Indonesian government seeks fees on forest use

Agustina Wayansari, The Jakarta Post 15 Feb 08;

The government has told non-forestry companies operating in the forest to pay them compensation in a move to make those companies operate more responsibly, the Forestry Ministry said.

As mandated under a new government regulation, non-forestry firms operating in the forest are now charged with a fee of between Rp 1.2 and Rp 3 million per hectare per year, said ministry spokesperson Masyhud on Thursday.

The amount of compensation depends on their type of business and the type of land they operate and is applicable only to businesses that have entered exploitation stage, he said.

The new regulation has been effective since Feb. 4, but only appeared on the ministry's website on Thursday.

Companies in mining, oil and gas exploration, telecommunication networks, radio and television transmissions, electricity operations, water installations, and turnpike infrastructures will be among the main targets for the new regulation.

Masyhud said the government expected a total revenue of around Rp 600 billion this year from the regulation.

"It is not about how much we can get, but more to make those operating in forest land appreciate the value of the forest," Mashud said.

"We want to make businesspeople more responsible and understand that forest lands have strategic value.

"This is the first time we have asked the companies to pay.

"Besides, it is not easy to find replacement land for used forest areas," said Mayshud.

The new regulation also applies to 13 companies currently operating in protected forest, whenever they enter the exploitation stage.

Masyhud said companies carrying out open mining activities in protected areas will have to pay the highest charge, Rp 3 million per hectare per year.

The country's protected forests are supposed to be free from any exploitation and exploration activities for commercial purposes, but the 13 companies were given an exception in 2004 following a much-publicized dispute.

The companies include PT Aneka Tambang (Antam), PT Inco, PT Freeport McMoran Indonesia, PT Nusa Halmahera, PT Nataran Mining, PT Indominco Mandiri.

They were mostly operating in the eastern part of the country.

Masyhud said only three had so far entered the exploitation phase -- the Nataran Mining in Lampung, Indominco in East Kalimantan, and Antam in North Maluku.