Loggers told to cut capcity, not trees<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The country's forestry-related industry should cut its
\ninstalled capacity by more than 70 percent in order to protect
\nthe country's forests from continued overexploitation, the
\nMinistry of Forestry has said.<\/p>\n
Ministry spokesman Tachrir Fathony told The Jakarta Post on
\nThursday that, based on the ministry's analysis, the processing
\ncapacity of the country's forestry industry should be curtailed
\nto 20 million cubic meters per year from 63 million cubic meters
\nat present.<\/p>\n
Otherwise, he said, the country's forests would remain under
\nthreat of being overexploited.<\/p>\n
\"We wanted the capacity to be cut to the level of timber
\nsupply this year. However, we have seen that it would be
\nimpossible for the industry to do so. Thus, we think that 20
\nmillion (cubic meters) would be fine,\" said Tachrir.<\/p>\n
Tachrir added, however, the ministry had to discuss the figure
\nwith industry players and the Ministry of Industry and Trade.<\/p>\n
Analysts have said efforts by the government to curb the rapid
\npace of deforestation would never pay off unless the country's
\nforestry-related industry is restructured to cut down its
\nprocessing capacity.<\/p>\n
The ministry's data says the installed capacity lies between
\n60 and 70 million cubic meters per year, despite the fact the
\nexisting running capacity now reaches only 30 million cubic
\nmeters per year.<\/p>\n
The remaining capacity remain unutilized as many companies
\nwere forced to stop operations due to the economic crisis.<\/p>\n
On the other hand, the ministry set the annual timber supply
\nquota for the industry at around 12 million cubic meters last
\nyear and 6.89 million this year.<\/p>\n
The incredibly huge gap between supply and demand is
\nconsidered by many analysts as the main factor behind widespread
\nillegal logging. The industry takes illegally felled timber to
\nfeed its production facilities.<\/p>\n
Tachrir said should the ministry cut down the capacity to 20
\nmillion cubic meters per year, the ministry would not change the
\nsupply quota of 6.89 million cubic meters.<\/p>\n
Thereby, the industry would have to import logs to fully
\nsupply its plants.<\/p>\n
Commenting on Tachrir's statement, chairman of the Indonesian
\nWood Panel Association (APKINDO) Martias said the reduction of
\nboth log supplies and the industry's capacity would cause prices
\nfor timber-based products to increase by at least 30 percent.<\/p>\n
He said under the existing capacity, the plywood industry had
\nalready forecast that the plywood price on the export market
\nwould rise to US$350 per cubic meter this year from $270 last
\nyear, thanks to the strong demand.<\/p>\n
Should the government order plywood suppliers to cut their
\ncapacity, the price would inevitably soar, he said.<\/p>\n
The installed capacity of the country's plywood industry now
\nreaches 10 billion cubic meters.<\/p>\n
The industry managed to contribute $2 billion to the country's
\nforeign exchange earnings last year.<\/p>",
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"sponsor": "Okusi Associates",
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