State wood-based firms record soaring profits<\/p>\n
JAKARTA (JP): State-owned wood-based companies recorded
\nprofits of Rp 181 billion (US$82.2 million) in the first semester
\nof this year, compared to Rp 130 billion in the whole of 1993, a
\nminister says.<\/p>\n
\"The soaring profits were contributed by the increasing wood
\nprices and government policies allowing state-owned firms to
\nparticipate in the wood processing business,\" Minister of
\nForestry Djamaludin Suryohadikusumo said in a hearing with
\nCommission IV of the House of Representatives (DPR) yesterday.<\/p>\n
\"Actually, we originally projected that those companies would
\ngenerate about Rp 88.53 billion in pre-tax profit this entire
\nyear,\" he said.<\/p>\n
Djamaludin promised to maintain efforts to increase the state-
\nowned companies' profitability in the coming years.<\/p>\n
\"We will increase efficiency, progressively diversify the
\nwood-based products and expand our markets,\" he said.<\/p>\n
Reforestation<\/p>\n
The Minister also said that his office plans to spend Rp
\n538.82 billion worth of reforestation funds to finance various
\nprojects.<\/p>\n
He explained that Rp 306.73 billion (56.43 percent of the
\ntotal funds) will be used to develop industrial timber estates,
\nRp 13.36 billion (25.30 percent) for various infrastructure
\nprojects and Rp 60.90 billion (11.30 percent) to rehabilitate
\nexpired forest concessions.<\/p>\n
Rp 17.81 billion (3.31 percent) will be used to finance the
\nhousing programs for nomadic forest-cutter families, Rp 12
\nbillion (2.22 percent) for loans for forest farmers and Rp 5
\nbillion (0.93 percent) for small-scale forest-agriculture
\nactivities under a presidential aid scheme.<\/p>\n
It has been reported that for the last five years the
\nreforestation funds have totaled some Rp 3.04 trillion. All of
\nthe money has been placed in time deposits in several state banks
\nand in commercial papers issued by the central bank, Bank
\nIndonesia.<\/p>\n
Djamaludin said yesterday that Rp 98 billion of the interest
\nfrom the saved reforestation funds will be used to finance a
\nnumber of projects.<\/p>\n
About 71.45 percent or Rp 70.09 billion will be used to
\nfinance infrastructure and training projects, 11.13 percent or Rp
\n10.92 billion for forest development control and 10.05 percent or
\nRp 9.86 billion for employee training.<\/p>\n
The minister added that 6.33 percent, or Rp 6.21 billion, will
\nbe utilized for research.<\/p>\n
IPTN<\/p>\n
Djamaludin, however, explained that the interest financing
\nprograms do not include the recent controversial Rp 400 billion
\ninterest-free loan made in July to the state-owned aircraft
\nmanufacturer (IPTN) to support the manufacture of N-250 aircraft.<\/p>\n
The loan was made under a presidential decree which was to be
\ndisbursed over 10 months since June in which about Rp 40 billion
\nto 50 billion is lent out every month.<\/p>\n
\"I can tell you that since August, we have allocated about 60
\npercent of the total loans,\" Djamaludin told reporters yesterday.<\/p>\n
He added that IPTN will return the money once \"they are able
\nto produce and sell their airplanes.\"<\/p>\n
At the hearing, Djamaludin also said that in July and August,
\nIndonesia's plywood exports declined and unsold products caused
\nstockpiling at factories.<\/p>\n
\"We are still investigating whether the decline is only a
\nshort-term trend,\" said the minister, who declined to comment
\nfurther on this matter.<\/p>\n
Indonesia's wood panel exports reached 7.79 million tons worth
\n$5.47 billion last year. (hdj)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/state-wood-based-firms-record-soaring-profits-1447893297",
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"sponsor": "Okusi Associates",
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