More disclosures expected from new forestry method<\/p>\n
JAKARTA (JP): The government expects greater disclosures and
\nan increased collection of levies from the forestry industry
\nafter the implementation of a new standardized accounting method,
\na minister says.<\/p>\n
\"The new accounting system will help the government improve
\nthe supervision of the industry's conservation efforts. We can
\nalso obtain a precise level of economic rents from the industry,\"
\nMinister of Forestry Djamaludin Suryohadikusumo said in a seminar
\nyesterday.<\/p>\n
The new accounting method, which took effect this month, was
\nformulated by the Association of Indonesian Accountants and the
\nCenter of Accounting Development of the University of Indonesia.<\/p>\n
The new method is expected to lead to greater financial
\ntransparency and disclosure from the forestry industry, which
\nregularly contributes significant export earnings to Indonesia.<\/p>\n
The minister said the new standardized method supports the
\nindustry as it moves towards globalization through capital
\nmarkets and obligatory ecolabeling.<\/p>\n
Indonesian forestry regulations stipulate that timber estates
\nare state properties which are given out to concessionaires for a
\nlimited time and which are subject to strict regulations.<\/p>\n
For the forest industry, economic rents can be regarded as
\nstate earnings in excess of total production costs including
\noperating expenses, depreciation, overhead and transportation
\ncosts.<\/p>\n
Concern<\/p>\n
In Indonesia, such earnings are usually obtained from forest
\nroyalties, reforestation funds and corporate taxes from timber
\ncompanies.<\/p>\n
Minister Djamaludin also expressed his concern yesterday that
\nmost of the concessionaires tend to under-report their profits
\nand are only willing to invest in logging activities rather than
\nreplanting.<\/p>\n
\"With the new accounting system we can now anticipate problems
\nat an early stage,\" he said without elaborating.<\/p>\n
During the seminar, Soemarso S.R., an accountant who helped
\nformulate the new system, explained that the new accounting
\nmethod will force timber companies to adopt a comprehensive data
\nbase containing all information, including non-financial factors.<\/p>\n
Meanwhile, an executive of an industrial timber plantation and
\npulp firm told The Jakarta Post that most leading timber
\ncompanies have already adopted the new accounting method.<\/p>\n
\"The new system is much closer to international accounting
\nstandards,\" he said, while requesting anonymity.<\/p>\n
Director General of Forestry Development Hendarsun Surya also
\ntold reporters that the government expects timber companies to
\ndevote at least half of their profits to forest conservation
\nefforts. (hdj)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/more-disclosures-expected-from-new-forestry-method-1447893297",
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"sponsor": "Okusi Associates",
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