Inhutani seeks Miyazawa Plan loan
JAKARTA (JP): State owned forestry companies PT Inhutani I, II, and III have asked the Japanese government for a US$533 'Miyazawa Plan' loan to finance the development and the rehabilitation of its forest concession, a top executive of one of the state companies said.
"We have held talks regarding the loans," said PT Inhutani II's development director Syahrul on Monday.
He said the companies would use the loan to develop 310,889 hectares of industrial timber estates and rehabilitate 370,971 hectares of forests.
Arifin, PT Inhutani's production director, added the feasibility study for the proposed loan would be conducted in May.
Arifin said there were a number of other companies proposing to obtain parts of the Miyazawa Plan loan, but he was optimistic the three state companies would get the loans as the Miyazawa Plan put priority on environmental issues.
Earlier reports have stated another state owned company, PT Perusahaan Gas Negara, has also proposed a loan to Miyazawa Plan.
The Miyazawa Plan soft loan is an assistance package provided by the Japanese government to help countries in the Asian region emerge from the economic crisis.
The loan carries an interest rate of up to 0.75 percent per annum with a 10-year tenor.
If the proposal was approved, Syahrul said, PT Inhutani I would get $157.5 million of the above half billion dollar loan, PT Inhutani II $158 million and PT Inhutani III $218 million.
"For Inhutani II, the company has also allocated its own fund for the said rehabilitation and development project," Syahrul was quoted by Antara as saying.
He said the company had already started the development and rehabilitation projects but in a small area, due to financial constraints.
"The reforestation funds raised by the government are now difficult to tap (for rehabilitation projects)," he said.
He said PT Inhutani II planned to use the Miyazawa Plan funds to develop and rehabilitate the much deteriorated tropical forests on Laut island in South Kalimantan. (udi)