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)