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