Rp 500b earmarked for infrastructure

JAKARTA (JP): The Ministry of Forestry will set aside Rp 500 billion (US$224.6 million) from the interest on its reforestation fund to finance the construction of the infrastructure facilities needed to create new rice fields in Central Kalimantan.

Minister of Forestry Djamaludin Suryohadikusumo was quoted by the Kompas daily on Tuesday as saying that the funds will be used to assist the government's program of establishing one million hectares of new rice fields in Central Kalimantan, in a bid to boost the country's rice self-sufficiency program.

The Central Bureau of Statistics said last June that rice production in Indonesia fell last year by 3.2 percent to 46.6 million tons of unhusked rice -- the lowest level in 15 years -- from 48.2 million tons in 1993.

Indonesia, formerly the biggest rice importer in the world, became self-sufficient in rice in 1984. But the country began importing rice again last year due to the fall in production.

For this year's domestic procurements, the National Logistics Agency has signed contracts for the purchase of 1.04 million tons of rice from domestic suppliers.

The crash program in Central Kalimantan will require the clearing of at least one million hectares of swamp for new rice fields.

Several parts of the swamps, however, overlap with forest concessionaires and industrial timber estates, bringing the ministry of forestry into the program.

Djamaludin stressed that the reforestation fund, established with mandatory contributions by forest concessionaires to maintain forest sustainability, would remain intact, since the program will only make use of the interest on the fund.

In a hearing with House members last June, Djamaludin said that over the last five years, his office has collected Rp 3.04 trillion (US$1.44 billion) in contributions.

All of the money has been placed in time deposits in several state banks and in commercial papers issued by Bank Indonesia (the central bank).

The reforestation fund, totaling Rp 400 billion in interest- free loans, has also been used to support the construction of the N-250 aircraft by state-owned aircraft maker, Industri Pesawat Terbang Nusantara (IPTN).(pwn)