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)