Sat, 19 Aug 1995

Eco-labeling violations will face no penalties

JAKARTA (JP): Consumer countries of tropical timber will not impose penalties on wood producers that fail to meet eco-labeling requirements, but will provide incentives for those which prove to be environmentally friendly.

"European countries have assured that countries which manage their tropical forest concessions in an environmentally sound manner will have greater access to their market," said Minister of Forestry Djamaludin Suryohadikusumo as he summed up the results of a discussion here yesterday with delegates from the European Parliament-Indonesia Friendship Association.

The discussion was also attended by former state minister of population and environment Emil Salim, environment expert Otto Soemarwoto, a deputy spokesman of the House of Representatives, Ismail Hasan Metareum, and timber tycoon Muhammad (Bob) Hasan.

Speaking to reporters after the discussion, Djamaludin said that tropical wood which passed eco-labeling criteria would also have better prices on the European market than those that didn't.

The Indonesian government, he said, will also offer incentives to companies which can demonstrate that they are capable of conducting environmentally-sound forest management practices.

Such incentives may include the easing of procedures for the extension of forest concessions and the possibility of conducting self-assessments.

"There may also be tax reductions, which is for the Finance Ministry to decide, and premiums for good companies," Djamaludin added.

Last June, the government appointed 61 forest concessionaires for a pilot project to determine the criteria for, and indicators of, sustainable forest management.

The project was mainly aimed at preparing forest concessionaires to enter the eco-labeling era and to be assessed by an independent eco-labeling agency.

The government has helped establish the national eco-labeling agency by appointing Emil Salim to lead the Indonesian Eco- labeling Foundation, which is the eco-labeling working group for wood-based products.

Djamaludin said recently that the results of the assessment, however, would not effect the current status of the concessionaires.

Voluntary

He said yesterday that members of the delegation urged Indonesians to consider environmental protection and management on a voluntary basis.

They also suggested that results of environmental assessments be announced to the public, he said.

"They have urged us to follow their footsteps, such as by imposing CO2 taxation and introducing tax reductions and premiums," he said.

A member of the delegation, Laurens J. Brinkhorst, acknowledged that cultural, social and economic differences may undermine Indonesia's efforts to copy the developed countries.

"As your society becomes more reformed, tensions between various interests, namely those of non-governmental organizations, will become less strong," he said, commenting on the role of non-governmental organizations in both developed and developing countries.

Legislator Ismail, from the House's United Development Party faction, said that the delegation's visit to Indonesia was expected to "open their eyes" to the "real life" in Indonesia.

"Only after visiting our country do they know that we have a reforestation program, for example," he cited.

Timber tycoon Hasan said that by seeing the country, the delegation, which has made trips to Batam Island, Kalimantan, Ambon, East Timor, East Nusa Tenggara and Bali, could provide a positive view of Indonesia to the European Parliament.

"They can explain (to the Parliament) about the real situations in Indonesia. In the long run, it will be helpful to boost our trade with them," Hasan said. (pwn)