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)