Government wants 5% rise in forest royalties<\/p>\n
JAKARTA (JP): The Ministry of Forestry has proposed a 5
\npercent increase in forest royalties, but the business community
\nis against the plan, Forest Minister Djamaludin Suryohadikusumo
\nsaid over the weekend.<\/p>\n
Djamaludin said the decision to increase forest royalties for
\nthe April-September period was still being discussed. He did not
\nsay when the government would announce the decision.<\/p>\n
He said the proposed 5 percent increase was merely an
\nadjustment to the rise in the inflation rate. "But businesspeople
\nhad asked for a postponement of the raise," he added.<\/p>\n
Djamaludin said that although world prices of timber products
\nwere currently on the rise -- which made an increase of the fees
\njustifiable -- businesses had complained of the various fees they
\nhad to pay, Antara reported.<\/p>\n
Forest royalties are among the fees that forest
\nconcessionaires must pay in order to operate.<\/p>\n
Together with reforestation funds, they are designed to
\nguarantee that concessionaires manage their forests in an
\nenvironmentally-sustainable manner.<\/p>\n
Forest royalties currently make up about 6 percent of the
\nprice of forest products, which include logs, resin and rattan.<\/p>\n
The government usually adjusts the royalties with prices on
\nthe international and domestic market every six months.<\/p>\n
The government raised the mandatory royalties by 10 percent
\nlast October to reflect rises in world prices and inflation.<\/p>\n
The government during the January-December period of last year
\nmanaged to collect Rp 592.78 billion (US$247 million) in forest
\nroyalties, up from Rp 539.33 billion in 1995.<\/p>\n
During fiscal 1995\/1996, the government collected Rp 430
\nbillion in forest royalties. The provinces which contributed the
\nmost that fiscal year were Central Kalimantan (Rp 95 billion),
\nEast Kalimantan (Rp 87 billion), Riau (Rp 39 billion), West
\nKalimantan (Rp 32 billion) and Irian Jaya (Rp 28 billion).<\/p>\n
The government decided not to raise the royalties during the
\nApril-September period of last year because of unfavorable
\nplywood prices at the time.<\/p>\n
Forty-five percent of forest royalties are currently paid to
\nlocal administrations for local forest development, 20 percent as
\nland tax, 15 percent to the Forestry Ministry's central office
\nfor national forest development and 20 percent to the state
\ntreasurer. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-wants-5-rise-in-forest-royalties-1447893297",
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