Thursday, 19 March 2015


The Association of Indonesian Forest Managers, Industrial Forest Plantation Division supported effort of the Ministry of Environmental Affairs and Forestry to foster partnership between HTI companies and the public, but the obligation to save 10% of land for partnership must be reviewed. Nana Suparna, Head of APHI in HTI made this statement.

To look at companies which were obliged to share 20% of land in partnership as an example was not right. Plantation companies worked on the basis of Business Utility Right (HGU) so they did not fully manage the land and could use the land as credit guarantee. As with HTI, the basic right was still in the Government’s hand. Businesspeople had the right over the plants but not the land.

The Government must never think that once they allocated 20% partnership there would be no conflict with the people. The root of dispute was more complex than just partnership allocation so it was no guarantee there would be no conflict. The main problem of HTI companies was that there was no certainty of land ownership and poor legitimation of forest areas.

Data of the Ministry of Environmental Affairs and Forestry had it that total area of productive forest in Indonesia was 66.2 million hectares. Of the total area 34.3 million Ha had been given permit; meaning there was still 34 million not being given permit and advisably this part of land was open for access to the public, thereby the public had broader access instead of relying on HTI Partner ship which was only 10 million ha.

Today most of HTI companies were not in operation due to poor financial back up, low log price and many illegal collections.

Nana asked the Government to support HTI operators whereby they could operate well today HTI must run the economic, social and environmental role the balanced way. (SS)

Business News - February 25, 2015

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