APHI Forestry Sector Revitalization Should Be Accompanied by Deregulation

APHI Forestry SectorThe Indonesian Forest Entrepreneurs Association (APHI) considers the need to revitalize the forestry sector that is focused on the development of Industrial Tumbuhan Forest (HTI) coupled with deregulation.

The deregulation, according to Secretary General of APHI, Agung Nugraha, in Jakarta, Monday (13/6), is implemented by shortening the licensing process and cutting the cost or excessive levies that are the source of high cost economy.

In addition, according to him, HTI development should also be supported by incentives in the form of tax reforms concerning the types, mechanisms, and magnitude. To that end, the government needs to improve the system and the value of PBB and the elimination of VAT.

The government should also revise the various tax levies stemming from the overlapping regulation on taxes from the central government.

Therefore, APHI supports the forest department's steps in negotiating revisions or improvements to various regulations related to the taxation issue.

Previously, President Susilo Bambang Yudhoyono when declaring the Revitalization of Agriculture, Fisheries and Forestry in Jatiluhur, Purwakarta, West Java, requested that the Reforestation Fund (DR) stored in the bank can be used to revitalize the forestry sector, especially in HTI development.

�The forestry sector needs large capital and it is time for DR which has been stored in banks used to finance the forestry sector, especially HTI. I ask the relevant agencies to discuss this seriously because for the revitalization process we need a big cost, the President said.

Agung Nugraha, who sees it as a positive signal for the revival of the forestry sector, said the government should be able to draw up a funding scheme for HTI development. The source of HTI development funds should be below commercial interest because HTI development takes a long time, big business risk, and relatively small profit from HTI, he said.

�One of the funding mechanisms in HTI development can be implemented through profit sharing system.

To involve the community around the forest in HTI development, he said, the need to develop community forest management system, among others in the form of community plantation forest or community forest.

No less important, he said, is a strong and clear legal umbrella for HTI, so that HTI managers get legal certainty. This needs to be done while Law No. 41/1999 on forestry is being amended.To ensure the legal certainty of HTI, the Ministry of Forestry needs to recalculate the area regarding the extent, type and function of the forest, defining the forest area.

In addition, the authority to grant concession permits between the central government and the provincial and district governments should also be realized in order to avoid overlapping of permits in one forest area.

Equally important, the forest department must also establish government regulations governing customary forest determination mechanisms.

To support the preservation of local crops, especially Meranti, Agung said that the government must provide a legal umbrella as well as policy support and fiscal incentives for the development of Meranti plantations.

Currently, according to him, the effort to preserve the Meranti plant as a superior wood commodity which is still the main raw material of most of the national wood processing industry has been done some union management of Forest Concession Holders (HPH). (* / dar)

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