Log supply shortage hits plants

Log supply shortage hits plants

JAKARTA (JP): A log supply shortage has hit many plywood plants in the province of East Kalimantan, where 25 percent of Indonesia's plywood is produced, a regional official said.

"The shortage was caused by the government's decision not to extend several forest concessions last year," the chairman of the East Kalimantan chapter of the Indonesian Forestry Association, B.S. Suba, told Antara in Samarinda yesterday.

According to Suba, the shortage is likely to edge many plywood industries out of business and put thousands of workers out of a job.

He pointed out that last year, at least four plywood mills in the province went out of business and about 5,000 workers were laid off because of a raw material shortage.

There are 80 forest concessionaires in the province.

Last year, the production of logs from the 80 concessions and from timber industrial estates amounted to five million cubic meters, while the plywood industry in the province required seven million cubic meters.

He noted that the condition deteriorated due to many concessionaires sold their logs to other provinces. He did not give any further details.

"If we cannot solve the problem then we'll see more plywood mills go out of business and more workers laid off," he said.

He added that the difficulties will also affect the national economy, which depends on the province for one-fourth of the nation's plywood output.

He expressed his hope that the government would ease forest management regulations and take the necessary steps to improve the situation. (13)