Timber industry badly needs revitalization<\/p>\n
Anissa S. Febrina, The Jakarta Post, Jakarta<\/p>\n
With only 10 percent of the timber-processing companies declared
\nby the foresty ministry to be performing adequately, the
\ncountry's wood industry badly needs revitalization, non-
\ngovernmental groups say.<\/p>\n
The ministry recently announced its assessment on the national
\ntimber industry, involving some 140 registered companies, of
\nwhich three were declared \"excellent\" and 11 categorized as
\n\"good.\"<\/p>\n
\"But according to our assessment, the companies are merely the
\nbest of a bad lot,\" Greenomics Indonesia's program coordinator
\nVanda Mutia Dewi said last week.<\/p>\n
Greenomics, along with another non-governmental organization
\nIndonesian Corruption Watch (ICW), conducted a study on the
\nperformance of the country's timber industry, including the 11
\n\"good\" ones.<\/p>\n
The study revealed that only two of the plywood manufacturers
\nhad sound financial records and only one had \"high efficiency\".<\/p>\n
ICW vice coordinator Luky Djani explained that most of the
\ncompanies had also exceeded their limit of raw material
\nconsumption.<\/p>\n
A timber-processing company is required to submit a plan for
\nits annual raw material consumption to be approved by the
\nforestry ministry.<\/p>\n
\"Those that exceeded their consumption plan should be
\nquestioned because currently the industry is facing a supply
\nproblem for timber,\" Luky said.<\/p>\n
Vanda added that the ministry should tighten its supervision
\non the matter, especially since it concerned the legality of the
\nraw materials.<\/p>\n
Efficiency wise, she said, there were few companies performing
\nwell. \"The ministry only requires the relatively low efficiency
\nrating of 50 percent,\" she said.<\/p>\n
A timber-processing company with an efficiency rating of 50
\npercent can only process half of the raw material it consumes,
\nleaving the rest as waste.<\/p>\n
The same resource-based industry in developed countries has
\nbeen able to produce zero waste, or a 100 percent efficiency
\nrating.<\/p>\n
\"It is partly due to a lack of investment in machinery. Our
\nindustry has been relying on old machines for years,\" Vanda said.<\/p>\n
The domestic timber industry has found difficulties actually
\ncommitting financial resources or getting loans to revamp its
\nequipment due to the notorious image it had, Greenomics executive
\ndirector Elfian Effendi said previously.<\/p>\n
Greenomics and ICW suggested that the forestry ministry reveal
\nthe rest of the poor performing companies if it were to start
\nsupporting revitalization of the industry.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/timber-industry-badly-needs-revitalization-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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