The forestry ministry will not accept new applications for licenses to open industrial timber estates (HTI) after the end of October, 2008, a ministry official said, Asia Pulse reported.
The ministry has already issued licenses for 9 million hectares of HTI and new applications have been received for license to open 4 million more hectares, director of HTI development Bejo Santosa said. Santosa said the ministry wants license holders to immediately implement their projects, adding failure will result in revocation of their license. The license holders are given six months to prepare work and if there are no activities after six months their licenses will be given to other investors, Forestry Minister MS Kaban said earlier. Santosa said the ministry has set a target to open up to 15 million hectares of HTI by 2013, adding that therefore 6 million more hectares will be needed.HTI concessions have been grown mainly with acacia trees to feed pulp and paper factories.