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)