Realization of timber estates far below target

Realization of timber estates far below target

JAKARTA (JP): Forestry companies given concessions to develop
timber estates to support their pulp and paper plants have so far
planted less than a quarter of the 4.05 million hectares of
timber estates targeted by the government.

According to a statistical report of the Ministry of
Forestry's Directorate for Forest Management Supervision, as of
Dec. 1995, forestry companies had managed to develop only 519,781
hectares or 13 percent of the 4.05-million-hectare target since
the government started issuing concessions for pulp-timber
estates in 1989.

From the planted areas of 519,781 hectares, 493,508 hectares
or 95 percent were located within the areas of 13 concessionaires
that the government initially gave pulp-timber estate concessions
to.

The Ministry of Forestry, after issuing permits to the 13
concessionaires in 1989, stopped issuing new permits for
environmental reasons. Timber estates, which can start being
harvested between this year and 1998, are expected to reduce
burdens on natural forests.

Forestry experts recently predicted that Indonesia's pulp
industry will soon face shortages of raw materials.

The 13 concessionaires developing pulp-timber estates are PT
Tusam Hutani Lestari, which is currently collaborating with
state-owned PT Inhutani IV in Aceh; PT Indonusa Indrapuri, with
Inhutani IV in Aceh; PT Inti Indo Rayon Utama in North Sumatra;
PT Wirakarya Sakti in Riau; PT Arara Abadi Indah in Riau; PT Riau
Andalan Pulp and Paper in Riau; PT Musi Hutan Persada, with
Inhutani II in South Sumatra; and PT Menara Hutan Buana, with
Inhutani II in South Kalimantan.

The concessionaires operating in East Kalimantan are PT ITCI
Hutani Manunggal, PT Surya Hutani Jaya, PT Tanjung Redep and PT
Adindo Foresta, all of which are collaborating with Inhutani I.
The other concessionaire is the Enzo Forest Development
Corporation, which cooperates with Inhutani III in West
Kalimantan.

When pulp and paper prices on the international market began
going up early last year, the government decided to resume
issuing licenses for pulp-timber plantations.

Proposals

So far, nine additional forestry companies have submitted
their proposals to the ministry, requesting permits to develop
pulp-timber estates. To obtain the permits, the government has
stipulated that the companies must have already built pulp-
production factories beforehand.

The report, a copy of which was obtained by The Jakarta Post
yesterday, shows that the nine companies, which have gained
temporary permits, will be allotted 1.42 million hectares of land
to be used for their timber estates. So far, however, they have
planted only 26,273 hectares.

The nine firms that have already submitted proposals are PT
SSPI and PT Kumala Karya Lestari in North Sumatra, PT Intan Prima
Cell in Riau, PT Pakerin in South Sumatra, PT Sinar Alam Lestari
and PT Dharma Tri Eka S. in East Kalimantan, PT Sinar Kalbar Raya
and PT Citra Jaya Industri in West Kalimantan and PT Guhara
Lestari Cell in Southeast Sulawesi.

Indonesia's pulp and paper industry, which currently has a
production capacity of 1.04 million tons a year, needs some 5.2
million cubic meters of timber a year. Raw materials for the
industry are presently still obtained from small-sized wood from
land-clearing and forest conversion projects. (pwn)