77% of allocated areas for industrial forests unused

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)