Indonesian Political, Business & Finance News

Government to provide funds to establish eco-labeling agency

| Source: JP

Government to provide funds to establish eco-labeling agency

JAKARTA (JP): The government will give funding to establish
and operate an Indonesian eco-labeling agency, which will support
the sustainable management of the country's forests, a minister
said.

"We will use part of our reforestation funds to support the
agency until it is financially independent," Minister of Forestry
Djamaloedin Soeryohadikoesoemo told reporters here yesterday
after a meeting with executives of the Chamber of Commerce and
Industry of the Japanese city of Kochi.

He explained that the government can use part of the
reforestation funds, currently standing at around Rp 600 billion
(US$277.26 million), because up to 60 percent of them are
allocated for the rehabilitation of damaged forests, the training
of forest-related personnel and the procurement of equipment.

The government has appointed a task force, chaired by former
state minister of population and environmental affairs Emil
Salim, to prepare the establishment of the eco-labeling agency.
The agency is expected to be up and operating by the year 2000,
and will select and label wood from the forests which has been
managed in a sustainable way. Only such wood will be allowed to
be traded domestically or exported.

Permanent funding

Emil Salim recently urged the government to endow permanent
funding to make it financially independent.

Djamaloedin guaranteed yesterday that even though the
government will provide funds for the planned agency, it will not
try to influence its policies.

"The agency will be independent and will not be dictated
either by the government nor by forest concessionaires," he said.
"People know Emil Salim's integrity."

Emil Salim is expected to lead the agency.

Djamaloedin said the World Bank has decided to provide
$500,000 in aid for the agency's human resource development.

He also indicated that there are many countries which are
willing to support the agency.

Meanwhile, the minister acknowledged the improvement of
Indonesian people's awareness of the importance of forest
protection.

"However, many people still make their living by planting
secondary crops on the upper side of hills or mountains, which
leads to the erosion of preserved forests," he added.

Djamaloedin said that his office has allocated Rp 10 billion
($4.62 million) from the reforestation funds for reforestation
projects. (yns)

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