{
    "success": true,
    "data": {
        "id": 1003626,
        "msgid": "forestry-to-adopt-better-accounting-method-1447893297",
        "date": "1994-09-14 00:00:00",
        "title": "Forestry to adopt better accounting method",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Forestry to adopt better accounting method JAKARTA (JP): The forestry industry is expected to adopt a standardized accounting method by the end of this year, says Minister of Forestry Djamaloedin Soeryohadikoesoemo. \"The Ministry of Forestry will cooperate with the Association of Indonesian Accountants and some experts from universities to formulate the standardized accounting methods,\" Djamaloedin told reporters on Monday.",
        "content": "<p>Forestry to adopt better accounting method<\/p>\n<p>JAKARTA (JP): The forestry industry is expected to adopt a<br>\nstandardized accounting method by the end of this year, says<br>\nMinister of Forestry Djamaloedin Soeryohadikoesoemo.<\/p>\n<p>&quot;The Ministry of Forestry will cooperate with the Association<br>\nof Indonesian Accountants and some experts from universities to<br>\nformulate the standardized accounting methods,&quot; Djamaloedin told<br>\nreporters on Monday.<\/p>\n<p>He said standardization is needed to determine the precise<br>\nlevel of economic rents that the government or communities can<br>\nderive from forest concessions to timber companies.<\/p>\n<p>Indonesian forestry regulations stipulate that timber estates<br>\nare state properties which are given out to concessionaires for a<br>\nlimited period of time.<\/p>\n<p>For the forest industry, economic rents can be regarded as<br>\nearnings in excess of total production costs including operating<br>\nexpenses, depreciation, overhead and transportation costs.<\/p>\n<p>In Indonesia, such earnings are usually obtained from forest<br>\nroyalties, reforestation funds and corporate taxes from timber<br>\ncompanies.<\/p>\n<p>&quot;Today we have no uniformed way to define the rents,&quot; said the<br>\nminister.<\/p>\n<p>&quot;I expect that the new accounting method will lead to a levies<br>\ncollecting mechanism which is closely related to the fluctuation<br>\nof the prices of forest-based products,&quot; he said.<\/p>\n<p>Indonesia, which currently has 113 million hectares of forests<br>\nwith reserves of some 2.4 billion cubic meters of timber, last<br>\nyear exported US$5.47 billion worth of wood products, accounting<br>\nfor 14.86 percent of the country&apos;s total exports.<\/p>\n<p>Forestry economic experts Don Fletcher and Simon Henderson<br>\nargue in their joint paper that the absence of a large domestic<br>\nlog market and the existence of transfer pricing between<br>\nconcessions and integrated processing industries make the<br>\nestimation of the real value of roundwood &quot;contentious&quot; and &quot;open<br>\nto manipulation.&quot;(hdj)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/forestry-to-adopt-better-accounting-method-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}