Malaysian state may export logs to Indonesia

Malaysian state may export logs to Indonesia

JAKARTA (JP): Malaysia's state of Sarawak has implied that it
is ready to export logs to Indonesia to meet increasing demand
from the plywood industry in this country.

Acting Minister of Sarawak Awang Tengah Ali Hassan said here
yesterday that Sarawak might export its logs to Indonesia if
prices were reasonable.

"We export logs to Japan and South Korea, so why shouldn't we
export to Indonesia as well?" he said after a signing ceremony
between the state-owned PT Inhutani I forestry firm and
Malaysia's Pembangunan dan Lindungan Tanah (PELITA) Board.

Minister of Forestry Djamaludin Suryohadikusumo said last week
that Indonesia was considering importing logs for its wood-based
industries which could not get timber supplies from existing
natural forests.

He said importation of timber would have to start if Indonesia
hoped to preserve its natural forests, while at the same time
ensure sufficient supply of raw materials to the wood-based
industries.

Further discussion with other ministries, such as the Ministry
of Industry and Trade, is required before log importation could
proceed, the minister said.

"Imports, if the government decides on it, should be seen
merely as a crash program and a short-term solution to our
problems," he said last week.

Ali Hasan said yesterday that if the prices proposed by
Indonesian plywood firms were attractive, Sarawak would be
willing to export logs to Indonesia.

He refused to comment on the prices of logs from Sarawak,
saying that prices were "sometimes high and sometimes low".

Sarawak's log production is currently 16.5 million cubic
meters, of which 45 percent is exported.

Welcome

Djamaludin yesterday welcomed Sarawak's intention of exporting
logs to Indonesia. He stressed, however, that guarantees should
be made to ensure that logs to be imported from Sarawak were not
initially from Indonesia; particularly if they had been smuggled
across the border.

Indonesia banned the export of logs in 1985. Exports are now
limited to commodities which have added value.

Djamaludin contended that Indonesia's intention to import logs
was not because the country's forests were depleted, but was
because the government was concerned over the condition of the
forests.

Indonesia did not want to exploit its timber production beyond
the forests' sustainable capacity, he said. "We don't allow
forest concessionaires to clear-cut the forests for their wood-
based industries," Djamaludin said.

He acknowledged that good forest management -- not importing
wood -- was actually the most appropriate way to preserve the
country's forests.

Yesterday's agreement allows Inhutani and PELITA to jointly
manage sago palm forests in Irian Jaya.

The agreement, signed by Inhutani President A. Fattah D.S. and
a PELITA executive, Bujang Mohidin bin Haji Jol, will involve a
series of field surveys and feasibility studies to determine the
potential of Irian Jaya's sago forests.

The cooperation will be followed by the establishment of a
joint venture. (pwn)