Plywood producers deny industry is bad debt source
Plywood producers deny industry is bad debt source
JAKARTA (JP): Forest-based industrialists have dismissed
criticism which accuses the plywood industry of being a source of
bad loans.
A. Tjipto Wignjoprajitno, the executive chairman of the
Association of Indonesian Wood Panel Producers, said Wednesday
night that if cases of bad debts at forest-based companies do
occur, they should be examined on an individual basis.
He also highlighted the media's role in the issue.
"If the media carry negative reports on such cases for certain
firms, banks may be reluctant to extend new loans to other
companies. They will be more careful in giving out loans," he
said.
Tjipto acknowledged that some plywood mills have had
difficulties obtaining raw materials, which in turn caused their
debts to go sour, but added that shortages of timber were only
temporary.
Last year, he said, heavy downpours made the transportation of
timber more difficult, especially between forests and plywood
mills.
"If the rain subsides, I think there will be no problem with
supplies," he said during Wednesday's breaking of the fast
gathering with reporters.
Timber tycoon and chairman of the Indonesian Forestry Society
Mohammad "Bob" Hasan, who also attended the gathering, said
companies could avoid bad loans through sound forest management.
Tjipto said that plywood exporters last year faced difficult
times as export values decreased by three percent and export
volume by 2.9 percent.
He said the situation was "normal" and he was optimistic that
the situations would be better this year, especially with the
recovery of Japan's economy. Japan is one of the major importers
of Indonesian plywood. Others are China, the United States,
Canada, and European countries.
Minister of Forestry Djamaludin Suryohadikusumo predicted
earlier this year that the volume and exports of Indonesia's
plywood production would probably be stagnant due to a lack of
raw materials caused by the decline of the standing stocks of
natural forests.
Diversification
Djamaludin called on wood-based companies, especially plywood
mills which used large-diameter trees, to diversify their wood
products and optimize the use of timber from natural forests.
According to data from the Central Bureau of Statistics, the
country's plywood exports have been declining steadily for the
last few years. In the January-October period of last year, for
example, plywood exports decreased by 8.79 percent to US$2.87
billion from $3.15 billion in the corresponding period of 1994.
In the same period, exports of sawn timber decreased by 10.27
percent to $378.49 million, while exports of other wood products
increased by 13.19 percent to $881.55 million from $778.84
million.
During Wednesday's gathering, forestry executives said that by
1999, all forest concessionaires in the country would have
undergone evaluation to implement eco-labeling requirements.
Eco-labeling, which is voluntary, was stipulated by the
International Tropical Timber Organization to begin in the year
2000. Eco-labeling requires all timber traded on the
international market to come from forests which are managed on an
environmentally sound basis.
"Forest concessions which have been evaluated are expected to
start implementing the eco-labeling requirements straight away,"
Tjipto said.
He said the Association of Indonesian Forestry Companies has
so far evaluated 61 forest concessionaires. There are presently
435 concessionaires operating in Indonesia. (pwn)