Govt expects Rp 740b from reforestation funds<\/p>\n
JAKARTA (JP): The government had targeted to collect Rp 740
\nbillion (US$87.5 million) in reforestation funds in fiscal
\n1998\/1999, a minister said yesterday.<\/p>\n
Minister of Forestry Djamaludin Suryohadikusumo said the
\ngovernment targeted to collect Rp 740 billion in reforestation
\nfunds.<\/p>\n
\"The target of Rp 740 billion is much smaller than our annual
\nrevenue from reforestation funds in previous years. We had been
\ncollecting over Rp 800 billion in reforestation funds per year,\"
\nhe said after a media conference.<\/p>\n
Reforestation funds collected in fiscal 1996\/1997 totaled Rp
\n880.7 billion, up from Rp 809.6 billion in 1995\/1996.<\/p>\n
Djamaludin said last week the reforestation funds would be
\naccounted for in the state budget in fiscal 1998\/1999 as part of
\nstate revenue from nontax sectors.<\/p>\n
At present, the reforestation funds are managed by the
\nMinistry of Forestry, but are not accounted for in the state
\nbudget.<\/p>\n
According to Presidential Decree No. 29\/1990, reforestation
\nfunds collected from levies on forest concessionaires must be
\nused to develop forests and rehabilitate land.<\/p>\n
Djamaludin said he was optimistic the collected funds would
\nsurpass the government's target.<\/p>\n
He said if timber companies had a working plan similar to last
\nyear's, there would be an increase of 20 percent in reforestation
\nfunds this year, compared to the figure last year.<\/p>\n
He said the increase was due to a new tariff to collect
\nreforestation funds, which had been charged in rupiah instead of
\nU.S. dollars since Jan. 1.<\/p>\n
\"Before the currency crisis, we charged timber companies $16
\nper cubic meter of logs. At that time, the U.S. dollar rate was
\nabout Rp 2,400,\" he said.<\/p>\n
\"Now the tariff is set at Rp 48,000 per cubic meter. The new
\ntariff is based on the calculation of $16 times the U.S dollar
\nrate of Rp 3,000,\" he said.<\/p>\n
But he said the increase in the amount of collected funds was
\nalso determined by wood demand in overseas markets.<\/p>\n
Djamaludin said his ministry had proposed to the Ministry of
\nFinance to revise the new tariff due to a further plunge of the
\nrupiah's value against the dollar.<\/p>\n
The rupiah plunged to a record low of 10,000 to the dollar in
\nSingapore and 9,700 in Jakarta yesterday. The currency has lost
\nnearly 75 percent of its value against the dollar due to
\nspeculative attacks since early July last year.<\/p>\n
\"It will be hard for us to increase the tariff to collect
\nreforestation funds, because demand for wood is currently
\nsluggish,\" he said.<\/p>\n
He said South Korea, one of Indonesia's main wood importers,
\nhad stopped buying Indonesian wood due to the current monetary
\ncrisis in the country.<\/p>\n
Japan, the world's biggest importer of Indonesian wood, had
\nalso reduced their purchases due to the same reason, he said.<\/p>\n
The monetary crisis, triggered by the de facto devaluation of
\nthe Thai baht in early July last year, has hit several Asian
\ncountries.<\/p>\n
Djamaludin said the government had allocated Rp 420.4 billion
\nin the proposed state budget to finance state-related activities
\noverseen by his ministry. The amount increased 6 percent from Rp
\n394 billion allocated in the current state budget.<\/p>\n
He said although the budget was considered tight, there would
\nbe no rescheduling of the ministry's projects. (gis)<\/p>",
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