Govt to lose Rp 237.8t on planned plantation<\/p>\n
Anissa S. Febrina, The Jakarta Post\/Jakarta<\/p>\n
Apart from potential losses due to environmental destruction, the
\nplanned 1.8 million hectares of oil palm plantations in
\nKalimantan will cause the state financial losses of Rp 237.8
\ntrillion (US$23.69 billion), an environmental group warns.<\/p>\n
A study by non-governmental organization Greenomics shows that
\nthe economic value of timber from both natural and production
\nforests in the area amounts to Rp 212.9 trillion and Rp 24.8
\ntrillion, respectively.<\/p>\n
The NGO implied that there might be an \"additional economical
\nmotive\" in the plan -- in the form of timber acquired during land
\nclearance -- aside from yields from investments made on the
\nplanned plantation.<\/p>\n
The analysis came from estimating the economic value of more
\nthan 16.9 million cubic meters of timber with a diameter of 50
\ncentimeters and some 37.6 million m3 of 20-cm-diameter logs found
\nin production forests.<\/p>\n
The estimation also took into account 115 million m3 of 50-cm-
\ndiameter logs as well as 403 million m3 of 20-cm-diameter logs in
\nnatural forests.<\/p>\n
\"Investors will be the ones to benefit from the clearance of
\nthe forests, which is to make way for the plantations,\"
\nGreenomics executive director Elfian Effendi said on Wednesday.<\/p>\n
According to documents from the consortium of state-owned
\nplantation companies PT Perkebunan Nusantara No. I to XIV
\nobtained by Greenomics, the government plans to set up a 1.8
\nmillion hectare oil palm plantation along the border of
\nKalimantan and Malaysia. The project was among those offered to
\nChinese investors during President Susilo Bambang Yudhoyono's
\nvisit to China in July.<\/p>\n
One million hectares of the plantation will be funded by China
\nand is located in West Kalimantan, while the remaining 800,000
\nhectares are in East Kalimantan.<\/p>\n
The total area of the plantations will be worth some $8
\nbillion in investment.<\/p>\n
Greenomics earlier estimated the long-term potential losses at
\nabout Rp 27 trillion annually due to environmental degradation.<\/p>\n
\"We recommend only the clearance of some 23,716 hectares of
\nproduction forest but none of the natural forest,\" Elfian said,
\nadding that revitalizing abandoned land could be an alternative.<\/p>\n
Of the 2.3 million hectares of plantation areas in West
\nKalimantan at present, some 1.5 million hectares have been
\nabandoned.<\/p>\n
\"We hope that the Ministry of Forestry remains consistent with
\nits stance of not allowing the conversion of natural forest,\" he
\nadded.<\/p>\n
A letter from Minister of Forestry M.S. Kaban addressed to the
\nMinistry of Agriculture dated Aug. 16 states that clearance of
\nnatural forests to make way for oil palm plantations would
\nviolate Law No. 5\/1990 on natural resources and ecosystem
\nconservation.<\/p>\n
\"We do not want another precedent, similar to the government's
\npolicy to allow open mining in conservation areas, to happen
\nagain,\" Elfian said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-lose-rp-2378t-on-planned-plantation-1447893297",
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"sponsor": "Okusi Associates",
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