Cooperatives to get forestry venture shares

Cooperatives to get forestry venture shares

JAKARTA (JP): The Ministry of Forestry has issued a new regulation requiring joint forestry ventures between state and private firms to set aside a portion of their shares to be used by cooperatives and local administration-run companies.

The new ruling, dated Jan. 31, stipulates that the minimum portion of shares allocated for cooperatives is two percent.

It also notes that the minimum portion of a private firm's shares in a joint forestry venture is 49 percent, while the maximum portion of a state company's shares is 49 percent.

The state companies are then required to set aside five to 10 percent of their shares to provincial administration-run firms, Antara reported yesterday.

The forestry ministry has forced concessionaires which failed to meet requirements on sustainable management to hand over their concessions to the ministry or make joint venture companies with state forestry firms.

Last December, the ministry assigned state companies to take over 77 destroyed concessions and acquire shares in 33 other concessions.

The ministry has allocated funds in its budget to rehabilitate the destroyed concessions. The funds will be considered to be part of the government's equity when a joint venture company is established to manage the rehabilitated concessions. Private partners are required to pay at least 10 percent of the authorized capital. (rid)