No reforestation funds for N-2130 aircraft construction

JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo affirmed there are no plans to use reforestation funds for the construction o the N-2130 jet aircraft planned by PT Industri Pesawat Terbang Nusantara (IPTN).

"So far I have not seen any possibility of using reforestation funds to construct the N-2130," he was quoted by Antara as saying.

Djamaludin was responding to questions on whether the planned construction of the aircraft, which will be designed, engineered and constructed by IPTN, would be funded in the same way as its predecessor, the N-250, Indonesia's first domestically-designed commuter plane.

The N-250 accomplished its maiden flight last Thursday. Its construction, which required Rp 400 billion (US$180 million) in interest-free loans derived from the reforestation funds, sparked controversy last year as critics charged that the use of the funds deviated from their real purpose of maintaining the sustainability of the nation's forests.

Djamaludin, quoting President Soeharto's statement in a press conference last Thursday, said that funding for the N-2130 would not be taken from the state budget, but from revenues collected from the public offerings of a number of viable state-owned firms.

The N-2130, whose prototype is expected to be ready to fly by 2003, will require at least US$2 billion for its construction.

Djamaludin said in a hearing with House members last June that over the last five years, his office had collected Rp 3.04 trillion in forest contributions and more than Rp 500 billion in interest.

Although adamant that forestry related funds will not be used to further support the development of aircraft, Djamaludin acknowledged the importance of expanding the country's aircraft industry. He said that judging from the high-priced product that it sells, the aircraft industry must be a profitable one.

"Obtaining high revenues from wood can only be done by cutting down many trees. Since the aircraft industry is a high-profit one, it shouldn't rely on heavy logging -- which will have a negative impact on the environment," he said.

Mandatory reforestation funds, which are collected from forest concessionaires and calculated based on the type and volume of timber felled, are registered under the ministry's bank account and used strictly for development of forests.

However, a law is presently in the making to include the funds as part of the state budget's non-tax revenues.

Djamaludin stressed that the International Tropical Timber Organization, of which Indonesia is a member, has requested its members to set aside special funds for reforestation attempts, thus forest preservation efforts would not have to rely on the state budget.

Rice fields

Commenting on the use of the interest on reforestation funds for the construction of infrastructure needed to create new rice fields, Djamaludin said that because rice is a vital foodstuff in Indonesia, its production must be considered top priority.

It was reported last week that the government will earmark Rp 500 billion to finance the construction of the infrastructure needed to create 1.4 million hectares of new rice fields in Kalimantan.

Indonesia, formerly the biggest rice importer in the world, became self-sufficient in rice in 1984. But it began importing rice again last year due to a fall in production.

As a solution, crash programs -- including intensive planting projects and the clearing of swamp areas in Central, South and West Kalimantan to make way for the establishment of new rice fields, have been designed, with construction of infrastructure planned for the middle of next year.

Several parts of the swamps, however, overlap with the land granted for the use of forest concessionaires and industrial timber estates.

Djamaludin was quoted by Antara as saying that there would be no compensation given to concessionaires whose timber estates overlapped the planned rice estates, which will cover an area of one million hectares in Central Kalimantan, 200,000 hectares in South Kalimantan and 200,000 hectares in West Kalimantan.

In Central Kalimantan alone, 27 concessionaires with rights to an area of 409,585 hectares have territory overlapping with the planned project.

Djamaludin said that no compensation will be given to the concessionaires "because now there is no such thing as a free forest".

He said that most of the concessionaires operating in the overlapping areas had not managed their forest areas favorably, thus their concessions would not be extended.

Djamaludin ensured that wood-based companies which relied on supplies of raw material from the timber estates in those areas would get an adequate supply from state-owned enterprises.

Antara reported that only one plywood mill obtains its supplies from the concessionaires located in the overlapping areas, while the other firms which rely on that area are sawmills. (pwn)