Indonesian Political, Business & Finance News

Forestry commitments to CGI have not been met: Minister

| Source: JP

Forestry commitments to CGI have not been met: Minister

JAKARTA (JP): The government has failed to fulfill all the
forestry commitments it made during the meeting of the country's
major donor group, the Consultative Group on Indonesia (CGI),
last year, according to the newly appointed Minister of Forestry
Marzuki Usman.

Marzuki said that the targets promised by the government
during the CGI meeting were unrealistic so that it was difficult
to accomplish them.

"It's our own fault. How could we set such unrealistic
targets?" he said to reporters after a meeting with forest
concession holders.

During the meeting, the Indonesian government made various
pledges to protect its forests amid growing concerns from donor
countries over the worsening state of the country's forests.

The pledges included the combating of illegal logging and
unauthorized sawmills; speeding up forest resources assessment;
and imposing a moratorium on forest conversion.

The government also agreed to downsize and restructure timber-
based industries, close heavily-indebted timber industries under
the Indonesian Bank Restructuring Agency (IBRA), synchronize
reforestation programs with existing forest industries,
recalculate the real value of timber, and use the
decentralization process as a tool for enhancing sustainable
forest management.

Asked whether the failure to implement the eight commitments
given could affect new loans from the CGI, Marzuki said, "Just
wait and see."

According to Marzuki, the CGI has yet to give any intimation
that it would cancel its loans.

"We are still negotiating," he added.

Recalling his experience in finance, Marzuki said that
Indonesia should consider its capacity to meet any conditions
before accepting them.

If needed, it could agree to no conditions at all or choose
the minimum conditions available, he added.

Marzuki said that provided all sides helped him and his
ministry, the commitments could be realized.

"It sounds idealistic, but I promise to bring it to fruition,"
he concluded. (03)

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