December 28, 2009

The Forestry Ministry will raise forest levies in a bid to add Rp 30 trillion (US$3.24 billion) from the state budget to finance its forest restoration programs over the next 10 years.“We’ll increase the forest levies as planned. We understand the forestry industry is in a slump, so we’ll proceed after getting their input so that the raise will not impose too high a burden on them,” Forestry Minister Zulkifli Hasan said this the weekend.

The minister was speaking at a tree-planting ceremony organized by the Association of Indonesian Civil Servants (KORPRI), representatives of Jakarta’s South Korean community and the Karawang, West Java, local administration.The levies, which are categorized as non-state budget revenue, include the so-called reforestation levy, license to fell and use trees from forests (IUPHHK), production forest license fees, forest resource fees (PSDH), and stumpage compensation, which will be applied next year.