Denmark provides grant

JAKARTA (JP): The government of Denmark has agreed to provide a US$7.87 million grant to Indonesia to help secure high quality tree seedlings for the country's reforestation efforts.

The agreement for the grant, which would help fund the Indonesia Forest Tree Seed Project, was signed by Danish Ambassador Michael Sternberg and Minister of Forestry Djamaludin Suryohadikusumo here yesterday.

The project will help improve reforestation efforts carried out from West Java's capital of Bandung, South Sumatra's capital of Palembang, Banjar Baru regency in South Kalimantan and South Sulawesi's capital of Ujungpandang.

Sternberg said that the project's long-term significance had been further underlined in light of the importance of the forestry sector to the Indonesian economy and due to the recent setbacks to the sector from extensive forest fires last year.

Under the agreement, the Danish fund will be used to finance the project's experts, equipment and material, supporting personnel, training, transportation and administrative costs.

The Indonesian government will provide $1.9 million to finance the project's offices, office operational and maintenance costs, Indonesian staff members and training costs.

Djamaludin said that he hoped the project would be able to significantly contribute to the forestry development and forest plantation programs by addressing problems and constraints related to seed production and distribution. (gis)