Rp 500b earmarked for infrastructure<\/p>\n
JAKARTA (JP): The Ministry of Forestry will set aside Rp 500
\nbillion (US$224.6 million) from the interest on its reforestation
\nfund to finance the construction of the infrastructure facilities
\nneeded to create new rice fields in Central Kalimantan.<\/p>\n
Minister of Forestry Djamaludin Suryohadikusumo was quoted by
\nthe Kompas daily on Tuesday as saying that the funds will be used
\nto assist the government's program of establishing one million
\nhectares of new rice fields in Central Kalimantan, in a bid to
\nboost the country's rice self-sufficiency program.<\/p>\n
The Central Bureau of Statistics said last June that rice
\nproduction in Indonesia fell last year by 3.2 percent to 46.6
\nmillion tons of unhusked rice -- the lowest level in 15 years --
\nfrom 48.2 million tons in 1993.<\/p>\n
Indonesia, formerly the biggest rice importer in the world,
\nbecame self-sufficient in rice in 1984. But the country began
\nimporting rice again last year due to the fall in production.<\/p>\n
For this year's domestic procurements, the National Logistics
\nAgency has signed contracts for the purchase of 1.04 million tons
\nof rice from domestic suppliers.<\/p>\n
The crash program in Central Kalimantan will require the
\nclearing of at least one million hectares of swamp for new rice
\nfields.<\/p>\n
Several parts of the swamps, however, overlap with forest
\nconcessionaires and industrial timber estates, bringing the
\nministry of forestry into the program.<\/p>\n
Djamaludin stressed that the reforestation fund, established
\nwith mandatory contributions by forest concessionaires to
\nmaintain forest sustainability, would remain intact, since the
\nprogram will only make use of the interest on the fund.<\/p>\n
In a hearing with House members last June, Djamaludin said
\nthat over the last five years, his office has collected Rp 3.04
\ntrillion (US$1.44 billion) in contributions.<\/p>\n
All of the money has been placed in time deposits in several
\nstate banks and in commercial papers issued by Bank Indonesia
\n(the central bank).<\/p>\n
The reforestation fund, totaling Rp 400 billion in interest-
\nfree loans, has also been used to support the construction of the
\nN-250 aircraft by state-owned aircraft maker, Industri Pesawat
\nTerbang Nusantara (IPTN).(pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rp-500b-earmarked-for-infrastructure-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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