Terms set for cooperatives to get forestry contracts<\/p>\n
JAKARTA (JP): Only cooperatives that can prove their
\ncapability in managing a forestry business will be granted
\nlogging contracts or given a chance to purchase shares in
\nforestry firms, Minister of Forestry and Plantations Muslimin
\nNasution said on Tuesday.<\/p>\n
Muslimin said it was necessary that cooperatives had two-
\nyear's experience in forestry before participating in forestry
\ntenders or trying to obtain shares in forestry firms.<\/p>\n
"We want to do it (the redistribution of the country's
\nforestry assets) gradually to ensure that only people with a
\nserious commitment to managing forests in an environmentally
\nsustainable manner will manage our forests," he said in a seminar
\non empowering cooperatives in forest management.<\/p>\n
He said he would require timber companies to involve
\ncooperatives in log transportation, planting and logging
\nactivities to give cooperatives first-hand experience in
\nforestry.<\/p>\n
"If cooperatives do their jobs well they can acquire 20
\npercent of a timber companies' shares or bid for logging
\ncontracts."<\/p>\n
The chairman of the Association of Indonesian Forest
\nConcessionaires, Adi Warsita Adinegoro, said that concessionaires
\nwere ready to involve cooperatives and small enterprises in their
\nactivities.<\/p>\n
"Many of our activities can be done by cooperatives. They can
\nprovide us with their services as contractors in log
\ntransportation, planting and seeding activities," he said.<\/p>\n
Muslimin said the government's new forestry regulations,
\nexpected to be issued by the end of this month, would oblige
\ntimber companies to give 20 percent of their shares to
\ncooperatives and 5 percent to companies located in the same
\nprovince as the concessions or to state-owned forestry firms PT
\nInhutani I, II, III, IV and V.<\/p>\n
The new measures will also limit the ownership of forestry
\nassets by individual companies. Each concession holder will be
\nlimited to owning a maximum of 100,000 hectares of a forest in a
\nprovince or 400,000 hectares nationwide.<\/p>\n
Muslimin said the government would honor the terms of all
\nexisting concessions until the contracts expired. Concession
\nrenewals would then be subject to the new regulations.<\/p>\n
"If forest areas under a company's management exceed the
\nmaximum limit, some of the concessions will be offered to the
\npublic through auction," he said.<\/p>\n
Director General of Forest Utilization Harnanto H.
\nMartosiswojo said tender participants would have to meet several
\nrequirements.<\/p>\n
They must have experience in forest management, have related
\nequipment, a balance of payments and not be insolvent.<\/p>\n
The participants may be state-owned timber firms, Indonesian
\nprivate firms, cooperatives or any legal entity.<\/p>\n
He said the government would conduct due diligence to assess
\nthe condition and potential of forest areas before offering them
\nto the public.<\/p>\n
The government first began to award forest concessions to
\nprivate companies through the 1970 Forestry Law, which grants
\nconcessionaires the sole right to cultivate and exploit forests
\nin their concession areas. Concessions last for 20 years, but may
\nbe extended to 35 years under the new regulations.<\/p>\n
At least 421 private timber companies currently hold rights to
\nexploit 51.5 million hectares of the country's forests. The six
\nstate forestry companies -- the five PT Inhutani enterprises and
\nPerum Perhutani -- oversee logging operations on 4.9 million
\nhectares. (gis)<\/p>",
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