Djamaludin denies blocking cement plant

Djamaludin denies blocking cement plant

JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo
denied accusations that he had hindered the construction of a new
cement plant by PT Eraska Semen Indonesia on 800-hectares of teak
forest in Central Java.

"I couldn't have obstructed them because President Soeharto's
approval is needed to covert forests in Java into other
functions," Djamaludin told journalists after attending a hearing
with the Forestry, Agriculture and Transmigration Commission at
the House of Representatives yesterday.

Djamaludin said that Soeharto, under a presidential decree,
has barred the transformation of forests in Java, except for
infrastructure and public facilities.

Forests cover only 19 percent of the island, far below the
healthy level of 30 percent.

Eraska has got necessary licenses from the Investment
Coordinating Board to build a cement plant with an annual
production capacity of 700,000 tons in the Juwangi village in
Boyolali, Central Java. The plant was initially expected to start
commercial production in 1997.

The company's president, Tugiyono Makmoer, said last month
that his company couldn't begin construction because Djamaludin
had not yet approved the exploitation of the forest.

Tugiyono said that his company filed a proposal with the
Ministry of Forestry last May but had not got a reply.

"If the proposal is not approved by the end of January, we'd
better quit the project," Tugiyono was quoted by Kompas as saying
last month.

Water catchment

Minister Djamaludin noted yesterday that the forest to be
exploited by Eraska is a very important water catchment area. "We
should also study the environmental impact," he said.

He said his ministry, in coordination with the Indonesian
Science Institute and the office of the State Minister of
Environment, will conduct the study soon.

"The results of the study will be sent to President Soeharto
for consideration," the minister said.

Tugiyono assured that his company had obtained licenses from
the Central Java governor and the Director General of Chemical
Industries at the Ministry of Industry along with the BKPM. The
company has also signed a contract with Tianjin Cement Design &
Research Institute of China to supply it with machinery.

State Minister of Investment Sanyoto Sastrowardoyo said
yesterday that his office had no problem with Eraska's plan to
set up the plant.

Sanyoto said his office had approved the establishment of 11
new cement factories in Central Java. None of them have been
realized.

Indonesia, annually hit by a cement crises, badly needs new
cement factories or expansion of the existing cement plants to
meet mounting demand.(rid)