Govt grants forest concessions to eight companies
Rendi A. Witular, Jakarta
The government has awarded concessions extending to more than 591,975 hectares of natural forest and industrial timber plantation to eight local companies after the previous concessionaires failed to apply sustainable forest management policies.
The eight companies will be expected to restore the damaged forests, develop the concessions and, ultimately, increase the supply of timber on the local market, said the director of forest production planning at the Ministry of Forestry, Lumisu Mangiwa.
The eight firms obtained their concessions through an auction.
"We have decided to give the concessions to other companies that are more responsible. Although the concessions are not in good shape, there are still enough resources left for the new companies to develop," said Lumisu in a press conference on Friday.
Local forestry-based industries have been facing raw material shortages for the past several years as a result of the government's move to set logging quotas. For this year, the logging quota is set at 5.7 million cubic meters, down from 6.8 million last year.
Lumisu hoped the new concessionaires would help ease the raw material shortages now confronting the timber processing industry.
The ministry estimates that the concessions have at last 15 mature trees per hectare, each measuring more than 50 centimeters in diameter. Based on the prevailing regulations, the companies are not allowed to totally clear the forests but must leave at least eight trees per hectare until the next logging cycle comes around in five years.
Of the eight concessionaires, five won concessions for natural forests. They are PT Agam Semporna, which got 58,520 hectares in Riau, PT Amprah Mitra (77,700 hectares in Central Kalimantan), PT Sinergi Hutan Sejati (68,980 hectares in Central Kalimantan), PT Mitra Perdana Palangka (56,000 hectares in Central Kalimantan) and PT Utama Damai Indah Timber (49,250 hectares in East Kalimantan).
The other three firms won concessions for industrial timber plantations. They are PT Bumi Persada Permai, which got 74,150 hectares, PT Bumi Mekar Hijau (123,490 hectares) and PT Bumi Andalas Permai (84,585 hectares). All of these concessions are located in South Sumatra.
Lumisu said that the eight companies had passed strict evaluations by the ministry.
"I can assure you that there has been no collusion or corruption in the selection of the eight companies," said Lumisu.
A natural forest concession is valid for 55 years, while an industrial timber plantation concession runs for 100 years.
Thus far, there are 266 holders of natural forest concessions and 201 holders of industrial timber plantations in the country.
Lumisu said that the ministry would auction off more concessions covering at least 100,000 hectares to new companies this year.