Govt to issue permits for pulp production

JAKARTA (JP): The government will resume issuing licenses for the establishment of industrial timber plantations to boost the country's pulp production, Minister of Forestry Djamaludin Suryohadikusumo says.

Djamaludin was quoted by Antara as saying Wednesday that more pulp production is needed to increase paper production and cut back paper prices in the long run.

The Ministry of Forestry had previously limited the issuance of such permits to only 13 concessionaires for environmental reasons.

Djamaludin said concessionaires which currently have a permit should start planting their industrial timber, otherwise their licenses will be revoked.

Many investors who were interested in establishing pulp and paper plants have been turned down because the ministry stipulates that the wood supply must come from plantations grown by the concessionaires on infertile, flat and empty land with an area of 300,000 hectares or more.

Industries are not allowed to fell trees from the existing natural forests.

Djamaludin said he was doubtful that investors would respond because there were now very few areas in the country which meet the government's requirements.

He said, however, that to ease investments, the regulations may be revised to allow prospective investors to establish plantations in areas of about 150,000 hectares.

He also emphasized that investors must not push out indigenous communities in the plantation areas. (pwn)