Log Exports Loosened Ahead Of Rise In Forestry Non-Tax Revenue

Kamis, 13 Maret 2014 | 09:42

Entrepreneurs assume that the increase of non-tax revenue (PNBP) by March 14, 2014 as stipulated in the Government Regulation No.12/2014 will further burden the forestry industry.

The government is planning to provide incentive by allowing log exports to improve the ability of

Based on the regulation, the hike will be carried out by means of increasing provision of forest resources (PSDH) from the benchmark price multiplied by 10% for each m3 of timber from natural forest and 6% for every m3 of timber from plantation forest.

 “We expect the government not to raise the benchmark price, which is already at IDR40,000/m3. They also need to consider condition and performance of the upstream forestry sector,” said Executive Director of Indonesian Forest Concessionaires Association Purwadi Soeprihanto to Bisnis, Wednesday (3/12).

According to him, entrepreneurs reject the increase of non-tax revenue because they are also burdened by the increase of reforestation fund (DR) and benchmark value replacement (PNT).

In terms of reforestation fund levy, the association has urged the government to allow business players to use rupiah currency instead of dollar currency for payment since it is increasingly burdensome.

Responding to the rejection, Minister of Forestry is planning to provide incentive after the increase of non-tax revenue by means of allowing exports for log that had been planned to be processed by domestic industry.

Director General of Forestry Business at the Ministry of Forestry Bambang Hendrayono said certain timbers are more profitable if exported.

“Our log is already limited and it has a good quality. Don’t let it taken by molding industry. There are certain types of log which better is for exports. This is why we want industry to able to export log from plantation forest.

With the opening of exports, Bambang said the holder of industrial plantation forest (HTI) permit will be more confident toward Timber Legality Verification System (V-legal Certificate) that has been recognized and accepted by international consumers.

Furthermore, he added, the Ministry of Forestry will now proposed the benchmark price which was previously set by the Ministry of Trade based on survey institutions.


He said this is one of the incentives for entrepreneurs because the Ministry of Trade has previously set a high benchmark price so that the timber from production is not absorbed by the market.

“If the benchmark price is too high, there is no profit in upstream sector so that the market does not absorb the goods. We recommend it based on the fact so that we will deal in the benchmark price,” he said.

According to him, the ideal benchmark price is around 30%-40% from the current price. Under the ideal price, he is confident that the non-tax revenue from plantation and natural forest sector will increase.

The reason is because the primary price is one of determinant factors for company to sustain its business or not, and the ministry has an important role in this regard to maintain the continuity of business in upstream and downstream.

Bambang said the upstream forestry sector in Indonesian has drawn global attention following the implementation of sustainable forest management (PHPL), which makes way for the timber to get V-legal certificate so it can enter into the export-oriented industries.

Moreover, the signing of FLEGT-VPA which is claimed to maintain a comparative advantage of Indonesia’s upstream forestry sector has successfully prevented Indonesian timber with no V-legal documents from being absorbed by the market. (t06)

by Arys Aditya, Arsyad Paripurna
source http://business.bisnis.com