Tue, 26 Jan 1999

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to maintain the Inhutani group's status as profit-driven state companies, all privileges the firms receive should be withdrawn and they should be given the same treatment as private companies.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