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)