Indonesian Political, Business & Finance News

Central Sulawesi forests unproductive

Central Sulawesi forests unproductive

JAKARTA (JP): The Ministry of Forestry has decided not to
extend any forest concessions in Central Sulawesi, the province's
Governor Azis Lamajido said yesterday.

Lamajido told journalist after meeting with President Soeharto
that the decision had been made because the province's forests
had become unproductive.

"In the future, forest management in Sulawesi will be carried
out by state-owned PT Inhutani I and Inhutani II, together with
local state firms and the private sector," he said.

He said there were currently seven concessionaires managing
the province's forests.

The government's decision to hand over the management of the
concessions to Inhutani was aimed at restoring the potential of
the forest's resources and to improve forest preservation in the
region.

In the future, Lamajido said, the development of the forests
would focus on the planting of ebony trees.

He said the prospect for ebony wood is still favorable and
demand for the wood is very strong.

He admitted that cases of wood theft and smuggling were still
rampant. The high incidence of violations, he said, was caused
not only by the high market price of ebony but also because of
the ban on exports of ebony logs.

"Cases of theft and smuggling still exist, but they are only
petty thefts. We can handle them," he said.

Prices of ebony currently reaches US$15,000 per cubic meter.

Since the government started awarding forest concessions to
private companies in the early 1970s, 111 have been revoked due
to poor forest management. Currently, 491 forest concessionaires
operate in the country. (pwn)

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