Revocation of timber concessions will 'hurt' plywood industry
Revocation of timber concessions will 'hurt' plywood industry
JAKARTA (JP): The government's recent move to revoke the
concessions of several timber companies will severely hurt the
country's plywood industry, according to the Indonesian Forestry
Society.
The society's general chairman, Sudradjat Dp., said on Friday
at least five plywood mills had stopped producing due to the
scarcity of logs, the main raw material.
"Although they are not large industries, the difficulties will
affect the export market," Sudradjat was quoted by Bisnis
Indonesia as saying.
He said that the number of plywood producers facing closure
due to the lack of log supply would increase within the next few
months.
The government revoked early this month eight forest
concessions and will not extend 13 others which expired next
March because they were allegedly obtained through corruption,
collusion and nepotism (KKN).
The concessions total 2.53 million hectares.
Most of the forest concessions were held by former president
Soeharto's family and close friends.
The society questioned the criteria in determining the
involvement of a timber company in KKN.
He charged the government's move was intended to punish
certain companies.
"If we want to be fair, almost all of the country's forest
concessions are KKN-tainted. But why are only certain companies'
concessions being suspended?" he said.
The Ministry of Forestry and Plantations has so far awarded 50
logging contracts which cover more than 61 million hectares of
forest throughout the country. Most of the concession rights were
awarded to Soeharto's family and close friends, including golf
buddy Mohammad "Bob" Hasan.
Plywood, a wood panel product, is the country's second largest
non-oil and non-gas foreign exchange earner after textiles and
textile-products. Indonesia, the biggest plywood producer,
produces 10 million cubic meters of plywood annually, 80 percent
of which is exported.
The society forecasts that plywood exports will contribute
US$8.5 billion from eight million cubic meters of volume this
year in line with increasing prices and demands. (01)