Forest concessionaires to abide by eco-labeling regulations

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.
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