Inhutani expects smaller profit

JAKARTA (JP): State owned timber company PT Inhutani I in East Kalimantan expects to book before-tax profits totaling Rp 68.4 billion (US$9.8 million) this year, but predicted much smaller profits of Rp 26.2 billion next year due to a sharp decline in timber output.

Inhutani's production director Sri Sudiharto told a media conference on Wednesday the company's log production would fall as clear-cutting concessions in conversion forests, which are currently monopolized by Inhutani I, would also be awarded to private companies.

Sri said Inhutani's log production next year would most likely decrease to 884,000 cubic meters from an estimated 1.05 million cubic meters this year. (06)