Govt to Reopen Log Exports

Jumat, 06 September 2013 | 08:44


Minister of Forestry is reviewing the option to gradually open log exports with strict criteria. General Director of Forestry Enterprises at Ministry of Forestry Bambang Hendroyono said there are a number of challenges in developing production forest, namely low price of domestic logs, utilization of potential wood in natural forests that is not running optimally, and poor planting in industrial forests (HTI).

In order to cope with those challenges, Forestry Ministry is now reviewing various policy references, such as production forest utilization, licensing, partnership pattern, and policy to reopen log exports.

He said the policy reference for log exports is formulated based on norm, standard, procedure, and certain criteria. For instance, it can only be conducted by the holder of timber utilization permit (IUPHHK) who also owns sustainable forest management certification (PHPL) and wood legality.

“We must first ensure the availability of raw materials for domestic industry before exports. The exported log is also restricted for certain quality,” said Bambang in a workshop entitled ‘The Future of Indonesia’s Production Forest Management’ on Wednesday (9/4).

Up to now, the government banned log exports. The log exports were allowed in 1998, resulting high deforestation in Indonesia. It was then prohibited in 2001 until today.

Nusa Eka, Member of Indonesia Trade Promotion Centre at Ministry of Trade, said the recommendation to allow log exports must be discussed comprehensively and should involve all related parties.

According to Indonesian Forest Concessionaires Association (APHI) Board of Trustee Member Bambang Widyantoro, the price of logs is IDR310.000 per m3 in domestic market and US$35-40 per m3 in international market. If the selling price of logs in the country does not increase, he said the investment in HTI will be hard to be done. (msw)

by Ana Noviani, Arsyad Paripurna
source http://en.bisnis.com