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)