Govt asked not to cut log export tax further<\/p>\n
JAKARTA (JP): Legislator Umbu Mehang Kunda has called on the
\ngovernment to delay the reduction of the export tax on logs to
\nguarantee a sufficient supply for local wood-processing
\ncompanies.<\/p>\n
Umbu, the chairman of House of Representatives Commission III
\nfor agriculture, forestry and plantations, transmigration and
\nfood affairs, said maintaining the existing export tariff would
\nencourage exports of processed wood.<\/p>\n
\"The government should renegotiate with the IMF (the
\nInternational Monetary Fund) the agreement on the export tax on
\nlogs but it should not contravene the government's reform program
\nagreed earlier with the IMF,\" Umbu said Tuesday.<\/p>\n
He said that a further cut in the export tariff would
\nencourage timber companies to export their logs rather than
\nprocessed wood.<\/p>\n
The government imposed a 200 percent export tax on logs in
\nrecent years before easing it to comply with the program agreed
\nwith the IMF.<\/p>\n
In accordance with economic reform programs signed Jan. 15
\nwith the IMF, the government agreed to reduce export taxes on
\nlogs, sawn timber and rattan to 30 percent by the end of June, 20
\npercent by the end of December this year, 15 percent by the end
\nof December 1999 and 10 percent by December 2000.<\/p>\n
\"If the tariff is cut further, Indonesian wood-processing
\nindustries will be on the verge on bankruptcy due to the scarcity
\nof logs. Besides, it will lead to the further destruction of the
\ncountry's forests,\" he said.<\/p>\n
\"Exporting logs is a setback for Indonesian timber companies.
\nSo, I urge them to prioritize domestic demand.\"<\/p>\n
He said timber companies should be allowed to export only
\nafter local demand had been met.<\/p>\n
The Indonesian Forestry Society said earlier this month that
\nlocal wood-processing industries were currently operating at only
\n30 percent to 40 percent of their production capacity due to the
\nscarcity of logs.<\/p>\n
The situation will get worse if timber companies exported
\ntheir logs without considering local demand, it said.<\/p>\n
The Association of Indonesian Wood Panel Producers (Apkindo)
\nsaid that the reduction of the export tax on logs would only
\nbenefit foreign wood-processing industries.<\/p>\n
Apkindo's production director, Martias, said wood importers
\nsuch as the United States and European countries were imposing
\nhigh import duties on Indonesian plywood.<\/p>\n
\"It is not fair because we've reduced the export tax on logs
\nbut are still burdened by high import duties,\" Martias said.
\n(gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-asked-not-to-cut-log-export-tax-further-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}