Soeharto wants wood exports boosted

Soeharto wants wood exports boosted

JAKARTA (JP): President Soeharto yesterday urged Minister of
Forestry Djamaludin Suryohadikusumo to boost the country's
exports of plywood and pulp, without sacrificing the forests'
sustainability.

Djamaludin told journalists after a meeting with Soeharto that
the president was concerned about the decrease in the country's
exports of a number of commodities, including wood products.

"As the growth of exports of several commodities has been
decreasing, especially wood products, we are advised ... to boost
exports without destroying our forests," said Djamaludin, who was
accompanied by senior officials of his ministry in the meeting
with the President.

Official data shows that Indonesian exports of wood products
decreased by 2.6 percent in the January-August period of last
year to US$3.5 billion from the corresponding period in 1993. The
decline resulted mainly from a drop in plywood exports, which
fell by 7.9 percent to $2.6 billion.

To offset the decline in plywood exports, Soeharto asked the
minister to promote the further development of the pulp industry
as its prospects were good.

The price of pulp on the world market has been increasing
recently, reaching $700 per ton, an increase of almost 60 percent
from the last few years.

Djamaludin said that to support the export growth of pulp, the
government has approved 13 new pulp projects, whose construction
is expected to commence within the next five to 10 years with an
annual production capacity of about 450,000 tons per plant.

Given its abundant resources, the minister said, Indonesia has
great potential for future exports of wood products, provided it
can maintain the sustainability of its forests.

"Although we still have abundant forests, many illegal logging
activities are continuing," Djamaludin warned.

He said the immediate task of the forestry industry is
maintaining the supply level of raw materials to the existing
plants, especially plywood plants.

The minister said the government will support the development
of industrial forests by private sector companies so that the
felling of trees in natural forests will be minimized.

"We have already spurred the development of industrial
forests. However, logs from our virgin forests will still be
dominant among our forestry products for the next 10 years,"
Djamaludin said. (rid)