Boon for forestry ministry

Boon for forestry ministry

JAKARTA (JP): The Ministry of Forestry said yesterday the
rupiah value of reforestation funds collected this month jumped
by Rp 12 billion (US$4 million) because of the rupiah's
depreciation.

Minister of Forestry Djamaludin Suryohadikusumo said more than
90 percent of forest concessionaires paid their reforestation
fees in dollars.

The ministry collected $24.8 million in fees this month.

The minister did not disclose the windfall gains made from the
estimated Rp 6 trillion in total reforestation funds accumulated
since they were introduced in early 1980s.

The funds, managed by the ministry, are kept in state bank
term deposits.

Forestry companies have to pay the fees which are intended to
guarantee that forests are managed in an environmentally
sustainable manner.

In 1996, the government collected Rp 880.7 billion, up from Rp
809.6 billion in 1995.

Djamaludin said the weakening of rupiah should be a boon for
forestry companies because most plywood companies exported their
products for dollars, but had their debts in rupiah.

"The profit of state-owned forestry companies will increase
because most of their products are exported," he said.

"Their profits, however, depend on where they export their
products, because Japan has reduced its plywood imports," he
said.

Forest concessionaires also have to pay the government
royalties from their exports. (08)