Govt plans to impose export quota on logs<\/p>\n
JAKARTA (JP): The government plans to impose a quota on
\nexports of logs to guarantee a sufficient supply for domestic
\ndemand, a minister has said.<\/p>\n
Minister of Forestry and Plantations Muslimin Nasution said
\nFriday the export quota would not contravene the government's
\nreform program agreed to with the International Monetary Fund
\n(IMF) because it did not constitute a ban on exports of the
\ncommodity.<\/p>\n
\"Timber companies will be allowed to export after the supply
\nof logs can meet domestic demand for a minimum three months.\"<\/p>\n
He did not specify the amount of the quota but said his
\nministry and the Ministry of Industry and Trade were working out
\nthe plan.<\/p>\n
The government imposed a 200 percent export tax on logs in
\nrecent years before easing it early this year to meet the program
\nagreed on with the IMF.<\/p>\n
Muslimin said no local timber companies had exported their
\nlogs overseas because the reference export prices -- set by the
\nMinistry of Industry and Trade as the basis in collecting the
\nexport tax -- were still too high.<\/p>\n
But he said the export quota system was still needed to
\nanticipate growing demand from overseas, particularly Malaysia,
\nJapan, South Korea and China.<\/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
It also stipulated the government would eliminate all other
\ntypes of export restrictions, such as quotas, in three years. The
\nonly exceptions would be for restrictions imposed for health and
\nsecurity reasons and temporary measures introduced in the event
\nof occasional domestic shortages. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-plans-to-impose-export-quota-on-logs-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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