Cooperatives to get forestry venture shares<\/p>\n
JAKARTA (JP): The Ministry of Forestry has issued a new
\nregulation requiring joint forestry ventures between state and
\nprivate firms to set aside a portion of their shares to be used
\nby cooperatives and local administration-run companies.<\/p>\n
The new ruling, dated Jan. 31, stipulates that the minimum
\nportion of shares allocated for cooperatives is two percent.<\/p>\n
It also notes that the minimum portion of a private firm's
\nshares in a joint forestry venture is 49 percent, while the
\nmaximum portion of a state company's shares is 49 percent.<\/p>\n
The state companies are then required to set aside five to 10
\npercent of their shares to provincial administration-run firms,
\nAntara reported yesterday.<\/p>\n
The forestry ministry has forced concessionaires which failed
\nto meet requirements on sustainable management to hand over their
\nconcessions to the ministry or make joint venture companies with
\nstate forestry firms.<\/p>\n
Last December, the ministry assigned state companies to take
\nover 77 destroyed concessions and acquire shares in 33 other
\nconcessions.<\/p>\n
The ministry has allocated funds in its budget to rehabilitate
\nthe destroyed concessions. The funds will be considered to be
\npart of the government's equity when a joint venture company is
\nestablished to manage the rehabilitated concessions. Private
\npartners are required to pay at least 10 percent of the
\nauthorized capital. (rid)<\/p>",
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"sponsor": "Okusi Associates",
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