President Jokowi Meets with APHI, GAPKI

Minister of the Environment and Forestry answering questions from reporters at the Merdeka Palace, Jakarta, Tuesday (2/2)

The Indonesian Palm Oil Producers Association (GAPKI) and the Indonesian Pulp and Paper Association (APKI) on Tuesday (2/2) at the Merdeka Palace had a meeting with President Joko ‘Jokowi’ Widodo.

Minister of the Environment and Forestry Siti Nurbaya explained a number of issues discussed in the meeting; among others, joint efforts to develop correct strategies on the development of industrial forests in Indonesia.

Siti also said that during the meeting APHI also informed the rampant circulation of imported wood, including imported woods that enter the country illegally, while wood exported by members of APHI have to undergo a number of legal procedures.

“So here are the things we discussed and Pak President has instructed me to review previous strategies,” Siti told reporters after the meeting.

She also said that she would fully review that road map and adjust with the latest development and the Government’s targets.

For the record, according to APHI data, more than 10.7 million hectares of industrial forests have licenses but only 4 million hectares are effectively used.

“I also have records on several matters, including the visualization of the coverage of the lands and the progress of the planting, and others. APHI has also requested the Government to pay attention to several issues such as taxes and fiscal policies,” Siti added.

According to the Minister, Indonesia’s forestry industry potentials are basically still big; however, the condition on the ground so far shows that most of the industries are located in Java so those woods have to be transported to Java with high prices.

Regarding the price of wood, Siti said that APHI has requested the Government to allow them to export sawn wood because so far, according to Minister of Trade, several aspects related to sawn wood are restricted, such as the amount of export to be exported and others.

Siti acknowledged that in the forestry industries, there are several taxes that are imposed such as the tax of the management of forestry resources and reforestation (PSDR) and others.

“So APHI expressed their objection with the taxes because they are also subject to Land and Building Tax (PBB). APHI feels that they are having problems with those taxes,” Siti added.

Therefore, Siti said that she would ask Directorate Generals of the Ministry and Secretariat General to review several aspects that hinder the development of the industries.

“As for other taxes, we certainly have to consult with Minister of Finance because it has something to do with PNBP (Non-Tax State Revenue),” Siti said. (FID/ES) (EP/YM/Naster)