Production of plywood not to rise: Djamaludin
Production of plywood not to rise: Djamaludin
JAKARTA (JP): Minister of Forestry Djamaludin Suryohadikusumo encouraged wood-based companies yesterday to diversify their businesses because the country's plywood production cannot be increased in the coming years.
The minister told a press conference at his office here yesterday that plywood manufacturers should start to diversify their businesses into, for example, pulp and paper, furniture and other non-wood products.
"It's dangerous if businessmen rely on just one kind of product. We have to improve the secondary industries, including services. Eco-tourism, for example, has a promising future because Indonesia will see increases in the number of tourist arrivals in the coming years," he said.
On the other hand, plywood manufacturers should also increase the values of their products by applying high technology in their production processes, he said.
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-August period this year, for example, plywood exports decreased by 11.35 percent to US$2.29 billion from $2.59 billion in the corresponding period in 1994.
In the same period, exports of sawn timber decreased by 7.9 percent to $304.07 million from $330.31 million, while exports of other wood products increased by 17.5 percent to $697.62 million from $593.62 million.
Meanwhile, dozens of plywood companies were recently reported to be on the brink of bankruptcy due to difficulties in obtaining raw materials.
Djamaludin said yesterday that in the coming years, both the government and the private sector will face stiffer challenges.
"We are facing the globalization era, market liberalization and improved awareness of environmental issues," he said.
"Domestically, we have to prepare and manage forests very well to facilitate the growth of wood, meaning that we have to compete with forest destruction, including theft and illegal logging," he added.
Some obstacles that will be faced by the government in developing the country's forestry industry, according to Djamaludin, include limited budgets and the poor quality of human resources.
"Both the government and private sector firms have to think how to improve the quality of the personnel," he said, adding that opportunities in 1996, however, will be bright.
"I believe that Indonesia still has some advantages compared with other Asian countries. We have a lot of space for forestation and our tropical forests remain one of the largest in the world after Brazil and Zaire," he said, adding that in 1995, his office recorded successes in reforestation and forest conservation campaigns.
Cancellations
Meanwhile, Director General of Forest Utilization Titus Sarijanto said that the government has canceled 111 forest concessionaires due to various reasons as of yesterday.
The number was a cumulative figure since the government licensed 580 concessions in the 1960s.
Titus said that the forests which are still in good condition will be handled by state-owned firms or jointly with private firms.
He said that the government is currently preparing regulations which will require a concessionaire to take part in rehabilitation programs.
Djamaludin also said yesterday that his office has canceled its permits for two major forestry groups from conducting self- assessment reports on their logging activities due to their violations of regulations.
"I won't name the groups which keep some 20 concessionaires. They have abused our trust," he said.
The Ministry of Forestry introduced a self-assessment system, which allows certain forest concessionaires to draw up their own reports on logging activities and determine the level of fees which they have to pay to the government. (icn)