Jakarta, November 23, 2017 – The Villages, Disadvantaged Regions and Transmigration Ministry signed a memorandum of understanding (MoU) with Asia Pulp and Paper (APP). Both parties agreed to work together in accelerating the development of a number of villages across the country. The Ministry and APP have mapped out more than 100 villages that will be targeted by the program. The targeted villages are members of APP Desa Makmur Peduli Api (DMPA; Fire-Aware and Prosperous Village) program, also known as the Integrated Forestry & Farming System (IFFS).
An important point in the agreement is economic growth acceleration in the targeted villages through village-owned enterprises (BUMDes). Law No. 6/2014 on Villages stipulates that BUMDes are established to improve village economies through optimizing village assets in order to improve welfare, villagers’ engagement in managing economic potential and villagers’ income and village revenue. This is in line with APP Sinar Mas’ IFFS, which is focused on empowering villagers in concession areas in combination with environmental preservation efforts and forest fire-prevention programs.
In his speech, Villages, Disadvantaged Regions and Transmigration Minister Eko Putro Sandjojo said that he appreciated APP’s goodwill in contributing to and synergizing with the government’s program in line with the third program in the current administration’s Nawacita vision, namely developing Indonesia from the frontiers by reinforcing regions and villages within the framework of a unitary state. At the same event, Sinar Mas managing director G. Sulistiyanto said there were meeting points between the government’s interests through the ministry and APP Sinar Mas’ commitment.