Mon, 09 Feb 1998

Forestry dues

From Kompas

Forest concession (HPH) operators are liable for forest products royalties and must make a payment into the reforestation fund. These taxes are levied in U.S. dollars. However, the Minister of Forestry has recently stated that payments will now be made in rupiah, at a rate of Rp 3,000 to the dollar.

The forest concessionaires' lobby must be very powerful because the government has come to their aid despite current economic turmoil.

Are their export earnings not in dollars? Why does the government help them? Are they extended other privileges too? I work for a timber company and am not threatened by redundancy, but I feel ill at ease about the blatant favoritism shown towards forest concessionaires.

Even the national logistics agency has to pay Rp 4,000 for each dollar, with the rest subsidized by the government. When the state budget used the rate of Rp 4,000 against the dollar, the whole world said it was not realistic. What about the rate of Rp 3,000 used by the Ministry of Forestry?

To express gratitude for the privileges extended to them, forest concessionaires should also sell any dollars gained in profit to the government at a rate of Rp 3,000.

They should not protest at this idea. They did not object to the rate when it was fixed to their advantage. It is the right time for them to demonstrate their love and trust for the rupiah and this country.

YATI

Jakarta