Thursday, 11 October 2012


The recent condition where the global market is weakening so that demand for timber is also weakening, it is time to evaluate forest concession (HPH) and industrial forest (HTI) concession. “We must reconsolidate the concessions that we have been granted, whether they have been utilized or not”, said Forestry Minister, Zulkifi Hasan, during inauguration of Director General of River Basin and Social Forestry, Director General of Forestry Business Development, and the Minister’s Expert Staff for Institutional Affairs.

Holders of HPH are recorded at 228 medium companies, while there are only 100 companies which are actively operating. While, number of HTI concession holders has reached 300 companies, based on the report received, most companies are fast in conducting land clearance, but are very slow in planting plants.

“We will evaluate which ones are still active and which ones are not, as there are many investors interested in investing in HTI, but they have difficulty in obtaining land. If the concessions are unutilized, we must discipline them. Many domestic investors are interested in investing in HTI and we will give them opportunity”, he said.

The evaluation process will take 3 months. Large groups that have dominated a large quantity of land, because in the past there is no regulation on this matter, will now be limited. “We will give opportunity to other companies to invest in HTI”, he said.

All holders of HTI concession are required to support food security by planting 5% of its plantation area with food crops and to set aside 20% of their plantation for plasma area in the form of food crops planting. State-owned enterprises, such as Perum Perhutani, are required to do planting of agricultural crops between food crops, and so is the case with HTI concession holders at the beginning of planting.

The Forestry Minister also demanded HPH for Ecosystem Restoration to be multiplied and the licensing process to be eased. And, the main task of the Director General of River Basin is to achieve success of planting program on 500,000 hectare area/year. This target must be achieved immediately. And, community forest and smallholder forest must continuously be built.

Heri Priyono, Director of Plantation Forest, said that the government sets target of planting of new plantation forest in the form of Community Plantation Forest at 1,185 million hectares, Community Forest in Java at 25,000 hectares, and Industrial Forest at 2.5 million hectares.

Plantation forest is expected to fulfill raw material demand by pulp industry at 13.3 million tons, paper industry at 8.1 million tons, plywood industry at 8.6 million tons, sawn timber industry at 10 million m3, wood working industry at 6.3 million m3, and furniture industry at 1.3 million m3.

Number of HTI concession holders is recorded at 229 units, and 104 units have performed macro and micro delineation, 183 units have received approval on General Work Plan, and 46 units have received annual work plan of 2012, 41 units have received Monitoring, Reporting and Verification of 2012 with size of planting area of 1,143,715,000 hectares.

Warning given to HTI concession holders who have not made a General Work Plan numbering 10 units, not operating activities 3 units, and leaving their work area dormant 3 units. While, the number of those whose licenses are revoked because they did not make General Work Plan and Annual Work Plan numbering 12 units and those who did not operate activities 3 units.

Holders of HTI concessions are demanded to make a forest boundary demarcation, to arrange General Work Plan, to do reporting, to conduct planting continuously, to be proactive in solving conflicts with the community, to plant crops for livelihood (tanaman kehidupan) in the first year, and vacant land must immediately be planted.  

Business News - August 23, 2012    

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