The government is forming a Forest Development Financing Company (BUPPH) that would finance the development of 5.4 million hectares of smallholders’ forests, using Rp9.7 trillion from the Reforestation Fund.
"We discussed further steps toward the setting up of the BUPPH and they have been approved," Forestry Minister MS Ka'ban said after a meeting with Finance Minister Sri Mulyani Indrawati on Monday (29/1/07).
Ka'ban said the draft of a joint ministerial decree on establishing the BUPPH is expected to be issued in mid-February.
The BUPPH would function as a public service body to manage Rp9.7 trillion in rolling funds from the Reforestation Fund's Forest Development Account. "This is for the development of community-based forests across Indonesia. They could be located in Riau, Jambi or other provinces," he said, according to Antara.
He said it is necessary to develop community-based forests to enable the people to gain access to forest resources and play a role in the plantation sector. "Besides, critical fallow lands will also be made more productive," he said.
Ka'ban said development of the community-based forests would cover 5.4 million hectares and be completed in 2014.