High prices good for forest management

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)