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Jakarta Post

Wood industry in Riau on brink of collapse

  • Rizal Harahap

    The Jakarta Post

Pekanbaru   /   Thu, February 28 2008   /  11:29 am

The wood processing industry in Riau, including sawmills and molding firms, is on the brink of collapse due to a scarcity of raw material supplies, said the head of Riau's Indonesian Wood Community (MPI), Hotman Butar-Butar. Hotman said on Wednesday that wood supplies were falling because many forest concession holders were involved in rampant illegal logging practices in the province. "The (illegal logging) cases involving a number of forest concession holders are being investigated by the Riau Police," he said. "There is no clear information as to when the investigation will be completed. The problem is that we depend heavily on them." Hotman said nearly half of the 150 sawmills registered at MPI had stopped operations and "similar hardships" were affecting 35 registered molding firms in the province. Nearly 30 percent of 35...