integrated traditional health services. The study recommends an integrated policy package combining these interventions to strengthen local value addition and address systemic barriers. Collectively, the proposed measures targeted 10 of the 17 identified feedback loops, compared with only two to four loops addressed by individual interventions. This integrated approach offers a more comprehensive pathway toward sustainable NTFP-based bioeconomic development and equitable value distribution.
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