State budget secured by forest funds<\/p>\n
JAKARTA (JP): The forestry ministry has transferred Rp 596
\nbillion (US$270.90 million) of its reforestation funds to the
\nfinance ministry as contingency state budget reserves, a minister
\nsaid yesterday.<\/p>\n
Should oil prices turn out lower than the government estimate,
\nhe added, the funds would be used to cover any shortfall in
\nbudget revenues.<\/p>\n
\"But it is entirely up to the finance minister to decide on
\nthe allocation of those reforestation funds, all of which have
\nbeen collected from forest concessionaires,\" Minister of Forestry
\nDjamaludin Suryohadikusumo told members of the Agriculture,
\nForestry and Transmigration Commission of the House of
\nRepresentatives (DPR).<\/p>\n
The government, Djamaludin added, may use the funds either as
\ncontingency reserves to meet any shortfall in budget revenues or
\nas investments in other projects during the next 1995-96 fiscal
\nyear beginning in April.<\/p>\n
The government has set $16.50 as the average oil price per
\nbarrel as the basis for estimating its oil and natural gas tax
\nrevenues in the coming fiscal year. Hydrocarbon will account for
\naround 20 percent of the Rp 66.2 trillion internal state revenues
\nbudgeted for next fiscal year.<\/p>\n
The transfer from the forestry ministry increased the amount
\nof reserves held by the government to more than Rp 2.2 trillion.
\nOf the total, Rp 1.7 trillion comes from budget surpluses
\naccumulated over the last three years.<\/p>\n
Official figures recently showed that over the past five
\nyears, Rp 3.04 trillion in reforestation funds have been raised
\nby forest concessionaires.<\/p>\n
The reforestation funds, whose amount depends on the species
\nand quality of harvested logs, are designed to finance
\nreforestation programs.<\/p>\n
However, forest concessionaires who harvest their forests
\naccording to the government-mandated sustainable management
\nrulings, are supposedly entitled to get back the funds they have
\npaid to the forestry ministry.<\/p>\n
Many House members have often suggested that the reforestation
\nfunds be counted in the state budget as government revenue so
\nthat their use can be supervised through the annual state budget.<\/p>\n
Management<\/p>\n
The forestry ministry has retained the management of the
\nforestry fund collection.<\/p>\n
Many individuals and non-governmental organizations (NGO),
\nhowever, were surprised last year when the forestry ministry, by
\nvirtue of a presidential decree, transferred approximately US$185
\nmillion of interest accrued on the funds to the state IPTN
\naerospace company in Bandung as an interest-free loan.<\/p>\n
Eleven NGOs filed a suit against President Soeharto through
\nthe State Administrative Court but the presiding judge turned
\ndown the suit, arguing that the court had no authority to hear
\nthe case.<\/p>\n
Djamaludin did not mention anything yesterday about the $185
\nmillion transfer to IPTN.<\/p>\n
He said the government, if forced by an emergency situation,
\nmight use the remaining reforestation funds to help balance the
\nstate budget.<\/p>\n
The government was forced to use part of its reserves last
\nyear to compensate for the Rp 1.71 trillion deficit in the 1993-
\n94 budget, which was originally expected to balance at Rp 62.3
\ntrillion.<\/p>\n
The deficit was caused primarily by the drop in world oil
\nprices and larger-than-planned operating and investment budgets.<\/p>\n
Djamaludin also said that his office plans to spend Rp 858.42
\nbillion of the reforestation funds to finance various forestry
\ndevelopment projects in the next 1995-96 fiscal year.<\/p>\n
He added that Rp 425.62 billion (49.58 percent of the total
\nfunds) will be used to develop 219,000 hectares of industrial
\ntimber estates, run mostly by state firms. (hdj)<\/p>",
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