Provinces to get more say on forest projects

JAKARTA (JP): The Ministry of Forestry and Plantations plans to increase the budget allocations for local administrations in the 1999/2000 fiscal year in a bid to give them greater autonomy in managing the country's forest assets.

Minister of Forestry and Plantations Muslimin Nasution said on Thursday that the amount to be managed by provincial offices to develop forests in their areas would be raised by 79.1 percent to Rp 177.4 billion from Rp 99 billion in the current fiscal year, ending in March.

"Consequently, the funds managed by the central government next fiscal year will be set at only Rp 41.6 billion, 62.7 percent lower than the RP 111.7 billion in the current fiscal year," he said in his directive during his meeting with the heads of forestry provincial offices.

In the 1999/2000 draft of the state budget -- unveiled by President B.J Habibie earlier this month -- the funds allocated to the ministry increased by 4.3 percent to Rp 219 billion from Rp 210.7 billion in 1998/1999 fiscal year.

Aside from the budget, he said, the ministry has also allocated Rp 1.05 trillion in reforestation funds and Rp 102.64 billion in forest royalties and concessions fees to finance the development of the country's forests in 1999/2000 fiscal year.

The reforestation fund and forest royalties are mandatory fees imposed by the government on forest concessionaires to ensure that forests are managed in an environmentally sustainable manner. The size of the fee depends on the volume and type of timber felled.

Muslimin said that the reforestation funds will be used to finance the development of timber estates, forest conservation and the ministry's social forestry program.

Some Rp 45 billion of the fund, he said, would be disbursed as credits for people living near forests to finance their economic activities such as developing silkworm cultivation.

Muslimin also urged his officials to use the funds more efficiently and avoid lavishness and corruption. He also asked his officials to cut out illegal levies.

"The era of corruption and bribery is over now. It is time for us to manage the funds entrusted by the people to us more efficiently and to manage the country's forests in an environmentally sustainable manner that empowers local people." (gis)