State wood-based firms record soaring profits
State wood-based firms record soaring profits
JAKARTA (JP): State-owned wood-based companies recorded
profits of Rp 181 billion (US$82.2 million) in the first semester
of this year, compared to Rp 130 billion in the whole of 1993, a
minister says.
"The soaring profits were contributed by the increasing wood
prices and government policies allowing state-owned firms to
participate in the wood processing business," Minister of
Forestry Djamaludin Suryohadikusumo said in a hearing with
Commission IV of the House of Representatives (DPR) yesterday.
"Actually, we originally projected that those companies would
generate about Rp 88.53 billion in pre-tax profit this entire
year," he said.
Djamaludin promised to maintain efforts to increase the state-
owned companies' profitability in the coming years.
"We will increase efficiency, progressively diversify the
wood-based products and expand our markets," he said.
Reforestation
The Minister also said that his office plans to spend Rp
538.82 billion worth of reforestation funds to finance various
projects.
He explained that Rp 306.73 billion (56.43 percent of the
total funds) will be used to develop industrial timber estates,
Rp 13.36 billion (25.30 percent) for various infrastructure
projects and Rp 60.90 billion (11.30 percent) to rehabilitate
expired forest concessions.
Rp 17.81 billion (3.31 percent) will be used to finance the
housing programs for nomadic forest-cutter families, Rp 12
billion (2.22 percent) for loans for forest farmers and Rp 5
billion (0.93 percent) for small-scale forest-agriculture
activities under a presidential aid scheme.
It has been reported that for the last five years the
reforestation funds have totaled some Rp 3.04 trillion. All of
the money has been placed in time deposits in several state banks
and in commercial papers issued by the central bank, Bank
Indonesia.
Djamaludin said yesterday that Rp 98 billion of the interest
from the saved reforestation funds will be used to finance a
number of projects.
About 71.45 percent or Rp 70.09 billion will be used to
finance infrastructure and training projects, 11.13 percent or Rp
10.92 billion for forest development control and 10.05 percent or
Rp 9.86 billion for employee training.
The minister added that 6.33 percent, or Rp 6.21 billion, will
be utilized for research.
IPTN
Djamaludin, however, explained that the interest financing
programs do not include the recent controversial Rp 400 billion
interest-free loan made in July to the state-owned aircraft
manufacturer (IPTN) to support the manufacture of N-250 aircraft.
The loan was made under a presidential decree which was to be
disbursed over 10 months since June in which about Rp 40 billion
to 50 billion is lent out every month.
"I can tell you that since August, we have allocated about 60
percent of the total loans," Djamaludin told reporters yesterday.
He added that IPTN will return the money once "they are able
to produce and sell their airplanes."
At the hearing, Djamaludin also said that in July and August,
Indonesia's plywood exports declined and unsold products caused
stockpiling at factories.
"We are still investigating whether the decline is only a
short-term trend," said the minister, who declined to comment
further on this matter.
Indonesia's wood panel exports reached 7.79 million tons worth
$5.47 billion last year. (hdj)