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  • Forestry licences boost plantation investments

    2009 - 11.18

    In Indonesia, a tranche of new forestry development  licences is expected to increase the supply of logs by almost 40 percent  to 18.5 million cubic meters according to the forestry minister.

    Bedio Santosa, director of forest development said.  “More than 300,000 hectare of production forests can be harvested next year. That will amount to an additional five million cubic meters of log supply”   He went on state that about 60 percent of logs from HTI planations (in which concession holders have to replant) would likey supply the paper and pulp industry with the reamainder going to supply wood based industries.  There are five sources of logs that Indonesia recognises:  HTI,  natural forests,  plantation grown forestry,  land cleared products and community based forestry.

    Indonesias government has been involved in a number of forestry investment campaigns to increase the capacity of HTI and HTR following the drastic reduction in its natural forest resources. The production of timber from  natural forest has declined from 25 million cubic meters to just over 7 million cubic meters.  The new licences being issued by the government are indicative of the aggressive strategy they have been taking to develop new forestry plantation sites for logging.   The ministry for forestry has issued data which states that the total area of HTI sites is 4.2 million hectares.  These forestry plantations are  capable of producing almost 14 million cubic meters of plantation sourced timber per annum.  Furthermore the plantation sites are forecast to continue to expand and reach 5 million hectares by the end of 2009.

    Acccording to Bedio Santosa,  the ministry had issued licences for nearly 12million hectares of HTI but there was still some delay in processing the approvals at regional levels.   He said.  “As the production of logs from the natural forests is declining, we’ve accelerated the development of HTI and HTR to meet demand from forestry-based industries.”

    Indonesia has 3.6 million hectares of HTR forests of which nearly 3 million he tatres are located in Java. The domestic demand for logs in 2008 was 80 million cubic meters with the supply of legal logs being less than 30 million cubic meters from HTI and HTR  and natural forests.  Opportunities are therefore emerging  for  large scale foresty investment in the region.

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