Govt rejects extension of 43 forest concessions

JAKARTA (JP): The Ministry of Forestry has rejected the extension of 43 forest concessionaires' licenses because their operational areas can no longer support logging activities.

Minister of Forestry Djamaloedin Soeryohadikoesoemo said here on Tuesday that the decision was made after his ministry evaluated the conditions of 103 concession areas, the licenses for which expired last month.

He explained that the 43 concessions will be reforested by five state firms (Inhutani I to Inhutani V), which will also conduct feasibility studies to determine when the areas can be exploited again.

The regreening of the forests will be financed with funds collected from reforestation fees, he said.

Out of the 103 assessed concession areas, 27 were operated by joint ventures between state and private firms and 33 by private companies. The others are operated by state firms.

"Of the 33 private concessions, five are definitely extended," he said. The five areas are being exploited by PT ITCI and PT Sima Agung in East Kalimantan, PT Asia Log in Jambi, and PT Austral Byna and PT Sindo Lumber in Central Kalimantan.

There are currently 580 forest concession holders in Indonesia. The license for each concession is valid for 20 years and can be extended only after an evaluation of operations by the Ministry of Forestry. (10)