77% of allocated areas for industrial forests unused

JAKARTA (JP): Twenty-three licensed industrial forest companies have only planted on 23 percent of the acreage allotted to them, according to data from the Association of Indonesian Forest Concessionaires.

The data, collected by Antara, shows that as of July, the 23 firms planted 867,773 hectares of industrial forests, out of an allocated 3.72 million hectares.

Of the 23 firms, five companies control 66 percent of planted industrial forests.

The largest industrial forest firm in operation is Musi Hutan Persada, a subsidiary of Prayogo Pangestu's Barito Pacific Timber.

Musi Hutan Persada's forests in South Sumatra cover 193,715 hectares, or 22.45 percent of all planted industrial forests.

Next in size is Arara Abadi Indah Kiat, a subsidiary of Indah Kiat Pulp and Paper. Arara's planted forests cover 133,159 hectares of land in Riau province, or 15.42 percent of the total.

Then comes Surya Hutani Jaya in East Kalimantan, with 91,902 hectares, followed by Menara Hutan Buana in South Sulawesi with 79,452 hectares and ITCI Hutani Manunggal in East Kalimantan with 71,931 hectares.

Menara Hutan Buana is an affiliate of the Mercu Buana Group, which is controlled by President Soeharto's half-brother Probosutedjo. ITCI Hutani is owned by forestry baron Mohamad (Bob) Hasan, a close associate of Soeharto.

All five companies are among 13 firms -- out of 23 companies -- categorized as priority companies with specific support from the government.

Initially, the government only licensed 13 companies to plant industrial forests in the allocated areas totaling 2.6 million hectares.

But later, the government licensed 10 more companies to plant industrial forests, allocating an area of 1.1 million hectares.

The 13 priority companies include Tusam Hutani Lestari and Aceh Nusa Indrapuri in Aceh, Inti Indo Rayon Utama in North Sumatra, Arara Abadi Indah Kiat and Riau Andalan Pulp and Paper in Riau and Wirakarya Sakti in Jambi.

The other priority firms are Musi Hutan Persada in South Sumatra, Menara Hutan Buana in South Kalimantan, ITCI Hutani Manunggal, Surya Hutani Jaya, Tanjung Redeb Hutani and Adindo Hutani Lestari in East Kalimantan, and Finantara Intiga in West Kalimantan.

The other 10 companies are Pakerin in South Sumatra, Fajar Surya Swadaya in East Kalimantan, Aspex Paper and Kertas Leces in Central Kalimantan, Sinar Kalbar Raya, Kertas Basuki Rahmat, Nityasa Idola and West Kalindo in West Kalimantan, Guhara Lestari Cell in Southeast Sulawesi and Maharani Rayon Jaya in Irian Jaya.

All industrial forests are to supply raw material for pulp and paper-producing companies. The plant species grown in the industrial forests are mostly fast-growing plants, like acacia mangium, albazia, pinus, gmelina arborea, sungkai, eucalyptus spp, perenema canescan and shorea spp. (rid)