Illegally-cut wood set aside for low-cost housing

JAKARTA (JP): A joint ministerial decree was signed here yesterday to allow the use of wood confiscated from illegal logging for the construction of low-cost and medium-cost public housing.

The decree was signed by Minister of Forestry Djamaludin Suryohadikusumo, State Minister of Public Housing Akbar Tandjung, Attorney General Singgih, National Chief of Police General Banurusman and Minister of Finance Mar'ie Muhammad at the Ministry of Forestry office.

Djamaludin announced that the decree was aimed at reducing "collusion practices" between wood smugglers, illegal loggers and irresponsible government officials, including police officers and forestry officials working at the local level.

Widespread illegal logging, which is detrimental to the environment, is also believed to be backed by a number of powerful individuals.

The total volumes of stolen logs over the past year reached seven million cubic meters worth about Rp 225 billion (US$100.2 million).

Under normal circumstances, confiscated illegal wood is publicly auctioned.

Djamaludin said the decree was also expected to give low- income citizens an opportunity to purchase good-quality houses at affordable prices.

The low-cost and medium-cost houses to be built with the confiscated wood will measure between 21 square meters and 36 square meters on land areas of between 54 square meters and 200 square meters.

According to Akbar, who accompanied Djamaludin in the press briefing, a low-cost house measuring 21 square meters is currently sold at Rp 4.5 million to Rp 5 million and a medium- cost house of the same size at Rp 10.5 million to Rp 11 million.

Djamaludin explained that the confiscated wood would be rendered freely to the state-owned developer Perumnas which oversees the construction of low-cost housing.

Free

Perumnas, he said, will only have to pay for transportation, storage and preservation expenses.

The confiscated wood, he said, will not be subject to reforestation funds and forest royalties which can reach up to a total of Rp 50,000 per cubic meter of equivalent log wood.

Reforestation funds and forest royalties are mandatory contributions that concessionaires must pay to the government for each cubic meter of wood they cut. The size of each contribution varies, depending on the type of wood felled.

Djamaludin pointed out that based on these figures, the new scheme will provide a government subsidy of about Rp 400,000 for one low-cost house, based on one house consuming about four cubic meters of wood.

He said that last year 258,000 cubic meters equivalent of log wood were confiscated throughout the country.

Not all types of wood, however, will be subject to the scheme.

Confiscated teakwood, meranti (shorea sp.) and a number of other types of first-class wood will still be subject to public auctioning.

The regulation will mostly affect, among others, bayur (pterospermum spp.), eucalyptus, kenanga (cananga odorata), keruing (dipterocarpus spp.) and merbau (instia spp.).

Djamaludin said that a technical team will be set up next week to work on details and the implementation of the decree. (pwn)