Illegally-cut wood set aside for low-cost housing

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)