State forest firm books sharp rise in net profit
JAKARTA (JP): The after-tax profits of the state-owned Perhutani forestry company rose by 168 percent from Rp 24.1 billion in 1992 to Rp 64.6 billion (US$30.76 million) in 1993, the company said yesterday.
The president of Perhutani, Harnanto H.M., said in a hearing with the House of Representatives (DPR) yesterday that the 1993 balance sheet is still being audited by the Government Audit Agency (BPKP), but preliminary estimates put its net profits at Rp 64.6 billion.
"BPKP has almost always approved Perhutani's financial reports without reservations," Harnanto said, referring to the reliability of the company's balance sheet.
Perhutani administers and manages the entire 2.55 million hectares of forest in Java, except that in Yogyakarta.
Harnanto told members of the House's Commission IV, dealing with forestry and agricultural affairs, that Perhutani's total revenues rose from Rp 320 billion in 1992 to Rp 421.3 billion in 1993.
He said that in the near future, Perhutani will place more attention on human resources development and diversify its forest-based products to include honey, silk, resin of certain trees -- the gandarukem (a tree that provides resin used for caulking and soap), getah damar, getah pinus and other trees -- as well as eco-tourism.
"Perhutani is looking for cooperation with private companies to promote forest tourism," he said, adding that based on the present situation, Perhutani has some 200 potential tourist resorts.
Thirteen members of the commission, however, raised dozens of questions and suggested that the state-owned company emphasize its prosperity-approach programs to help the people living near the forests.
Deforestation
Djasman Ismail of the Armed Forces faction (ABRI) and Yunus Kardi of the Golongan Karya faction (FKP) said that deforestation has occurred in some teak forests in Cirebon, Majalengka and Cikampek, all in West Java, to make way for real estate development.
Djasman reminded Perhutani that only 22.8 percent of the densely populated Java Island are forested.
"The rest will likely become a forest of steel and concrete," he said, adding that the ideal size of forested area should be 30 percent of the total land area.
Harnanto said Perhutani currently employs some 17,000 white- collar workers, of which only three percent are university graduates, and 61,000 blue collar workers.
He said Perhutani avoids the use of machinery in its operations in order to employ as many people as possible, even though efficiency requires mechanical work.(09)