Reforestation funds

Reforestation funds

From Neraca

It would be best if the reforestation funds totaling Rp 7.7 trillion that were collected from forest concessionaires were directly allocated to the regions for reforestation purposes.

As far as the forest concessionaires are concerned, the funds could be kept either in the Ministry of Forestry and Plantations or go to the state coffers as nontaxable state income. What is important is that the funds are properly used, i.e. for reforestation.

Originally reforestation funds were termed "reforestation guarantees", as part of a program that been implemented since the 1980s. Through this program, forest concessionaires are obliged to reforest lands whose trees have been felled. This means that if the forest concession holders have done the reforestation, the guaranteed money is under state control.

But in practice changes of policy have been made. In the 1990s, fund guarantees were changed into reforestation funds. The funds no longer served as a guarantee but became a compulsory contribution from the forest concessionaires for every tree felled. Unfortunately, the funds were misappropriated. And mismanagement of this sort become a public secret. Therefore the government sought to transfer the reforestation funds to the state coffers as nontaxable state income.

It is high time the government allocated the funds to the provinces for reforestation purposes so as to conform with the ideal of forests for the people, meaning letting the community surrounding the forests participate in their development. This policy serves to eradicate the social gap which has often become a source of conflict in the forestry and plantation sector.

H. SOFYAN SIAMBATON

Chairman of Indonesian

Forestry Community

and Reform