State-owned firms should manage forests
State-owned firms should manage forests
JAKARTA (JP): A seminar recommended yesterday that state- owned companies take over managing forests from private concession holders for the benefit of the public.
Participants argued that state companies will be able to ensure that most of the financial, ecological and social benefits from the exploitation of the forests will go to the people instead of businesses.
The one-day seminar held by the Indonesian Environmental Forum (Walhi) was attended by representatives from various organizations, including concession holders, the timber industry, government institutions, universities, research institutions, non-governmental organizations, the bank sector and members of the House of Representatives.
Walhi's program director M.S. Zulkarnaen said that many concession holders have raked-in huge benefits in violation of the 1945 Constitution.
"Their activities violate Article 33 of the Constitution, which states that natural resources are to be controlled by the state and used for the people's welfare," he said.
The Indonesian government has issued forest concessions to the private sector since 1967.
According to official statistics, 74 percent of Indonesia is forested. There is 193 hectares of land in Indonesia of which 143 million hectares are forested, 64 million of these hectares are allocated for production.
Zulkarnaen said the forest management system should tighten control of forest exploitation to ensure that the natural resource is sustainable.
He said that, according to Walhi's investigations, only 17 percent of the annual total income of US$2.5 billion from forest concessions makes it to state coffers, while the remaining 83 percent, about Rp 4 trillion ($1.8 billion), finds its way into the pockets of concessionaires.
He also said that the forest concessions are to blame for the deforestation of 2.4 million hectares between 1982 and 1993. According to satellite photographs, there is only 92.4 million hectares of virgin forest left.
Sofyan Siambator, a concession holder, said the best way to solve forest mismanagement and deforestation is to let state- owned companies manage the forests.
"Management by state-owned companies will at least minimize forest over-exploitation," he said, adding that state-owned companies will not only look after benefits but also pay better attention to conservation.
He argued that the public should own the forests.
"I recommend that 80 percent of forest ownership go to the public, another 10 percent to the concession holders, and the remaining 10 percent to the government," he said.
Mubha Kahar Muang, a legislator from the ruling Golkar group, agreed that state-owned companies should manage the forests but noted that they should only take over concessions already revoked by the government.
Prabowo, a staff member at the Ministry of Forestry, said his office has revoked 84 concessionaires over the past five years for various violations, and that 54 of them have since regained their operation permit.
There are currently 541 concession holders registered at the ministry. (imn)