Loggers told to cut capcity, not trees
Loggers told to cut capcity, not trees
Rendi A. Witular, The Jakarta Post, Jakarta
The country's forestry-related industry should cut its
installed capacity by more than 70 percent in order to protect
the country's forests from continued overexploitation, the
Ministry of Forestry has said.
Ministry spokesman Tachrir Fathony told The Jakarta Post on
Thursday that, based on the ministry's analysis, the processing
capacity of the country's forestry industry should be curtailed
to 20 million cubic meters per year from 63 million cubic meters
at present.
Otherwise, he said, the country's forests would remain under
threat of being overexploited.
"We wanted the capacity to be cut to the level of timber
supply this year. However, we have seen that it would be
impossible for the industry to do so. Thus, we think that 20
million (cubic meters) would be fine," said Tachrir.
Tachrir added, however, the ministry had to discuss the figure
with industry players and the Ministry of Industry and Trade.
Analysts have said efforts by the government to curb the rapid
pace of deforestation would never pay off unless the country's
forestry-related industry is restructured to cut down its
processing capacity.
The ministry's data says the installed capacity lies between
60 and 70 million cubic meters per year, despite the fact the
existing running capacity now reaches only 30 million cubic
meters per year.
The remaining capacity remain unutilized as many companies
were forced to stop operations due to the economic crisis.
On the other hand, the ministry set the annual timber supply
quota for the industry at around 12 million cubic meters last
year and 6.89 million this year.
The incredibly huge gap between supply and demand is
considered by many analysts as the main factor behind widespread
illegal logging. The industry takes illegally felled timber to
feed its production facilities.
Tachrir said should the ministry cut down the capacity to 20
million cubic meters per year, the ministry would not change the
supply quota of 6.89 million cubic meters.
Thereby, the industry would have to import logs to fully
supply its plants.
Commenting on Tachrir's statement, chairman of the Indonesian
Wood Panel Association (APKINDO) Martias said the reduction of
both log supplies and the industry's capacity would cause prices
for timber-based products to increase by at least 30 percent.
He said under the existing capacity, the plywood industry had
already forecast that the plywood price on the export market
would rise to US$350 per cubic meter this year from $270 last
year, thanks to the strong demand.
Should the government order plywood suppliers to cut their
capacity, the price would inevitably soar, he said.
The installed capacity of the country's plywood industry now
reaches 10 billion cubic meters.
The industry managed to contribute $2 billion to the country's
foreign exchange earnings last year.