Tuesday, 13 March 2012


             Today the fund available at the Board of Business Service (BLU), Ministry of Forestry was quite sizable, i.e. Rp 3 trillion. This BLU fund was each year increased by around Rp 600 billion from interest of reboisation fund. Unfortunately the utilization was still limited. Forestry Minister Zulkifli Hasan disclosed.

            Therefore Minister Zulkifli insisted land owners who wish to planet sengon trees not to hesitate to borrow from BLU.”If they wish to plant sengon trees they could borrow Rp 8 million from BLU. Within 5 years the yields per hectare could come to Rp 200 to Rp 300 million’ he remarked.

            Sengon tree planting was a long business, so for the term income, Sengon could be planted alternately with seasonal plants like corn, beans and vegetables; as for the mid business, if farmers needed emergency fund they could run live stock farming or animal rearing.

            The repayment plan for BLU credit is very easy; it’s payable on the eighth year and install on the ninth year when Sengon was harvested, so farmers need not be trapped in premature hedging or borrow money to return the BLU credit “Zulkifi remarked.

            If this BLU fund was not enough farmers could apply for credit from People’s Credit Fund (KUD) as much as Rp 20 million so the people’s plantation-based wood industry could be well developed.

            If the planting was not for commercial purpose and done in empty space, the Minister had procured fund of Rp 50 million per group whereby to develop seed nursery gardens and seed garden for school. This fund was meant for high quality nursery distributed to the people for planting. The seeds procured was according to public demand.

            For local Governments who planned to plant trees, the Ministry of Forestry had allocated fund of Rp 2.5 trillion. This fund was allocated for local Governments on condition they provide complementary fund taken from Regional Budget (APBD). Allocated fund from the Ministry of Forestry amounted to Rp 3 – 5 million ha, while the rest would be borne by local Governments.

Business News - March 7, 2012

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