Forestry firm sees rise in profit

Forestry firm sees rise in profit

JAKARTA (JP): Perhutani, a state-owned forestry company, reported a before tax profit yesterday of Rp 125.84 billion (US$57.2 billion) in 1994.

Perhutani's president, Harnanto H.M., said at a meeting of state forestry firms at the Manggala Wahana Bhakti building that the firm's 1993 after tax profits reached Rp 24.1 billion.

"The increase in profits is due to greater efficiency and more successful application of market intelligence," Harnanto told reporters.

Perhutani currently manages 2.55 million hectares of forest in Java and 39,000 hectares the in eastern provinces of the country.

The firm earns its income by producing various wood products -- including teak logs and plywood -- and non-wood products such as turpentine.

Harnanto estimated that Perhutani's revenue in 1994 increased by 22.8 percent to Rp 531.39 billion over the previous year.

Last year's revenue consisted of Rp 396.73 billion from domestic sales, Rp 115.47 billion from exports and Rp 19.19 billion from what is classified as Perhutani's "other businesses", Harnanto said.

These "other businesses" include forest tourism, silk and honey, he said.

The Ministry of Forestry announced last year that all state- owned forestry firms increased their combined before tax profits by 263.2 percent to Rp 130.36 billion in 1993. (hdj)