Minister suggests Inhutani hold all forestry rights

Minister suggests Inhutani hold all forestry rights

JAKARTA (JP): Minister of Forestry and Plantations Nur Mahmudi
Ismail proposed on Thursday the appointment of state-owned Perum
Inhutani as the single holder of the country's forestry
concession rights.

The minister said private or state companies that were
interested in logging activities or developing forest estates
should operate under joint operation contracts with Inhutani.

"Under this scheme, timber companies will act only as
contractors," he said, adding the change would enable the
country's forestry resources to be managed in a more sustainable
manner.

At present, timber companies have to obtain forestry
concession rights of up to 20 years from the Ministry of Forestry
and Plantations to operate in logging or forest estates.

Mahamudi said if the House of Representatives approved the
proposal, the new scheme would apply to forestry concessions
which had already expired.

Former forest concessionaires, he said, could continue
operating these forests as contractors, providing they showed a
good track record of forestry management.

Based on government data, relatives or associates of former
president Soeharto own the majority of forest concessions, which
they allegedly obtained through their close ties with the
authorities.

"The point is that these forests belong to the nation," he
said, " ... a state firm should manage the forests while
companies could operate on them."

The scheme proposed by Mamudi is similar to the one used in
the oil and gas industry. There, oil and gas production
activities can only be carried out under a production sharing
contract with state oil company Pertamina.

He said centralizing forest management under one state firm
would not contravene the spirit of autonomy as long as the
provinces received a fair share of the royalties.

Mahmudi said royalties to the provinces should be, for
example, at least 70 percent, with the remaining 30 percent going
to the central government.

Of the 70 percent, he said, 30 percent should be allotted to
regencies, 30 percent to the provincial administration, and the
rest to people living around logging operations.

"This way, the local people's net income should also be high,"
he said.

Meanwhile, chairman of the Indonesian Forestry Society (MPI)
Soedradjat expressed no objections to the minister's proposal,
but warned that clear regulations should follow.

"We will comply to schemes set up by the government, but the
rules of the games have to be clear," Soedradjat said.

He added that the Perum should cover the payments of taxes on
land and buildings.

MPI executive Kristiono saw also no problems with the
proposal, saying that the government would certainly look after
the interest of forestry companies.

In fact, he said, with the government managing the forests,
companies could leave security matters in the government's hands.

The government has recently reported an increase in conflicts
between logging companies and locals demanding compensation for
their land. (bkm)