Indonesian Political, Business & Finance News

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)

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