Forest concessionaires to abide by eco-labeling regulations

JAKARTA (JP): Indonesian forest concessionaires have no choice but to abide by eco-labeling rules in order to survive against international competition and meet the demands of the world market, Minister of Forestry Djamaloedin Soeryohadikoesoemo said.

Speaking at the opening of the ministry's 1994 National Conference, the minister warned concession holders that violations of eco-labeling regulations will harm them on the market "because its implementation will not be monitored only by the government but by an independent body."

"Eco-labeling regulations, not only promote sustainable forest management, but also act as an incentive to exporters. They also provide better monitoring systems and encourage transparency within the management," he said.

He said most concessionaires have not properly implemented the principles of sustainable forest management.

"Indonesian concession holders lack discipline in implementing the provisions of their forest agreements. Their managements, which are still short-term oriented, are also of very poor quality," he remarked.

This poor performance can be seen in the high frequency of warnings served to logging companies, and in the increase in the cost of penalties imposed on errant concessionaires, as well as in the number of concessions revoked, he said.

Conservation

Djamaloedin said that much emphasis will be placed on conservation efforts and on programs to provide social benefits for the people from the forests.

"The forests should benefit the three parties involved: the private sector or concession holder, the government and the local people living around the forests," he said.

According to Djamaloedin, during the current sixth Five-Year Development Plan (Repelita VI), which started early this month, the government will shift forestry projects from being company profit oriented -- meaning that almost all the profits go to forest concessionaires -- to being social benefit oriented.

"Forest concessionaires will be required, not only to pay reforestation fees and royalties, but also to generate business opportunities for small- and medium-sized firms in their concession areas," he said.

Although his ministry has not laid down the rules for the new obligations, the new requirements will be presented at the coordinating meeting of industry and trade ministers in the near future.

To further increase forest preservation, Djamaloedin said that logging activities in natural forests which have supplied wood industries will be decreased from the annual cut of 31.4 million cubic meters over the past five years to 22.5 million during Repelita VI.

He said the decrease will be offset by wood supplies from industrial plantation forests (HTI).

According to him, HTI production could be increased from 1.5 million cubic meters to about 5.6 million during the Repelita VI period, while about 3.7 million cubic meters of wood could be collected from conversion of forested areas to other purposes. (10)