Govt review forest management

Govt review forest management

JAKARTA (JP): The government is studying the possibilities of
establishing an umbrella forestry organization or empowering
existing state timber firms to represent the government in
issuing forestry licenses to private firms.

Forestry and Plantations Minister Muslimin Nasution said on
Monday that any decision on the matter would be included in the
forestry bill currently being drafted.

"We are studying various alternatives, either changing PT
Inhutani's status to become a forestry company with greater
social responsibilities, or establishing a new forestry firm
which will have a social mission like that of Perum Perhutani but
operate outside Java, or expanding Perum Perhutani's coverage to
also manage forests outside Java," he told reporters.

The government currently has five companies with the name PT
Inhutani -- Inhutani I through Inhutani V -- which focus mainly
on generating profit for the government from the country's
forests.

PT Inhutani I manages forests in east Kalimantan, South
Sulawesi and Maluku; PT Inhutani II has operations in South and
East Kalimantan; PT Inhutani III in West and Central Kalimantan;
PT Inhutani IV in Aceh, North and West Sumatra and Riau; while PT
Inhutani V manages forests in Jambi, South Sumatra, Bengkulu and
Lampung.

Unlike Inhutani, Perum Perhutani, which manages 2.5 hectares
of forests in Java and West and East Nusatenggara, has more of a
socially responsible mission. Besides developing and
rehabilitating forests under its control, Perhutani also empowers
people living nearby these areas with income schemes related to
the forests.

Muslimin said the government would later only work as the
policy maker and handle administration of the country's forests,
while the state forestry firm would handle the harvesting of the
country's forest resources and oversee the operation of private
companies.

"The results of our study will soon be discussed intensively
with Pak Tanri Abeng," he said.

Tanri is the state minister for the empowerment of state
enterprises.

Muslimin said if Tanri wanted to maintain the Inhutani group's
status as profit-driven state companies, all privileges the firms
receive should be withdrawn and they should be given the same
treatment as private companies.

"If Inhutani I to V maintain their current status, we might
establish a new forestry firm or assign Perhutani to manage
forests outside Java."

He acknowledged that not all Inhutani firms would continue to
make a profit if their beneficial facilities were lifted.

The Inhutani group enjoys various government privileges, such
as interest free loans from reforestation funds to establish
joint-venture timber estates with private companies.

Muslimin also said that the government would not open any new
areas to exploitation by timber companies. (gis)