Govt to increase forest royalties by 10 percent<\/p>\n
JAKARTA (JP): A government official confirmed yesterday that
\nroyalties for wood products would be increased by an average of
\n10 percent to compensate for inflation.<\/p>\n
Director General for Forest Utilization Titus Sarijanto told
\nreporters that the increment would go into effect "some time this
\nmonth".<\/p>\n
"We are actually reluctant to increase forest royalties
\nbecause we understand that it will be hard on the domestic
\nmarket. But it is unavoidable," Titus said.<\/p>\n
The rates of forest royalties are usually reviewed every six
\nmonths and any changes are announced in June each year.<\/p>\n
Titus said that, beginning next year, however, changes will be
\nannounced in April, at the start of the new fiscal year.<\/p>\n
Prajogo Pangestu, owner of the Barito Pacific Timber group,
\nwhich holds a number forest concessions in East and South
\nKalimantan, Maluku and South Sulawesi, said last week that
\nincreasing reforestation funds and forest royalties since June
\n1993 had contributed to the group's declining profits last year.<\/p>\n
Prajogo announced at a shareholders meeting that Barito's
\nprofits in 1994 slumped by more than 50 percent.<\/p>\n
According to government regulations aimed at maintaining
\nforest sustainability, forest concessionaires must contribute to
\nreforestation funds and pay forest royalties.<\/p>\n
For Maluku and Kalimantan, the royalties for meranti (shorea
\nsp.) logs are currently Rp 21,500 (US$9.57) per cubic meter and
\nfor other types of logs Rp 11,000 per cubic meter.<\/p>\n
For Sumatra and Sulawesi, the royalties for meranti and other
\nlogs are Rp 18,500 and Rp 9,000 per cubic meter, respectively,
\nand for Irian Jaya, Nusa Tenggara, Bali and East Timor, Rp 17,500
\nand Rp 8,000 per cubic meter, respectively.<\/p>\n
For the entire country, the royalty for fine wood is Rp 29,500
\nper cubic meter, for sandalwood Rp 255,000 per ton and for ebony
\nRp 210,000 per ton.<\/p>\n
For teakwood, the royalties range between Rp 6,500 and Rp
\n24,500 per cubic meter, depending on the diameter of the tree.<\/p>\n
Reforestation<\/p>\n
Titus said that reforestation funds will not be revised
\nbecause they are not related to timber prices on the world
\nmarket.<\/p>\n
Reforestation funds for logs currently range between $10.50
\nand $20 per cubic meter for all areas in Indonesia.<\/p>\n
Responding to questions about the prospect of new concessions
\nfor timber industrial estates, Titus said that, so far, seven
\ncompanies had either submitted, or were in the process of
\nsubmitting, applications to establish such estates to support the
\npulp and paper industry.<\/p>\n
In a bid to lower newsprint prices, President Soeharto last
\nmonth called on the Ministry of Forestry to allow more
\nconcessionaires to establish industrial timber estates, to boost
\nthe supply of raw materials for pulp production.<\/p>\n
According to a forest executive who requested anonymity, PT
\nSinar Alam Lestari and PT Tanah Merah Hutan Lestari, both of
\nwhich belong to the Bimantara Group, are among those planning to
\nestablish timber plantations and integrated pulp plants.<\/p>\n
The group is controlled by businessman Bambang Trihatmodjo, a
\nson of President Soeharto.<\/p>\n
The executive said that Sinar Alam had proposed an area of
\n144,000 hectares in East Kalimantan and that Tanah Merah had
\nproposed 243,000 hectares in southern Irian Jaya.<\/p>\n
PT Korindo is also said to be among the interested
\nconcessionaires, the executive said. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-increase-forest-royalties-by-10-percent-1447893297",
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