Govt expects $193m from forestry fees, royalties<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
With the country's timber production recently showing signs of
\nincreasing, the government believes it can increase next year's
\nrevenues in royalties and fees from the timber industry to Rp 1.9
\ntrillion (US$193.39 million), the forestry minister has said.<\/p>\n
Speaking during a hearing with the House of Representatives'
\nCommission IV on agriculture, fisheries and forestry on Tuesday,
\nMinister of Forestry Malam Sambat Kaban said that the expected
\nrevenues would consist of Rp 1.04 trillion in taxes for
\nreforestation, Rp 868.5 billion in timber royalties and Rp 6.6
\nbillion in logging permit fees.<\/p>\n
He said the revenue forecasts were based on the assumption
\nthat the country's timber production would reach eight million
\ncubic meters next year.<\/p>\n
\"The figure is a 46 percent increase over this year's target
\nof 5.4 million cubic meters,\" he was quoted as saying by Antara.<\/p>\n
Kaban explained that the rise in timber production would
\nmainly be boosted by an increase in demand arising from
\nreconstruction work in tsunami-stricken Nanggroe Aceh Darussalam.<\/p>\n
The government also expects state timber firm Perhutani to
\nincrease its timber production to 26.6 million cubic meters and
\nits non-timber production to 422,500 tons.<\/p>\n
\"This is the result of the government's 'soft landing' logging
\npolicy, which helps sustain forests and make optimal use of other
\nforestry products besides timber,\" he said.<\/p>\n
Kaban said that revenues from logging permit fees were
\nexpected to increase as a result of the ministry's plans to
\nauction off logging permits for some 414,000 hectares of forest
\nland throughout the country.<\/p>\n
Apart from the royalties and fees, the government is expecting
\nthe timber industry to contribute some $9 billion in foreign
\nexchange earnings this year compared to an estimated $7.8 billion
\nlast year.<\/p>\n
During the hearing, Kaban also said that his ministry would
\nseek a budget allocation of Rp 1.6 trillion to help finance its
\nefforts to develop and improve the country's timber industry.<\/p>\n
Indonesia is the world's third largest forestry country, but
\nis struggling to sustain its forests, which are being decimated
\nby illegal logging.<\/p>\n
Some 2.6 million hectares of land are deforested every year,
\nand the country's remaining 40 million hectares of
\nprimary\/natural forest are under threat.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-expects-193m-from-forestry-fees-royalties-1447893297",
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