Forestry firms given leeway

Forestry firms given leeway

JAKARTA (JP): Timber companies will only have to pay 30
percent of their outstanding reforestation funds debts to get
their annual working plan approved, Minister of Forestry and
Plantations Sumahadi said last week.

Companies could pay the remainder of their debts in
installments and without bank guarantees, he added.

"This is to help them in a time of weakening international
demand and prices," Sumahadi said in a meeting with executives of
forest concessionaire holders and plantation companies Thursday.

The reforestation fund, a fee collected to develop forests and
rehabilitate land, should be paid by forestry firms before March
31.

Previously, the Ministry of Forestry and Plantations would not
approve forest companies' annual working plans until they honored
all their obligations, including reforestation funds.

Sumahadi said timber companies with reforestation fund debts
of less than Rp 200 million (US$25,000) could pay the outstanding
amount over three months from April 1.

Forestry firms with reforestation fund debts of between Rp 200
million and Rp 500 million could settle their debts in six
months, and those with unpaid funds of over Rp 500 million would
be given a year. (gis)