Forestry ministry rejects WB plan as unrealistic<\/p>\n
JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo
\nsaid yesterday the government could not meet a World Bank
\nproposal on the increase of mandatory forest royalties because
\nits implementation would hurt the domestic market.<\/p>\n
Djamaludin said that any increase in the royalties would force
\ntimber prices to go up. \"And if local people and domestic
\nconsumers can not afford the new price, they will go after cheap,
\nillegally-cut timber,\" he told reporters.<\/p>\n
Djamaludin was responding to the World Bank's recent country
\nreport on Indonesia, which recommended, among other things, that
\nthe government should raise forest royalties as a way to gain
\nmore revenue.<\/p>\n
The bank, according to the report, considered that the current
\nroyalties, which average at about US$22 per cubic meter, are
\nsignificantly below the estimated difference between world and
\ndomestic log prices -- currently about $90 per cubic meter --
\nwith actual collections even lower.<\/p>\n
The bank considered that the royalties could be raised to over
\n$50 per cubic meter, to correspond with the ratio of public to
\nprivate revenues from oil.<\/p>\n
To guarantee environmental sustainability, the World Bank also
\nsuggested that the government change the forest concession
\nsystem, which currently gives concessionaires a 20-year operating
\nperiod, and require more transparency in forest management.<\/p>\n
A lack of transparency, the report said, has led to
\nirresponsible forest management.<\/p>\n
Djamaludin said that even with the current royalties, domestic
\ncustomers, particularly local, low-income buyers, could not
\nafford to buy legally-cut wood.<\/p>\n
\"Legally cut wood -- whose royalties, reforestation funds and
\nother requirements have been paid for -- now costs about Rp
\n300,000 (US$130) to Rp 400,000 per cubic meter... This is already
\ntoo much for a farmer or teacher's earnings,\" he said.<\/p>\n
But he pointed out that forest royalties are reviewed every
\nsix months to reflect the current inflation rate and world market
\nprices. The last time the government increased forest royalties
\nwas last August, when royalties were raised by between 9 and 27
\npercent.<\/p>\n
Forest royalties and reforestation funds are among the
\nmandatory fees that concessionaires must pay to guarantee that
\nforests are managed in an environmentally-sound manner. The
\npayment of the fees also determines whether or not a
\nconcessionaire can continue its operations.<\/p>\n
Extension<\/p>\n
Responding to the World Bank's suggestion to extend the
\ncurrent 20-year concession period, Djamaludin said such a change
\ncould not yet guarantee better forest management.<\/p>\n
\"In developed countries, where there is sound environmental
\nawareness and responsibility, there is a positive correlation
\nbetween longer concession periods and better forest management.
\nBut in our business society particularly, such an awareness is
\nstill questionable,\" he said.<\/p>\n
\"I know this because I deal with them everyday. Extending
\nconcession periods at this time, I believe, may actually harm
\nforests even more,\" Djamaludin added.<\/p>\n
He said his office would consider all of the World Bank's
\nrecommendations, but insisted that whatever it did would be in
\nline with Indonesia's national interest and in favor of the
\npeople.<\/p>\n
Under the government's most recent forest regulations, he
\ncited, concessionaires are subject to a five-year government
\ncheck-up and assessment.<\/p>\n
\"After five years, we can determine whether a concession is
\nfeasible enough to continue or not,\" he said.<\/p>\n
Previously, a concession was assessed only when it had almost
\nended its 20-year concession period. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/forestry-ministry-rejects-wb-plan-as-unrealistic-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}