Govt to issue permits for pulp production

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)