Forestry ministry proposes payment for forest uses

The forestry ministry is exploring the possibility of imposing non-tax payment for the conversion of forest areas for forestry companies so that the government will have a source of income to pay for the acquisition of conservation areas currently occupied by the people, Bisnis Indonesia reported on Thursday.

The ministry?s secretary general, Hadi Daryanto said in Jakarta on Wednesday, like in the mining sector, the forestry companies should also be charged for the conversion of forest areas for their businesses.

The non-tax income could be used to finance the acquisition of conservation areas currently occupied by the local people so that these areas could be returned to their original function as forest areas.

?The compensation is needed because the people will refuse to release the land if there is no payment involved,? he added.

If such a payment is approved, the ministry would be able to further increase the forest areas which have continued to decline because many parts of the areas have been used for business purposes such as plantations and mining operations. (*)