Scoring system for bids in logging auction<\/p>\n
JAKARTA (JP): A scoring system will be used in awarding
\nlogging contracts to ensure only parties displaying a strong
\ncommitment to protecting the environment and engaging
\nparticipation of local people will win, a minister said
\nyesterday.<\/p>\n
Minister of Forestry and Plantations Muslimin Nasution said
\ntimber companies and cooperatives would be scored in the auction
\naccording to their status and ability to meet several
\nrequirements, such as involving local people in management of
\nconcessions.<\/p>\n
\"For example, cooperatives, small companies and timber
\ncompanies with a good track record will be given a higher score.
\nWhoever gets the highest score will get the logging contracts,\"
\nhe said in a discussion on cooperatives' roles in the reform era.<\/p>\n
The system is important to ensure that bidders with weak
\nfinancing, such as cooperatives and small companies, would also
\nhave an equitable chance, he added.<\/p>\n
The minister said the government initially planned to issue a
\nconventional bidding system in granting new licenses, but decided
\nagainst it because it would only benefit big companies.<\/p>\n
\"We delayed the auction program because we wanted the system
\nto also benefit small bidders. But, don't worry, the regulation
\non the auction will be issued next month.\"<\/p>\n
Last month, Muslimin said the government was considering
\nlimiting corporate and personal ownership to prevent a
\nconcentration of forestry assets in the hands of a few companies.<\/p>\n
He said open bidding would apply only to areas left vacant by
\nsuspended timber companies because the government would not open
\nany more natural forest to logging operations.<\/p>\n
The auction of forest concessions is stipulated in the
\nSupplementary Memorandum on Economic and Financial Policies, a
\nreform package agreed to by the government with the International
\nMonetary Fund (IMF) in exchange for emergency funds of US$43
\nbillion.<\/p>\n
Indonesia was initially scheduled to introduce the auction
\nsystem by the end of July. But in the latest memorandum agreed on
\nwith the IMF, the plan is rescheduled until the end of this year.<\/p>\n
At least 423 private companies are currently involved in
\nlogging activities on 61.7 million hectares nationwide.<\/p>\n
The government first began to award forest concessions to
\nprivate companies under the 1971 Forestry Law, which granted
\nholders the sole right to cultivate and exploit forests in their
\nconcession areas. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/scoring-system-for-bids-in-logging-auction-1447893297",
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"sponsor": "Okusi Associates",
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