New forestry minister urged to curb log exports

JAKARTA (JP): Newly appointed Minister of Forestry M. Prakosa is facing calls to impose a log export moratorium to help save the country's forest resources and protect local timber-related companies.

Indonesian Forestry Society (MPI) chairman Soedradjat DP said on Friday that the log export moratorium should be a priority for Prakosa as the country's forests were edging toward massive damage due to over exploitation amid high export demand.

"It's the government's responsibility to control logging activities in accordance to real need," Soedradjat told reporters on the sidelines of a post-handover ceremony from Marzuki Usman to Prakosa.

The government slashed export tax on logs from 200 percent to 10 percent in 1998 as part of its commitment to reform the economy in return for a massive bailout fund from the International Monetary Fund (IMF).

But the decision has led to a massive outflow of logs from the country, as the easing of log export restrictions prompted many logging companies to sell their logs overseas to obtain hard currency instead of selling to local wood businesses.

Chairman of the Association of Indonesian Wood Panel Exporters (Apkindo) Abbas Adhar said a huge quantity of log exports had badly hit local wood-related firms due to a lack of timber as their prime raw material.

He said that the country's plywood exports plunged significantly due to the raw material shortage.

"The new minister must stop log exports," he said, adding that otherwise many wood-related businesses would be closed down.

The government would lose one of the best contributors to its coffers, he said.

The country's plywood exports stood at US$3.7 million last year, while pulp and paper $3 million and other wooden products $1.8 million.

Soedradjat said that the lucrative log export business had boosted the country's logging volume in 2000 to 60 million cubic meters, which was much higher than the 24 million cubic meters real need of local timber-related businesses.

"The massive logging activities will accelerate deforestation," he said.

According to data at the Ministry of Forestry, the country's deforestation rate stood at between 1.6 million to 1.8 million cubic meters per year due to rampant illegal logging activities.

Adiwarsita Adinegoro, chairman of the Association of Indonesian Forest Concessionaires (APHI) said that the government should renegotiate with the IMF to review the policy on log export tax.

Meanwhile, Prakosa declined to comment, saying that he needed time to contemplate forestry problems.

"Within two or three days, I'll be available for further comment," he said.

The new minister was born in Yogyakarta, on March 4, 1960. He obtained his master's degree in forestry economics at the University of Tennessee, Knoxville, USA and his PhD from the University of California, Berkeley. (03)