Expansion of forest-based industries to be controlled

Expansion of forest-based industries to be controlled

JAKARTA (JP): Timber-related industries will be exempted from
government regulation No.13/1995, which allows industrial
companies to expand capacity up to 30 percent without a license,
a minister said.

Minister of Forestry Djamaloeddin Soerjohadikoesoemo said here
yesterday, "we're afraid too much freedom for capacity expansion
for timber-based industries will have a negative impact".

He said the illegal buying of logs by timber-based industries
could accelerate the pace of deforestation in the country if the
regulation was applied.

He said all timber-related industries -- pulp, plywood, and
wood processing -- had to have their own industrial forest
estates. But often the estates did meet their demand for raw
material.

"This often forces them to buy illegally-cut timber," he said.

He cited as an example the Indah Kiat Pulp plant. It expanded
its capacity from 900,000 tons to 1.2 million tons a year but its
estate was unable to meet its raw-material needs.

He said the plan to require forest-based industries to get
licenses for capacity expansion would be discussed with other
ministers.

Djamaloeddin was speaking after reporting to President
Soeharto on an integrated forest protection team. He told the
President of a decision to give the team an incentive of about 20
percent of the sales proceeds of any illegally-cut timber the
team seized.

He also reported that forest concessionaires were reluctant to
plant slow-growing tree species such as teak because they mature
only after 30 years. "This is because a forest concession is
valid only for 20 years," he said.

Djamaloeddin said he would make a comparative study on forests
in South Africa later in June, and would visit Germany in
September and Turkey in October to attend world forestry
conference. (bnt)