Indonesian Political, Business & Finance News

Mandatory fees cause Concessionaires problems

Mandatory fees cause Concessionaires problems

JAKARTA (JP): A number of forest concessionaires operating in
Central Kalimantan are having difficulty at setting their annual
logging plans for 1996/1997 because they lack information on the
amount of mandatory forest fees they should pay, an official
says.

The head of the local forestry office in Palangka Raya, A.S.M.
Panjaitan, said 84 forest concessionaires were unable to submit
their annual logging plans for government approval because they
did not have the final calculations on the amount of forest
royalties and reforestation funds due on their concessions.

Forest royalties and reforestation funds are mandatory fees
imposed by the government to assure that forests are managed in
an environmentally-sound manner. The amount of the fees, which
depends on the volume and type of timber felled, is incorporated
in the timber prices.

Panjaitan said the final calculations on the payment of these
fees are among the requirements that must be submitted together
with a forest concessionaires' annual logging plans in order to
gain government approval.

Only after the annual logging plans are approved by the
government can forest concessionaires conduct logging operations
for the current fiscal year.

Panjaitan was quoted by Antara as saying that so far, only
five concessionaires have completed their annual logging
proposals for official assessment.

Other requirements which must be submitted together with the
proposal include proof that a forest concessionaire or timber
estate has conducted village-development programs in its
concession area, employed transmigrants on its timber estates and
planted local tree species in its area.

To gain government approval for its upcoming (1996/1997)
annual logging plan, a forest concessionaire must have
accomplished all these requirements by March 31.

The concessionaires, according to Panjaitan, must have also
paid all kinds of the government-mandated forest fees.

They are also required to submit copies of payment invoices
for forest royalties and reforestation funds for one year
(1994/1995) and other documents declaring the origin of their
timber exports, if any.

If the concessionaires are related to wood-based industries,
the industries should be able to prove the origins of their raw
materials. (pwn)

View JSON | Print