Forest export earnings to exceed $8b in 2000<\/p>\n
JAKARTA (JP): The Indonesian Forestry Society (MPI) forecasts
\nthe country's foreign exchange earnings from exports of wood and
\nother forest-related products this year to reach more than US$8
\nbillion.<\/p>\n
MPI executive director Kristiyono Fajari said on Sunday the
\nexport target was comparatively the same as last year's target.<\/p>\n
Kristiyono was optimistic that the 1999 export target could be
\nobtained despite the sluggish market between January and August
\nhelped by higher international prices of pulp and paper products.<\/p>\n
He was quoted by Antara as saying that prices of wood and
\nwood-related products had stabilized in November and started to
\npick up in December.<\/p>\n
Forest products, particularly plywood, have been one of
\nIndonesia's major non-oil and gas foreign exchange earners.<\/p>\n
But plywood prices started to plunge in 1998 as the regional
\neconomic crisis hit Japan and South Korea, the two main markets
\nfor Indonesian plywood.<\/p>\n
The average price of Indonesian plywood products in 1999 was
\n$310 per m3 compared to $470 per m3 in 1997.<\/p>\n
Kristiyono said Indonesia's plywood export earnings from
\nJanuary until August 1999 were $1.6 billion compared to the full
\nyear target of $2.5 billion.<\/p>\n
Kristiyono urged the government to delay the planned increase
\nin the so-called reforestation fee, reasoning that the increase
\nwould have a serious impact on the domestic plywood industry.<\/p>\n
He said that the country's plywood industry was still in a
\ndifficult situation as the current market price of $310 per m3
\nfor plywood was lower than the total production cost, including
\nthe reforestation fee, of $314 per m3.<\/p>\n
Reforestation fees and forest loyalties are mandatory fees
\nimposed by the government on forest concessionaires for every log
\ncut in their concession areas to ensure sustainable forest
\nmanagement.<\/p>\n
The size of the fee depends on the volume and type of timber
\nfelled.<\/p>\n
Several senior government officials have proposed an increased
\nin the reforestation fee. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/forest-export-earnings-to-exceed-8b-in-2000-1447893297",
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