Loans made to protect river basin

Loans made to protect river basin

JAKARTA (JP): The Ministry of Forestry will allow farmers to
obtain loans derived from reforestation funds for the development
of plantations aimed at conservation of river basin areas in Java
and Madura.

Minister of Forestry Djamaloedin Soeryohadikoesoemo has even
offered the use of the funds for "unlimited" purposes by farmers
involved in the conservation of river basin areas, Director
General for Reforestation Sumahadi said in Semarang, Central
Java, on Wednesday.

He noted that in the current fiscal year, the ministry has
allocated Rp 12 billion (US$5.5 million) for conservation
programs in river basin areas on the two islands.

"Of the amount, Rp 10 billion is used as a credit facility for
farmers involved in the conservation of a 5,000 hectare area of
river basins," he said.

He added that the remaining Rp 2 billion is designated for the
coordinating teams for financing their activities in guiding and
training farmers in the project.

Sumahadi said that the ministry has set a ceiling for the
credit at Rp 2 million for the development of one hectare of
land. The credit, which has a maturity of five years, carries an
interest rate of eight percent per year, he added. (fhp)