Pulp industry relies on natural forests

JAKARTA (JP): Indonesia's pulp industry still uses raw material from natural forests and land-clearing activities, but none from forest estates, Director General of Forest Utilization Titus Sarijanto said.

Titus said the government had encouraged businesses to establish pulpwood estates in 1989 and some had immediately done so.

But so far, none had begun harvesting, although all the species planted were fast-growing types which could be harvested after seven to 10 years, he said.

In comparison, timber species used for furniture and plywood should be at least 15 years old before they could be harvested.

Titus was quoted by Antara as saying that a pulpwood estate managed by PT Musi Hutan Persada, a subsidiary of the Barito Pacific group, would soon begin harvesting 193,715 hectares of its estate in Muara Enim, South Sumatra.

However, he added, the group's pulp mill was not complete yet.

The pulpwood estates of 12 other companies had not yet reached the harvesting age.

According to the Ministry of Forestry, 13 companies had established -- or were in the process of establishing -- pulpwood estates that had now reached a total of 805,354 hectares.

The government had allocated 2.625 million hectares to these companies for pulpwood estates.

These were PT Musi Hutan Persada (193,715 hectares), PT Tusam Hutani Lestari (20,949), PT Indonusa Indrapuri (21,522 hectares), PT ITCI Hutani Manunggal (68,766 hectares), PT Surya Hutani Jaya (91,428 hectares), PT Tanjung Redep (37,060 hectares), PT Finantara Intiga, (previously Enso Forest Development, 13,550 hectares), PT Adindo Foresta (14,013 hectares), PT Menara Hutan Buana (77,765 hectares), PT Inti Indorayon Utama (40,698 hectares), PT Arara Abadi (126,102 hectares), PT Wira Karya Sakti (43,331 hectares) and PT Riau Andalan Pulp and Paper (56,455 hectares).

According to earlier reports, Indonesia's pulp production capacity was expected to reach 11.1 million tons by the year 2010.

Pulp production capacity was 3.1 million tons in 1996 and was expected to grow to 4.4 million tons this year, 5.2 million in 1998 and 5.7 million in 1999 and the year 2000.

Internal demand, plotted at 2.5 million tons in 1996, was expected to grow to 2.9 million tons this year, 3.2 million tons in 1998, 3.6 million in 1999 and four million tons by the year 2000.

This would mean a 60 percent rise from 1996 levels, driven by an expected annual economic growth rate of eight percent which should boost demand for paper and packaging.

Export for pulp was expected to rise from one million tons in 1996 to 2.8 million tons in 2000, and for paper and cupboard from 1.7 million tons last year to 2.9 million tons in the year 2000.

Pulp prices on the world market was currently a low US$400- $450 a ton, down from $900 several years ago. Observers have said the drop was due to periodical fluctuations and was soon expected to rise.

Indonesia's pulp production currently made up about 2 percent of the world's total. (pwn)