New ruling on reforestation fees

New ruling on reforestation fees

JAKARTA (JP): The government is to revise the collection
system of reforestation fees from timber companies to avoid late
payments, a senior official at the Ministry of Forestry and
Plantations said on Wednesday.

Director General of Forest Utilization Harnanto H.
Martosiswojo said timber companies would now be obliged to pay
the reforestation funds in advance and not after they sold their
logs or wood products.

"We are still discussing the revision but it has been reported
to the minister of finance to get his approval," Harnanto said
after opening a forestry seminar.

"The old payment system has resulted in a huge amount of
unpaid funds," he said, adding that unpaid reforestation funds
had reached Rp 133 billion (US$12 million) since April last year.

Harnanto said the government was also considering requiring
timber companies to deposit a certain amount of money as a
guarantee that they would pay the reforestation funds and other
forestry levies on time.

Minister of Forestry and Plantations Muslimin Nasution said
separately on Wednesday that he would reveal the names of the
timber companies who had delayed paying their reforestation fees.

"I will reveal their names in early October. I hope that the
threat will force them to pay their obligations on time," he
said.

The reforestation fund is a mandatory fee imposed by the
government on forest concessionaires to ensure that forests are
managed in an environmentally sustainable manner. The size of the
fee depends on the volume and type of timber felled.

Since April 1, the government has accounted for reforestation
funds, collected from timber companies, in the state budget as
nontax receipts. Previously, the funds were transferred into the
Ministry of Forestry's bank account and its allocation was
governed by presidential decree.

Muslimin also said that his office expected to collect Rp 1.35
trillion in reforestation funds in the 1999/2000 fiscal year, up
20 percent from the Rp 1.13 trillion forecast this fiscal year.
(gis)