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)