Inhutani seeks Miyazawa Plan loan

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)