Govt rejects extension of 43 forest concessions

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)