Governors, businessmen reject policy on reforestation fees

Mikael Setiawan and Rusman, The Jakarta Post, Balikpapan/Samarinda

Governors and businessmen in Kalimantan demanded on Tuesday that the Minister of Forestry revoke a government decree that obliges logging companies to pay a reforestation fee to the government.

The decree, which took effect last year, has placed a huge burden on businessmen and discouraged them from investing in the forestry sector, which would in turn reduce revenue for the regional governments, they said in a joint statement.

The statement was made after a meeting in the East Kalimantan capital of Balikpapan, which was attended by dozens of businessmen as well as four governors of Kalimantan island.

They were Suwarna, the governor of East Kalimantan, Asmawi A. Gani, the governor of Central Kalimantan, Sjachril Darham, the governor of South Kalimantan and Usman Dja'far, the governor of West Kalimantan.

The decree in question was issued by the minister of forestry last year. It obliges the businessmen to pay a certain amount into a reforestation fund to the central government, in addition to the forest concession fund.

The amount to be paid by the businesses varies, depending on the size of the concession and the type of the trees.

Suwarna said that the decree had burdened local forestry companies, which may badly affect their employees.

The decree, they claimed had also discouraged investors from pouring money into the province, in turn hampering the local government's program to create new job opportunities.

Meanwhile, Mamat Mulyana, the chairman of the West Kalimantan's Forestry Businessmen's Association, said that many businessmen in the province were unable to pay the fee, due to slow business in the past three years.

Separately, the joint statement drew a backlash on the same day from the Indonesian Forum for the Environment (Walhi) East Kalimantan chapter. Syarifudin, the executive director of Walhi in East Kalimantan, said that the government decree was proper, and it had to be supported.

He regretted that the companies were unwilling to pay the reforestation fee. By refusing to pay the reforestation fee, the companies had failed to support the reforestation program of the government, he said.

"We regret it. The reforestation program is very important to prevent forest destruction, but the companies apparently are unwilling to support it," he said.