Rp 500b earmarked for infrastructure
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)