Log supply falls 50% due to reduced logging activities<\/p>\n
JAKARTA (JP): Indonesia's log supply has dropped 50 percent to
\naround 11 to 13 million tons this year because of reduced logging
\nactivities by timber companies, according to the Indonesian
\nForestry Society (MPI).<\/p>\n
MPI's chairman Sudradjat DP said on Saturday the scarcity of
\nlogs would likely continue until the middle of 1999.<\/p>\n
\"The sharp drop in the log supply has been especially caused
\nby the heavy rainy season, which is expected to run until March,\"
\nhe said during a breaking of the fast meal.<\/p>\n
The heavy rainy season, brought on by the La Nia weather
\npattern, has disrupted logging activities and log transportation
\nfrom the logging areas to timber mills.<\/p>\n
In addition, many timber companies normally reduced logging
\nactivities during the Christmas, New Year, Muslim fasting month
\nand Idul Fitri holidays, which will run through late January.<\/p>\n
Sudradjat predicted that logging activities would also be
\naffected by political events in the country, especially run-up
\nactivities to the planned general election in June.<\/p>\n
\"Many timber companies will stop their activities during this
\nperiod,\" he said.<\/p>\n
That would force wood-processing industries to continue
\nworking much below capacity.<\/p>\n
Wood-processing industries, he said, are currently operating
\nat 30 percent to 40 percent of their total production capacity
\ndue to the scarcity of logs.<\/p>\n
\"Wood-related industries are also rejecting big orders because
\nthey are wary of the scarcity of logs,\" he said.<\/p>\n
Local wood-processing businesses would need about 36 million
\ncubic meters of logs a year, while the supply of logs would only
\nreach 22 and 26 million cubic meters. But this year, the supply
\nhas dropped much lower.<\/p>\n
National demand for logs was initially projected at about 36.2
\nmillion cubic meters in the 1998\/1999 fiscal year, of which 12.6
\nmillion cubic meters would be needed for the sawmill and
\nwoodworking industry, 18.5 million cubic meters for the plywood
\nindustry and 430,000 cubic meters for the furniture industry and
\n4.64 million cubic meters for the pulp and paper industry.<\/p>\n
Sudradjat said that the government's recent decision to cut
\nthe export tax on logs to 30 percent from 200 percent has had no
\nbig impact on the supply of logs on the domestic market because
\nmany Indonesian timber companies were currently reluctant to
\nexport their logs as local sales were now more profitable.<\/p>\n
He said the Ministry of Forestry and Plantations had issued
\nlog export licenses to 20 out of the 43 companies that had
\napplied. The licenses will allow the companies to export a total
\nof 460,000 cubic meters of logs.<\/p>\n
\"But so far less than 20,000 cubic meters of logs have been
\nexported. How can we export if there is not enough supply?\" he
\nsaid. (gis)<\/p>",
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