NGO opposes higher logging quota policy
NGO opposes higher logging quota policy
The Jakarta Post, Jakarta
As the forestry-based industry has yet to perform efficiently,
the government should review its policy to increase next year's
natural forest logging quota, an environmental organization says.
"Currently, the forestry-based industry can only absorb 20
percent of the given quota. Why should it be increased?"
Greenomics Indonesia executive director Elfian Effendi said on
Monday.
Minister of Forestry M.S. Kaban said previously that his
ministry would increase next year's annual logging quota to 8.1
million cubic meters from 5.6 million m3 in 2005.
He said the ministry aimed to increase state revenue from the
sector to US$8 billion in 2006 from the current $5 billion.
A Greenomics study shows that between 2002 and 2004, only some
20 percent of 264 companies holding natural forest concessions
were active.
"Most of them experienced financial difficulties because they
have to pay the reforestation fund up front before utilizing the
forests," Elfian said.
The 264 companies held permits to utilize 27.79 million
hectares of natural forest with a logging quota of 5.6 million
m3.
At present, the timber processing industry has an estimated
capacity of about 42 million cubic meters per year, but the
industry is flooded with illegal timber from already depleted
natural forests.
The forestry ministry had planned in January to increase its
present logging quota to 30 million m3 this year to meet domestic
demand and help create employment.
Aside from the supply from the natural forests, there were
some 15 million m3 additional annual supply from other forest
concessions, including from illegal logging, Elfian said.
"Our timber industry is also inefficient. They could only use
up to 50 percent of the logs they received due to aging
technology," he added. "The rest became unprocessed waste."
Elfian said with an investment of less than $10 million on new
wood processing equipment, the industry could in fact use up to
80 percent of the raw materials.
"The government needs to first revitalize the forestry
industry before increasing the logging quota," he said.
Revitalizing could mean reviewing the concessions already
given to companies as well as helping improve the current
financial management of the companies.
"But that does not mean that the government should provide
loans. The forestry sector still has Rp 54 billion (US$5.37
million) of unpaid debt owing since 2001," he said.
Elfian highlighted that the forestry ministry should be
consistent in gradually decreasing the natural forest logging
quota in the next 10 to 15 years in a bid to maximize its
rehabilitation efforts.
Indonesia has set aside Rp 2.8 trillion (US$278.61 million)
this year from the state budget to rehabilitate natural forests.