Economists back transfer of forestry fund<\/p>\n
JAKARTA (JP): Economists welcomed the government's move to
\ntransfer US$270.90 million of forestry funds to the Ministry of
\nFinance as state contingency funds.<\/p>\n
\"This is a good move because the forestry funds, under the
\nfinance ministry, will be more transparent and accountable to the
\npublic,\" Hadi Soesastro, executive director of the Centre for
\nStrategic and International Studies, told The Jakarta Post
\nSaturday.<\/p>\n
Minister of Forestry Djamaludin Suryohadikusumo told the House
\nof Representatives on Friday that his office had transferred
\n$270.90 million of its reforestation funds to the finance
\nministry to offset any possible shortfalls from declining oil
\nprices in state revenues in the 1995-96 fiscal year.<\/p>\n
Similar praise was also voiced by business analyst Christianto
\nWibisono, chairman of the Center of Indonesian Business Data.<\/p>\n
\"By transferring reforestation funds into the state budget, we
\ncan be a little more sure of accountability,\" he said.<\/p>\n
It is entirely up to Minister of Finance Mar'ie Muhammad to
\ndecide on the allocation of that fund, Djamaludin said.<\/p>\n
The transfer from the forestry ministry increased the amount
\nof reserves held by the government to more than Rp 2.2 trillion.
\nSome Rp 1.7 trillion of this reserve came from budget surpluses
\naccumulated over the last three years.<\/p>\n
The government has calculated its oil revenues in 1995-96 on
\nthe basis of an average price of $16.50 per barrel.<\/p>\n
The budget forecasts revenue from the oil and gas sector at
\n$6.03 billion or 17.01 percent of total domestic revenue.<\/p>\n
Both Hadi and Christianto, although they differed on the
\nlikeliness of a deficit, consented that there is nothing wrong
\nwith increasing the reserve.<\/p>\n
\"Although I don't think deficit is likely, it is always good
\nto have more reserves,\" Hadi said.<\/p>\n
Christianto said that the reserve can be used for other
\nemergencies instead of compensating for deficits.<\/p>\n
Levies<\/p>\n
Official figures show that Rp 3.04 trillion in reforestation
\nfunds have been raised through levies collected from forest
\nconcessionaires over the last five years.<\/p>\n
The funds, currently placed in state banks in time deposits,
\nare managed by the forestry ministry and not counted as state
\nbudget revenues. Their utilization therefore escapes legislative
\nsupervision.<\/p>\n
The government merely stipulates that reforestation funds are
\nstrictly for forestry development programs which may be carried
\nout by the concessionaires.<\/p>\n
Many observers and environmental organizations were surprised
\nlast year when the forestry ministry transferred about $185
\nmillion of interest gained from the reforestation funds to IPTN,
\nthe state aircraft manufacturing company chaired by State
\nMinister of Research and Technology B.J. Habibie. A presidential
\ndecree allowed it to be transferred as an interest-free loan.<\/p>\n
Eleven environmental groups filed suit against President
\nSoeharto through the State Administrative Court. The presiding
\njudge turned down the suit.<\/p>\n
Another economist, who requested anonymity, said Saturday the
\ntransfer of the reforestation funds to the finance ministry may
\nbe a way to prevent further \"unorthodox\" use of the funds.<\/p>\n
\"Judging from the characters of Ministers Djamaludin and
\nMar'ie, it is quite possible that this is a political move to
\ncontrol the funds,\" he said. (hdj\/rid)<\/p>",
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