High prices good for forest management
JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo said yesterday that high international prices of forestry products would help Indonesia maintain sustainable forest management.
"High prices for our exports of forestry products would, I believe, reduce the volume of forest harvests, which in turn will have a positive impact on the sustainability of our forests," Djamaludin said at a luncheon hosted by the Indonesia-Finland Business Council at the Hilton Executive Club yesterday.
The luncheon was held on the occasion of the fifth meeting of the Indonesia-Finland Working Group on Forestry and Forest Industry and the launching of the Finland-Indonesia junior executive scholarship program, which will be held annually for 20 Indonesian students at a time.
Despite a slight increase in volume, Indonesia's plywood exports fell by five percent to US$1.97 billion during the first six months of this year, as a result of falling prices on the international market.
Djamaludin said that to ensure sustainable forest management, Indonesia has three priorities in developing its forests: namely, the improvement of natural forests, the development of industrial forests and technological adjustment.
The minister asked the visiting Finish forestry delegation to help promote Indonesia's forest products in European markets, in view of Finland's membership of the European Union since January this year.
"Indonesia is hoping that Finland can promote the marketing of Indonesia's forestry products, especially in the European Union," Djamaludin said.
Indonesia's exports of wood products account for some 12 percent of its total export earnings. Last year, exports of wood products, mainly plywood, decreased by 5.6 percent to $5.1 billion, down from $5.5 billion in 1993.
Reino Gunn, vice chairman of the Finish side of the Forestry Working Group said his country's membership of the European Union would not reduce its good relations with Indonesia, especially in the forestry sector. (rid)