Dollar rate for reforestation fees raised

Dollar rate for reforestation fees raised

JAKARTA (JP): The government has increased the dollar rate for
reforestation fees imposed on timber companies to Rp 5,000 from
Rp 3,000 due to a continued drop in the country's currency.

Outgoing Minister of Forestry Djamaludin Suryohadikusumo said
yesterday the increase was made in Presidential Decree No.
32/1998, issued Feb. 25.

The reforestation fee is currently set between US$12 and $16
per cubic meter depending on the type of tree, but the payment is
made in rupiah.

He said the decree has been in effect since March 1.

"The total amount of reforestation fees collected for the
1997/1998 fiscal year is expected to increase from Rp 740 billion
to Rp 1.6 trillion due to the new rate," he said.

Under Presidential Decree No. 57/1997, dated Dec. 31, 1997,
the dollar rate for reforestation fees was set at Rp 3,000 per
dollar.

Previously, timber companies paid reforestation fees in
dollars, but the payment system was changed in early January due
to the rupiah's sharp fluctuation. The change was also made to
ensure certainty in the timber industry.

The government uses the fees collected from timber companies
to support its reforestation program and rehabilitate land.

Djamaludin said the new dollar rate also affected any unpaid
reforestation fees for 1997.

He said the new rate, which is lower than the current market
exchange rate of about Rp 9,400 per U.S. dollar, would create
certainty in the timber industry and help companies survive.

He said based on the new rates, unpaid 1997 reforestation
fees, totaling $23 million, would amount to Rp 115 billion.

Under the new rate, the fee for meranti wood with a diameter
of more than 50 centimeters (cm) is Rp 80,000 per cubic meter in
Kalimantan and Maluku from Rp 48,000 previously, Rp 70,000 per
cubic meter in Sumatra and Sulawesi from Rp 42,000 and Rp 65,000
per cubic meter in Irian Jaya and East and West Nusa Tenggara.

For other types of logs designated as mixed jungle wood with a
diameter of more than 50 cm, the government fee is Rp 65,000 per
cubic meter in Kalimantan and Maluku, Rp 60,000 per cubic meter
in Sumatra and Sulawesi and Rp 52,500 per cubic meter in Irian
Jaya and East and West Nusa Tenggara.

The government will not charge any fees for wood and logs with
a diameter of less than 29 cm for timber companies located in
some provinces which do not have pulp and plywood factories.
(gis)