Illegally-cut wood set aside for low-cost housing<\/p>\n
JAKARTA (JP): A joint ministerial decree was signed here
\nyesterday to allow the use of wood confiscated from illegal
\nlogging for the construction of low-cost and medium-cost public
\nhousing.<\/p>\n
The decree was signed by Minister of Forestry Djamaludin
\nSuryohadikusumo, State Minister of Public Housing Akbar Tandjung,
\nAttorney General Singgih, National Chief of Police General
\nBanurusman and Minister of Finance Mar'ie Muhammad at the
\nMinistry of Forestry office.<\/p>\n
Djamaludin announced that the decree was aimed at reducing
\n"collusion practices" between wood smugglers, illegal loggers and
\nirresponsible government officials, including police officers and
\nforestry officials working at the local level.<\/p>\n
Widespread illegal logging, which is detrimental to the
\nenvironment, is also believed to be backed by a number of
\npowerful individuals.<\/p>\n
The total volumes of stolen logs over the past year reached
\nseven million cubic meters worth about Rp 225 billion (US$100.2
\nmillion).<\/p>\n
Under normal circumstances, confiscated illegal wood is
\npublicly auctioned.<\/p>\n
Djamaludin said the decree was also expected to give low-
\nincome citizens an opportunity to purchase good-quality houses at
\naffordable prices.<\/p>\n
The low-cost and medium-cost houses to be built with the
\nconfiscated wood will measure between 21 square meters and 36
\nsquare meters on land areas of between 54 square meters and 200
\nsquare meters.<\/p>\n
According to Akbar, who accompanied Djamaludin in the press
\nbriefing, a low-cost house measuring 21 square meters is
\ncurrently sold at Rp 4.5 million to Rp 5 million and a medium-
\ncost house of the same size at Rp 10.5 million to Rp 11 million.<\/p>\n
Djamaludin explained that the confiscated wood would be
\nrendered freely to the state-owned developer Perumnas which
\noversees the construction of low-cost housing.<\/p>\n
Free<\/p>\n
Perumnas, he said, will only have to pay for transportation,
\nstorage and preservation expenses.<\/p>\n
The confiscated wood, he said, will not be subject to
\nreforestation funds and forest royalties which can reach up to a
\ntotal of Rp 50,000 per cubic meter of equivalent log wood.<\/p>\n
Reforestation funds and forest royalties are mandatory
\ncontributions that concessionaires must pay to the government for
\neach cubic meter of wood they cut. The size of each contribution
\nvaries, depending on the type of wood felled.<\/p>\n
Djamaludin pointed out that based on these figures, the new
\nscheme will provide a government subsidy of about Rp 400,000 for
\none low-cost house, based on one house consuming about four cubic
\nmeters of wood.<\/p>\n
He said that last year 258,000 cubic meters equivalent of log
\nwood were confiscated throughout the country.<\/p>\n
Not all types of wood, however, will be subject to the scheme.<\/p>\n
Confiscated teakwood, meranti (shorea sp.) and a number of
\nother types of first-class wood will still be subject to public
\nauctioning.<\/p>\n
The regulation will mostly affect, among others, bayur
\n(pterospermum spp.), eucalyptus, kenanga (cananga odorata),
\nkeruing (dipterocarpus spp.) and merbau (instia spp.).<\/p>\n
Djamaludin said that a technical team will be set up next week
\nto work on details and the implementation of the decree. (pwn)<\/p>",
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