Reforestation fees to reach Rp 1.22t

Reforestation fees to reach Rp 1.22t

JAKARTA (JP): State revenues from the forestry and plantation
sectors are estimated to reach Rp 1.83 trillion (US$261.9
million) in the fiscal year 2000.

Minister of Forestry and Plantation Nur Mahmudi Ismail said on
Tuesday that the revenue target would be derived from
reforestation fees, royalties, levies and other service fees.

He told House Commission III for agriculture and food affairs
that reforestation fees in the fiscal year 2000 were expected to
reach Rp 1.22 trillion.

The government has decided to change the base year of its
budget from between April and March to a calendar year starting
in 2001. Therefore, the next fiscal year will start in April and
end in December 2000.

According to regulation No. 25/1999, 60 percent of
reforestation fees or Rp 729.9 billion will be allocated to the
central government and 40 percent or Rp 486 billion will go to
provincial administrations.

He said including Rp 2.7 trillion in reforestation fees which
were outstanding from the 1999/2000 fiscal year, there would be
Rp 3.9 trillion in reforestation funds available in the next
fiscal year.

Mahmudi said his ministry would see to it that not a single
cent of reforestation funds would be used outside the forestry
sector.

The previous government was criticized for allocating a large
portion of reforestation funds to projects not related to
forestry development.

"We will use the funds optimally for the development of
forests to ensure their sustainable management for public
welfare," he said.

He added that other revenues from the forestry and plantation
sectors in the next fiscal year would total Rp 615.6 billion, of
which 80 percent would be allocated for the central government
and 20 percent for provincial administrations.

Nur Mahmudi said his ministry would need Rp 4.68 trillion in
the development budget for the fiscal year 2000. (06)