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Pulp producers criticizes moratorium.

The moratorium on the use of forests and peat lands is feared to badly hit Indonesia's pulp and paper industry when the opportunities are wide open for the country to break into the ranks of world's third largest producers of that commodity in the world. Chairman of the Indonesian paper and pulp association (APKI) M. Mansyur criticized the government saying the government pays heed to the advice of foreign non government organizations sacrificing the national interest The government announced the two year moratorium earlier this year saying it would not hamper development of energy sector and rice and sugar plantations. The moratorium excludes the use of forest and peat lands for geothermal, oil and gas and electricity projects as well as for new rice fields and sugar plantations, an official said. The license for the exploitations of forest and peat land issued before the moratoriums was declared on May 20 effective also remains valid, Agus Purnomo, a presidential staff official, said. With the moratorium, the government would not issue new license for the use of primary natural forest and peat lands for two years. The moratorium is effective for 64.2 million hectares of primary forests, including 24.5 million hectares of peat lands. Investment would not also be hampered by the moratorium, said Hadi Daryanto, the secretary of the forestry ministry, pointing out there are 34.4 million hectares of damaged forest lands that could be used by investors. This year moratorium regulation would be implemented in Central Kalimantan to be followed by other regions next year. Environmental activities denounced the regulation as it covered only around half of the country's forests of 132 million hectares.
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Title Annotation:Economic News in Brief
Publication:Indonesian Commercial Newsletter
Date:Feb 1, 2011
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