Forestry Ministry plans to raise forest use tariff by 300 percent

By Samantha

The forestry ministry unveiled plans to soon raise tariff for the use of forest area for mining operations by 300 percent in order to increase non-tax income from the forestry sector, as well as to reduce environmental damages from mining activities.

Director for the use of forest areas at the forestry ministry Hudoyo said that Minister Zulkifli Hasan had communicated the plan to Coordinating Minister for Economy Hatta Rajasa.

At present, the non-tax tariff for the use of forest area for mining operation ranges between Rp 1.2 million and Rp 3 million per hectare depending on the category of forests and mining methods being used.

The tariff for geothermal and oil and gas operation is lower than those set for mining operations.

?If the tariff is increased, the rate of the forest destruction can also be reduced,? Hudoyo added.

According to the forestry ministry data, the non-tax revenue received by the ministry from the use of forest areas by mining companies reached Rp 94.8 billion during the first six months of this year. The number of companies using the forest areas was 204 during the six month period. In 2011, the non-tax revenues collected from mining companies reached Rp 420.7 billion, while the number of the users reached 159.

The revenues paid by mining companies were quite small compared to those paid by logging companies which reached Rp 2.5 trillion a year.

Editing by Adianto P. Simamora