Indonesian Political, Business & Finance News

61 concessions to be used in forestry pilot project

| Source: JP

61 concessions to be used in forestry pilot project

JAKARTA (JP): The Indonesian Forestry Society is assessing 61
concessions as a pilot project on the criteria for, and
indicators of, sustainable forest management.

"Up to now 11 forest concessions have been assessed using the
criteria and indicators in the field. This year, 50 more
concessionaires will be evaluated under this program," Minister
of Forestry Djamaludin Suryohadikusumo said at an Indonesian
Executive Circle's business luncheon here yesterday.

The minister said, however, that the results of the assessment
would not effect the status of the concessionaires. "Their
licenses will not be revoked just because of the results of the
assessment."

He said the primary aim of the pilot project was to prepare
forest concessionaires to enter the eco-labeling era. "Therefore,
they will hopefully be ready by the time when they have to be
assessed by the eco-labeling agency."

The government has helped establish the eco-labeling agency by
appointing Emil Salim, former state minister of environment and
population, to lead the Indonesian Eco-labeling Foundation, the
eco-labeling working group for wood-based products.

Most industrial countries currently impose eco-labeling
requirements on a wide range of products, including wood-
products, textiles, garments, rubber, leather goods, food, pulp
and paper.

Boycott

Early last year, some 400 city administrations in Germany
boycotted Indonesian wood products. Some speculated that the
boycotts resulted from pressures from environmental groups which
do not believe in the sustainable management of Indonesian
forests.

"Actually no institutions or governments can boycott tropical
timbers as it is the right of the people to buy or not to buy
(timber)," Djamaludin said.

He suggested that tropical countries undertake big campaigns
to counter the "propaganda" of non-government organizations
(NGOs) which try to discredit the management of tropical forests.

"NGOs are making big campaigns against tropical timber.
Therefore, we should give more counter-campaigns to international
markets... But, we have also to try our best to manage our
forests well," Djamaludin said.

The green campaign around the world has slashed Indonesia's
export earnings from wood products. According to the Central
Bureau of Statistics, Indonesia's exports of wood products
declined by 5.6 percent to US$5.19 billion last year from $5.5
billion in 1993. The decline was mainly attributed to plywood
earnings, which fell by 11.9 percent to $3.7 billion last year.

Djamaludin estimated earlier this week that in the next ten
years, Indonesia's wood product exports were likely to reach at
least $10 billion annually, without having to rely on plywood,
the production of which depends on large-sized logs.

A number of plywood plants are reportedly reducing their
production because of a decreasing number of sizable logs in
their concessions.

Djamaludin said yesterday that Indonesia would further reduce
timber harvests from natural production forests from the current
level of 27 million cubic meters per annum to an average of 22.5
million cubic meters over the next five years.

To offset the decrease, timber supplies from plantation
forests would be increased, he said. The Ministry of Forestry
aims to establish 1.25 million hectares of new timber plantations
between 1994 and 1999, with an annual budget of $250 million.

"It is our intention to further lower the production level
from natural forests while increasing the harvests from
plantation forests," Djamaludin said.

Up to now, he said, more than three million hectares of
industrial plantation forests had been established. In the past
few years, Indonesia has been able to plant 1.05 million hectares
of new plantation forests at a total cost of over $1 billion, he
said.

The minister said that Indonesia currently has 64 million
hectares of production forests, of which 51.7 million hectares
are being exploited. Indonesia has 30 million hectares of
protected forests, of which 24.9 million hectares are being
exploited. It also has 19 million hectares of conservation
forests and national parks, of which 15.8 million hectares are
being exploited. (rid)

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