Perhutani aims to raise export revenue this year

Perhutani aims to raise export revenue this year

JAKARTA (JP): State-owned forestry firm Perum Perhutani aims
at reaping Rp 243.3 billion (US$105.78 million) in export revenue
this year, up 24 percent from the Rp 195.6 billion gained last
year.

Perhutani President Harnanto H.M. said yesterday the bigger
exports would be achieved by increasing product and service
quality, maintaining supplies and gaining higher prices.

"At the same time we will improve the quality of our human
resources and scientific skills," Harnanto said at the opening of
Perhutani's annual plenary meeting at the Manggala Wanabhakti
building.

The meeting was officially opened by Minister of Forestry
Djamaludin Suryohadikusumo, who was accompanied yesterday by
Director General of Forest Utilization Titus Sarijanto.

Harnanto said 71 percent of Perhutani's export receipts came
from the sales of finished teak and other timber, and the
remaining 29 percent from nonwood forest products such as gum
resin and turpentine.

Perhutani, founded in 1972, currently manages some 2.5 million
hectares of forests on Java, most of which are teak plantations.

The company, which has teak and pine plantations as its core
business, earns 70 percent of its total revenue from the sales of
teakwood.

Seventy-two percent of the revenue from teakwood sales come
from the domestic market and the remaining 28 percent from
exports.

Up to 86 percent of the revenue from the domestic market was
generated by the sales of teak logs and the remaining 14 percent
by the sales of processed wood and nonwood forest products.

Gum resin contributes the most to Perhutani's revenue from
nonwood-forestry products. Gum resin production last year reached
51,814 tons.

Perhutani's teakwood production last year reached 872,482
cubic meters and its forest timber production reached 1.1 million
cubic meters, 66 percent of which consisted of pinewood.

Harnanto said yesterday Perhutani was currently facing threats
from timber thieves. Last year, 88 percent of the company's total
losses were caused by illegal logging. Most of the remaining 12
percent loss resulted from damage to young trees.

Harnanto said Perhutani's forest security patrols last year
managed to salvage stolen and smuggled timber worth up to Rp 2.8
billion. (pwn)