Fuel price hike blamed for logging industry troubles<\/p>\n
Rusman, The Jakarta Post, Samarinda<\/p>\n
The timber industry in East Kalimantan is on the brink of
\ncollapse due to rising production costs and a lack of raw
\nmaterials, an executive with a timber firm association says.<\/p>\n
Taufan Tirtamana, the secretary of the Indonesian Timber Firm
\nAssociation (APHI), said the government must intervene to save
\nthe industry, otherwise thousands of workers would lose their
\njobs.<\/p>\n
Taufan blamed the fuel price hike on Oct. 1 for the rising
\nproduction costs. "The higher fuel price has burdened a lot of
\ntimber firms, leading to slow business in timber sales and
\nproduction here," he said. These companies consumed significant
\namounts of fuel during wood processing and transportation.<\/p>\n
The second problem was the government policy to cut legal tree
\nfelling quotas in East Kalimantan, Taufan said. Last year, the
\ngovernment allowed 1.5 million cubic meters of timber to be
\nfelled in the province, but this year, the quota was reduced to
\n1.4 million, leading into lack of raw materials for mills.<\/p>\n
The national crackdown on illegal logging is also likely to
\nhave affected business.<\/p>\n
Demand for logs reaches about 8 million cubic meters a year
\nand firms now seeking logs outside East Kalimantan have only
\nincurred increased transportation expenses.<\/p>\n
Taufan called for the government to subsidize fuel for timber
\nfirms and increase the quotas for logged timber.<\/p>\n
Meanwhile, the East Kalimantan manpower office estimated some
\n54,000 people worked in the forestry, milling and transportation
\nindustries.<\/p>\n
Some 4,200 workers were laid off last year with 1,200 losing
\ntheir jobs so far this year.<\/p>\n
Suriansyah, 34, was one of those unlucky workers. He had still
\nnot received the severance pay he was legally entitled to,
\ndespite working for his company for several years.<\/p>\n
"The workers understand the timber industry is still in the
\ndoldrums, but we badly need severance pay to continue living,"
\nSuriansyah said.<\/p>\n
A migrant from East Java province, Suriansyah has been joining
\nprotests about the issue since last week. He is planning to set
\nup a small restaurant back in East Java if he gets paid out.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fuel-price-hike-blamed-for-logging-industry-troubles-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}